Hammer Time

Performance replaces Hope

With the virtual certainty of the passing of the new U.S. tax changes the final phase of the economic hope phase has been completed.  Now we will be entering the economic performance phase.  That is where traders can take the place of speculators and move all of this into reality.

Inequality is set back

In my view, not that it matters, the fight on inequality is set back 3 to 4 years. This will be a short fast, first, portion of the new 17.6 year MACRO cycle that has just started.  I would expect this first wave to entail a sharp decline is asset prices that will not find a bottom until the 2009 stock market lows are breached.  The reasons have been stated by us in detail over the past few months.

Massive Wipe Out

This first portion of the macro cycle will in effect wipe out 2/3 of the inequality that we see now.

New Deal # 2

From the standpoint of a “long View” I would say that something along the lines of a radical New Deal # 2 is in the cards.  This will be in effect a new domestic economy based on grass roots reconstruction after 2021.


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