Ah, the wailing and the crying and the pointing of fingers has started. Twitter tantrums of our resident 2 year old in the White House are starting and will continue. He will blame everybody but himself because a fool cannot admit they are wrong.
No, it wouldn’t have been better with crooked Hillary. We would still have a White House under perpetual criminal investigation because she’s the head of the Clinton Organized Crime Family. A good number of people voted for Trump simply because they didn’t want a full Presidential term of criminal investigations.
Be careful what you wish for.
The RepubliTrump Recession has begun. The Republican Tax Fraud, also called the Republican Tax cut, a gift for wealthy people paid for by raising taxes on lower income people, has run its course. The Krispy Kreme Donughts sugar high rich people got combined with basically zero interest loans from the Fed has crashed. Rates had to go back up. They are a long way from too high right now. Oh, our 2 year old in the White House will continue blaming the Fed for pulling all of that free money out of the stock market, but, his “tax reform” did nothing for the common man. Even the rich people are realizing that now.
As of now, the 2018 stock market has erased all gains. It will continue to tank. November through February are when baby boomers face the nasty reality of mandatory distributions from their retirement account. A Federal law deliberately inflicting age discrimination. Each year this Federal law forces retirees to look at their retirement account and subconsciously tell them to plan on dying before they run out of money. A goodly number of assets will be liquidated during this time frame. It will continue until long after my death because, according to some estimates, baby boomers outnumber working stiffs.
Oh, I’m not the only one pointing out the RepubliTrump Recession. Even Bank of America sees the market receding next year. Oh, they try to put a happy face on it making it sound like only a 100 point reduction in the S&P, but, realistic analysts are quietly saying 2019 will be the year of “market correction” and it will be a bad one. I personally believe the history books will record it as the RepubliTrump Recession. Why?
- Rich people did what rich people do when a “tax reform” (cough cough hack hack) which only benefits them gets passed. They hoarded the money in off-shore accounts and put a bit more into the stock market. This does not create jobs nor does it help the economy.
- Corporations which had been criminally hoarding cash off-shore took advantage of their short term window and brought the money back at a lower tax rate. What did they do with it? Executive bonuses and stock repurchases. Same thing they always do. Inflate the stock price to put more money in their own pockets. This does not create jobs, nor does it help the economy. For a brief period of time people with enough money to put into the stock market feel like they have money, then mandatory distributions start wiping that out.
- Many of the jobs created are low paying jobs and now many companies are trying to replace those people with robots and kiosks. The latest method to circumvent is to embrace the Gig Economy. Bust big jobs up into smaller pieces all paying far less than minimum wage. Publicly traded companies and small firms are all doing this. Even Bloomberg has compared it to Karl Marx’s 1848. You gotta ask yourself just how bad this practice is if Bloomberg is calling it out. Bloomberg is notorious for quoting what sounds like a respectable hourly billing rate for consultants then pulling the bait and switch as they sign, telling the worker they will be paid on a “professional day.” Each task they assign is a day’s worth of work. If it takes you 6 years to make a cold fusion generator which fits in the back of a pickup truck, well, it sucks to be you because we are only paying for a day.
- Sears filed bankruptcy. You have to look at the entire picture before you poo-hoo that. Everyone in America north of 30 remembers the Sears Catalog as a kid. All of those people who bought online from Amazon firmly believed it was “the other guy’s” responsibility to keep Sears in business. This is the last Christmas for Sears and that hit home. This is the reason behind Amazon’s slowing retail sales. While most will refuse to admit it, the Sears swan song was a wake-up call. The malignant tumor really will end the human race and Dr. Who was right, “Every Christmas is Last Christmas.”
- The RepubliTrump tax reform did not get rid of the tax exempt PACs and SuperPACs. Before American can have a chance of being great, they have to get rid of every tax exempt entity which spends even $1 trying to sway public opinion and political will. You want to wield that power, pay taxes on it. While we are at it, they need to cap deductible advertising/marketing/market consulting/marketing consulting/etc. at 10% of revenue. You can spend more if you want, but you cannot expense for tax purposes any more than that.
- The cult of Steve Jobs died. That acid trip is over and no flashbacks will be happening. Most of the world believes that $1000 phone is roughly $150 in parts and that’s why sales suck. Even if it is $250 in parts, that doesn’t justify the price. We’ve watched this happen to Nike and every other fad company out there. Hell, even Under Armour took bankruptcy. You can keep a fad going for a while. You can even artificially extend it calling it “trendy” but the reality of something being “trendy” is that it is short lived because people look for the new trend.
There is no excuse for the RepubliTrump tax reform or for the RepubliTrump Recession which will now follow. There have been plans out there for years which would have fixed the economy and brought us to full employment. One plan is the Ethics in Income Act. Most of you will probably call it the 100 Fold Rule. That’s fine too.
I have not read all of Deb Warren’s accountable capitalism act. I certainly don’t agree with this assessment of it. From what little I’ve read I can say this is a plan written by someone who spent too much time in Washington and not enough time in the real world solving problems. It is basically built on the premise or belief that corporations and arch criminals like Jamie Dimon fear government regulators or the Justice Department. They don’t. Jamie Dimon was instrumental in the mortgage fraud which brought about the Great Recession. (hey, he ran a bank which engaged in it heavily and management knew it, he could have stopped it. Instead he and other Wall Street bankers paid Hillary Clinton roughly $750,000 in “speaking fees” to speak in the ear of Justice taking prison time off the table.)
The reality is they only government entity people like that fear is the IRS. That is why the RepubliTrumps have been slashing its funding and staff. When fully staffed the IRS can cause massively expensive audits at these banks and it can put the bankers in prison.
Who put Al Capone in prison? The IRS. It’s high time they started pursuing Wall Street bankers and the CEOs of mega companies.
No, from what I read of Deb Warren’s plan, I don’t believe it has a snowball’s chance in Hell of fixing anything. It will just increase the amount of bribes corporations currently pay to the Clinton Organized Crime Family.
You have to cap total executive compensation to 100 times the total compensation of the lowest paid worker (or contractor) anywhere in the world.
That’s what the Ethics in Income Act does. It solves this off-shoring and visa worker abuse problem in one single stroke. It also decimates the wealth gap. The top compensation package at any publicly traded company cannot exceed 100 times the lowest paid worker anywhere in the world working directly or indirectly for that company.
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