Think how terrible you would feel if your obstetrician told you your new baby had a birth defect that he or she would have to live with for life. As terrible as that would be, it only happens to a tiny fraction of children born in America.
But believe it or not, EVERY baby born in 2016 inherited a terrible burden they will bear for life. If your baby was born in 2016, he or she already owed $42,537 of the National Debt. By the time they turn 18, their share of the National Debt will be $68,454. And when they are 34 they will owe $116,904.
A few years ago, as the stock market experienced wild ups and downs, I watched 5 guest panelists on CNBC express their opinions on the reasons for the volatility. Actually, seven people interrupted and talked over one another in their zeal to get their points across. The two hosts, who were supposed to be interviewing the five panelists, spent most of the time expressing their own opinions. The one common denominator was that all seven continually referred to "The Fed," wondering how that institution might move to solve the problem. I had to laugh. These were supposedly sophisticated people, representatives of financial and educational institutions and think tanks. And yet they seemed to be as painfully ignorant of the truth concerning the "The Fed" (more formally known as 'The Federal Reserve System') as the average American on the street.
Officially, 8.3 million Americans are unemployed (5.5%). In reality, 22.81 million (13.3%) are out of work. The official number isn’t even in the right ballpark. It’s a national emergency. Here’s the proof...
2016 was the year of “never happened befores” and wrong bets. Brexit wasn’t supposed to happen, but it did. The EU was supposed to expand, but it contracted, as Switzerland, Sweden, Iceland and others withdrew their applications. The EU utopian idea of open borders and an end to the sovereign nations of Europe is gone, as borders are closed and many more referendums on exiting the EU are coming. Clinton was supposed to win, but Trump did. The US economy was supposed to have a growth rate of 2.8%, but it didn’t, and interest rates were supposed to be raised four times, but like the year before, they were only raised a quarter point in December. The Japanese economy was supposed to expand and the yen was supposed to devalue, but they didn’t, instead the yen rose and the BOJ dropped interest rates to negative.1%. Assad was supposed to be defeated and the rebels were supposed to create a democracy, but they didn’t, and now the Assad government is poised to retake control over Syria with the help of Russia.
I welcome the election of President-Elect Donald Trump with great excitement. This is the first time in history that we have had a president who was not shackled by having to please the political establishment. Not even Ronald Reagan had this freedom. He was forced to place people in key positions in his administration who compromised his conservative agenda. We may have the first true conservative government in history.
The economic significance of this cannot be overstated. Investment Grade Gold had its biggest bull market in history during the Reagan years. This historic election could not be more timely. The time to get out of paper and into Gold is now!
The politicians think they have pulled a real sly trick on the American public with buying into and propagating the Boskin Commission’s Core Index method of reporting inflation. By using this method they have avoided raising COLA payments to seniors on Social Security, veterans pensions, and federal employees pension. No one has been able to break this stance and many in the media simply take it as okay and meekly mumble that inflation is under control according to government reporting. This is blindness, self-inflicted.
The fast food industry is not the only industry that employs people at or near the minimum wage level. Janitors, for example, are often paid the minimum. Thanks to the sacrifice of today’s activists, the advances in robotics will lead to machinery cleaning office buildings and manufacturing plants. The increase in demand for this equipment will lead to more manufacturing jobs, which will lead, over time, to greater supply and more affordable machinery. Cheap robots will serve the unemployed former minimum wage earners. Ah, the irony of life.
My wife’s mother cried the first time she saw Ritz Crackers in a US store. Why? She had just emigrated to this nation, and eating Ritz Crackers was one of the many good memories she had of the time when Cuba was still Cuba. Once Castro took over the nation, most of the good things ended.
While they still lived under Castro’s oppression, and after they came here, her mother told her many things about the time “When Cuba was Cuba.” She told her about freedom, property rights and individual choice about such things as where one’s children would go to school.
In 2015 the Dow Jones Industrial Average lost 398 points, after being up in 2013 & 2014. On January 4, 2016 the Dow opened at 17,425 and five days later, closed at 16,346, down 1079 points, wiping out all of 2014's gains and 230 points of 2013's gains. This means that most people who have been in the US stock markets for the last two years have virtually earned nothing.
Last Sunday, I was in the city of Manila speaking for one of the many Victory churches in the Philippines. The Victory church network there was addressing the subject of wealth in a series entitled The Fine Line. My speaking assignment was on what the Bible has to say about selfishness and generosity. Let me share a bit of what I shared with the Filipinos on this subject.