Are the Democrats in the US Nuts?That was a question posed to me over the weekend by a well informed friend during our discussion.
My answer was simple - NO
How can you say no when you look at what they are doing - are you nuts?
Well here's the deal....
1......about 45% of the people in the US don't pay any direct federal tax and so Biden's plan to give them lots of handouts that they don't have to pay for directly (ie ignoring the inflation tax) and saying the rich SOBs will pay for it is very appealing for these people. Hence the full court press to get the Build Back Better trillions passed through Congress. Such a plan will secure this vote for a long time in future elections.
2....the Dems are happy that millions of people are crossing into the US illegally and have no intention of stopping the flow. Why? Because each and everyone of them will become a card carrying registered democrat and if they can get enough to come to the US that way then they will secure themselves as effectively a one party ruler of the US.
3....the also know that once you give people something - you can't take it back. Since their objective, and this includes the so-called Green New Deal, is nothing less than a massive transfer of wealth in the economy and big Government - AKA socialism. The next generation of Democrats in the US headed by AOC and The Squad would like nothing better than create a new USSR - United States Socialist Republic.
When you put all this together it is actually politically quite smart and sneaky at the same time. In effect they are prepared to get what they can passed through now before they get booted out of office next year but at the same time set the table one party rule sometime in the next two or three subsequent election cycles after the one coming up next year and in 2024
Since this is an investment board and not a political board why talk about this?
All of this will have a profound impact on future economic growth and corporate earnings and by extension SPs of every stock in the world. Those of you here who are much younger than me and especialy those who are investing as part of their retirement plans need to pay close attention to how this plays out and this situation will significantly impact your savings strategy. You will need to think about this.