Notice: In most of our brokerages and IRA accounts, earlier this week we bought a minimum 5% position in the CyberSecurity fund (ETF symbol HACK).
The Tragi-Comedy of the US Political Economy
Overall I am still bullish on the broader stock market. But it is certainly not because of the so-called Trump bounce, which is running low on legitimacy and competency.
Sure, Wall Street loves deregulation, which means they can do whatever they want to make money regardless of the consequences to Main Street, public health and public safety.
And making grandiose promises of massive infrastructure spending that creates economic fantasy jobs is good politics to the blue collar Trump base. But will the Republican Congress, who blocked anything similar proposed by Barack Obama, now ignore their Republican small government fundamentalism and allow a massive increase in government debt?
Moreover, if we look at the details of the new ObamaCare replacement (let's call it the Republican "WealthCare" Plan), we can easily see how the Republicans now running Washington DC are out of touch elitists who say all the right things to get elected - but have no idea what Americans want or need regarding their health care options.
When it all comes out in the wash, the Republican health care plan is more of the same pandering to bogus "free markets' dribble that no longer works in today's US economy, especially for middle and lower class Americans. In fact, millions of Americans will lose their health care and older Americans will have to pay hundreds of dollars more a month.
Another reason to be clearly concerned about the intermediate term strength of the current US stock market surge is the clandestine behavior by the Trump regime regarding its potential ties to Vladimir Putin, the Russian oligarchs, and their hacking activities. Add in the covert Trump family profiteering off his White House occupancy and we clearly get closer to very real corruption issues. And the suspicious Trump denial of the on-going Russian hacking of American government entities and corporations, which Trump encouraged during his campaign and the constant barrage of stupid lies tweeted by Trump, is starting to gain traction and get more attention by the media and the few remaining adult Republicans in the room.
Investors are having a harder time ignoring such conflicts of interests and starting to take notice.
America is no longer in sane times.
Besides the thin-skinned behavior of so-called President Trump, we may have the most ignorant group of House Republicans in American history. They spout racist and stupidly xenophobic comments regularly. And they still seem to have faith in one of the biggest political charlatans of modern American politics - Speaker of the House Paul Ryan - who has no intention of doing what's good for most Americans. He wants to get his way, no matter what the consequences for US citizens and their finances. Fortunately we still have a few competent Senate Republicans in office who takes the financial well being of American citizens seriously.
Again, investors are starting to take notice with increased concern.
Should Americans Pay Taxes Anymore?
If we are going to allow the Trump regime to gut funding for and render meaningless and dysfunctional most of the Federal agencies that we depend on to protect us from corporate malfeasance and big government abuse, why should Americans pay Federal taxes anymore?
For starters, today the US military is mostly a profit-focused, corporate welfare imperial force that most Americans really do not benefit from. The US military is funded primarily for the benefit of Wall Street defense contractors, privatized military and security firms, and for wars that benefit mutlinational corporations and Anglo-American fossil fuel companies. Of course now Trump wants to increase military spending, already way more than any other nation.
Second, there is NO refugee safety crisis that is dangerously allowing terrorists into the US - as the xenophobes want us to believe. In a factual world, we know that almost 100% of Islamic terrorism in the US is now coming from US born homegrown terrorism.
Third, we definitely do not have anywhere near an illegal immigration crisis. In fact, we still need immigrants (undocumented or otherwise) to do jobs that no Americans will do. Most of the "immigration crisis" is primarily political fear mongering by white nationalist politicians.
As a result of the ICE immigration purges, we will soon see our consumer economy suffer as food prices begin to rise because agricultural workers are unavailable - creating food shortages and wasteful staples spoilage from not having migrant workers in the fields.
And finally, our new Secretary of Education, a very rich women with Asberger's Syndrome, is working to turn national public education funding over to private schools, charter schools and home schoolers.
That's private sector education, not public education. Why should our Federal "government" tax dollars be used to pay for-profit, anti-government education profiteers? It is simply private sector welfare and "free markets" kleptocratic nonsense and is a slap in the face to tax-paying American families. Obviously Trump and his education privatization hustlers think Americans are foolish enough to allow it.
So, according to our so-called President Trump, if most of the Federal departments are corrupt and redundant - and the private sector can do it all for us, then none of us should have to pay Federal taxes anymore.
Let Americans make a choice and buy the private services they want. Why do we need to give the Trump "redundant" government our tax dollars simply for them to give it directly to their favored private interests. That's not capitalism. We can do that ourselves, thank you.
Why aren't the Republicans talking about this obvious reality?
If we are going to witness the massive dumbing down of Federal government services to private interests, then NO Federal taxes should need to be paid. If citizens are now forced to be consumers, taxes are not necessary. That only seems natural and fair.
Well, of course the only reason we are supposed to still pay taxes to the current Trump / Republican Party privatization schemers is so they can pilfer our tax money for the purpose of making their rich cronies richer.
We can see very clearly from his Cabinet appointees and his health care plan that he has played his middle class working voters for chumps. And after the final less bad version of the Republican "WealthCare" Plan gets approved, we will see a lot of betrayal anger from Trump voters who see they have been used, and in fact, worse off.
Wednesday the Federal Reserve Board raised interest rate 1/4% as expected. They say they will raise interest rates as needed to curb inflation and keep the economic recovery moving ahead.
Keep in mind that when the Federal Reserve Board says the "economic recovery," they mean the Wall Street economy, not the Main Street economy. Not surprisingly, the stock markets liked the news and stocks went up modestly.
Finally, we continue to add to our invested positions as opportunities arise. I plan on making us money in the stock market until it runs out of steam. And given the political economic realities described above, it will happen sooner or later. It always does in such dysfunctional times. Thank you.