The stock market rejoices the House passage of the tax “reform” Bill as the Dow shot up 187 points and the S&P 500 spiked up 21. The Nasdaq soared 1.3%, retracing its 3-day decline in one day. The tax bill is nothing more than a massive redirect of money flow from the Treasury Department to Corporate America and billionaires. The middle class will not receive any tax relief from the Bill but it will shoulder the burden of the several trillion dollars extra in Treasury debt that will be required to finance the tax cuts for the wealthy. The tax “reform” will have, at best, no effect on GDP. It will likely be detrimental to real economic output.
The Big Money Grab is “on” at the highest levels of of Wall St., DC, Corporate America, the Judiciary and State/local Govt. These people are grabbing from a dying carcass as fast and greedily as possible. The elitists are operating free from any fear of the Rule of Law. That particular nuisance does not apply to “them” – only to “us.” They don’t even try to hide their grand scale theft anymore because the protocol in place to prevent them from doing this is now on their side. This is the section in Atlas Shrugged leading up to the big implosion.
“When you see that money is flowing to those who deal, not in goods, but in favors–when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed.” – Atlas Shrugged
Speaking of the economy, as with inflation the GDP report does not reflect the true level of real economic activity in the U.S. because the Government report is not designed to measure real economic output. Instead, the GDP is yet another Government economic report constructed with blatant statistical manipulation and outright fraudulent data sampling. How am I so certain of this? The “tell” on the true condition of the economy lies with the fact that Fed is “normalizing” neither interest rates nor its balance sheet. In fact, if the Fed were to “normalize” monetary policy, it would quickly hike the Fed funds rate up closer to 6% and it would be reducing its balance sheet and removing at least the $2.1 trillion in printed cash sitting in the banks’ excess reserve account. The problem is that this “normalization” would pop the enormous asset bubble created from money printing. It would also interrupt the ongoing wealth confiscation.
Elijah Johnson at Silver Doctors invited to discuss the above issues as well as the stock, bond and housing bubbles. And of course gold and mining stocks:
I’ll be releasing the latest issue of my Mining Stock Journal this evening. It will have an emerging junior gold exploration company that has been described at “Gold Standard Ventures 2.0.” You can find out more information here: Mining Stock Journal info.
Dave, The terminology for the current evisceration
of the middle class is termed as being “financially harvested”.
Neo-feudalism is also another way of describing what is happening.
Great interview as always, Dave. I was just thinking to myself the importance of being debt-free with respect to what is happening. As leveraged as the elite may be, they know that the major brunt of the collapse will fall on us first, therefore kick-starting the onerous penalties of whatever debt instruments we foolishly accepted. With or without Congress in their pocket, an endebted public is like having both a reliable (but secret) economical borometer (in the form of defaults) as well as a major emergency source of funding. Bankruptcy be damned; we all know that it’s code for “taxpayer bailout” now. Plus, since the banks create loans from nothing, collateral they receive from defaults is their free lunch. Thus, paying down your debt, while helpful to them, is not their ideal preference.
In addition, having a zero principal balance makes it far more difficult, if not impossible, for future officials to manipulate the terms. They could convert the principal to gold ounces by decree, but zero will always be zero. Sure, they could (and try) to force debts on us like they did through Obamacre, but the public is much more keen towards that sort of intimidation. Much easier to fool them into thinking they signed up for the abuse in the first place.
Speaking of debt, just paid down one of my student loans! One more to go, and probably will be finished in under a year too! After that, debt-freedom!
Thanks! You should just default on your SLMA’s like everyone else will
Thanks for the suggestion, but even if I wanted to, you can’t discharge federally-subsidized debt through bankruptcy. At least, the last time I checked. (Shrugs) Besides, they’d just force the cost onto the taxpayer, and I don’t want to do them any favors to screw us more than they already have.
And the final precedent:
…and a prediction of the American Empire today, FAST FORWARD to 43:00 et seq: