JUST LETTING YOU KNOW
Today the market was acting “blah” and then it rolled over late in the day as Harry Reid came and said that they’re getting nowhere with their negotiations on the Fiscal “Stiff.” Just remember what I have told you ladies and gentlemen.
We got to the Fiscal Stiff because they did it on purpose. What they like doing is creating a crisis with “no time left…we better do something” in order to further their agenda. And what you need to know – very importantly – is that the Republicans are caving as we speak, which basically means there’ll be zero spending cuts. Not one dime of government spending cuts. They’re going to raise taxes and deficits are going to continue to skyrocket going forward.
The whole positioning is a scam and sham.
Why am I bringing this up now? Because guess what we have to deal with?
You know how for weeks and weeks and months and months, we have had to sit around waiting for the Fed to decide whether or not they were going to print more money or not and the markets were held hostage? Remember we had to deal with Europe and what are they going to do and who are they going to save?
Well now we get to wait on what they decide to do, and how they decide to it with our taxes.
Today, when Harry Reid came out and said what he said, the market took a hit. But it wasn’t that bad.
So that’s what we were going to get. And here’s my prediction. Mark this down kids:
On purpose, nothing’s going to get done. They’re going to let taxes rise for everybody. Upper, middle, and lower. But then they’re going to come back and lower taxes for the middle class, I think. So they’re going to let it expire, raise taxes, and then come back on lowering certain areas. But there will be no spending cuts. There will be nothing done on entitlements because they are quite happy with what’s going on. Why? Because they get to spend our treasure into oblivion.
We’re already in oblivion by the way, at a trillion dollars a year and $16 trillion total in debt.
And, of course, I can’t leave out the paws in the air, lying on their back, tongue wagging, lapdog con artist media that are driving all of this. You know I can’t watch these people because I get physically ill.
But I know how to get the videos of everything they do and here is what they do. They bring on the Republicans…”Why don’t you raise taxes on the wealthy? How is that going to hurt them.” In other words, they’re asking questions from that side. They are completely biased.
Now we have the same con artist media who want taxes to be raised. They’re part of the process now. And, of course, Warren Buffett was on with Matt Lauer today who just put a little ball on the tee. He probably was in the green room with Warren Buffett beforehand asking, “What do you want me to ask you?” Because he teed him up, put down the Republicans…and that that and the other thing…
Warren Buffett wouldn’t invest a dime in this government if it was a business. So he’s full of crap and it’s getting tiresome.
Ladies and Gentlemen, there’s a simple problem going on here. They’re taking more money out of the economy and putting it over to them. And they stink. They’re horrible. They’re the worst of the worst. They are economically illiterate. They do not know how to allocate capital. They are corrupt con-artist chronistic politicians who put the money in their favorite’s hands through government guarantees and all that stuff…and nothing gets done.
And they only reason why we’re even in the shape we’re in right now is because of the hard work of the 100 some odd million people who go to work every day. They’re putting headwinds in front of us.
And have to tell you. I was email back and forth with a good buddy of mine. You watch him all the time on Fox – Jonathan Honig of Cashin’ In. I just emailed him, “I think we’re losing the battle.” And he told me basically to keep a stiff upper lip and never think you’ve lost the battle. But I do.
The con-artist media is driving the story, mentioning nothing about spending cuts and government in trillion dollar deficits that are not caused by taxes…they’re caused by the spending. And nobody’s driving that news and it’s going to affect you and the markets going forward.
And if you think raising taxes on the rich isn’t going to hurt the middle class…(sigh).
And they first asked for $800 billion and raised taxes and they’re asking for $1.6 trillion.
Whether you agree or disagree with me, let me give you two numbers:
$2.4 trillion and $3.6 trillion.
$2.4 trillion is how much revenues are going into the U.S. government this year. It’s the same number as in 2008.
But the deficit is going to be $1.2 trillion this year. Why? Because they raised spending from $2.7 trillion to $3.6 trillion.
$900 billion more in spending from four years ago is 75% of the deficit this year. But they don’t mention anything about that. The media refuses to ask those right questions about that. Those are opinions. Those are facts.
We don’t have a tax problem. We have as spending problem by these con-artist corrupt, sleazy sleazebag politicians that could not give a flying hoot about your hard earned tax payer dollars. And frankly, they think their money to dole out to you.
As they say, elections have consequences. Yippe yay yay.
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Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.