The Economic Policies Of VP Harris Are Absolutely Shocking And Gold Is Primed To Go Much Higher
VP Harris wants to increase capital gains taxes and impose a 25% tax on unrealized gains. She seems hellbent on crushing the US economy which will spill over into other economies, especially in the Western economies that have close economic ties with the US.
To make matters worse, she wants to institute price controls in an attempt to appease voters that are feeling the pain of inflation. I guess she thinks she can fool voters into thinking that she can fix inflation when it happened under her administration and she had four years to do something about it. If she is so concerned and confident she can do something about it, why isn’t she doing something about it immediately is the key question of the day.
President Biden seems willing to run out the clock by spending most of the rest of his term on vacation. Meanwhile there are hot wars to deal with, spending is out of control and nobody is running the ship. VP Harris is out on the campaign trail like a loose cannon talking about economic initiatives that will be devastating to the economy and jobs.
Since becoming the candidate, VP Harris has refused to meet the press for interviews or to answer questions in a press conference. Her handlers seem certain that if they allow her to, she would crumble under the pressure of having to answer questions about her economic platform.
Not only has she not been grilled on her economic policies, she should be about the massive revision to the employment numbers put out by the BLS. The revisions make it clear the jobs market is struggling which undoubtedly means the economy is faltering. If she gets in and implements her economic plans it will be devastating.
It is amazing that she has avoided questions from the media and her first appearance will be a joint interview with her running mate. Obviously her handlers don’t want her to be on the hot seat alone. I suspect it won’t go over well with voters in her own party and those on the fence. Fortunately, it looks like those on the fence are going to be swayed by Bobby Kennedy ending his campaign to back Trump.
Apparently she has agreed to at least one debate with former President Trump. I hope he hammers home on her economic plans, the declining jobs numbers and how inflation is devastating voters.
For a long time, I haven’t had a preference for political leaders because Presidents Obama, Trump and Biden have been such massive spenders that have collectively caused a Death Spiral of Debt.
In this election the voters have to decide between two massive spenders, with one wanting to commit economic suicide. Trump will continue growing the debt because he will spend like a drunken sailor, but at least he doesn’t want to implode the economy.
The revisions to the employment numbers were remarkable for how much the BLS had manipulated the numbers to fit the party line for both the Biden administration and the narrative from the Fed on interest rate policy.
It amazes me that none of the economists at the Fed got an inking of the manipulated employment numbers. They should have been able to recognize there was something wrong as the full-time jobs have been in decline for months, and the part-time jobs were going up.
The severity of the problem is becoming clearer because the biggest segment of the revision was in white-collar jobs. The jobs market is very weak which means the economy is stumbling.
Last Friday, Fed Chairman Powell declared victory over inflation and signalled that rate cuts are coming. Tomorrow the initial jobless claims will come out, and revisions to the second quarter GDP. Closing the week will be the Fed’s favourite gauge of inflation, the PCE index, and also consumer confidence.
Call me cynical, but I won’t be surprised if these reports are massaged to fit the messages Powell delivered last Friday at the Jackson Hole, Wyoming conference.
The USD index has been in free fall for the past couple months as it looks like the currency traders are less fond of the cleanest dirty shirt in the fiat currency pile. It has formed a very steep decline as it makes a series of lower highs and lower lows. They are preparing for the Fed to go into a rate cutting cycle and trading suggests they expect the Fed to make moves back toward the Free Money Era, including cranking up their balance sheet.
Meanwhile, gold is charging forward toward a return to the Gold Standard to combat the devastating effects of insane spending from politicians in the US that have the debt over $35 trillion and servicing the debt over $1 trillion.
Gold has surpassed the Euro to now be the second largest currency held in the reserves of central bankers. With the worldwide debt up to $315 trillion and very little of it backed by gold, the path to gold returning to the #1 world reserve currency is well on its way. Few can argue that gold is not the soundest money and in the near-term and long-term it will only become clearer.
The past couple of days gold has been soft. As I always say, the pullbacks in a bull market are just as important as the rallies. They have been mild and over quickly.
Earlier in the year, I wrote reports that I thought gold would break out past $2100 and then make a series of new record highs. Which is exactly what has happened.
Now I’m looking toward gold making a move to $3000 before the end of 2024, or at the latest in early 2025. With the Fed about to start a rate cutting cycle, it is certainly set up to make a strong move toward $3000 this year.
Gold is in a very powerful bullish trend making higher highs and higher lows. The last couple days of this week are shaping up for a rally with the various economic reports coming out. I certainly think that the numbers will come out to fit the new narrative espoused by Fed Chairman Powell in Jackson Hole.
The Fed really has no alternative, there is a Death Spiral of Debt that will get worse no matter which candidate wins the Presidential election. Plus, the costs of servicing the debt are very troublesome with interest rates where they are currently. Making matters even worse is the jobs market is in a tough spot and the economy is without a doubt slowing.
The dots are all plotting for gold to go much higher.
While the major miner’s stocks have only just entered the gold bull market over the past few months, the gold developers and gold explorers still haven’t joined the gold party, yet.
Many gold stocks are offering fantastic wealth creating opportunities for investors and the trend is friendly for gold and especially for the highest quality gold stocks in miners, developers and explorers.
All the best,
Allan Barry Laboucan
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