Sunday, October 29, 2017

TRUMP'S NEW " PANCAKE FEDERALISM" AND THE AMERICAN ECONOMY!

Donald Trump has started a new policy of "deconstruction" of the Federal Government. Currently, there are 87,504 types of Government in the United States of America. This ranges from Federal Government, State Government and local governments.

There is an average of 1,749 local government for each state! The rules of the game are published in the U.S. Constitution. These specific rules of the game consist of the expressed powers, implied powers, and inherent powers granted by the U.S. Constitution. The role of the President is to faithfully execute the laws of the United States.

President Trump new policy is to reverse the Franklin D. Roosevelt's "New Deal" to Trump's "Pancake Deal". The Republican party has now embraced a course to reverse the "Welfare State" of the 1930' to creating a new 2020's  "Corporate State". President Trump would like to reverse the majority of President Obama's "new deal updates" with a new "pancake federalism".

 Republican President Calvin Coolidge used his five-year pancake breakfast as a brand for downsizing the federal and state government. President Coolidge employed the top public relation firm to create the " pancake breakfast".






Trump's new experiment is to "drain the swamp" by starving the 87,504 types of American government of cash. Trump's economic strategy is to flatten the 87,504 types of government into a pancake. The economic trade-off would be to empower the top 500 Corporations and banks with deregulation and lower taxes.

President Trump wants to adopt new policies that downsize all federal branches of government. He can "deconstruct" the executive, legislative and judicial branches of government. The Republicans control both houses of Congress and can pass Draconian laws which economically starve the Federal Government and State government.

The goal of "pancake federalism" is to create a political framework which creates a depressionary environment for Federal and State government. The purpose is to reduce, downsize, degrade and eliminate government workers and services. For example, education would become a sunset industry by reducing government funding. Public school teachers would be facing a decade of declining wages and income.  They can downsize all federal positions by hiring freezes and funding. The entire new Tax plan would be the first step to creating this new experiment in "deconstruction".

Trump's ultimate goal is to create a 1920's type of economy in the United States. The roaring 2020's will be based on lower tax rates, fast economic growth, deregulation, stagnant Federal and State spending, new entrepreneur class, new sunrise industries and new manufacturing in the United States. The top 40% will see an incredible rise in wages and income and the 60% will miss the 2020 train of success.

Friday, April 14, 2017

NORTH KOREA AND COMING COLLAPSE OF MACAU CASINO STOCKS!


THE TRUMP FOREIGN POLICY OF CONTAINMENT MAY CREATE A TIDAL WAVE OF COLLATERAL DAMAGE TO MACAU ECONOMY. THE MACAU ECONOMY SUPER EPIC BUBBLE STARTED IN 2001 AND COLLAPSED IN 2014. THE NEW CASINOS CREATED SURPLUS WEALTH OF $ 4.4 BILLION THAT NOW HAS DISAPPEARED TO LESS THAN 2.1 BILLION DOLLARS.

THE COLLAPSE OFTHE MACAU STOCK MARKET WAS BASED ON THREE MAJOR FACTORS: (1) THE CHINESE COMMUNIST PARTY CRACKDOWN ON THE CHINESE  CORRUPTION; (2) THE VIP HIGH ROLLER USING THE CASINOS TO CIRCUMVENT CURRENCY RESTRICTIONS; (3) THE BUSINESS DOWNWAVE IN THE CHINESE ECONOMY AND EXCESSIVE HIGH VALUATIONS OF CASINO STOCKS.



THE NEW FACTOR THAT MAY CREATE A NEW TRIGGER OF PANIC IS THE COMING NORTH KOREAN SHOWDOWN. THE NORTH KOREAN SHOWDOWN WILL BE BE MET BY THE GREAT AMERICAN FLEET. THE GREAT AMERICAN NAVAL FLEET WILL CHALLENGE AND CONTAIN NORTH KOREAN NUCLEAR PROGRAM. HOW WILL THE NORTH KOREAN GOVERNMENT REACT TO THE NEW AMERICAN PRESSURE?








NORTH KOREAN MAY STRIKE OUT AGAINST THE AMERICAN CONTAINMENT. THE FALLOUT WOULD HIT THE MAJOR ASIAN ECONOMIES. THE MACAU ECONOMY WOULD PLUNGE THE FIRST QUARTER BY 24.5% AND SECOND QUARTER WOULD BE 26.4%.









THE CASINO STOCKS WOULD PLUNGE TO RECORD LOWS. THE AMERICAN STOCKS WOULD BE HIGHLY EXPOSED TO A DOWNWARD PRESSURE OF THEIR MACAU HOLDINGS.

THE SHORT IN MACAU STOCKS IS NOW AT AN ALL TIME LOW AND COULD BE THE KEY TO PROTECT LONG POSITIONS IN MACAU. HOWEVER, THE MAJOR LAS VEGAS CORPORATIONS WOULD TAKE A MAJOR LOSS ON THE THEIR FOREIGN HOLDINGS. REMEMBER, LAS VEGAS IS THE UNOFFICIAL CAPITAL OF THE UNITED STATES.





Friday, March 10, 2017

The Keys to the Shadow Banking System: DIVIDENDS WITHOUT PROSPERITY IN THE AGE OF TRUMP!

The Keys to the Shadow Banking System: DIVIDENDS WITHOUT PROSPERITY IN THE AGE OF TRUMP!: WE HAVE OPENED A NEW DOOR TO GREAT CORPORATE WEALTH IN THE FORM OF CORPORATE DIVIDENDS. THE PERIOD FROM 2003 TO 2012 HAS BEEN THE GOL...

DIVIDENDS WITHOUT PROSPERITY IN THE AGE OF TRUMP!



WE HAVE OPENED A NEW DOOR TO GREAT CORPORATE WEALTH IN THE FORM OF CORPORATE CASH DIVIDENDS. THE PERIOD FROM 2003 TO 2012 HAS BEEN THE GOLDEN AGE OF BUYBACKS AND CASH  DIVIDENDS. WE ARE NOW ENTERING THE AGE OF THE GOLDEN BUDDHA OF CASH  DIVIDENDS. 




 DURING THIS PERIOD, THE LARGE CORPORATION HAVE SPENT 91% OF THEIR NET INCOME ON BUYBACKS AND DIVIVIDENTS. ONLY 9% WAS SPENT ON PRODUCTIVE INVESTMENTS,  EMPLOYEES,  AND RESEARCH FOR NEW OPPORTUNITIES.





THE 9% WAS A VERY SMALL NUMBER TO SPEND ON THE FUTURE OF AMERICA. THE CORPORATIONS WANTED TO MAKE UP THE DIFFERENCE BY SPENDING PUBLIC TAXPAYER MONEY.  IN 2008, CORPORATION RECEIVED THE LOWEST INTEREST RATES IN AMERICAN HISTORY. THE FEDERAL RESERVE MOVED TO LOWER INTEREST RATES THAT ALLOWED FOR RE-INFLATING THE ECONOMY. THE CORPORATIONS SAVED OVER TRILLION DOLLARS.

IN 2017, FISCAL REFORMS WILL CREATE A NEW TAX SCHEDULE FOR THE CORPORATION AT PUBLIC EXPENSE. THE LOWER TAX RATES AND PUBLIC INVESTMENT INTO PUBLIC PROJECTS WILL SAVE THE CORPORATIONS BILLIONS OF DOLLARS. THIS MONEY WILL BE USED FOR BUYBACKS AND CASH DIVIDENDS.  THE TRUMP ADMINISTRATION HAS A PRO-BUSINESS ADMINISTRATION THAT WILL DE-REGULATE PUBLIC CONTROL OF CORPORATIONS. 

THE CORPORATION REFUSED TO INVEST IN THEIR EMPLOYEES AND THEIR EDUCATION. THE AMERICAN SCHOOL SYSTEM IS THE CORPORATE STRAWMAN FOR A LACK OF CORPORATE INVESTMENT IN EDUCATION. THE AMERICAN EDUCATION SYSTEM IS STARVED OF VITAL RESOURCES AND HAS CREATED A SUB-STANDARD  AMERICAN EDUCATIONAL SYSTEM.





THE CORPORATIONS ARE NOW PUSHING FOR THE TRUMP ADMINISTRATION TO REDUCE THE TAX RATES ON OVERSEAS FUNDS. THESE U.S. FUNDS WILL BE ABLE TO COMEBACK AT A LOWER TAX RATE. THE ONE TRILLION DOLLAR OVERSEAS FUND WILL NOT BE  USED ON AMERICAN INFRASTRUCTURE BUT WILL BE USED FOR BUYBACKS AND CASH DIVIDENDS.  THE AMERICAN CONGRESS WILL INCLUDE THIS IN THEIR TAX REFORM AGENDA.

THE CORPORATE REALITY IS THAT LESS THAN 8% OF THE TRILLION DOLLARS WILL BE USED IN ANY TYPE OF  AMERICAN INFRASTRUCTURE. THE NEW CODE WORD IS PUBLIC AND PRIVATE PARTNERSHIP.  THERE WILL BE NO REAL PARTNERSHIP AND THE MONEY WILL RETURN TO A NEW BONANZA: CASH  DIVIDENDS!. 

MILTON FRIEDMAN CLEARLY STATED THAT THE PURPOSE OF THE CORPORATE NET INCOME  IS TO REWARD AMERICAN STOCKHOLDERS. IT IS THE DUTY OF THE CORPORATION TO RETURN THIS MONEY TO THE STOCKHOLDERS NOT THE AMERICAN PUBLIC. 



THE INCENTIVE TO INVEST SHOULD REWARD THE RISK TAKER NOT THE AMERICAN PUBLIC. CONSEQUENTLY, THE OVERSEAS FUNDS IS STOCKHOLDERS MONEY AND SHOULD BE RETURNED TO STOCKHOLDERS IN THE FORM OF CASH  DIVIDENDS.

THE CASH  DIVIDEND GOLD RUSH IS GOING TO CONTINUE AND CREATE AN EXPLOSION OF DIVIDEND WEALTH. THIS NEW HAVEN OF WEALTH WILL TAKE AWAY FROM ALL OF THE PRIVATE DONATIONS TO AMERICAN INFRASTRUCTURE. THE GOLDEN BUDDHA WILL APPEAR IN THE FORM OF CASH  DIVIDEND CHECK TO THE AVERAGE STOCKHOLDER!

WILLIAM LAZONICK BRILLIANT ARTICLE "PROFITS WITHOUT PROSPERITY" OUTLINES THE INHERENT CONTRADICTIONS OF THE DIVIDEND ARGUMENT. THE ECONOMIC LESSON HERE IS THAT: POLITICAL REALITY TRUMPS PLATO'S REPUBLIC.

Tuesday, January 3, 2017

TRUMP'S INFRASTRUCTURE CHALLENGE TO MEXICO!


THE ELECTION OF DONALD TRUMP HAS CREATED A CHALLENGE FOR MEXICO. DONALD TRUMP HAS OPENED UP A NEW INFRASTRUCTURE RACE FOR THE FUTURE.

 THE UNITED STATES MUST INVEST OVER $1 TRILLION DOLLAR TO UPDATE ITS INFRASTRUCTURE. MEXICO MUST INVEST OVER $ 2 TRILLION TO  UPDATE ITS INFRASTRUCTURE. MEXICO HAS LOCATION OPTIONALITY WHICH ALLOWS IT TO TRADE IN MULTIPLE DIRECTIONS. MEXICO HAS ACCESS TO THE PANAMA CANAL AND THE GREAT CHINESE MARKET.

THE GLOBAL COMPETITIVENESS INDEX OF THE WORLD RANKS MEXICO 64 OUT OF 148 NATIONS. MEXICO HAS A VAST NEED TO INVEST  ROADS, HIGH-SPEED RAILWAYS, ENERGY PLANTS, COMMUNICATION SECTOR, HEALTH CARE, URBAN DEVELOPMENT, ENERGY, AND TOURISM.  MEXICO NEEDS A NEW POPULIST LEADER TO BRING A NEW SPIRIT OF INNOVATION TO MEXICO. MEXICO NEEDS TO SET UP A COMPLETE COMMUNITY COLLEGE SYSTEM FOR ITS PEOPLE. 

MEXICO NEEDS A CREATIVE MIX OF FINANCIAL TOOLS TO CREATE THE $ 2 TRILLION DOLLAR FUNDING. MEXICO NEEDS TO JUMPSTART ITS ECONOMY BY LEGALIZE CASINO GAMBLING. THE NEW ADDITION OF GAMBLING REVENUE WILL ALLOW FOR THE INVESTMENT INTO INFRASTRUCTURE.

 MEXICO NEEDS TO USE THE HIGH DEMAND FOR ITS TOURIST AREA BY ADDING GAMING MARGINS. THE MARGINAL GROWTH OF GAMBLING WILL ADD VALUE TO ITS PACIFIC RESORTS. THERE IS NO LOGICAL REASON FOR NOT HAVING GOVERNMENT CONTROLLED GAMING ZONES IN MEXICO.

MEXICO NEEDS TO DRAW ON INTERNATIONAL FINANCE TOOLS TO INCREASE ITS ABILITY TO MARKET ITS OWN GOVERNMENT BONDS. MEXICAN GOVERNMENT BONDS NEED TO HAVE THE HIGHEST INTEREST RATES. MEXICO NEEDS TO ATTRACT WORLD- WIDE INVESTORS.  MEXICO NEEDS TO OFFER AN IRON CLAD GOVERNMENT BONDS THAT ARE COLLATERALIZED BY U.S TREASURY BONDS.

 MEXICAN GOVERNMENT OFFICIALS NEED TO BUY US ZERO COUPON WORTH $ 1 TRILLION DOLLARS. THESE ZERO COUPON BONDS WILL BE  USED TO SECURE THE ISSUANCE OF $ 2 TRILLION DOLLARS WORTH OF MEXICAN GOVERNMENT BONDS. THESE NEW INFRASTRUCTURE GOVERNMENT BONDS WILL BE ISSUED AT 3.3 % INTEREST RATES FOR 30 YEARS.

 INTERNATIONAL INVESTORS WILL HAVE U.S TREASURY BONDS AS THE COLLATERAL FOR THEIR INVESTMENTS. THE MEXICAN GAMING REVENUES CAN BE USED FOR COMMUNITY COLLEGE SYSTEM. MEXICAN OFFICIALS NEED TO HIRE AMERICANS TO CREATE NEW FINANCIAL OPPORTUNITES. THE MEXICAN GOVERNMENT NEEDS TO CREATE PRIVATE AND PUBLIC PARTNERSHIPS FOR GAMING OPPORTUNITIES.










Friday, November 25, 2016

Sunday, November 20, 2016