Two Massive Spenders For Candidates One Has Plans For Economic Calamity

The choices for next president are two massive spenders. One seems to be economically illiterate and building an economic platform on policies that lead to economic destruction.

As those that read my reports or watch my interviews know, I think the debt situation is horrible, which is why I call it the Death Spiral of Debt. So, I have issues with both candidates for president as they are both massive spenders.

But, the more VP Harris comments about economics, the clearer she shows that she will be the worst one for the office. She just doesn't get economics.

She wants to see much higher capital gains taxes which will affect job creation. What she is effectively saying is she wants to commit economic suicide.

It shows utter disregard for the economy. She is promoting this in her campaign at exactly the time when there is likely going to be significant revisions to the employment numbers. Even one of the Fed talking heads is conceding that the employment numbers were overstating the jobs creation over the past year. 

I’m not surprised because I have commented in several reports on the weakness in the jobs market due to the trends in shedding full-time jobs and gains in part-time jobs. What does surprise me is the amount of overstating that is being talked about that has been done to fit the narrative of the Biden administration and the Fed.

I follow the trends in jobs because the health of the jobs market is the most precise indicator of the health of the economy. Shedding full-time jobs for workers that then have to take on a couple part-time jobs to make less money is a sure sign the jobs market is weak and the same is true for the economy.

The US dollar (USD) has been in free fall of late and it signals to me that the currency traders are certain that a cut in rates that morphs into a series of cuts is around the corner. It is actually trading like they believe the rate cutting will move back toward the Free Money Era.

Inflation is caused by excessive spending, you can thank the politicians and Fed for that because they thought the best solution to the 2008 GFC was to go into the Free Money Era. The prolonged extent of this resulted in runaway inflation.

Aggressive rate hikes to fight runaway inflation led to trouble in the jobs market which tells us the economy is slowing. Much worse than the smoke and mirrors numbers we have been fed over the past year.

Of course when the economy is in trouble the Fed goes back to the Free Money Era and the politicians keep on spending like crazy. They issue more and more debt and investors start to wonder about the safety of getting back their capital and getting paid yields in USD which is dropping like a stone.

While there is a massive amount of debt being issued and buyers get nervous then the Fed has to prop up the Ponzi Scheme and take on the role of buyer of last resort and pump up their balance sheet.

This is an infinite loop that means the Death Spiral of Debt will be with us for a very long time.

Now throw into the mix that VP Harris is a massive spender and seems to be economically illiterate and you have a recipe for economic chaos.

I have zero faith that former President Trump will dramatically cut spending, and certain he will increase it. What I do have faith in is that he won’t be economically suicidal, while his opponent is ignorant to the facts of what her economic policies will cause.

Even more alarming is that VP Harris has talked very little about her economic platform. And the first plank she talks about is a dramatic increase in capital gains taxes.

I have long had a dislike of politicians on both sides of the aisle because for much too long they have been massive spenders. This election is coming down to which massive spender will be the worst and one is clearly showing she wants to follow a path to economic ruin.

I am left with no choice but to be for the massive spender who won’t commit economic suicide.

In Closing

Either candidate will increase the deficits and debt, thus keeping the Death Spiral of Debt going. 

The USD is signalling that the Fed is going to enter into a rate cutting cycle and increase their balance sheet to attempt to prevent a serious recession. Meanwhile gold is in a powerful bull market that has been making successive record highs.

I have seen the BRICS nations putting themselves on the Gold Standard, but was unsure if the US and other countries in the West would see the light.

All signs are pointing to the entire world going on the Gold Standard. Investors who beat them to the punch by putting themselves on the Gold Standard will be well rewarded as it will protect their wealth and combat purchasing power destruction.

You have the opportunity to suffer from being behind the curve or prosper from being ahead of it. The choice is yours and the writing is on the wall.

All the best,

Allan Barry Laboucan