“The oscillating pattern affecting the economic system, where periods of prosperity are succeeded by downturns, is an inevitable result of repeated attempts to reduce the overall market interest rate through credit expansion. There is no way to prevent the ultimate collapse of a boom generated by such expansion. The choice lies only in whether the crisis will arrive sooner due to a voluntary retreat from further credit expansion or later, in the form of a complete disaster for the currency system involved.”
– Ludwig von Mises, Human Action
Crank Up the Printing Press
Anticipate Fed interest rate cuts. If you think this will elevate your stock portfolio, prepare for a significant letdown.
The looming downturn on Wall Street is glaringly obvious—if one chooses to see it.
Exorbitant valuations in the stock market. Unprecedented prices. A waning AI bubble that is exhausting its supply of enthusiastic investors. All the while, the economy is gradually sliding into recession.
These elements, coupled with a colossal government debt crisis, are signaling a threat far beyond an ordinary bear market. Our assessment indicates that a decline of 50 percent from the market’s peak to its trough in the S&P 500 is the minimum we should anticipate. In practical terms, if the stock market drops by 50 percent and then rises by 50 percent, you are still at a loss. Continue reading
As summer ends, schools reopen, and football takes center stage.
With the arrival of a new month and autumn creeping in, it’s time for reflection—a moment to evaluate our current situation and make crucial decisions.
Regarding the economy and financial markets, a bleak winter seems to lie ahead. Stocks hover near their peak, and valuations are historically high, even as vulnerabilities emerge in the economic framework.
For instance, U.S. manufacturing faced contraction in August for the fifth month in succession, marking the 21st contraction in the last 22 months, according to the Institute for Supply Management (ISM) in its monthly Manufacturing PMI report.
The manufacturing PMI for August stood at 47.2. A PMI reading below 50 signals contraction in this sector, which constitutes 10.3 percent of the economy. Industries such as machinery, textile mills, chemical products, transportation equipment, electrical devices, and various appliance components reported contractions. Continue reading
Oh my little cupcake,
Where are your sprinkles?
– Fuddy Duddy, by Fishwife
Land of the Free Stuff
Vice President Kamala Harris is backing nearly $5 trillion in tax increases as outlined in President Biden’s 2025 budget proposal. This intricate document spans close to 200 pages and details numerous proposed tax hikes.
Key proposals include a federal corporate tax rate of 28 percent and a maximum capital gains and dividend tax rate of 44.6 percent, compared to the current federal corporate tax rate of 21 percent and a top rate of 20 percent on capital gains and dividends.
If enacted, these tax increases would position the United States with the highest overall tax rates on corporate income among developed nations—an extraordinary claim for a country that has long prided itself on being the land of the free.
In contemporary society, after years of public education, many Americans misconstrue freedom as access to free government resources. Consequently, they vote with this misunderstanding in mind.
Large corporations often find themselves in the crosshairs of liberal politicians. Taking a stand against big business has proven to be a successful campaign strategy. Continue reading
Vice President Kamala Harris is eager to assist you. However, her help requires your vote first. She aims to secure the presidency in November before she starts rolling up her sleeves for the American populace—including you.
Since she took office, consumer goods and service prices have surged dramatically. Since January 2021, consumer prices have risen by over 20 percent, with food, rent, and electricity experiencing even sharper increases.
Yet, her tenure alongside President Joe Biden is often overlooked, with the consequences of Bidenomics placed squarely on him. Now, Harris is unveiling her own strategy—a comprehensive plan that demands your vote.
Should she become president, she promises significant savings. Specifically, she intends to provide $25,000 to help with your first home purchase and $6,000 for each child you welcome into the world.
Moreover, Harris has plans to reduce your grocery expenses, assuring you that savings are on the way. Continue reading
