Logic and current trends suggest that declining output growth accompanied by higher prices will begin hitting economies and facing policy makers in the coming years. Markets should begin sniffing out this stagflationary macroeconomic setup this year.
?Today, an Arizona Senate Committee passed a bill that would eliminate state capital gains taxes on gold and silver specie, and encourage its use as currency. Former US Rep. Ron Paul testified ahead of the vote, proclaiming, "paper is not money, it’s a substitute for money and it’s fraud."
This Wednesday the Arizona Senate Finance and Rules Committees will consider legislation (HB 2014) officially defining gold, silver, and other precious metals as legal tender. The bill also exempts transactions in precious metals from state capital gains taxes, thus ensuring that people are not punished by the taxman for rejecting Federal Reserve notes in favor of gold or silver.
As the Trump administration takes shape, it may be helpful to remind ourselves of some of the steps that can be taken in the direction of economic policy that better allows private citizens to be free and flourish.
New heights of consensus-ness have made idiots of thoughtful analysts, investors and allocators. Investors at all levels are being deceived on an epic scale and most of the investor class will suffer. It never pays to bet against nature for too long, which presents a wonderful opportunity for free thinkers.
"No matter what the economic leaders say, these actions prove to me and many others that their mental models of the world have failed. They’re able to hide behind authority and academic vocabulary which if put in plain terms for the lay person could be described as theft, ponzi, tyrannical and moronic."