2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 425.94

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To: THE ANT who wrote (133348)	4/26/2017 7:20:31 AM
From: Elroy Jetson	Read Replies (1) of 219333

Short-term interest rates are tremendously, anomalously lower than long term rates currently in an mostly futile effort to convince people with short-term asset holdings to go long. But to get individuals and companies to invest long there has to be demand to support those capital investments, but there's not because income inequality has frozen demand even as the GDP continues to rise. Reducing tax rates on people who have no intention of spending those income tax savings will accomplish zero. I can buy stock in Chevron currently paying a 4.25% annual dividend.The bank pays 1%. Short term rates can be raised substantially percentage wise before they have any effect on long term rates, or my interest in buying a 4.25% dividend stock because I'm not elderly. Raising short term rates will give many retirees and others more income to spend. It's not good policy to force elderly people to risk their savings in a stock market which if tanked would not recover in their lifetimes - requiring a massive new outlay in increased Social Security benefits to avoid starvation among the elderly. This is a showdown between the cash rich Koch family and their Tea Party which will greatly benefit from an economic depression, and Trump who to a greater extend represents all Americans. To avoid a catastrophe Trump is going to have to decisively write-off the Tea Party as lost to him and come up with a bipartisan stimulus program - but this is going to be a very difficult choice to make given Trump's personality. Sadly he will continue to do ever more foolish things to try to win over the Tea Party who are not winnable by Trump without agreeing to things which guarantee defeat by other Republicans, let alone Democrats. If Trump were Putin, the 27 Tea Party Congressmen would already be in the hospital dying of radiation poisoning - but Trump doesn't really have the choice to do that so he's going to have to find votes elsewhere.

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