Financial, Economic and Social Mood Update (July 1, 2026)
The USA and almost all countries on earth are faced with similar existential problems which include the precarious predicament of fiat currencies (collapsing purchasing power and the skyrocketing cost of living due to deficit spending and soaring levels of debt), environmental tribulation due to the demands of swollen human population numbers and pollution due to fossil fuel usage – not to mention endless wars, political corruption on steroids and an economic pyramid in which the global middle class has all but disappeared. The human population on earth is now divided into roughly 2 percent “haves” versus 98 percent “have nots.” Not only is this unacceptable from a moral standpoint but it also leads to extreme social instability which threatens peace, stability and democracy.
Wealth and income distribution have become so severely uneven for the simple reason that corporate income tax has become so miniscule. Corporations are owned by their shareholders, and corporate shareholding is very heavily concentrated at the top of the economic population pyramid. In the USA annual corporate profits now run at USD $13.87 TRILLION of which a paltry 0.94 percent is paid to the IRS.
Individual income taxes (your form 1040) comprise 54 percent of IRS receipts. Social Security and Medicare taxes (since the Presidential Administrations of Franklin Delano Roosevelt and Lyndon Baines Johnson, respectively) currently comprise an additional 32 percent of IRS receipts. All of this is very good and necessary to maintain a decent standard of living. Beyond this we get into the much smaller portions of IRS revenue. Tariffs (which do much more harm than good to the overall domestic and global economy) comprise 8 percent of current IRS revenue. Tariffs depress consumer demand which makes up 70 percent of GDP. Tariffs are levied upon all consumer good sales both new and used. Tariffs contribute to price inflation especially visible in the automotive market. Tariffs also make domestic manufacturers “lazy” and harm their ability to compete globally both in the short and long term.
As referenced above, corporate income taxes are miniscule and comprise a paltry 4 percent of current IRS annual revenue. Excise taxes (on items such as alcohol, tobacco and fuel) comprise one percent of IRS revenue as do Estate and Gift (i.e., inheritance) taxes.
The big problem with government revenue (not merely in the USA but globally) is that corporate income taxes are so low. Spending is far too high (largely due to endless wars which enriches shareholders who own the defense / war / killing industry) which translates into massive annual deficits (not just in the USA but globally) which decimates fiat currency value and spending power thus raising the cost of living due to price inflation.
Massive debt necessitates lower bond prices = higher interest rates which is a zero sum game and cannot be avoided. Arguing against this is moronic – it is akin to saying that you are not in favor of gravity. Even attempting to go against this would lead to ultra-massive severe hyperinflation. The entire planet would be like the end of the Weimar Republic in 1933 or the disaster of Mugabe’s Zimbabwe in 1980.
The issue of corporate taxation must be addressed on an all-inclusive global level and must address the top level of “estate” planning. This means offshore holding companies and offshore trusts located in so-called global tax havens which allow multinational corporations to legally avoid paying corporate income taxes by legally moving their profits across borders which must be stopped once and for all.
As discussed in my most recent monthly blogs, monetizing all of the earth’s assets (real estate, fossil fuels, precious metals, corporate stock, fiat currencies and crypto-currencies) will enable us to address and begin to fix the issues of environmental degradation and climate change. It will also enable governments to better address the needs of the “have nots” of the earth by funding basic income for nutrition, income security, pensions, health insurance & care, education, child care and transportation infrastructure & operation all of which are infinitely more important than the travesty of “defense” which translates into endless wars and which is directly responsible for no less than 36 percent of current US national debt. The issue of the lack of corporate income taxation discussed above is directly responsible for an additional 33 percent of current US national debt. US Dollar billionaires and millionaires (such people in all countries) own 47 percent of the world’s wealth today. The lack of adequate taxation upon this elite social class is directly responsible for the remaining 31 percent of public sector debt.
Here are some recent videos which are informative and pertinent. This one by “Electric Viking” Sam Evins from Australia quotes senior management of the VW Group (the second largest auto group in the world after Toyota in terms of annual unit sales of passenger cars, SUVs and light trucks) that ICE (internal combustion engine) vehicles will comprise no more than 5 percent of new global unit sales by 2035: https://www.youtube.com/watch?v=xky4Gtw9eso.
Yet another recent video by “Electric Viking” Sam Evins from Australia on how sales of new ICE (internal combustion engine) vehicles are actually starting to be banned in this case in both Ethiopia and Laos: https://www.youtube.com/watch?v=mR94B_JyhNI.
CNN on how Donald Trump and MAGA are now losing their all-critical rural white base. FYI, right wing parties all over the planet rely on rural voters for their solid core support. Most urban and suburban areas worldwide which tend to be far more affluent and better educated than rural areas vote the opposite of rural areas. The USA with only red states is a third world country: https://www.youtube.com/watch?v=W0x1NHmuPN0.
More from David Pakman on the decline of MAGA – the economic “haves” of the world had better pay attention to issues I have addressed in my most recent monthly blogs. Members of “Generation Z” (emerging younger people born from 2003 to 2012) already favor both what they see as socialism and communism by a combined 90 percent or more. No surprise – it is ever harder to make an honest living and to make financial ends meet: https://www.youtube.com/watch?v=OTqUvHO8Pq4.
