Largest monthly decline since August 2021

Largest monthly decline since August 2021, The Conference Board Consumer Confidence Index declined 7.0 points in February. The third consecutive month on month decline, bringing the index to the bottom of the range that has prevailed since 2022.

CFNAI-MA3 increased to +0.03 in January from -0.13 in December

The Chicago Fed National Activity Index (CFNAI) for January 2025, decreased to -0.03 from +0.18 in December. Two of the four broad categories of indicators used to construct the index decreased from December. The index’s three-month moving average (CFNAI-MA3) increased to +0.03 in January from -0.13 in December.

US raw steel production down from previous week

In the week ending February 22, 2025, US raw steel production was 1,659,000 net tons at an ACUR of 74.5 percent, down 0.7 percent from the previous week.
Adjusted year-to-date production through February 22, 2025 was 12,538,000 net tons at an ACUR of 74.4 percent which is down 0.8 percent from one year ago.

Manufacturing activity improved somewhat in February

The Federal Reserve Bank of Richmond released its Fifth District Survey of Manufacturing Activity results and reports manufacturing activity improved somewhat in February, the composite manufacturing index increased to 6 in February from -4 in January.

Headline News

From the Wall Street Journal Editorial page Thursday 2/27/25 “Who’s Afraid of Medicaid Reform”

…the Medicaid program has exploded far beyond its design and is in great need of reform.
Keep in mind that Medicaid was established to help the needy-poor children, pregnant women, the elderly and disabled. Democrats have since expanded it by degrees into a far broader entitlement for able-bodies, working-age adults with lower incomes.

No surprise, Medicaid spending is out-pacing even Social Security and Medicare. Federal Medicaid outlays have increased 207% since 2008 and 51% since 2019.

The press claims Republicans want to gut Medicaid. That’s false. They’re not even proposing a cut. Medicaid outlays are on track to increase by 2.4 trillion through 2035 under the Congressional Budget Office baseline projections. So shaving $880 billion from that baseline would still amount to a $1.5 trillion increase in Medicaid spending.

To hit the $880 billion target, Republicans would merely need to slow Medicaid spending growth to about 2% annually. Mind you, this follows the Biden blowout when federal Medicaid spending has grown about 9% a year. One reason is Democratic run states have figured out how to scam Medicaid to finance their other spending priorities.

One trick is imposing taxes on hospitals and managed care insurance plans, which states then use to spend more on Medicaid to collect more federal dollars. For every dollar states spend on Medicaid, the feds chip in one to three. The match is nine-to-one for the Obamacare expansion population, which gives states an incentive to spend more on the healthy able-bodied than on the vulnerable.

This is one reason Democratic run states receive disproportionately more federal Medicaid dollars.

Nearly half of the states have received federal permission to spend Medicaid dollars on “activity stipends, and a dozen for food. What are federal low-income housing vouchers and food stamps for again?

Mr Biden’s HHSA even blessed California’s plan to spend federal Medicaid dollars on “activity stipends” for art and music lessons for children, and club sports. Oregon is tapping Medicaid to pay for cooking classes, air conditioning and mini-refrigerators. Some Republican states have joined this all-you-can-spend Medicaid buffet.

Unless Republicans in Congress act, states will continue to milk Medicaid. California’s budget this year anticipates getting $119 billion in federal Medicaid spending, which is more than Florida’s entire state budget. That’s up $78 billion from five years ago.

Some Republicans say they can’t touch Medicaid because many MAGA voters now use the insurance. But most people with Medicaid know it provides lousy care. Cancer patients lack access to top hospitals and wait months to see specialists owing to the programs low reimbursement rates. Tens of thousands of sick elderly patients are on Medicaid waiting lists for nursing or home healthcare…”

This is only one of the reasons why we need DOGE to do what it is charged to do for the American people.

MAKE AMERICA GREAT AGAIN

“KEEP AMERICA GREAT”

Have a great weekend…. God bless America!

Buy American made products whenever you can, it’s good for you, good for your friends and neighbors and good for our country.

If you are hiring…try to hire a veteran…. they are loyal, disciplined, hardworking…and they deserve our support.

By the way, if you wish to comment on my rants or offer any other insights you may have, you are encouraged to email me.

TEDDY ROOSEVELT ON IMMIGRANTS IN AMERICA…1907

In the first place, we should insist that if the immigrant who comes here in good faith becomes an American and assimilates himself to us, he shall be treated on an exact equality with everyone else for it is an outrage to discriminate against any such man because of creed, or birthplace, or origin. But this is predicated upon the person’s becoming in every facet an American and nothing but an American. There can be no divided allegiance here. Any man who says he is an American, but something else also, isn’t an American at all. We have room for but one flag, the American flag…We have room for but one language here and that is the English language…and we have room for but one sole loyalty and that is a loyalty to the American people.”