12-17-2017: What If The Corrupt Establishment Beats Trump?

Posted: December 17, 2017 in Connect The Dots
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Let’s take some  inventory.  Per Mr. John Williams, Shadow Stats.com (http://www.shadowstats.com/), we see:

Unemployment is lower since Trump took office, but adding the U3, U6 and those seeking work for more than 15 weeks, but less than 26 weeks, the real Main Street unemployment rate still hovers around 23%.  Note, unemployment never rose above 25% during the Great Depression. (My note.)

Shadow Stats’ calculated unemployment rate coincides reasonably with the Bureau of Labor Statistics (BLS) labor participation rate of 62.7%.  Adding those looking for work for more than 26 weeks, but less than one year would bring Shadow Stats’ unemployment rate directly in line with the BLS labor participation rate, which should be inversely proportional.

Real Main Street inflation is near 10%.

Real U.S. GDP is double Obama Administration highs, but still hovering around -2%.  It never rose above -4% to -5% through treasonous Obama’s eight despicable years in office.  Trump has raised GDP since January 2017 by about 2% or 3%.

Additionally:
In 2016 the U.S. had 44 million people on the Supplemental Nutrition Assistance Program (SNAP) known as food stamps, up from 26 million in 2007.

65% of college Graduates cannot obtain work in their field of study in 2017.  Many of these young people are saddled with school loans and no way to make good on their debt.  Roughly $8.7 billion in student loan payments goes straight to Obamacare, which was one reason Obama wanted to have our corrupt government take over the student loan program.  In other words, the government school loan program could offer less expensive rates to students, if government wasn’t siphoning off student loan repayment revenue to subsidize Obamacare.  Graduates cannot include school loans in bankruptcy proceedings either, unless extreme hardship can be demonstrated.

The percentage of young people in their thirties living at home with parents is the highest it’s been in U.S. history.

Per the U.S. Census Bureau, average U.S. family incomes have risen slightly since 2009, but adjusted for inflation, spendable family income is down significantly.  Incomes unadjusted for inflation for some previous years are as follows:  1997 – $55,218;  2000 – $58,544;  2009- $55,683;  2016 – $59,039.

When we hold investments in corporate equities in 2017 we are taxed three times.  Corporate tax, dividend tax and capital gains tax.  Trump’s proposed tax plan reduces the corporate tax, eliminates or lowers both the dividend tax and capital gains tax depending what our corrupt Congressional members do.  How is this not a good thing for citizens, particularly retiree’s pension plans and job creation?  Trump’s plan also substantially cuts the double taxation on offshore earnings by U.S. corporations. Only Japan and the United States still double tax offshore earnings.  This short-sighted policy prevents offshore profits of U.S. companies from being repatriated and invested at home in America, which is pretty stupid.  Let’s consider a few more things.

Neglecting institutional investing, given the top 1% of Americans own approximately 38% of stock market equity; the next 9% approximately 43%; and the bottom 90% of population approximately 19%; corporate equity ownership is skewed, but obviously the bottom 50th economic percentile in the United States pay little or no income tax and historically have never had sufficient income to spend on investments of any kind.  Savings rates are tiny or in some cases negative; in all cases less than the inflation rate, so savings plans are a non-productive financial tool for the less fortunate.  On top of this, the Obamacare fines for failure to purchase monopoly health insurance products, the so-called private mandate, falls primarily on low income families who can no longer afford the obscene rates, which have predictably risen dramatically since 2010.  As a personal digression, in my own family, premiums have risen from $350/month per person to $1,400/month for a crappy plan with higher deductibles and less coverage.  I had one primary care Doc for more than twenty years prior to 2010.  Since 2010 and PPACA, I’m on my 6th primary care Doc – all due to insurance plan changes.  We couldn’t make this nonsense up if it weren’t true.

We need to consider pension funds.  Pension funds historically split their investments between fixed-assets like bonds and equities like high cap (blue-chip) dividend stocks, preferred stocks and sometimes commercial real estate.  Many pension funds no longer actively manage their funds, only investing in index funds.  Another asset class becoming popular is municipal infrastructure.

Given that most pension funds model returns on the bond portion of their portfolios around 7.5% and that most bond funds today are returning less than 2.5%; the majority of pension funds are under water by at least 5% relative to the supposedly secure, bond income of their portfolios.  Since infrastructure as an asset investment class is still relatively insignificant, this leaves corporate equity investments as the only significant pension fund earnings producer.  If American corporations remain under attack as they have been for the last three or four decades, this is a grim picture for pensioners as their pension funds will continue going broke.  I’m talking here about real corporations, not criminally insane transnational monopolies, though they are impacted as well.

Approximately 10,000 people per day are turning 65 years-old in America today.  We are experiencing the largest bond bubble in economic history.  Corporate bonds are probably a better bet than government bonds, particularly given the unsustainable mountains of government debt world-wide, which by the way is growing irresponsibly larger every day of every week.  The European Central Bank (ECB) now holds more than 40% of all Euro-zone debt.  This is nuts.  Historically safe bond investments are looking shakier by the month.  This leaves pension funds in bad shape, which can leave pensioners in bad shape.  Just to pile on, the flattening bond yield-curve by the way, suggests a looming recession.

Anyway, in America, we now have less than three workers paying into the Social Security system per retired beneficiary.  Last I checked, we have 2.9 workers per beneficiary.  This pay as we go Ponzi scheme clearly has a short solvent shelf life sans digital currency creating computers.  Making matters worse for retirees, the Obama Administration callously looted $750 billion dollars from Medicare and gave it to monopoly insurance companies, whose lobbyists wrote the unconstitutional PPACA tripe for their own benefit.  This bit of Congressional corruption left Medicare more broke than it was.  The only way to honor promises made to Medicare patients is again the irresponsible digital money machine.

The cowardly D.C. miscreants we foolishly elect to represent transnational monopolies and their Plutocratic controllers instead of we the people have lied to us; stolen from us; gave away our Constitutionally recognized rights; and now we pay the crooked piper, like it or not.  Either we come up with a workable plan to sustain ourselves or we go the way of Venezuela and other diminutive banana republics.

I deplore both the reprehensibly treasonous Democrat and Republican Parties, don’t belong to either, don’t support the corruption of either and certainly won’t trust either.  Regardless, the only options available today are options put on the malfeasant Washington D.C. table.  Democrats have offered no solutions outside raising taxes, increasing corrupt regulations and continuing our never-ending wars.  The Trump Administration doesn’t offer much, but it does offer a tax plan marginally better than what we have now.  Very bright people like Martin Armstrong are saying adoption of the Trump plan will make America the go-to place for global investment, which is why competing economies around the world are against it.  This could be a welcome game changer as America has not been internationally competitive for decades.  Mr. Armstrong and others believe the Trump plan will give us an internationally competitive leg up.

All this should give pause to any thoughtful American tax payer, leading directly to the question, “what happens to us on Main Street if The Donald’s plan fails and our egregiously corrupt establishment Left and Right win their battle of sedition?  While we think about this understand that the Establishment on both sides of the aisle only differ in meaningless, pandering rhetoric.  They share one common agenda and that is the agenda of the ruling Plutocracy, for the most part invisible to Main Street citizens.  You should also be aware that this inbred Plutocracy ardently believes in slavery and understands that their slave farms are Main Street American cities, actually all cities on earth.  The slave farms are run by order-following elected politicians and unelected bureaucrats – all paid for by Main Street tax payers.  Ain’t that a pile?

I didn’t vote in 2016 for the first time in my adult life because I didn’t know enough about Donald Trump to be comfortable giving him my vote.  I was concerned about how mobbed-up he might be given his casino and other real estate businesses, which on the East Coast are 100% mobbed-up.  This doesn’t mean he’s a wise-guy, but it does mean he at least works with them.  I couldn’t tell if Trump was dirty or not.  This weighed against known career criminal, Hillary Clinton, who with her CIA darling husband and burgeoning criminal daughter, all raised into national prominence by the Bush Crime Family, have used their Foundation and Clinton Global Initiative to treasonously sell influence, rape and plunder the needy around the globe and traffic in arms, drugs, humans and organs.  I couldn’t vote for either, but at least Trump has a plan, whereas Hillary’s only plan was insider trading, looting, war, war and more war.

Remember, the same psychopaths who most fear and hate Donald Trump are the same pedophiles and criminals who own and control nearly all transnational monopolies including mass media and Hollywood.  Before jumping on the media distraction bandwagon and Mueller’s seditious nonsense, which to date has produced zero evidence of anything, consider what a Trump failure might really mean to Main Street citizens because if the Deep State thugs and order-followers win this fight, it doesn’t look like a happy ending from where I’m sitting in south-central Arizona.  Just sayin’.

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