Neither corporations, nor the middle class, are big taxpayers. The big taxpayers are the rich — the people the Trump team has promised not to favour with a tax cut. And even if you did give the rich a tax cut — which is what this tax proposal really is — it would be very unlikely to result in additional growth.
Politics and History
Our editors look back to previous periods in politics and history to discover the parallels with today’s market and how this can help your investing.
History doesn’t repeat, as writer Mark Twain once wrote, but it rhymes. For an entertaining and informative romp through financial disasters and bull markets of yesteryear, plus the legendary investors who made a fortune and the foolish knaves who lost their shirts, read on…
In times like these, filled with global uncertainty, provocative presidential tweets and rogue nations, commodities are waiting with open arms. Gold in particular, provides a shiny safe haven from a rickety marketplace.
Meanwhile, back on the World Wide Web comes news that the US economy is not the only thing being undermined by the feds’ win-lose deals. So is the oldest win-win deal on the planet: the family.
As a result, the US empire is headed to bankruptcy…or to Hell. It would take a remarkably talented and determined leader to alter the direction of the march. Donald J Trump will not do that job; instead, he busies himself on Twitter to keep his fans distracted.
People grumble. But few understand what is going on. Instead, they are easily distracted by debates over monuments…kneeling athletes…red versus blue…celebrity newscasters…and so on. And that’s why Mr Donald J Trump is the president. For this system to continue, someone needs to divert the masses with petty squabbles…while the insiders pick their pockets.
The yellow metal’s soared 13% this year. Fundamentally, the story for gold hasn’t changed. It has rallied recently on geopolitical threats and a weaker US dollar. The US dollar remains in a downtrend and global tensions, while lessening, are still there.
During both booms and busts, there is always a group of investors who believe things could get worse. It’s probably not the worst mentality to have. While you might not achieve the highest returns in booming years, you also don’t lose your pants in a financial crisis either.
What matters is the Trump brand…and that he could use the same techniques in his run for the White House that he used to build his business empire.
Now, there is more debt than ever. The same people who caused the crisis are still running the banks, the regulatory agencies, the corporations, and all the other institutions that made the crisis possible. We’re going broke…and no one cares.
The US economy depends on more and more fake money and fake credit. All we know for sure is that, with nothing to stop it, you can expect it to keep going up — until the whole economy drowns in it.
Is it possible that President Trump will start his own political party? Yes, it is. He may do so partly because he will be rejected by the Republicans, who are getting tired of pulling knives out of their backs.
Until recently, there was a clause in the Defence Act that limited local law enforcement in calling on the Australian Defence Force (ADF) if they felt they couldn’t control the situation. However, we now live in a country where the military can be called in at the request of police.
The debt ceiling is the one and only thing that might prevent the bankruptcy of the US government. It is the only ammunition fiscal conservatives have left. Mr Trump may shake things up after all — in a way almost no one expected. To take away true conservatives’ last bullet.
On Tuesday, President Trump tossed a grenade into Congress. It should have been fairly easy for the people’s representatives to bat it back out to the White House. Instead, they fumble…they tumble over one another in silly grandstanding…and mumble incoherent and irrelevant comments.
Hedging your portfolio against political risks is one thing. Hedging against nuclear war is a completely different ball game. If things ramp up between the US and North Korea, what will be the safe haven? Real estate? Bonds?