-- Connecting the dots between our economy, government and business --
With 1,000 workers facing layoffs, U.S. Steel has entertained bids to buy the whole company or sell Granite City Works to neighboring SunCoke Energy Inc. in a deal that would permanently cut an estimated 1,000 jobs. However, the union has said it has the power to veto the deal, a spokesman said. The news is a massive blow to the Metro East community whose economic vitality is centered around the plant.
Audio and summary linked here.
A mess of uncertainty and litigation is sure to follow.
Summary and audio linked here.
With $162 billion more from taxpayers, couldn’t you deliver a few bond upgrades, too
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PDJT saved Granite City from certain closure. Guess Brandon won’t. USW Bosses can pat themselves on the back now.
This is REAL wealth not FINANCIALIZED wealth and this kind of wealth is leaving the US. Since the 1980’s US wealth has been based on debt. Now its time to pay the piper as countries with real wealth emerge in the global south. Industrial capacity, gold, oil, resources, an educated public that works hard, etc. The world will eventually not want our dollars as they see other currencies backed by tangibles not backed by debt contracts foisted on an inflated economy held by folks now living paycheck to paycheck. We on the other hand just incurred another trillion in debt… Read more »
As crazy as it sounds, there’s actually something really, really interesting going on right now that is getting very little media attention outside of economics: The M2 money supply is contracting for the first time since the great depression. I know this is a bit economic nerd wonky but M2 generally speaking is the supply of money. An increase in the supply of money faster than economic production is considered inflation, and the side effect of inflation is higher prices. Inflation isn’t higher prices, its only a side of effect of the increase in the money supply. Likewise, deflation is… Read more »
The Chart
https://fred.stlouisfed.org/series/M2SL
Trying to correct, but an over correction will be a disaster. thanks for the alert
My confidence in the current Fed = 0.
Sorry but this is not my area of expertise but have you noticed that the uber rich like Gates and Bezos to name a few are buying hard assets like land all over the world. Almost all their wealth was/is in their own stocks they have and the value of that can drop dramatically in a short time. So the wealthy are buying up collectables/land/gold/etc and keeping away from physical currency or even digital currency. Do they know something we don’t? Just a guess.
Right on, debtsor. It’s indeed odd that the topic gets so little attention. One who has been pounding the table on that is Illinois escapee Misch Shedlock. I don’t always agree with him but he’s right that the big shrinkage of money supply is important. His most recent here: https://mishtalk.com/economics/the-wall-street-journal-perpetuates-the-ridiculous-sideline-cash-myth/. I would disagree with your last sentence. We do know why money supply is shrinking — the Fed controls it, as Mish wrote there. In decades past, money supply got lots of attention. That attentions seemed to dwindle as frustration grew over debates about how to measure it, which made… Read more »
Thank you for this link, it’s interesting. I’m familiar with Mish who IIRC lives in Utah now but I haven’t read him consistently for quite some time. The problem I have is that I no longer trust any institution in America anymore after what happened during the Trump era followed by the covid insanity. Most economists are fairly confident that China and other non-western countries routinely lie about economic data. Few take China’s data seriously and they rely on third party sources to reverse engineer their own rough data. Which makes me question our data now too. It’s a well… Read more »
Now we have to KILL GOTION to make sure the Illinois economy tanks. Welfare is good for the Democratic Politicians.
Some years ago when the Steelworkers union was demanding tariffs Trump, after being elected, travelled to Granite City to announce tariffs on foreign steel. Despite Trump giving the steelmakers union what they wanted come election time the steelmakers backed the Democrats. They, the steelmakers, got the President they backed and should be happy as life continues on in Madison County, Granite City Illinois.
I really do believe that most union members are dumb as a box.
Of rocks
“Illinois is back”