April 2017

Summary: The Europeans released their inflation numbers today.  Year over year, inflation in the Eurozone are increasing at an average of 1.9%, which is Mario Draghi’s objective.  This is a 4-year high in CPI increase.  How does Draghi justify more stimulus? In the U.S. growth is lower than forecast, while inflation is higher than forecast.

Summary: President Trump actually delivered on his promise of the largest tax cut in American history, and he delivered it on time.  Trump may have presented a plan with built-in bargaining positions, or he might even intend to pass a tax bill that will “starve the beast”. The interesting thing is that the President is

Summary: Government spending creates the greatest drag on the U.S. economy.  Cutting taxes, even the “biggest tax cut ever” cannot stimulate the economy alone.  So if you’re fed up with paying taxes, if you think you are over-taxed,  and you are, it’s because the government is spending too much money. The only real way to

Summary: Goldman Sachs is no longer recommending a long trade on the dollar. The dollar was previously regarded as a conviction trade, first over speculation over Fed rate hikes and then over Trump exuberance with the expectation of tax cuts, infrastructure spending and other moves that would continue to inflate the dollar bubble.  The dollar

Summary: Donald Trump’s promises on healthcare and smaller government appear to be fading behind news of increased military spending, infrastructure spending and compromises on health care and tax reform.  This scenario looks far more like Jimmy Carter than Ronald Regan. We continue to get bad economic data, telegraphing that the air is already leaking out

Summary:  President Trump’s campaign promises are falling by the wayside one by one.  First the backfire on the replacement for Obamacare, and then, just as talk of tax reform heats up, the administration seems to be gazing toward the Democrats for a bi-partisan solution to tax reform.  No good can come from bi-partisanship.  When the