TAX REFORM OR WORLD WIDE RECESSION:
Today the market sells off as this week is bleak. The price of oil plunged. That triggered speculators going long on oil to lose their margin calls and billions more went down the Saudi drain. The Saudi civil war taking place behind the scenes with little press, and the Regional Iran and Saudi wars are now in full measure on board. Uncertainty on out come leaves the market chilled.
Congress failing to pass tax reform and almost for sure tax reform pushed to after the holidays will not pass in the mid year election along party lines. This chilling outcome to economics will present the USA with only one option. Sharper declines in all values and a recession down bubble economic for the entire world.
Why would Congress punish 7 billion people across the world? How could 550 dysfunctional leaders owning a full crises of personal integrity, or collective integrity, with the lowest public rating in recorded history, be so impossibly dumb? They are folks. They are that unaware of what it is that they never do.
- They never pass a budget anymore they pass emergency resolutions.
- They never pass growth infrastructure or investments into the future for the nation.
- They cut back our defense budget when we are riding three fronts at once.
- They fail to solve gun issues when our people are getting slaughtered by what ? By automatic weapons they permit sale of to nut jobs.
- They fail to pass tax reform as they retain the most stifling tax penalty codes on earth where all industry runs for greener pastures than AMERICA in 2018. That failure to govern and lead for all of US is outcome we suggest is SHAME ON YOU CONGRESS OF THE United States SHAME ON YOU.
Todays market losses are reflective of the market saying SHAME ON YOU congress of the United States.
Super Money pools are starting a CASCADE to protect their own interest in what may be the MOTHER OF ALL SELL OFF’s. WE don’t think so yet. There is still HOPE congress will act. I don’t have much but there is some I suppose. The Spring is my danger point ( or any point in between now and Spring ) with no tax reform – the MOTHER OF ALL SELL OFF’s will commence. 6400 DOW? Don’t be surprised as we told you what – we told you when – we told how how to protect your own positions. Those who read and failed to heed receive the consequence that they must need.
Saudi policy on oil is such a failure that the market is punishing the Gulf for its uncertainty factor today. Everyone gives lip service to King Mbs but behind his back the majority or not giving him any respect but ONLY the lip service to his face. There are coup’s and plots behind coups and plots in SAUDI. Around the historic merry go round the powers roll and how it comes out nobody knows. I suggest the King has no clothes. But everyone is waving in the world as if Mbs is well dressed. He is NAKED folks and real power is swirling all round his self state internal civil war. The royal family as we knew it has ended and what new forward box top rule in Saudi unfolds no one can predict YET. I’m not waving to King Mbs as I think he is setting up Saudi for enormous pain and potential ruin. Too much too fast? More than that in culture in nation. With decades of respect in the Gulf work I’ve done, I’m neutral until this all sorts out. Always economic never political. I only report on economic realities. There is a long road to go here in 1001 Arabian NIGHTS. Its cold at night in the desert.
Congress is the major factor on economics. A more competitive USA will stimulate years of growth.
A less competitive USA will stagger the USA into a gut punch globally in which our lead will further diminish and our middle class will further erode.
Why? Because of Congress and failed economic policies. Congress is the WHY. Today and over time.
The Fed is now ceasing to stimulate – no more easing no more bond buying no more market support. The yield curve is flattening as money is moving to ten years protected bonds and the market in short term bonds is soaring. The Fed is also selling its own crap bonds. That is a market swing since only October of 50 billion in global market liquidity being taken out of the market a month by the fed. This is anti stimulus. This is tightening money supply. This is 500 Billion half a trillion in less than ten months. Big fed swing.
While they tighten the liquidity which I report here is the SUPER DANGER For a SUPER CRASH it is not JUST CONGRESS. The FED is the cause. The source.
The Fed is going to raise interest rates in December ( again ) and raise the interest rate three times next year.
The Bond charts may yield curve invert. When this happens we always have a serious sell off and recession.
We have reported here that the BOND MARKET is the debt bomb trigger to the next down turn the coming SUPER CRASH. We said to wait for it to watch for it. We said software trading against software would propel the market of CASCADE.
We are not in full CASCADE YET but it can hit us any time.
The fragile foundation of economics its being shattered by the FED and Congress. Why?
Failed policy. They see things as X when in real economics the truth is Y. Only they see X as their givens and as they are actually incorrect and in error and never see Y they do not have a platform to act appropriately as they have false data – fake news.
If you think Congress doesn’t get fake news your wrong.
They make it up themselves and circulate it daily.
When it comes to absolute bullshit the Congress is the manufacturer. They have their own brand of bullshit and their own snow shovels to move all that bullshit around.
Today was a consequence.
Consequence of policy moving the wrong way down a one way economic street with horns blaring.
Consequence for failure to lead.
Consequence for wrong headed decisions from the Gulf and oil patch to the USA and our economic future.
We strongly encourage Congress to pass tax reform as an economic emergency for the world economic security.
Do take some action like write your congressional representation on line by email as its all google and automatic today. WRITE TO PASS TAX REFORM. That is people power and it is the silver bullet we all have less. If it stays in your belt clip
CONSEQUENCE AND OUTCOME is what we the people deserve because we stood by and allowed it all to unfold without US.
WE are the POWER FOLKS if we take action.
Berny Dohrmann – For Tax reform and its impact on markets today