Financial, Economic and Social Mood Update (April 2, 2017)
Financial, Economic and Social Mood Update (April 2, 2017) The nominal stock market is still near record high (nominal) values, but like I said in last month’s update, the purchasing power of the American Dollar has greatly diminished. One of the most astute commentators today is Mr. David Stockman, former Budget Director under the late U.S. President Ronald Wilson Reagan. Mr. Stockman points out that regardless of which of the two large U.S. political parties has a governing majority (either the Democratic Party or the Republican Party), the USA has slid so far down with respect to its massive debt burden that we have literally passed the point of no return – as Patrick Buchanan says (he is yet another veteran of the Reagan Administration), the USA is clearly becoming a Third World Country. Mr. Stockman points out that regardless of what current U.S. President Donald J. Trump wants, there will likely be no tax cut and no massive spending on necessary American infrastructure – the USA simply no longer has the resources to do these things. Even the nominal stock market is severely over-valued, and will eventually crash to the ground. Massive cuts in employment are coming to the public sector in the USA, in particular to employment on the state, county and city government levels. These cuts and consolidation will commence around June 2017 and they will not stop for a long time. Millions of current employees will be adversely affected simple because the USA has literally run out of financial resources. Circa 12 million positions are slated for elimination or “down sizing.” Socialism has never worked, it does not work today and it will never work in the future. Plainly said, Socialism is an “ass backwards” philosophy which has all the wrong incentives – it rewards failure…