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  • Trump/Clinton Economic Plans Revisited, Extremely Different

    For the last several years, the economy has ranked #1 among the greatest concerns expressed by most Americans. And as we all know, the state of the economy has a huge bearing on the investment markets. With that in mind, let’s take a look today at the latest economic and tax proposals of the two presidential candidates, Hillary Clinton and Donald Trump.

    Both candidates have made tweaks and changes to their economic and tax plans in recent weeks, and both have made more details available about how their plans should work. But even with the latest changes, both candidates’ plans are night-and-day different.

    Finally, if you are an “Accredited Investor” you need to let us know as soon as possible. One of the best alternative investments we’ve ever seen is expected to close to new investment very soon. This unique investment fund is only available to Accredited Investors, so if you would like to take a look at it before it closes forever, be sure to let us know if you qualify.

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  • Clinton & Trump Unveil Very Different Economic Plans

    Former Secretary of State Hillary Clinton and New York billionaire Donald Trump both announced their major plans for the economy last week, if elected president in November. As you might expect, the two plans are very different. I will summarize both as we go along today, and you can draw your own conclusions.

    Before we get to that discussion, I want to bring to your attention the fact that the Atlanta Fed is forecasting a significant improvement in the US economy for the current 3Q. As you may recall, the Atlanta Fed produces a real-time estimate of the US economy which is called “GDPNow.” As of last Friday, the GDPNow is forecasting a jump to 3.5% in GDP in the 3Q.

    Keep in mind that US GDP was only 0.8% in the 1Q and 1.2% in the 2Q. A strong jump to 3.5% in the 3Q would be almost triple the anemic 1.2% in the 2Q. The obvious question is, what is the Fed seeing so far in this July to September quarter that is making it so confident? That’s what we’ll talk about just below.

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  • Obama’s Decision: Millions More on the Dole

    In 1996, President Clinton and the Republican-controlled Congress passed sweeping new welfare reforms. In doing so, they included strict regulations that required welfare recipients to work (or actively look for work). And they made it clear that "work" did not include such things as bed rest, exercise or personal past-times. The welfare rolls plummeted in the years following 1996, and the program was hailed a great bipartisan accomplishment.

    But on July 12, President Obama’s Health and Human Services Department issued an administrative order to the states that reverses the work requirements contained in the welfare law. Many believe this action is illegal, and it will almost certainly be litigated in the courts. But in the meantime, this order guts the work requirement in the 1996 welfare reform law and will allow millions more Americans to qualify for welfare benefits.

    On another note, the number of Americans going onto Social Security Disability Insurance in the 2Q of this year greatly outpaced the number of new jobs created in the economy for the first time. By April of this year there were a total of 10.8 million on disability, the highest ever. Likewise, there are more Americans than ever before on food stamps - 46.4 million as of March. Ditto for the number of Americans living in poverty - an estimated 15.7% of the population.

    These are very depressing numbers. The media tells us that this is all because of the weak economic recovery and continued high unemployment. The weak economy is certainly a big part of the problem, but could there be other factors involved? Could it be that the current administration in Washington wants more Americans to be dependent on the government? I will address this question at the end of today's wide-ranging E-Letter.

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