Another opinion this morning on the constitutionality of the Fed:
“I disagree with your reader who said ‘the reason the Fed was set up has never been achieved.’
“Oh, yes it has.
“Whatever was offered up as the official justification for the Fed was pure B.S. (Isn’t it always?) Its real function is an end-run to the Constitution that grants the federal government the authority to coin money but not print it.
“Prior to the creation of the Federal Reserve, government spending was constrained to what they could collect through taxes (which, at the time, didn’t include income taxes) and what they could borrow from private individuals and other countries (through bonds).
“But that was too restrictive.
“It’s unconstitutional for the federal government to print money but Congress has the authority to borrow all it wants; the Federal Reserve, then, was created as a consortium of private banks to do the money printing and lend all the printed money the government wants to borrow.
“That’s why coins are [struck] by the U.S. Mint but dollar bills are Federal Reserve notes.
“If Trump were to absorb the Federal Reserve under the executive branch, all pretext of the constitutionality of its existence would be obliterated.
“I agree… let’s abolish it.”
Your Rundown for Wednesday, July 10, 2019:
Walmart’s Stunning Best Buy
Walmart seriously got its money’s worth when it bought India’s e-commerce trailblazer Flipkart Online Services Pvt. for $16 billion last year.
“Now the business is emerging as one of the country’s top startups,” says Bloomberg, “a surprise benefit for Walmart from its largest-ever acquisition.”
And it only gets better. “Flipkart’s board recently authorized the PhonePe Pvt Ltd. unit to become a new entity and explore raising $1 billion from outside investors at a valuation of as much as $10 billion.”
PhonePe — pronounced “phone pay” in Hindi — has capitalized on cheap smartphones and wireless plans that have made it easier than ever for millions of Indians to shop online.
“In June, the PhonePe app reached 290 million transactions with an aggregate value of $85 billion, compared with 71 million transactions at $22 billion a year earlier, according to the company.”
Analysts estimate PhonePe to be worth about $15 billion. So Walmart can pat itself on the back — if that were possible — for shelling out for Flipkart. And the retailer continues to stay surprisingly relevant, especially as it rivals online competitor Amazon.
Market Rundown for Wed. July 10, 2019
S&P 500 futures are up 13 points to 2,995.25.
Oil’s up $1.53 to $59.36 for a barrel of WTI.
Gold’s added $11 to its price of $1,411.50 per ounce.
Bitcoin’s up $530.73 to $13,097.02.
Have a good day. We’ll catch up tomorrow.
For the Rundown,