Two-speed economies everywhere you look.
Young And Left
Do you wonder why the young are moving lefty?
The one percenters better start stepping up making social investments to generate a more stable future society in order to protect their wealth. Investments in human capital, such as means-tested free education and better healthcare. It’s coming either way.
Good for Jamie Dimon, one of the smartest guys out there and always way out in front, in recognizing this in his statement today.
You heard it here waaaaay first, folks, reflected in our post last year, Karl, The Comeback Kid?
Our recommendation to the one percenters and the comfortably numb retired baby boomers, who have bequeathed to and saddled the younger generations with massive pension and public sector debt liabilities?
And here just before the big shift left in the midterms,
Enter AOC & Co.
Medicare (single payer) is different from the U.K. National Health System (single provider), and public healthcare is not “socialism”, where the government owns and controls the means of production. The political dummy class need to go back to Econ 101. The facts wouldn’t matter to them either way.
Subsidized higher education, or “free,” is about as socialist as JP Morgan’s government guarantees (FDIC) on their checking deposits. Long “socialism” for children/short corporate “socialism.” Or why not we all just work together?
Moreover, it is probably not that far off where the average “Jane and Joe” are gonna need subsidies to purchase their morning Starbucks nonfat, decaf, mocha latte with an organic lemon twist. You hearin’ us, Howard?
It all has to be financed and not with a “People’s QE” lest we do become Venezuela. Sorry Bernie and my MMT brothers and sisters. Higher marginal and wealth taxes are coming. Be warned, be prepared.
The Socialism Of The Elites
I saw a lot of “socialism” while laying in my hospital bed over the holidays, folks. POTUS, Cramer, and the ignoramuses on Bubble Vision pushing hard for the Fed to “socialize” the stock market losses in December. That was truly a treat to watch.
The socialism of many, and we stress not all, of elites and their sycophants are to privatize profits and socialize losses, which was on full display during the last financial crisis and bailouts. Pretty disgusting and not politically sustainable.
We saw the first big shock and political fallout from that policy in November 2016, which we suspect was only the beginning. When the populists, which are really economic left in nature and anti-elite, realize Trump was/is a Trojan Horse for the one percent, we suspect there will be hell to pay.
This is not a political statement, but just our analysis. Just as we would say the Maduro government in Venezuela has been a disaster. Is that a political statement? Just askin’.
Long, and getting longer pitchforks.