Gold Drops, USD Pops As Mulvaney/Ryan Signals Tax Plan Coming September 25th

OMB Director Mick Mulvaney told Fox Business this morning that the target date for the release of details around a renewed tax plan is September 25th (presumably 2017) and that has triggered USD-buying and gold-selling.

  • REVENUE NEUTRALITY `NOT ON THE TOP OF OUR LIST': MULVANEY
  • CAN'T BALANCE U.S. BUDGET LONG-TERM ON CURRENT GROWTH: MULVANEY
  • TRUMP'S FRUSTRATED WITH SLOW PACE OF WASHINGTON ON TAX:MULVANEY
  • TRUMP `ADAMANT' ABOUT GETTING CORPORATE RATE TO 15%: MULVANEY

These remarks follow Trump's meeting with Congressional leaders Tuesday evening on the subject. As Reuters reports:

  Trump met with six senators including three Democrats who set clear conditions for future cooperation with him on taxes... Also attending were Vice President Mike Pence, White House economic adviser Gary Cohn and Mnuchin."

As you know, House Speaker Paul Ryan has said that 15% is unrealistic. In his view, something closer to 22.5% is doable.  Paul Ryan has also confirmed that date:

  • *RYAN: OUTLINE OF TAX PLAN WILL BE RELEASED WEEK OF SEPT. 25
  • *RYAN SAYS CONFIDENT TRUMP TO PUSH FOR CONSERVATIVE TAX REFORM

Meanwhile, House Ways and Means Committee Chair Brady, a member of the "Big Six," has reiterated the target date while adding that he instructed House Republicans that the goal is for the House and Senate to complete the budget process by mid October and then take up the tax bill.

Gold down, USD suring as the "Trump trade", this time prompted by hopes of tax cuts, appears to be making a comeback.

Comments

Mementoil tmosley Wed, 09/13/2017 - 10:59 Permalink

Don't you get it?You are supposed to buy low and sell high.Gold is closer to its 2015 lows than to its all time high, or in other words it is still cheap, whereas BTC has gone up so much, that it is overdue for a painful correction (and one that lasts for a while, not just an overnight dip).

In reply to by tmosley

tmosley Mementoil Wed, 09/13/2017 - 11:08 Permalink

BTC is way above where I bought it, friendo. And I didn't buy it all that long ago.Yes, this is a CORRECTION. BTC has them ALL THE TIME. But idiot oldbugs are dancing in the streets claiming the end is near for no reason.It's extremely pathetic, and I'm not going to let any of you forget about it.

In reply to by Mementoil

spastic_colon Wed, 09/13/2017 - 10:28 Permalink

hahahahahahahahaha! ya sure...........notice how "they" banged UNH today until AAPL stabilized; "they" must have run out of digicash so they "they" ran this headline.last chance for quarter end bonuses! plus janet on deck next week; then a phony tax plan the week after; then.............record tax collections and money printing are all that is keeping this farce alive.........tax cuts will be an economic disaster and they know it.*RYAN: OUTLINE OF TAX PLAN WILL BE RELEASED WEEK OF SEPT. 25which will be dragged until midnite on sunday 10/1

GodHelpAmerica (not verified) Wed, 09/13/2017 - 10:23 Permalink

Higher deficits as a result of massive tax cuts are dollar bullish and gold bearish?

Of course not.

Never mind the chances of a big bill making it through congress...

ejmoosa Not My Real Name Wed, 09/13/2017 - 11:02 Permalink

The media has been working over time to tell us everything is grand.Total profit dollars for the Dow 30 fell during the years 2012-2016 80% of the amount that they fell during the "Great Recession"(2007-2009).Anyone remember the lesser Recession being discussed during the Obama years?QE and Fed policy, tied with the media, sure covered up a stinking economy.And where are we today?Profits for the Dow 30 in total dollars will be less in 2017 than they were in 2012.How's that translate into economic growth?It doesn't.

In reply to by Not My Real Name

kavabanga Wed, 09/13/2017 - 10:22 Permalink

anyway Trend on gold  is still bullish . Previous higher high of ~1325 level worked as a good support. 1325 was the first possible dip level to place the first buy order. Next, I wait for EMA10-EMA25 cross above EMA50, which would be around 1335-1340. The target is still June.2016 high of 1375. But before the channel of (1325-1355) needs to be broken. In case of a daily close below 1325, the idea would not work. If 1325 broken, I will wait until 1295-1300 band to place the buy orders. Below 1295 would mean a reversal for me.anyway

chicken_goose Wed, 09/13/2017 - 10:22 Permalink

Why is a tax plan which will increase deficits by a huge amount (given that there are no significant spending cuts planned concurrently) bullish for the dollar? Rhetorical question of course, the markets make no sense anymore due to the massive central bank intervention distorting everything.

Manipuflation Wed, 09/13/2017 - 10:44 Permalink

God damn it that will fuck up Canuck buck stash FX rate.  Who wants to go to Canada with me and get really fucking drunk?  Who hasn't been to Winnipeg?  We don't take any women or children with.  We go up to Canuckland and show that that we will win the next Olympic silver medal in hockey.

Anteater Manipuflation Wed, 09/13/2017 - 11:09 Permalink

Gold isn't 'down', it just came off the 'fire and frenzy'  hysteriaTrump created to keep Mueller's investigation of Kushner'streason out of the limelight, since if Jared were to go to prison,Trump loses his pay-for-play deposit money laundering partner,and all his properties become at risk of foreclosure by his SovietJew financiers, ... the same ones who sold Don Jr and Jared the'highly sensitive and classified information' on Rodham, ha,ha,ha.What a f'ked up 'election': ZioPigA mafiya versus ZioPigB mafiya,and every one of their kids married to a Jew handler. Every one!!That would be like the odds of the Cubs winning the World Seriesfive times in a row! We have to get dual-Israelis out of government!

In reply to by Manipuflation