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Monthly Archives: May 2017

THE INVESTMENT STRATEGY LETTER #720

16 Tuesday May 2017

Posted by Carl M. Birkelbach in Uncategorized

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EVERY DAY IS A DRAMA! 117 ‘DAZE’ AND COUNTING

Remember those boring days of No Drama Obama? Things have changed and not for the better.Today The New York Times just reports that FBI director Comey has documented that President Trump had asked him to drop the General Flynn file. Obstruction of justice?

Most recently, President Trump has sunk the credibility of his close associates of Sean Spicer and General McMasters. In Mister Spicer’s case, he became a spokesman for President Trump in saying that President Trump decided to fire FBI director Comey, because of a State Department recommendation. No sooner were the words out of his mouth, than the President countered this statement by saying that it was ‘his’ idea of fire Comey after all. Last night, General McMasters, the last of the creditable staff, said President Trump did not disclosed classified information to the Russian delegation. This morning, President Trump tweets that he did disclose classified information to the Russians as our ally against Al Qaeda. The update from McMasters is that Trump did share with the Russians highly classified material, but it was wholly appropriate. Neither Trump or his staff or the Republican Party has the temperament, maturity or experience to govern. This is a cartoon that is not funny!

This is certainly a Teflon President. In my opinion he ‘has obstructed justice’ in trying to waylay the investigation of his administration’s complexity with the Russians. He has done so by firing all of the Justice Department attorneys, not disclosing his tax reports, interfering with the House of Representatives investigation by calling its chairman Nenus to the White House and the firing of FBI director Comy, who is leading the FBI investigation into Trump connections with Russia. The latest news is that Trump warned FBI director Comey that he may have taped their conversations. Great just what ‘TrumpGate’ needs, Nixon ‘Watergate’ type recordings of White House conversations. Let’s see what they have to say. Unlikely that Trump will cooperate!

Then, there are new executive orders that will hurt the very constituencies that voted for Trump. One executive order will illuminate over-time wages and allow its workers time off instead of time and a half pay. Another executive order will illuminate the protection of our national monuments. Another will reduce the protection of credit card holder’s private information. Another will illuminate EPA jurisdiction over clean water and air. President Trump has to help of Secretary Sessions, who is working to reinstate mandatory sentences so that his pal’s investment in corporate jailing institutions will pay off. Under the Obama administration, the lessening of jail sentences for minor  violent crimes has reduced the incarcerated population by 20%. Not good for profits of those corporations and pals of Sessions who have invested in this industry. Also, Secretary Sessions, who supposedly has requested himself from the Russian investigation, now is being asked to help recommend a new FBI director.

US markets and world markets hit new highs! Why?

How can the markets throughout the world the making new highs when the Trump administration is in freefall, all our computers are in danger of being hacked, retail businesses are going bankrupt, our healthcare system for the poor and middle class is being attacked, North Korea has the capability of reaching US bases with nuclear missiles, the TrumpCare health plan eliminates federal support of pre-existing conditions while giving $1 trillion to the Republicans riches constituents, Trumps economic plan is aimed at old industries (see the latest Economist Magazine) such as manufacturing  (was 35% of the economy now 7%) and oil  (pipelines will not be needed), that are part of the old economy while new technology and global warming is ignored, while the Federal Reserve has for a Four and a half trillion dollars of bonds to sell back to the marketplace (quantitative tightening), the banks have $350 trillion in derivatives ($65 Trillion in 2008), our President constantly lies to us and the world economies continue in the doldrums? There’s so much cash around in interest rates are so low, it’s the only game in town. It’s all about corporate profits. If you pay your workers more your, stock goes down. If you lay off workers your stock price goes up.

Actually the oligarchy corporate ruling class doesn’t need to help the general welfare anymore. The multitudes of middle class and poor are NO LONGER NEEDED BY THE OLIGARCHY to fight their wars, produce  their products because of automation or even needed to buy their  products. After all, $1 billion invested at 3% returns $100,000 a day. That’s enough for all the daily necessities of being part of the United States new aristocratic royalty! There are now 2000 billionaires in the United States. Do you know what city in the world has the largest amounts of billionaires? Moscow Russia! Our palls and allies? No wonder President Trump admires them.

New Book: The Vanishing American Adult. By Nebraska Republican Senator Benjamin Sasse.

Senator Sasse earned a doctorate in history and before his election in 2014, he was a federal health official and president of Midland University, which is linked with the evangelistic Lutheran Church. He is a conservative Republican who refused to back Trump.  The Senator was critical of Trumps recent firing of FBI director James Coley. His new book is subtitled, ‘Our coming of age crisis and how to rebuild a cultural of self-reliance’, grows out of his experience as a parent of the three children he raises with his wife in Melissa Nebraska. In an interview on  NPR radio, he said they shipped their kids to farms and ranches in Nebraska to learn some big life lessons. He said he wants them to get dirt under their fingernails. He says these experiences will help build scar tissue for the sole. He thinks US parents are doing a bad job of helping our children to understand that they have to develop resiliency. He said preserving and getting through hardships makes you tough. He said that we are failing in a bunch of fundamental ways to distinguish for our children between ‘needs’ and ‘wants’ and are failing to distinguish between ‘production’ and ‘consumption’. He said this book is not an old man screaming get off my lawn! It is a question of how do we do better or please Work on my Lawn. He thinks the category of perpetual adolescents is a new thing and is dangerous. Adolescence he says is about intentionally transforming from childhood into adulthood. Being stuck in adolescence is a Peter Pan to dystonia, as children forget that Neverland is a bad place to be.  He believes it is a good thing for children to learn how to work and to help them find meaning in their work. He states, that it is not natural to have to suffer when we work, as we are made to be productive and yet the worlds we live in has a whole bunch of suffering. And what children need to understand at 10, so that when their 16 years old and 20 years old, they’re moving into a truly semi-independent state, that they have earned through an experience and memory of persevering and having gotten through hardships. He also criticizes Washington DC politicians that seem addicted to their own incumbency.

Carl M Birkelbach 5/16/2017

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