Best of the Week
Most Popular
1.Spain Ignores Scotland Lesson as Catalan Independence Referendum Could Spark Civil War - Nadeem_Walayat
2.Used Car Buying From UK Dealer Top Tips, CarMotion.co.uk Real Customer Experience - N_Walayat
3.Spanish New Civil War Begins as Madrid Regime Storm Troopers Quell Catalan Independence Rebellion - Nadeem_Walayat
4.Virgin Media Broadband Down, Catastrophic UK Wide Failure! - Nadeem_Walayat
5.Are the US Markets setting up for an Early October Surprise? - Chris_Vermeulen
6.The Pension Storm Is Coming To Europe—It May Be The End Of Europe As We Know It -John_Mauldin
7.Stock Market Crash 2018; Will it Prove to be Another Buying Opportunity - Sol_Palha
8.The Profoundly Personal Impact Of The National Debt On Our Retirements - Dan_Amerman
9.Stock Market as Good as it Gets; Like 2000 With a Twist -Gary_Tanashian
10.1987 Stock Market Crash 30th Anniversary Greatest Investing Lesson Learned - Nadeem_Walayat
Last 7 days
Bitcoin Hits $6,000, $100 Billion Market Cap As Helicopter Ben and Jamie Demon Warn The End Is Near! - 22nd Oct 17
Time for Caution in Gold Miners - 22nd Oct 17
“Great Rotation” Ahead; Will it Be Inflationary or Deflationary? - 21st Oct 17
The Trigger for Volatility, Rates and the Next Crisis - 21st Oct 17
Perks to Consider an Agent for Auto Insurance - 21st Oct 17
Emerging Megatrends Hurting Consumers - 21st Oct 17
A Catalyst of the Stock Market Bubble Bust - 21st Oct 17
Silver Stocks Comatose - 21st Oct 17
Stock Investors Ignore What May Be The Biggest Policy Error In History - 20th Oct 17
Gold Up 74% Since Last Stock Market Peak 10 Years Ago - 20th Oct 17
Labour Sheffield City Council Employs Army of Spy's to Track Down Tree Campaigners / Felling's Watchers - 20th Oct 17
Stock Market Calm Before The Storm - 20th Oct 17
GOLD Price Creates Bullish Higher Low - 20th Oct 17
Here’s the US’s Biggest Vulnerability in NAFTA Negotiations - 20th Oct 17
The Greatest Investing Lesson Learned from the 1987 Stock Market Crash - 20th Oct 17
Stock Market Time to Go All-in. Short, That Is - 19th Oct 17
How Gold Bullion Protects From Conflict And War - 19th Oct 17
Stock Market Super Cycle Wave C May Have Started - 19th Oct 17
Negative Expectations, Will the Stock Market Correct? - 19th Oct 17
Knowing the Factors Affect your Car Insurance Premium - 19th Oct 17
Getting Your Feet Wet In Crypto Currencies - 19th Oct 17
10 Years Ago Today a Stocks Bear Market Started - 19th Oct 17
1987 Stock Market Crash 30th Anniversary Greatest Investing Lesson Learned - 19th Oct 17
Virgin Media Broadband Down, Catastrophic UK Wide Failure! - 19th Oct 17
The Passive Investing Bubble May Trigger A Massive Exodus from Stocks - 18th Oct 17
Gold Is In A Dangerous Spot - 18th Oct 17
History Says Global Debt Levels Will Lead to Another Crisis - 18th Oct 17
Deflation Basics Series: The Quantity Theory of Money - 18th Oct 17
Attractive European Countries for Foreign Investors - 18th Oct 17
Financial Transcription Services – What investors should know about them - 18th Oct 17
Brexit UK Vulnerable As Gold Bar Exports Distort UK Trade Figures - 18th Oct 17
Surge in UK Race Hate Crimes, Micro-Racism, Sheffield, Millhouses Park, Black on Asian - 18th Oct 17
Comfortably Numb: Surviving the Assault on Silver - 17th Oct 17
Are Amey Street Tree Felling's Devaluing Sheffield House Prices? - 17th Oct 17
12 Real-Life Techniques That Will Make You a Better Trader Now - 17th Oct 17
Warren Buffett Predicting Dow One Million - Being Bold Or Overly Cautious? - 17th Oct 17
Globalization is Poverty - 17th Oct 17
Boomers Are Not Saving Enough for Retirement, Neither Is the Government - 16th Oct 17
Stock Market Trading Dow Theory - 16th Oct 17
Stocks Slightly Higher as They Set New Record Highs - 16th Oct 17
Why is Big Data is so Important for Casino Player Acquisition and Retention - 16th Oct 17
How Investors Can Play The Bitcoin Boom - 16th Oct 17
Who Will Be the Next Fed Chief - And Why It Matters  - 16th Oct 17
Stock Market Only Minor Top Ahead - 16th Oct 17
Precious Metals Sector is on Major Buy Signal - 16th Oct 17
Really Bad Ideas - The Fed Should Have And Defend An Inflation Target - 16th Oct 17
The Bullish Chartology for Gold - 15th Oct 17
Wikileaks Mocking US Government Over Bitcoin Shows Why There Is No Stopping Bitcoin - 15th Oct 17
How to Wipe Out Puerto Rico's Debt Without Hurting Bondholders - 15th Oct 17
Gold And Silver – Think Prices Are Manipulated? Look In The Mirror! - 15th Oct 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

The Only Article You Need to Read to Understand the Trump Phenomenon

Politics / US Politics Mar 17, 2017 - 05:51 PM GMT

By: Graham_Summers

Politics

The following is an attempt to explain the Trump phenomenon. It is NOT a pro-Trump article; it is simply an explanation for how Trump accomplished what he did, and why so few predicted his success and the impact of his economic policies.

There’s a simple reason so few people in the media and in finance understand the economic impacts of a Trump Presidency.


That reason is illustrated by this chart:

The percentage of people who are business owners relative to the overall employed population, is at an all time low.

The Fast Company, Shark Tank echo chamber would have you believe that entrepreneurialism is in a bubble.

It’s not.

Unprofitable, tech-centric gimmicks that are fueled by loosed monetary policies from the Fed are in a bubble. Legitimate businesses that produce cash flow and grow the middle class are not being created much, if at all.

Because the US has been waging war on the self-employed since the 1950’s, we not only have very few self-employed people in the workforce, we also have multiple generations of journalists who have ZERO experience engaging with those who run an actual business.

This is why NO ONE in the media gets Trump or the impact of his policies.

None of them have ever had to make payroll or create something from nothing. They’ve spent the last eight years literally kowtowing to a man who openly told the self-employed, “you didn’t build that.”

The same can be said for economists.

Time and again, you will see academics like Paul Krugman write op-eds suggesting that Trump is going to collapse the economy. Krugman has never once had to actually run a business. His entire career has been one of writing the equivalent of glorified book reports for other people who write glorified book reports to read.

If you ran a McDonalds or plumbing business implementing anything Krugman claims, you’d be broke within six months. The man lives in a world of excel spreadsheets and faculty meetings, not the world of revenues and payroll.

So what is Trump doing?

First off, Trump is getting rid of regulations.

Economists don’t understand the impact of this because none of their models include regulations. According to an economist, you simply “start a business.” These people have no concept of the business costs of licenses and the like.

Business owners care far more about regulations than taxes. Get ride of stifling regulations and you can start growing your business more aggressively.

I can tell you, business owners would happily pay more in taxes if they were doing 50% more in revenues. No business owner feels successful paying less in taxes on a business with zero growth.

Regarding taxes themselves, Trump understands them better than anyone in politics in the last 30 years.

Why?

Because as a business owner, Trump has been paying more taxes than the media or politicians can believe. This is why the obsession with Trump’s personal taxes is beyond moronic.

As a business owner, Trump has been paying taxes on property, payroll tax, taxes on some products, excise taxes, and a slew of others than journalists and economists don’t even know exist.

These people think taxes are something you pay on income.

For a business owner taxes are present in every single step of operations. And if you’re profitable, you then have to pay taxes on the money you’ve made.

Finally, Trump is attempting to reform what is clearly a disastrous economic system.

The reality is that quality of life has been falling in the US since the ‘70s. This reality stares everyone in the face, but the chattering classes ignore it to tout “advances” like iPads and the like.

In the 1950s, one parent worked and people got along just fine. Today, two parents work and most people struggle to get by. There is no way to spin this as indicating quality of life has improved in the US.

The fact that the economic policies since 1971 have increased the number of billionaires doesn’t mean they (the policies) have been good for the US as a whole.

All these policies have done is dramatically increase the concentration of wealth, which in turn has allowed a small circle of people to exert an absurd influence on the US political and economic spheres (note that the media is now largely owned and managed by a group of billionaires).

All of the above contributed to Trump’s winning the US Presidency, taking out two political dynasties (the Bushes and Clintons), despite the efforts of a media that was literally colluding with Trump’s opponent.

That is reality whether you like it or not. The fact that many continue to see Trump through the lens of identity politics only shows how disconnected the media has become from realit. People want jobs and want to make a decent living. Once that is achieved, THEN they care about other items

No one in history has ever said, “well, I can’t get a job, there is zero upwards mobility for my future, and my kids are worse off than I am… but at least I know that [insert random identity politics cause] went well.”

Trump, whose entire career has been one gigantic effort to make himself wealthy gets this. People who have started and their own businesses get this. But it seems almost no one else does.

If you’re looking to profit from the REAL impact Trump’s Presidency will have on the market (and the opportunities this situation presents), we’ve put together a Special Investment Report outlining three investment strategies that could produce major returns as a result of Trump’s economic policies.

It’s titled How to Profit From the Trump Trade and we are giving away just 99 copies for free.

To pick up your copy, swing by

http://phoenixcapitalmarketing.com/trump.html

Graham Summers

Phoenix Capital Research

http://www.phoenixcapitalmarketing.com

Graham also writes Private Wealth Advisory, a monthly investment advisory focusing on the most lucrative investment opportunities the financial markets have to offer. Graham understands the big picture from both a macro-economic and capital in/outflow perspective. He translates his understanding into finding trends and undervalued investment opportunities months before the markets catch on: the Private Wealth Advisory portfolio has outperformed the S&P 500 three of the last five years, including a 7% return in 2008 vs. a 37% loss for the S&P 500.

Previously, Graham worked as a Senior Financial Analyst covering global markets for several investment firms in the Mid-Atlantic region. He’s lived and performed research in Europe, Asia, the Middle East, and the United States.

© 2017 Copyright Graham Summers - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Graham Summers Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife