Bail-Ins May Spark Far More Than People Realize
QUESTION: I listened to a radio interview where you said the Dow could double by 2016. Is that for real?
ANSWER: Yes! There is never a single reason for anything despite the TV reduces everything to this happened because of this. There is the major trend of Public confidence that shifts to Private. We can see this is the scandal that have all started to emerge since April 22nd. Investment shifts from Public (bonds) to Private assets. They are calling this the Great Rotation.
Switzerland just passed the first Bail-In legislation. No bailouts. Accounts with more than 100,000SF will be subject to confiscation.
Now, ask yourself what are your alternatives? Anyone now keeping money in banks has a screw loose. The politicians rather than regulating bank trading, are allow the confiscation of assets when the banks blow up with their trading.
Then interest rates are held artificially low so government interest expenditures do not go nuts. This has resulted in pension funds on the brink of insolvency.
This continues. But whatever they can do to tell capital to get out of banks and bonds, they are doing rather well.
Bloomberg should go Back To Manipulating Markets & Leave Society Alone
Michael Bloomberg clearly does not respect the constitution at all. Between is crazy soda ban he lost now his stop-and-frisk policy that police can just go search anyone on the street at any time has been struck down as unconstitutional. This guy does not belong in government. Perhaps in prison. But never in office.
This attitude is why the number of American resigning their citizenship is up600%. People cannot function internationally as Americans and are tired of the financial-cavity-searches.
When Congress is on Vacation, They Still Think How to Raise Taxes
Obama wants to raise taxes $1.6 trillion. September is the Debt Ceiling Contest. These people keep spending more than they collect in boom time and bust times. The borrowing is just printing money that pays interest as it began in 1863.
They had at first issued demand notes or Greenbacks that paid no interest at all. Now these people are looking at the old flat tax as well. The real interesting thing, to prove these people do not really regard themselves as representing the people, senators get political shelter by since whatever new taxes they propose, will remain sealed for 50 years so they can personally lie to the public giving them deniability as to whose idea it really was. Any access will be restricted to just 10 staff members.
Now they are looking at getting rid of the interest deduction on mortgages as well as the homeowner property-tax deductions. Essentially, August is a secret tax feast. They are quietly looking at everything and anything where they can raise taxes next.
Emerging Markets Decline as America Leads Growth
The US Economy is emerging as the center of economic growth in the world. US growth in the latest readings shows an annual 1.7% growth rate while Japan’s economy advanced at 2.6% due to the decline in the yen as Investors in Emerging Markets have seen things get much worse right down to rising civil unrest in Brazil. Euro may show some moderate growth only due to the decline in the euro last quarter.
The developed world accounts for more growth in the $74 trillion global economy than the developing world this is similar to the position in 1994.25 when the US began to rise drawing in capital that ultimately led to the Asian Currency Crisis in 1997. The stars are in the right position for a strong US equity rally into 2015.75.