As last week ended, stocks jumped on reports that on-again, off-again trade deals were perhaps on-again.
We don’t know if the fact that he is besieged from within and without the White House has made the President any more eager for a deal or any more conciliatory. Nor do we pretend to know what will happen with the impeachment movement. In that regard please see out recent post Impeachment and the Stock Market. We agree with Trump that if he is impeached the stock market will go down. But we believe the stock market will go down in any case.
Although we don’t know what will happen with the impeachment, we do know that powerful forces are lining up against Trump.
For all this agnosticism on our part, candor about what we do and do not know, we do know that Elizabeth Warren is polling better than ever. Even considering the prospect of a Warren presidency has us wanting to share a thought with you about what the socialist juggernaut will mean. And you can be sure that the socialist juggernaut is not just found in the presidential campaign. It is very much alive in elsewhere in Washington.
Let us make it simple: Experience from many places and many times makes clear that when the socialist state wants money, it intends to get it… at any cost. If that means a capital destroying wealth tax, it will do it. If that means tanking the stock market, it will do it. If it means destroying the dollar and private businesses, it will do that, too. If it means robbing your pension plans, bank accounts, or retirement funds, it will do it.
It will kill the goose that laid the golden egg. It will get the money.
To fund their something-for-nothing, free money schemes, the socialists look first to the money in institutions. They do that for the same reason that the bank robber gave when asked why he robs banks: “Because that’s where the money is!”
Whether it is socialists in the courts, congress, or the White House, it’s hard to miss the growing popularity of this wealth-destroying philosophy. We’ll keep a close eye on its advance and update you from time to time. In the meantime, let us repeat our warning:
They will get the money. They will turn to the visible institutions first. The paper and digital-bookkeeping dollar, made up out of nothing. Stock markets, businesses, banks, retirement accounts. Savings. Visible wealth.
The best wealth haven as this wealth-crushing juggernaut rolls along is your investment in physical gold and silver.