1 Out Of 3 U.S. Small Businesses Suffer Rent Blues Because Of Bidenflation

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Riddick
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1 Out Of 3 U.S. Small Businesses Suffer Rent Blues Because Of Bidenflation

Post by Riddick » 07-02-2022 03:58 AM

The small business network Alignable released new survey results that found 35% of U.S. small business owners “could not pay their rent in full or on time in June.”

“Most small business owners attribute this worsening situation to record-breaking inflation, which includes escalating gas, labor, and supply costs,” Alignable said. “Simply put, there’s less money available to pay the rent.”

According to the survey, rent increased for 48% of small businesses this month. Meanwhile, rent delinquencies have continued to increase all year. “This is the highest rate of U.S. rent delinquency among SMBs this year,” the group said.

Another key factor hurting small businesses are record highs in gas prices. “Even more alarming, 63% of transportation SMBs couldn’t afford June rent, up 41% from May,” Alignable said. “It's no shock to learn that 76% of this group said gas prices have had a ‘very significant’ negative effect on their businesses.”

The report comes as other survey data show that soaring inflation is a top concern for small businesses. As The Center Square previously reported, the survey found 51% of small businesses fear that rising prices could “force them to close their businesses within the next six months.”

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Re: 1 Out Of 3 U.S. Small Businesses Suffer Rent Blues Because Of Bidenflation

Post by Doka » 07-02-2022 06:35 AM

It is difficult to watch, our small businesses go away like bad bulbs on a Christmas Tree. The Rural areas will go first, they want every one in the Cities, in tents, I am assuming as they hate Americans who might be able to care for themselves. "Thinking" people are a threat to them.
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Think Inflation Is Bad NOW? It Could Soon Snowball

Post by Riddick » 07-07-2022 12:10 AM

For all the talk about combating inflation, the Federal Reserve is likely to reverse course and continue to print substantial amounts of money because doing otherwise would threaten the federal government with insolvency, according to macroeconomic analyst Luke Gromen.

“I think they have to. I don’t think they have a choice,” he recently told Wealthion’s Adam Taggart.

The problem is higher interest rates mean that government will have to pay more interest on its debt, which now stands at over $30 trillion. Moreover, higher rates mean less credit and less economic activity. A contracting economy translates to higher welfare expenses as more people go to the government for relief.

“The U.S government is not going to be able to cover its interest and interest-like expenses, which I call the true interest expenses—entitlement, pay-gos, Treasury spending—they’re not going to be able to cover that with tax receipts, which means they will have to default or the Fed prints the difference,” Gromen said.

It will only take a few more months, Gromen predicted. He expects the “decision point” to come by the end of September “at the latest.”

He believes the Fed won’t allow a government default. “At the end of the day, if push comes to shove, they’re going to print the money,” he said. Printing more money, however, will make inflation worse and the problem can quickly snowball.

“You’re basically put in a position where the Fed’s balance sheet is got to go, you know, $9 trillion, $10 trillion, $20 trillion, $40 trillion very fast and inflation goes 8 [percent], 10, 20, 50, 80—you know, very fast,” he said.

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