Germany’s Military – A US Welfare Program

Germany is drawing more and more Communist lines as it vilifies Trump over his refusal to pay for and/or support: the Liberal Order, Climate Change, BREXIT and a common stance on Russia.   DW.com cites, US “eminent” political scientist, G John Ikenberry, as stating that this is not just neglect, but sabotage, and a hostile revisionist power play. WOW!   No mincing words…

First, Ikenberry is a professor at the University of Pennsylvania. He is a known voice of activism and hate speech. Working on ‘several projects for the Council on Foreign Relations, Ikenberry is a well known proponent of World Order, global domination, and the squeezing out of any country who is not on board with this regime, aka Russia. To consider him ‘eminent’ is rather arrogant and pompous to say the least.

The true angst within the EU and Germany is the fact that the US under Trump will henceforth no longer prop up their economies with US taxpayer funds. Including, defense.

Germany’s defense budget accounts for about 2.5% of the total world budget, 1.2% of it’s GDP, and 6.7% of what the US spends NOT including NATO.   As a percent of GDP, Germany would need to triple it’s spending to equal that of the US – topping roughly $120 billion.   The EU is squeezing Germany for more money as a result of BREXIT, and if the US let’s NATO go by the wayside, Germany and France will be left holding an empty bag of trick-or-treats.

Climate Change? 

The Paris Agreement is about two things 1) money, and 2) pinky swear goals.   Trump pulling out of the money part will have absolutely no effect on the climate change outcome given the money is slated for countries whose economies have no impact on climate change whatsoever. It’s a Bernie Madoff Ponzi scheme.   As Trump refuses to fund the scheme, US businesses vow to reduce emissions… Isn’t that the goal?   Or is the true goal to create another waste committee to spend billions on infrastructure so as to take over small country’s resources in ‘land grabs’?  Because that’s what the Climate Change money is slated for!

According to National Geographic, 1400 businesses, 20 states and 110 US cities have pledged to reduce emissions. Given that the Paris Agreement is all about ‘pledges’, it would appear that the US is doing it’s part without giving billions to a ‘committee’.

Basically, Germany and other co-dependent countries are whining because they have been given a free ride for so long and haven’t the wherewithal to actually provide for themselves as independent. They have been ‘welfare’ countries for so long that being weaned is making them angry as they cry for entitlement.

Sound familiar? It should, because that is ‘Socialist Communism’.

In addition to NATO, 25 member states of the EU formed PESCO in 2017.   PESCO is a joint effort to create a European military outside of the US welfare budget. Countries have already begun complaining that these funds will stress their other welfare programs and tax government spending.   While a formal budget has yet to even be declared, a goal of 2% has been defined.   But it isn’t just spending – it is about the size of the military itself.

Germany has a land force of just over 60,000 personnel.   Conscription may become a compulsory future for German males, or they may require conscription in order for immigrants to obtain citizenship…   France’s military is considerably larger with a manpower of over 365,000. Sweden has an active personnel log of 22,500, The Netherlands is roughly 59,000 and Norway boasts about 23,000 active.

As a comparison, the US has an active duty personnel of roughly 1.3 million.

Germany’s equipment is in worse disrepair. The Ninth Tank Brigade, which is scheduled to take over NATO’s Very High Readiness Task Force in 2019, has exactly 9 tanks and 3 armoured personal carriers.   It is an embarrassment for Germany and a complete failure of Merkel to compose a ready military.

Germany’s notion that the US is “ambivalent” because Trump is refusing to support the EU while they continue to vilify, demean, and reap the benefits of US taxpayer dollars, is incredibly morally, ethically, insanely hypocritical at best. The real problem is the fact that despite decades of US demands that the EU ramp up their military, they shrugged. There were no consequences, and now they are facing a Trump who is refusing to bow to their grumbling querulous snipes.

Macron – A Hero in France?

The German media is hailing Macron’s term as President of France as a grand success! He’s a hero! He’s a saint! He has accomplished what no man has done before and as a result his approval rating is at an all time high! Yeah!! Or not.

What has Macron accomplished that makes him worthy of such accolade? He has made a few tax reforms and a labour reform or two.   The tax reform is to reduce the corporate rate from 33.3% to 25%, to introduce a ‘progressive tax rate’, and abolish property tax rates. Some of these overhauls will phase in as of 2018, others will phase in over 5 years, including the corporate tax rate reduction.   Many of his tax reforms were simultaneously imposed by Trump, however the reception of the German media was quite hypocritical.  In fact, they were downright irate!  How dare Trump!

Labour reforms include making it easier to fire people, and lifting some regulations although the 35 hour work week and the retirement age of 62 remain in force. Yawn.

As a result of Macron’s massive reforms, France’s GDP rose to about 1.6%! WOW! The only problem, the GDP was estimated to rise to this level in 2014, three years before Macron was elected.   So how could he possibly be anointed with this accomplishment?

France holds an unemployment rate of 9.7%, and a youth unemployment rate of 24%.   It’s debt stands at about a third of the US, yet it’s GDP is only 11% of that of the US, and public debt is 20% higher.   Yet, somehow Macron is a genius and Trump an idiot? How does that work?

Macron’s proposal claims that the ‘source’ of revenue to cover these dramatic reforms will come from freezing government wages, a reduction of 120,000 public sector jobs, and a reduction in subsidies to French regions.   All of which will increase – unemployment.  Hmmm.

Merkel, Macron, Spain, Italy and Belgium all voiced major protests regarding Trump’s tax reform because they felt it would reflect in their own economic rosy development picture.   Which is true.   In addition, if Trump follows through with cuts to the UN and NATO, Europe will have to provide for their own military, increasing budgetary costs while already operating at a deficit.  The US has been subsidizing their militaries for decades, by the same taxpayers that the French consider unworthy and American racist, white, elite, Deplorables.

Macron’s approval rating is also subject to interpretation fluctuating Yugely depending on who is conducting the poll. Strange…  Some claim he sat at 60% when elected. Others report he tanked to 50% as of September only to rebound to 52% today…   That is according to the pollster, Ifop, a market research firm that sells polls to political parties.   But other pollsters claimed that Macron’s approval rating was 30% as of September, a far cry from the Ifop polls. How could that be?

Ifop is headed by Laurence Parisot, a woman, who also happens to be on the board of PNP Paribas. Paribas is infamously linked to the Rothschilds, the same Rothschilds who bought Macron and groomed him before planting him into the fray for election fodder.

Swaying public thought, the altered approval rating is simply another means of creating fake news.

France’s largest source of revenue is it’s chemical industry accounting for $73 billion in annual exports and which includes a cluster of US companies including; DOW Chemical, Exxon, DuPont, and LyondellBasell.   If those companies would decide to repatriate their stream back to the US per the revised tax reform instituted by Trump, the dent would be felt by France’s economy.  Hence the massive fear invoked in the EU for Trump and his reforms.

While the tax rates of both France (phased in over 5 years) and the US have been lowered, there does remain a giant thorn, the cost of labour, the work week, and unions. According to one company that was being asked to open shop in France, this was his impression:

Maurice Taylor Jr., head of the tyre company Titan International did not mince his words:

‘”I’ve visited this factory several times. The French workers are paid high wages but only work three hours. They have one hour for their lunch, they talk for three hours and they work for three hours. I said this directly to their union leaders; they replied that’s the way it is in France.”

Anyone…Anyone?

California Wealthy Taxpayers Paying 3% Effective Tax Rate?

California Governor, Jerry Brown, is having a hissy fit because Trump’s new tax law limiting some itemized deductions, most notably interest expense, will cause all the wealthy residents to form a line of mass exodus.   California has some of the highest priced real estate in the country, and a significant number of residents negotiate interest-only mortgage loans in order to cut their monthly out-of-pocket costs.   The rationale in the past was the fact that the interest was 100% deductible and therefore their actual cash cost was further lowered.   In addition, this lowered cost allowed more people to buy homes as they could squeak in the debt to income ratio margins.

The Bay Area currently has a median home price of $770,000 which is considered – middle class.   Oddly, it also has some of the lowest property tax rates in the country, lending more speculation that the wealthy vastly under-support the economy. The fact that the highest tax bracket for state income taxes is 13.3% with a 1% mental health surcharge for those earning over $1 million, certainly contributes to California’s cost of living as one of the most incredibly expensive.   And it has nothing to do with Trump – and everything to do with price demand – a capitalistic market.  

Of course, despite the fact that California has an annual budget of $265 billion or roughly $6700 per capita, twice that of Florida, they still can’t make ends meet.   Jerry Brown is convinced that the tax limitation was a Republican conspiracy to hurt California as well as his esteemed reputation.

Not to be out done, the California State Legislature is busily proposing ways to circumvent the new tax law by allowing the reclassification of interest as a ‘charitable contribution’.   Unfortunately, the feds make up the federal laws, so attempting to reclassify a Federal Law would be a slippery slope legality.

According to the Democrats within the Senate, California’s wealthiest 1% pay 48% of the income tax revenue… remember when Romney tried to make the same statement and was ripped apart?   Anyway, income tax revenue represents roughly 35% of the California Budget, 26% is Federal Assistance.   I imagine that if the California Assembly were to try to insert a new law circumventing the interest deduction, Trump could simply offset the dollars against Federal Assistance.  Given the Sanctuary City status, given constant natural disasters, California could easily find themselves stripped of all funding.

It’s much like a game of chess.   Only Jerry Brown doesn’t have his Queen to save him. FYI:  That would have been Hillary.  

But it isn’t just the income taxes California would lose. Their second highest source of revenue is from sales taxes which currently stand at 7.5% with a max State and Local of 10%.   A VAT Tax could generate significantly more revenue from a tourist standpoint, but the wealthy spend – the non-wealthy don’t, so revenue is primarily generated by the wealthy.

If the initiative to divide California and splinter off the rural portions to New California as proposed, Jerry Brown will be left with an even smaller base of income to support their massive welfare programs and prison systems.

As of 2015, California ranks number 1 for total gross federal collections, however, on a per capita basis it falls far short at 16th, below Missouri, which would indicate they are not paying their – “Fair Share”.   Given 38% of Californians earn more than $877,560 per year, compared to the national average of about $48,642, the math would support that they aren’t even close to paying their – Fair Share.  

With roughly 40 million residents, 38% would equate to 15.2 million earning $878,000 at a flat tax rate of 15% would mean they would generate over $2 trillion Federal tax revenue per year… not including remaining taxpayers who contribute 52% to the total take.   In actuality the total revenue collected in 2015 was a mere $405 billion.  A YUGE difference!  This would equate to an effective Federal rate of just – 3%.

Looks like a lot of someone’s in California just aren’t anteing up!!

Interesting…who could it possibly be?

Immigration Entitlement

Norway’s largest immigrant population demographics; Poland and Sweden.   Australia’s largest immigrant population;   England, New Zealand and mainland China.   Canada’s largest immigrant population; UK, China. Number of Syrians in Canada – 18,000 representing .1% of the population.   Switzerland largest immigrant population; Germany, Italy and Portugal.   Ireland immigrants: Poland and UK.   Japan? Foreign residents represent 1.22% of the entire population and are primarily from China and Korea. Portugal’s immigrants; Brazil and Cape Verde.

So why isn’t the media all in a tizzy over the demographics in other countries?

Recently, a number of refugees were relocated to an island in Scotland. They complained bitterly because they said the island wasn’t metropolitan enough and had an aging population with an average age of 55-59…

Of the 436,000 legal refugees brought into the US from 2011 through 2016, California took 36,000 representing .09% of the refugee population, roughly 2000 came from Syria.   Total Syrian “refugees” are estimated to number 6.3 million.   So California has given home to .03% of the Syrian refugees.   In other words, the numbers are so relatively small it’s like paying $20 on your $63,000 debt, it would take 3150 years to pay it off without interest…

In Australia immigrants must be ‘skilled workers’, must pass a comprehensive test, must have an employer lined up ready to employ you, and must remain squeaky clean for two years before you can even apply for residency. After 4 years of lawful residency, you will be considered for permanent residency which may take another year.

Canada:     According to the government, “For example: a 25 year-old female with excellent English ability, basic French knowledge, a Master’s degree with 2 years work experience in the country of origin, no prearranged employment in Canada and a spouse that has studied, lived and worked in Canada might score upwards of 80 points overall. This combined score of the six factors would make her eligible to apply for permanent residency.”

 The immigrant policies of nations around the world are strictly defined.   They have been defined in the US since 1790, revised and updated. Still, the illegal immigrants in the US are estimated to number about 12 million representing 3% of the total population.   Total immigrants in US amount to about 44 million or just over 13% of the population with most living in Texas, Florida, New York, Illinois and New Jersey.  Still – not good enough…

Gaining legal status is a difficult and costly process, however, abiding by the laws is required of every citizen. When laws no longer have effect, society collapses. Those immigrants who followed the rules through hard work and tenacity can feel bitter when a magic wand is waved and millions are simply granted a waiver.  But that is what the Liberals and Socialists are arguing.

Within this societal chaos, the rules of Order melt away and the entitlement schematic rises to the surface. I remember as my kids grew they would continually ask if something was ‘free’.   Amazement reined as they found that our house wasn’t free, my car, and ultimately even the water.   A generation has risen that was apparently not given this guidance and so they believe that everything entitled should be free…  Of course, it follows that everyone who has worked to gain wealth should then pick up the tab for all the freebies that youth can’t afford because they haven’t worked.   Somehow the switches that govern logic and rational seem to be turned – off.   Big Daddy is thus the godhead!  “You have the money, you pay, I don’t have the money so I won’t pay…”  What happened to the widow who gave her only penny?

Until this socialist generation is willing to foot the bill ‘themselves’ for the massive immigrant policies they support, they will never learn that entitlement means someone still has to pay and ultimately it will be ‘them’, should be – them.

Apple Infusing $350 billion into US

…Apple has announced that as a result o Trump’s new tax law they will repatriate $350 billion into the US economy over the next 5 years, $38 billion in repatriated taxes! In addition, their move will create 20,000 new jobs in the US!

Bada-BING!

Shouldn’t this be headline news?   Trump’s tax plan is already saving billions! But then Trump would have to be credited – and the media just can’t seem to work up the courage to say anything ‘nice’.

This is the first of many more to come given the most assertive tax reform in decades. This could be the beginning of a wave as others see the advantages. Those with the highest amount of cash overseas include; GE, Microsoft, Pfizer, Merck, Google Medtronic and Abbott Labs. It is estimated that $1.4 trillion in corporate cash is being held in various overseas accounts subject to a one time offer of 15.5% tax rate. That would amount to a cash infusion of $217 billion not including the associated jobs, and payroll tax revenue, not does it take into account the additional profits subject on an annual basis to the new corporate rate of 21%.

It is proof positive that Trump’s plan is a success and could have a ‘Yuge’ positive impact on the US economy while simultaneously negatively effecting those economies where the havens currently exist; Switzerland, Cayman Islands, Bermuda, Ireland, Puerto Rico, and The Netherlands.

Another possible loophole that could trickle down and up again would include all the individuals, as in the Panama Paper Caper, who may decide to capitalize on the windfall and incorporate in order to bring their money back as well via the 15.5% rate.

Within this revolution of cash infusion there is a hidden danger. As the money flows and the economy is bumped, the Federal Reserve is likely to start increasing the interest rate which will ultimately put a bit of a squeeze on equity stocks given their profits have not kept pace with their market prices. However, in the short term, profits will feel the pace of business through lower tax rates and greater infusion of money in the economy.

A balance could shift toward larger cap stocks as they will see the greatest benefit and feel the least pain.

There is also the trigger of interest rates on federal debt which were cut in half during the Obama term. If those rates go back t normal, the government’s interest spending could easily double unless debt is paid down.   Trump’s fault? Hardly. Simply a mechanism he inherited.

But playing the swings could be a bit dicey if you don’t understand all the inherent dominoes being deployed.

In the meantime, the Liberal media will have to do some double talking, fast talking, hype in order to somehow convey how all this money infusion isn’t really a result of Trump’s Tax Reform, but something completely anti-Trump.

Add to the Liberal negative news that the economy is roaring, unemployment is low, black employment is at an all time high, and the Ozone hole is actually shrinking all by it’s lonely self, and the world seems to have gone from doomsday Revelation to a Halleluiah scenario.

Just sayin’…

De Blasio Suing Oil Companies For Climate Change Amidst Budget Deficit

De Blasio is boldly going where no man has gone before – filing a lawsuit against multiple worldwide oil and gas companies for their role in Hurricane Sandy’s devastation, health issues, and infrastructure destruction to his great New York City… Oh, but wait, he isn’t just suing the oil companies, he is targeting NYC pension funds in an effort to ‘divest’ their investment in fossil fuels and divert it to Climate Change issues.   What?

BP, Conoco, Exxon, Chevron and Royal Dutch Shell are the major targets. Proving that they directly impacted climate change and caused harm to NYC specifically, is a rather uphill battle. But apparently one De Blasio and Company feel is possible and just might mitigate his ever defeated budget deficit.

According to the Budget Comptroller for NY, NYC is facing a deficit of as much as $7 billion as of March this year. According to the analysis, NYC could be facing a disaster scenario under the tutelage of De Blasio and he’s running scared with nowhere to turn to find the $$$$$.   In addition, Trump’s new tax plan could cause a massive exodus as taxpayers seek more friendly places to park their money given the limitations on interest deductions will impact their itemized deduction caps.  With some of the highest priced real estate in the country, mortgages are a mainstay. But the rationale was the deductibility of the interest.  No more.

As a result, De Blasio is scrambling and this is the best scenario he could come up with while attempting to capitalize on an issue that is embedded in the Liberal agenda – Climate Change.

De Blasio’s threat to redirect NYC pension fund investments is a bit of a smokescreen given the fund has been in a massive overhaul for the past 3 ½ years when Scott Stringer took office and declared that the retirement system was “hanging by a thread”. At issue was the fact that the returns delivered by the fund were considered inadequate and well below the market.   Implementing a comprehensive plan that Stringer estimated would take 5-10 years to become a powerhouse once again, cannot simply be ‘modified’ to coddle the whims of De Blasio. Fiduciary responsibilities dictate.

Two NGO’s are supporting the De Blasio move, Union of Concerned Scientists, which is the recipient of funding from George Soros, and 350.org, which is funded by the Rockefeller Brothers Foundation and has partnered with Global Greengrants Fund, a Soros Open Society promotion. In fact, according to their Form 990, the only grant made by 350.org was to Global Greengrants Fund.

 

Climatic Change, a journal established by Michael Oppenheimer and Gary Yohe, published a study claiming that climate damages such as rising sea levels and increased temperatures are a direct result of products sold by such companies as Chevron and ExxonMobil. In addition, the Union For Concerned Scientists (Soros funded) has joined in the fray of qualifying finger pointing by claiming that:   “We’ve known for a long time that fossil fuels are the largest contributor to climate change. What’s new here is that we’ve determined just how much specific companies’ products have caused the earth to warm and the seas to rise.”

The study suggests that all the major oil companies combined contributed to 10% of the global temperature increase between 1980 and 2010 and 4% of the rise in sea level.   The study specifically provides Hurricane Sandy as an example of rising sea levels magnified by climate change causing roughly $2 billion in damage over what would have occurred had there been no rise in sea levels.  The total estimated cost was $65 billion.  How they can make monetary determinations is a bit stretched…and seems to have no supporting documentation.

So, who commissioned this report?

The lead author of the report was Brenda Ekwurzel, a climate science director at the Union for Concerned Scientists. Coincidentally, Gary Yohe, who assisted in this publication, is also a Member of the NYC Panel on Climate Change. Somewhat a conflict of interest?

Further conflicts include the fact that Michael Oppenheimer also founded, Climate Action Network which is aligned with Soros Fund Management and Christine Lagarde, of France’s Economic Ministry.

So why would Soros want to hit the wallets of oil and gas executives?   Hitting the biggest oil giants, might give a boost to some of the smaller companies, like:  Petroleo Brasilerosa, California Resources, Valvoline, Rice Energy, Targa Resources and Diamondback all of which were owned in Soros portfolio last year.  Of course the hypocrisy doesn’t end there with Soros heavily invested in the Williams Pipeline company, and Columbia Pipeline which merged with Transamerica of the Keystone XL fame…   Creating a profit while belying ethics is the Soros windfall.

Other cities and counties suing the oil giants include California’s Marin, San Francisco, San Mateo, Oakland and Imperial Beach.   All these cities and counties project a continued significant budget deficit now and in the coming years… and tapping climate change might fill the gap…

By the time any legal action is concluded, Soros will be well out of the oil and gas investments – an easy bet.  Playing both sides, not unlike his play of Republicans and Democrats.  “Anyone, Anyone”…

MEDICARE CUTS?

In 2010, Obama signed the Statutory Pay-As-You-Go Law which provides a stop gap passage of any change in taxes that would increase the Federal deficit by a certain percentage. But it contains over 150 exceptions including; Fannie Mae, Social Security, Health Care Trust, low income housing… etc. In addition, since its enactment it has been waived 16 times by Obama, meaning it wasn’t really a law at all and was never intended to be, it was – fluff.

It is this Law that Democrats and the media keep hyping as proof positive why Trump will cut Medicare funds for beneficiaries next year. Creating a number was also important in order to sell their story; $25 billion the first year and $400 billion over the next decade. WOW! Sounds awful.

But the problem is this entire argument is also – fluff.

Both Ryan and Trump have clarified numerous times that they are going to tackle Medicare, but from the standpoint of fraud and overpayments to hospitals and doctors. Secondly, Medicare is not a target ‘entitlement’, what the media seems to not understand is that Welfare is the target. And forcing people back to work is the objective which was the point of lowering the corporate tax rate – more jobs.

The other part of the story emerged this past summer as the Chicken Little chorus began to circulate the statement that ‘Medicare will be insolvent by 2029’, citing a report by the Trustees. Of course, like everything else that gets crypto-hyped, the entire story was dramatically edited to fit the Sky Is Falling agenda. Not to mention that this funding ‘shortage’ didn’t suddenly occur during Trumps first 5 months as President.

Oh Brother!

The report specifically addressed Medicare’s Hospital Insurance which can pay 100% of hospital costs thru 2029 and which point, if all things remain the same, they will only pay 88%.   These numbers are based on a model that measures payers into the system compared to retirees. Blame the Baby Boomers. The generation of baby boomers will gradually increase putting more pressure on Medicare, and then decrease as we all die. C’est la vie.

There are two options available; 1) increase the amount and/or the threshold for employee contributions, or 2) lower hospital costs by stipulating a fixed amount they all can charge for a procedure. Which is what Trump wants to accomplish and what he and Ryan have stated over and over and over again.

The Media doesn’t WANT to get it. So they have created their own story. And that’s called – Fake News.

TRUMP Tax Reform – Dissected

Twelve Republicans voted ‘No’ on the Trump Tax Reform. Why? Because they represent three states, New York, California and New Jersey, with the highest income and property tax rates in the country and the new limitations will affect their constituents.

California has the highest personal income tax rate at 13.3%. New Jersey comes in first as having the highest effective property tax rate at 2.31%. New York City residents come in a close second with state and local taxes for some districts at 12.96% and an ‘add-on’ property tax for properties over $1million at 1% which would effectively no longer be a deduction given it would ultimately exceed the cap.

Of course, every single Democrat voted against the Bill. Why?

There were a few agendas:   1) the Obamacare mandated penalty for not having health insurance was repealed. That means that the young and healthy are no longer required to carry insurance.   2)   They fear that welfare programs could possibly be impacted with budget cuts  3) They claim that the effect of lowering middle income earners taxes will no longer apply as of 2027 – which is rather nonsensical since the entire Bill expires in 2025.   Hello?  4) They fear that government revenue will decrease significantly creating greater deficits.

INDIVIDUALS:   1.  A number of itemized deductions were eliminated or capped.  2.  The Estate Tax deduction was doubled.  3.  Alimony would no longer be a deduction after 2019 (so don’t get divorced).   4.  Tax rate brackets were lowered.  4.  The standard deduction was nearly doubled while the personal exemption was eliminated. 5.  Child tax credit was revised and tightened to include the requirement of a social security number.  6.  The AMT would have a much higher phaseout threshold.   7.  Repeals the limitation on itemized deductions.

CORPORATIONS:   1.   Rate was lowered to 21%.   2.   A phase in to allow full deduction of capital expenses rather than depreciation.  3.   Eliminates the carryback provision of NOL.   4.  A 15.5% offer for corporate repatriation of overseas cash profits and an 8% rate for reinvested earnings.  5.   And a territorial tax system whereby only domestic earnings are subject to tax (avoid the potential for double taxation).

The Democrat argument is predicated on the fact that government won’t make enough money to pay for all their benefits and perks, and parties… But the reality is in the fact that as corporations come home to their 21% tax rate vs 39.1%, they’ll get troughs of people off the handout roll of welfare, food stamps, and Medicaid because they will actually be working for a living.

It is estimated that $3.1 trillion in US company profits is being held overseas!   Bring It On Home!   There are limitations. This does not mean corporations will no longer hire foreign employees who are better trained, it does mean that the incentive for American workers to become trained will create a revolutionary new training industry as we play catch-up, or ketchup… with hundreds of thousands of new labor jobs available.

Tax preparers and estate planners may see a rollback in their usefulness. H&R Block may want to diversify into training centers for the new generation of employees.

But the biggest gripe the Democrats have regarding the Tax Reform is that it actually might work, and that could disrupt their antagonistic agenda when trying to damage Trump. Today their voice of dissent is based on mere block numbers with the assumption that corporations will remain in the EU, the Bahamas, and the Maltives – some will, but I imagine most will come home like

Prodigal Children.

Trump Tax Reform Unfair Says EU Ministers!

European Finance Ministers are voicing concern and outrage over Trump’s tax reform. They wrote numerous letters to Steven Mnuchen and all senior Republican Senators and members of Congress weeks ago asking/demanding that they vote against the Bill because the policies were unfair to Europe…

I wasn’t aware that Europe had control over our US tax policy. But apparently, they do, or at least they did.

Even more curious is what they were targeting. Apparently they are quite furious over the fact that Excise and Base Erosion fees will be levied on corporations that utilize the fake tax haven headquarter scheme by establishing a base in an EU country that offers lower tax rates. An Excise fee of 20% will latch to corporations utilizing goods and/or services of a foreign corporate entity. And lastly, Intangible Income such royalties derived from the EU would no longer have preferential tax treatment which resulted in what was considered a subsidy payment benefiting EU property.

In other words, Trump went through with his promise to entice corporations back to the US. Good for the US, bad for the EU. And so, they are miffed.

The EU Economists are concerned because their revenue base will suffer given they recognized that corporations relocated to preferred EU countries in order to avoid/evade higher tax rates in the US.   With Trump’s reform, corporations will likely do exactly that – return home giving the US a bump in revenue, and burning the EU advantage.

As a result of the Tax Reform, over time the economies of these EU tax haven countries will begin to contract without the boost of US corporate tax revenue, and ultimately the withdrawing of jobs as headquarters and employees move back to the states.

Obviously this tax haven arrangement has been bolstered and supported by the EU for decades and might help explain why their PM’s and President’s are roiling while making derogatory comments about Trump. Their argument is that making ‘America First’ comes at their expense given they have reaped our rewards and thus international trade between the EU and the US will falter. But given that trade was built on a tax subsidy at the expense of our economy seems to allude their ‘me first’ agenda.

Bottom Line, the call to arms by the EU Ministers is that the US tax reform is ‘not fair’, because it puts US money back in the US instead of in the EU… Awwww, shucks.

CRYPTO CURRENCIES: Let The Games Begin!

While the media is obsessed with Trump bashing, the world of business continues to turn. One such turn is cyrptocurrency which is smashing the markets right now and getting very little media attention that is positive. In fact, the major banking institutions missed the boat, and curmudgeons that they are, they are determined to ignore reality. And reality is:

Bitcoin – up 2125% in 12 months

Litecoin – up 9800% in 12 months

Ethereum – up 7266% in 12 months

And still! The major outlets either ignore these stats, or refuse to acknowledge that they happened and claim it is all a crash and die bubble.

Maybe. But – maybe not.

Some of the bigger companies already accepting Bitcoin include; Microsoft, Overstock, Subway, WordPress, Reddit, Expedia, Virgin Galactic, Wikipedia, etc… Russia recently announced that in response to the continued sanctions, they may team with Iran and Venezuela to drop the US dollar as their primary currency for trading oil and revert to cryptocurrency. They did not specify which one.

As of December 10th, futures trading on the Cboe Exchange was launched creating a frenzy of buys and sells. This is not for the faint of heart. When a correction occurs, which is frequently now, it easily shapes into a 20-25% curve. Exchanges crash temporarily unable to hold up to the massive volume, and the ride continues.

So why did the major banks and financial institutions avoid the crypto surge? The most obvious reason is because they don’t have control. It is outside of the Federal Reserve heavy hand, outside of government’s Big Brother hand, and thus a free reined Bronco!

In addition, the existence of money outside of cash may ultimately effect lending and mortgages as money can be made available through an open source peer to peer market without interference, or hefty interest rates.

More importantly, Cryptocurrencies undermine the Soros Cabal because they are no longer in control of the economy, the spending, and the flow of money. While claiming that cryptocurrencies promote money laundering, the truth is, money laundering is already well entrenched in the offshore banking industry in which Soros is well ‘funded’, avoiding taxes, and hiding – money. So the argument is relatively benign.

Cryptocurrency should be the story of the year, and yet the media is dragging it’s feet, and instead promoting stories in their Business Section like: Sexual Harassment and HR, St Louis Reconnects With The Gateway Arch, The Alternate Right Created A Parallel Internet, Will Robots Take Our Jobs, Alabama’s Election Reshaping Washington, Trump Escalates Criticism of Media, etc… BORING.

And the DOW went up .56%…

There are currently roughly 125 Hedge Funds investing in cryptocurrencies as of October. The top five crytpocurrencies now have a market cap of over $406 billion. DAILY trading volume of just the top five is well over $29 billion. But hey, this is just a bubble?

There are 1344 cryptocurrencies with more coming online as the concept of a free market explodes. Millennials are driving the trading as they pour every available dollar into what they see as ‘the future’.   And the codgers will be left behind because as currency trading shifts from standard currencies, the dollar, the Euro, the Yen will take a nose dive.

Futures trading will impact crypto trading simply because it offers the ability to short the market, something Soros may manipulate. In the meantime, CME, the world’s largest futures exchange is slated to launch futures trading in Bitcoin December 18th.   It is thought this will usher in the ETF’s and an entirely new platform of trading.

LET THE GAMES BEGIN!