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 me to discuss the above issues
as well as the stock, bond and housing bubbles. And of course gold and
mining stocks:
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Dave Kranzler spent many years working in various Wall Street jobs. After business school, he traded junk bonds for a large bank. He has an MBA from the University of Chicago, with a concentration in accounting and finance, and graduated Oberlin College with majors in Economics and English. Dave has nearly thirty years of experience in studying, researching, analyzing and investing in the financial markets. Currently he co-manages a precious metals and mining stock investment fund in Denver and publishes the Mining Stock and Short Seller Journals. Contact Dave at dkranzler62@gmail.com.
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The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
