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A MIX OF: MARKETS / POLITICS / AND THE ECONOMY

Our belief is that the markets are a reflection of the interrelationship of political and economic force

March 15, 2020     Watch our blog going forward as the GREAT RESET unfolds.

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__Our Approach is to provide a Contrarian Viewpoint on Economic Factors  Affecting U.S. and Global Markets__

The Big Five Long Term Factors over the Past 50 Years in the U.S. are in our view and the President at the time: 

Keeping in mind that the overall actions were designed to support markets not the people of the country, the result is inequality.

1.  Supply Side Economics…………….Reagan

2. Greenspan Bubble machine………Bush-Clinton

3.  Unfunded Irag War………………….Bush

4.  Bernanke FED QE policy………….Obama

5.  Isolationist Economics…………….Trump

Our approach provides support for investors in times when the underlying economic approach reaches a tipping point.

Those periods in recent history are:

  1. 2000-2003
  2. 2007-2009
  3. 2018-2020

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What we believed at the inception of this website in early 2008:

At the time we started this website we had been following the currency, commodity, and stock markets for some 40 years.

Our goal is to provide a background to economic issues that were bubbling up in the 2005-2008 period.  In the U.S. and the world things had gone full circle from the base of the 1930’s Depression through the WWII period, 17 years, 1929-1946, into the relatively strong growth period of 1947 – 1979 as the World rebuilt.

Going into the 1980’s the political view seemed to be that the economy was solid and it would be a good time to privatize more parts of the economy and thereby move money to the top 10 % of the population.  Many factors played into this including taxation policies, globalization, and the restructuring of the goals of Corporations in order to pay employees less and send more money to the stock market.  Stock buy backs and eventually Government bailouts, and then the icing on the cake, the QE2 and QE3 programs were employed  to try and halt the unravelling but in reality increased the inequality relationships.

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2018 – 2020 Update:  Politics have become a contentious part of the public discourse and we now have a country led by wealthy reactionaries who are trying to run on the mantra set out in 1980.  They say that they are independent populists whose main goal is to increase the incomes of those in the bottom 90 % of the population and see this groups income as a percent of the pie increase.  Initially we hoped that would be true, but the 2018 tax cuts for the wealthy and the market bubble that began in June 2019, set off by Trump and the FED, pushed interest rates to unrealistically low levels and fostered hyper-speculation in the Stock Market. This was a final confirmation that the country and the economy were on the wrong track, a coordinated move of money to the top. See charts here:

 

Now we believe, March 15, 2020, my 77th birthday, that we are in the setup for the GREAT RESET.

 

Watch our blog going forward as the GREAT RESET unfolds.

 

 

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