Expect Inflation, Supply Shortages to Last Well into 2022, Economists Say

High inflation will last well into 2022, economists say, indicating that supply chain bottlenecks will keep increasing prices and curbing production.

Experts expect to see average inflation of 5.25% in December, slightly down from the current maximum predicted 5.4% figure, according to The Wall Street Journal. If inflation stays around its current level, Americans will experience the longest period during which inflation has stayed above 5% since 1991.

“It’s a perfect storm: supply-chain bottlenecks, tight labor markets, ultra-easy monetary and fiscal policies,” Michael Moran, Daiwa Capital Markets America’s chief economist, told the WSJ.

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Roughly 40 Percent of Americans Say They Recently Suffered Financial Difficulties, Study Shows

Soldiers assigned the Ohio National Guard’s HHC 1-148th Infantry Regiment – 37th Infantry Brigade Combat Team and the Ohio Military Reserve, give the thumbs-up for troopers assigned to the Ohio State Highway Patrol, to send more vehicles through the line at a drive through food distribution event at the Toledo Northwestern Ohio Food Bank, May 9, 2020. The food bank teamed up with the Ohio National Guard and the Highway Patrol to conduct the first-ever drive through event at the food bank. More than 700 Ohio National Guard and Ohio Military Reserve members were activated to provide humanitarian missions in support of Operation Steady Resolve COVID-19 relief efforts, continuing The Ohio National Guard’s long history of supporting humanitarian efforts throughout Ohio and the nation. To date, the Ohio National Guard has assisted in the distribution of more than 9.9 million pounds of food and pantry items to Ohioans in need. (Air National Guard photo by Senior Master Sgt. Beth Holliker)

Over 40% of U.S. households said they experienced severe financial hardship during the COVID-19 pandemic, citing difficulties paying bills, credit cards and draining their savings, according to a Harvard University report.

The survey conducted by the Harvard T.H.Chan School of Health, the Robert Wood Johnson Foundation, and the National Public Radio asked roughly 3,600 participants between July and August about problems they faced during the pandemic and how it affected their lives in recent months. Respondents were asked about financial, healthcare, education and personal safety concerns.

Roughly 30% of adults interviewed said they used up all or most of their savings during the pandemic, while 10% reported they had no savings before the pandemic began, according to the report.  About one in five households had difficulties paying credit cards, loans, and other debts as well as utilities.

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Some Credit Unions Already Losing Accounts over Democrats’ Plan to Expand IRS Tracking

Outside of IRS building

Organizations representing community banks and credit unions are blasting the Democrats’ commitment to expanding IRS reporting requirements, calling the proposal a government overreach that would require financial institutions to spend more money on compliance costs at the expense of products and services for their members.

According to the National Association of Federally-Insured Credit Unions, customers at some credit unions have already decided to close their accounts over “government intrusion” concerns fueled by the prospect of such new rules taking effect.

The Democrats’ proposal would require financial institutions to report account activity above $600 to the IRS.

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Two Corporate Executive Parents Found Guilty in First College Admissions Scandal Trial

Two corporate executive parents whose children attend prestigious universities were found guilty in federal court Friday for bribing university staff to rig the admissions process, The Wall Street Journal reported.

Gamal Abdelaziz, former chief operations officer of Wynn Resorts Development and John Wilson, a private-equity financier and former chief financial officer of Staples, who were tried together in federal court, each spent hundreds of thousands of dollars to falsify their childrens’ academic and athletic records to gain admission to the University of Southern California (USC), Stanford and Harvard as athletic recruits with the help of scandal ringleader and admissions consultant Rick Singer.

The two men were found guilty of conspiracy to commit fraud and conspiracy to commit bribery involving a school that receives federal funds, the WSJ reported. The jury also found Wilson guilty of aiding and abetting in fraud and bribery and filing a false tax return.

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Commentary: Real Estate Scams Are on the Rise as the Housing Market Remains Hot

When Jeff, a retired marketing consultant from Chicago, was closing on his home sale, he received a new set of instructions at the last minute on where to send several thousand dollars in closing expenses. At first blush, the email looked legit with an official-looking logo and professional language specifying the amount owed and itemized expenses. But one thing caught his eye: The email address looked strange. Just to be safe, he called his mortgage broker.

“Don’t do that!” his broker told him in an alarmed voice. It was a scam. If he hit “send,” his closing fees would go to a thief who had been monitoring his emails. “I was a keystroke away from losing thousands of dollars,” Jeff recalled.

As the housing market sizzles across the country – with nearly 6 million homes bought last year – scammers have been finding new ways to tap into this once-secure market. Real estate transactions still demand reams of paperwork and regulations involving lawyers, brokers, title insurance companies and banks, but the fact that much of this work now takes place online gives thieves countless opportunities to exploit vulnerable buyers. Last year, more than 11,000 homeowners were scammed out of more than $220 million in closing funds alone, according to the American Land and Title Association, a trade group that represents professionals who perform property transactions.

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Republican Lawmakers Say China’s Cryptocurrency Crackdown Is an Opportunity for America

Person holding phone with cryptocurrency info on screen

Republican lawmakers say China’s recent crackdown on financial technologies could offer an opportunity for the U.S. to press its advantage in innovation.

China’s central bank issued a statement Friday morning declaring all cryptocurrency transactions and services illegal, banning coin mining operations and vowing to crack down on its citizens’ use of foreign crypto exchanges.

Several Republicans say China’s loss could be the United States’ gain.

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Big Tech, Woke Finance Crack Down on Flynn, Gateway Pundit, Berenson in Cancel Culture Purge

Person holding phone up in Times Square.

With national attention riveted over the weekend on two major stories — the frantic U.S. withdrawal from Afghanistan amid its fall to the Taliban and category 4 Hurricane Ida slamming into the Louisiana coast — Big Tech and woke finance dramatically extended the reach of cancel culture with brazen moves to silence and harass three high-profile voices of political and scientific dissent: independent journalist Alex Berenson, popular conservative news and opinion website The Gateway Pundit, and Lt. Gen. Michael Flynn.

On Saturday, Twitter permanently banned Alex Berenson, who has built a large social media following challenging public health establishment orthodoxy on COVID issues ranging from lockdown to vaccine mandates.

“The account you referenced has been permanently suspended for repeated violations of our COVID-19 misinformation rules,” a Twitter spokesperson responded to an inquiry from Fox News.

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Watchdogs Sound Alarm as Ilhan Omar Continues to Evade Financial Disclosure of Reportedly Lucrative Book Deal

Ilhan Omar

Multiple watchdog groups said Minnesota Rep. Ilhan Omar may have violated federal law for failing to mention any income received from her critically-acclaimed 2020 memoir in her latest financial disclosure report filed on Friday.

Omar reportedly signed a deal worth up to $250,000 for her memoir, “This Is What America Looks Like,” in January 2019, around the same time she was sworn into Congress. Omar’s communications director said the House Ethics committee approved the book deal, but the Democratic lawmaker’s financial disclosures covering the calendar years 2018 and 2019 contain no mention of the book or any advance income received upon signing a deal.

The book was published in May 2020 to rave reviews by the press and Omar’s Democratic colleagues. The Atlantic dubbed it one of the best political books of the year, and numerous high profile Democrats, including House Speaker Nancy Pelosi, Rep. Alexandria Ocasio-Cortez of New York and Rep. Ayanna Pressley of Massachusetts, praised on the book.

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IRS: California Shrank by 165K Taxpayers, $8.8 Billion in Gross Income

Aerial shot of a California suburb

California residents of all ages and incomes are leaving for more tax friendly climates, and they’re taking billions of dollars in annual income with them.

The Internal Revenue Service recently released its latest taxpayer migration figures from tax years 2018 and 2019. They reflect migratory taxpayers who had filed in a different state or county between 2017 and 2018, of which 8 million did in that timespan.

California, the nation’s most-populous state, lost more tax filers and dependents on net than any other state.

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Commentary: New York and New Jersey Are Among the Top 10 States Where Residents Pay the Highest Lifetime Taxes

Tax withholding forms

In the mood for a depressing statistic? A new report from the financial services firm Self concludes that the average American will pay an astounding $525,037 in taxes over their lifetime—roughly 34 percent of their lifetime earnings. 

But the numbers aren’t uniform across the country; they vary wildly from state to state. Based on taxes on earnings, spending, property, and cars, here are the 10 states where residents pay the highest taxes over a lifetime.

1. New Jersey

Topping the list is New Jersey, where residents will, on average, owe an astounding $932,000 in taxes over their lifetime. That’s nearly 50 percent of their typical lifetime earnings!

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