Will “Trumponomics” change the course of the U.S. economy? We certainly hope so. It will be better for us all. However, as investors, we must understand the difference between a “narrative-driven” advance and one driven by strengthening fundamentals. The first is short-term and leads to bad outcomes. The other isn’t, and doesn’t.
Barack Obama is one of the biggest “Keynesians” of all time, but unfortunately most Americans don’t even understand what that means. By propping things up in the short-term, he has absolutely demolished our long-term economic future. But like most politicians, Obama has been willing to sacrifice the future for short-term political gain.
Everybody’s talking about the feds’ opportunity to “invest” free money. It makes us nervous; we know how hard it is to get a good return on investment – especially when you don’t know what you’re doing.
Almost exactly ten years after the last housing bubble burst, unleashing a dramatic crash in US real estate prices today Case Shiller reported that as of September, its Index covering all nine U.S. census divisions, surpassed the peak set in July 2006 as the housing boom topped out, and in doing so the average home price has now climbed back above the record reached more than a decade ago.
"Mister Trump will be no more to blame than Mister Hoover but, as the present economic cycle will reach the tipping point on his watch, there can be little doubt as to who will receive the blame. Just as in 1929, the tail will blindly be pinned on the elephant, not the donkey, and a long era of increased collectivism will be heralded in."
Most financial journalists are not good, and in fact are wedded to a pro-Fed, pro-state ideology that subconsciously permeates everything they write. They are hopelessly unobjective, the naive products of their education and training. The world needs real diversity of thought and opinion, not the fake kind being discussed at the Fed.
As flyover America has been suffering economically for many years, these Americans were immune to the oligarchy’s anti-Trump propaganda. However, everyone else in the country was taken in by the propaganda - liberals, progressives, the remnant of the leftwing - and the lies continue...
On this Thanksgiving, no matter how hard it may be to avoid getting into a heated political with friends and family, be thankful that at least the holiday itself is no longer marred by partisanship. After all, holidays should always be about time enjoyed with loved ones, far beyond the machinations of government tyrants.
German finance minister Wolfgang Schäuble warns the UK faces stiff rules on tax breaks and prolonged EU payments. Such threats are nothing more than an extortion attempt by the EU on the UK. Schäuble’s threats are laughable because they are unenforceable, yet extremely serious because of likely end results of a Smoot-Hawley style global deflationary collapse.
No one can assert Lincoln or FDR united all Americans in a common cause. Grey Champions are not universally adored or defended. They aggravated societal pressures that had been ignored or deferred by their predecessors. Compromise was not an alternative for these men. Grey Champions have a particular set of personality traits making them well suited to lead during a Crisis. They have the facility to overlook the complexities of life and focus on one simple imperative: society must prevail.