You'll Own Nothing and Be Happy

Sponsored by: Patriot Home Funding

A few days ago marked the six-month anniversary of President Trump's return to office. Trump campaigned on 2 major platform items: The border, and the economy.

Let's take a look at how things are going.

First the border: President Trump has essentially ended illegal immigration and we now have the safest, most secure border in the history of the country. Not only that, but many illegal aliens are now self-deporting, heeding DHS Secretary Noem's directive that if they want any chance at legal status in the future, they must take the offered incentives and leave now. Have you seen the traffic reports in Los Angeles lately? The volume of traffic at all hours is way down, a sure sign that the policy is working. The actual numbers are hard to quantify, but like the traffic in LA, there are signs that it is working.

Under the Biden administration, foreigners were incentivized to illegally enter our country. Under President Trump, they are incentivized to legally leave. Under the Biden administration, criminals were ushered into our country and strategically placed into areas where democrat numbers needed shoring up from a census and constituency standpoint. Under President Trump, ICE has been unleashed to hunt down the criminals, detain them, and deport them.

As for the economy, the One Big Beautiful Bill made permanent the Trump tax cuts from 2018. President Trump has correctly stated that a major goal of the federal government must be ensuring the US wins the AI arms race with China. Just last week, Trump announced another $90 billion of private investment in AI and energy, on top of the deals he has cut to add almost $3 trillion in private domestic energy and manufacturing investment, as well as $4.2 trillion of foreign investment in our energy and manufacturing sectors.

President Trump has successfully employed tariffs to get better trade deals for America, and shoring up our manufacturing capability, especially strategic manufacturing capability. 42 nations thus far have made new trade deals that are more advantageous for America, including some of our biggest trade partners like Japan, China, the UK, Vietnam, Canada, Mexico, South Korea, Taiwan, and the 27-nation member EU. The US government actually ran a surplus in June, for the first time in 24 years. Regulations have been dramatically cut, especially environmental regulations targeting energy and manufacturing, which is a hidden tax and impediment to progress and growth. In addition, the rate of inflation is waning and GDP is rising.

One area that has not been fixed, and is holding back the entire economy, is the housing sector. Starting in March 2021, the Biden administration, with the help of the democrats and republicrats in congress, passed $5.84 trillion in new spending, of which $4.7 trillion was deficit spending. Between all the Biden spending and the COVID stimulus in 2020, the M2 money supply increased from $15.4 trillion to $21.96 trillion, causing inflation to explode up to 9.1% in July 2022, and the value of long-term assets to increase 55% for equities and 47% for residential housing. Add in the cumulative inflation of 18.63% since Biden took office, interest rates that climbed from 3% to 7%, and you have a bleeding of cash flow for debt service and the transfer of long-term assets from the younger generation to the older generation, and from the lower classes to the upper classes.

In other words, Joe Biden, the democrats and republicrats on Capitol Hill, and the democrat academicians at the Federal Reserve have created such a high barrier of entry into the real estate market that they have stolen the greatest wealth creation apparatus of the lower and middle class- primarily to fund the green new deal and left wing special interests, like DEI, LBGTQ interests, and environmental policy. Then when you factor in the 10 million illegal aliens who have to live somewhere, Biden's policy of forbearance to delinquent mortgagors which effectively ended foreclosures of government insured loans, corporate ownership of housing increasing to over 10% of the nation's housing supply, and the fact that those who have interest rates under 5% make up over 70% of all homeowners, you have a perfect storm of increased prices, increased debt service, and decreased supply that has crushed the American Dream for a large sector of our youth. Realtor.com's Housing Forecast Midyear Update released on Wednesday predicts home sales in 2025 to hit 30-year lows. The main culprit? 30 year mortgage rates remaining higher than originally projected.

High interest rates increasing the cost of household debt service, goods and services inflation, and runaway long term asset inflation destroys the ability to save and invest, and create an unrealistically high barrier of entry into the real estate market for our youth and the middle and lower classes. It is generational theft. It is absolutely unconscionable. It is arguably Joe Biden's most enduring legacy.

President Trump understands that growth is the way out of this calamity, but the growth he seeks is largely blocked by the Federal Reserve's boneheaded interest rate policy, which is not only out of touch with the American economy, but out of touch with the rest of the world. Among the largest 25 developed nations, our 4.5% fed funds rate is higher than all but 7, with the outliers to the upside being Mexico, Russia, Turkey, and Brazil- all with rates over 8%. 8 of the 25 have rates at 3% or lower.

The fed controls the short end of the yield curve, and the bond market controls the long end, but as we have seen time and again, the market will follow and sometimes even wait for the fed. Jerome Powell and the academicians at the federal reserve, who by the way in 2024 donated to democrats over republicans by a factor of 19 to 1 and to Harris over Trump by a factor of 15 to 1, are not only costing the American taxpayer billions in interest on the government debt service, they are keeping in place a crooked system that is stealing the wealth of our children, and our children's children, all for the purpose of greed and political ideology. They are the guardians of the failed system.

Washington, Jefferson, Adams, Madison, and Jackson, all wrote about the likes of Joe Biden, Jerome Powell, the thieves and swindlers on Capitol Hill, and at the Fed 250 years ago as it pertained to central banks. They knew. Adams warned us when he said, "All the perplexities, confusion, and distress in America arise, not from defects in their constitution or confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit, and circulation."

Or maybe Klaus Schwab summed up what is perhaps Trump's greatest challenge when he said, "You'll own nothing and be happy."