Re <<$3 Trillion infrastructure Bill that’s coming…>>
Marty intones ...
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We are staring in the face at perhaps the most irresponsible fiscal management since Zimbabwe. Biden intends to outline his massive $3 to 4 trillion infrastructure plan Wednesday, which will create four tax increases worth around $1.8 trillion, the White House revealed. Biden's “Build Back Better” proposal, courtesy of Klaus Schwab, is his a centerpiece of his post-COVID campaign message. When we look at the markets, the 10-year rate has rallied to test the previous Yearly Breakline which stands at 1.7318 as it has reached 1.72 and change already. The original downtrend line stands at 1.8390. In 2022, they drop to 1.58-1.59. We can see that 39 years from the 1981 high, the low was clearly 2020 and 2021 was in fact a serious turning point.
Indeed, 2021 was a Directional Change and look at the Internal Volatility. It appears we are headed for nothing but higher rates into 2023. Everything appears to be on target and it looks like the Array has done an excellent job. The fundamentals now seem to be lining up with the overall trend and the fact that we see the Dow rising amid weakness in the NASDAQ and S&P500 is clearly a confirmation that capital is starting to flee.
The smart money is already beginning to move. Indeed, our largest institutional clients have begun the process. Government debt will decline in price going into 2023. We have two very serious problems. First, we have a Panic Cycle in Politics for 2022 which appears to be implying that we will see political parties split not just in the United States, but also in Britain and even Scotland as well as Canada and many parts of Europe.
While Biden has gagged the Border Patrol from talking to the press to hide what is going on and the Republicans, including Ted Cruz, were blocked from taking photos, the Democrats from Texas exposed photos which are making my point. The split we see coming will not just be Republican fiscal conservative leaving the Country Club crowd, but Democrats who are more fiscally conservative and those from the South where the border is a major issue as their local towns have been flooded with illegal immigrants.
Add to this our RELIABLE sources are revealing that the Biden Administration is pushing Ukraine to start an open war with Russia so NATO and the USA will come to their aid. This will serve as a diversion for the fiscal mismanagement and there is nothing like a war to impose even more draconian measures on the restriction of movement, international travel, and wage along with price controls. |
