‘Amazing’ US Economic Growth

By Todd Beamon – Re-Blogged From Newsmax

President Donald Trump on Friday hailed the “amazing” 4.1 percent quarterly growth rate — the fastest pace since 2014 — as proof that “we’ve accomplished an economic turnaround of historic proportion.”

“Once again, we are the economic envy of the entire world,” Trump, flanked by Vice President Mike Pence and his economic team, said at the White House. “America is being respected again and America is winning again because we are finally putting America first.

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Tariffs “Trump” Tax Cuts

By Michael Pento – Re-Blogged From Pento Portfolio Strategies

China appears to have more to lose from a trade war with the US simply because the math behind surpluses and deficits renders the Bubble Blowers in Beijing at a big disadvantage. When you get right down to the nuclear option in a trade war, Trump could impose tariffs on all of the $505 billion worth of Chinese exported goods, while Premier Xi can only impose a duty on $129 billion worth of US exported goods–judging by the announcement on July 10thh of additional tariffs on $200 billion more of China’s exports to the US we are well underway towards that end. However, this doesn’t mean China completely runs out of ammunition to fight the battle once it hits that limit.

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Big US Stocks’ Q4’17 Fundamentals

By Adam Hamilton – Re-Blogged From http://www.Silver-Phoenix500.com

The mega-cap stocks that dominate the US markets have enjoyed an amazing bull run. But February’s first correction in years proved things are changing. With that unnatural low-volatility melt-up behind us, it’s more important than ever to keep leading stocks’ underlying fundamentals in focus. They help investors understand which major American companies are the best buys and when to deploy capital in them.

For some years now, I’ve been doing deep dives into the quarterly financial and operational results in the small contrarian sector of gold and silver miners. While hard and tedious work, this exercise has proven incredibly valuable. With each passing quarter my knowledge of individual companies grows, helping to ferret out miners with superior fundamentals and the greatest upside potential. Traders love the resulting essays.

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The Dumb Money is Helping the Smart Money Exit the Stock Market

By David Haggith – Re-Blogged From The Great Recession Blog

Bloomberg this week ran a story telling us how the smart money gets out of the stock market when it hits its all-time peak and how the dumb money helps the smart money out. Only they didn’t know that was what they were writing. It typically happens this way:

At the end of a deliriously euphoric market rally when the market is preparing to crash, all the Joe Six-packs, mom and pop and the family dog open trading accounts and try to chase the tail of market action. Many throw in their entire retirement funds, pawn the dog’s collar and take out loans on credit cards to buy in as much as they can. By buying in late, they help provide a smooth exit for the smart money. At least for some of it. It is the little guys, tough from hard labor, whose muscles are employed to push the money bags of the rich to the top of the mountain from which the little guys are allowed to jump off.

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What Everyone Is Missing About The US Tax Cuts

By Steve Saville – Re-Blogged From http://www.Silver-Phoenix500.com

The changes to US taxes that were approved late last year have drawn acclaim and criticism, but in most cases both those who view the tax changes positively and those who view the tax changes negatively are missing two important points.

Most criticism of the tax changes boils down to one of three issues. The first is that the tax cuts favour the rich. This is true, but any meaningful tax cut will have to favour the people who pay most of the tax. Furthermore, contrary to the Keynesian belief system a tax cut will bring about the greatest long-term benefit to the overall economy if it favours people who are more likely to save/invest the additional income over people who are more likely to immediately spend the additional income on consumer items.

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Fed’s Policy Likely Will Mute Positive Effects of Tax Cuts

By Rob Willams – Re-Blogged From Newsmax

President Donald Trump’s tax cuts that went into effect this year will have a muted positive effect on the economy as the Federal Reserve raises interest rates and reduces its debt holdings, Hoisington Investment Management Co. said.

“The full spectrum of monetary policy is aligned against stronger growth in 2018,” chief investment officer Van Hoisington and economist Lacy Hunt said in a Jan. 11 report. “This monetary environment coupled with a heavily indebted economy, a low-saving consumer and well-known existing conditions of poor demographics suggest 2018 will bring economic disappointments.”

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America Needs a Debt Cut Before a Tax Cut

By Michael Pento – Re-Blogged From Pento Portfolio Strategies

President Donald Trump has finally unveiled his broad blueprint for tax reform. Well, at least let’s call it a sketchy outline of one. It would take the top income tax rate for small businesses from 35% to 15%. Theoretically, a business that makes $500k in taxable income, which had been paying roughly $175k in Federal taxes, would then pay closer to $75k. This means our business in this example, which saved 100k in Federal taxes, would have to grow its taxable income to $1,166.666, or by 133% to provide the government with revenue neutrality.

Even though Trump’s proposed tax plan offers more questions than answers, what is clear is that the administration is no longer working off the pretense that tax reform will seek revenue neutrality. Instead, it looks like Trump and the Republicans are leaning towards pretending that dynamic scoring of tax cuts will suffice for a revenue neutral plan.

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