Best of the Week
Most Popular
1.What Happened to the Stock Market Crash Experts Were Predicting - Sol_Palha
2.London Housing Market Property Bubble Vulnerable To Crash - GoldCore
3.The Plan to Control ALL Your Money is Now at Advanced Stage
4.Why Gold Is Set For An Epic Rally This Spring - James Burgess
5.MR ROBOT NHS Cyber Attack Hack - Why Israel, NSA, CIA and GCHQ are Culpable - Nadeem_Walayat
6.Emmanuel Macron and Banking Elite Win French Presidential Election 2017 - Nadeem_Walayat
7.Trend Lines Met, Technical's are Set - US Dollar is Ready to Rally (Elliott Wave Analysis) - Enda_Glynn
8.The Student Debt Servitude Sham - Gordon_T_Long
9.Czar Trump Fires Comey, Terminates Deep State FBI, CIA Director Next? - Nadeem_Walayat
10.UK Local Elections 2017 - Labour Blood Bath, UKIP Death, Tory June 8th Landslide - Nadeem_Walayat
Last 7 days
SPX/NDX/NAZ Hit New All-time Highs - 27th May 17
GBPUSD Top in Place, GOLD Price Ready to Rocket? - 27th May 17
Silver Mining Stocks Fundamentals - 27th May 17
BBC Newsnight Falls for FAKE POLLS, Opinion Pollsters Illusion for Mainstream Media to Sell - 27th May 17
UK Local Election Results Forecast for General Election 2017 - 26th May 17
Stock Market & Crude Oil Forecast! - 26th May 17
Opinion Pollsters UK General Election Seats Forecasts 2017 - 26th May 17
Bitcoin and AltCoins Crypto Price Correction - 26th May 17
Bearish Head and Shoulders in EURUSD? - 26th May 17
SELL US Stocks - Massive Market CRASH WARNING! - 26th May 17
EURGBP: A Picture of Elliott Wave Precision - 26th May 17
Credit Downgrades May Prompt Stock Market Capital Shift - 26th May 17
Rosenstein and Mueller: the Regime Change Tag-Team - 25th May 17
Stock Market Top - Are We There Yet? - 25th May 17
Should I Invest My Fortune in Gold? Inaugural Lecture by Dr Brian Lucey - 25th May 17
USD/CAD Continues Decline - 25th May 17
Bitcoin Price Goes Loco! Surges through $2,500 Despite Unclear Fork Issues - 25th May 17
The US-Saudi Arms Deal - Sordid Saudi Signals - 25th May 17
The No.1 Commodity Play In The World Today - 24th May 17
Marks and Spencer Profits Collapse, Latest Retailer Hit by Brexit Inflation Tsunami 2017 - 24th May 17
Why Online Trading Platforms Are Useful for Everyone - 24th May 17
The Stock Market Will Tank Hard - 24th May 17
It’s Better to Buy Gold & Silver When It DOESN’T Feel Good - 24th May 17
Global Warming - Saving Us From Us - 24th May 17
Stock Market Forecast for Next 3 Months - Video - 23rd May 17
Shale Oil & Gas Production Costs Spiral Higher As Monstrous Decline Rates Eat Into Cash Flows - 23rd May 17
The Only Metal Trump Wants More Than Gold - 23rd May 17
America's Southern Heritage is a Threat to the Deep State - 23rd May 17
Manchester Bombing - ISIS Islamic Terrorist Attack Attempt to Influence BrExit Election - 23rd May 17
What an America First Trade Policy Could Mean for the US Dollar - 22nd May 17
Gold and Sillver Markets - Silver Price Sharp Selloff - 22nd May - 22nd May 17
Stock Market Volatile C-Wave - 22nd May 17
Stock Market Trend Forecast and Fear Trading - 22nd May 17
US Dollar Cycle : Deep Dive - 21st May 17
Bitcoin Breaks the $2,000 Mark as Cryptocurrencies Continue to Explode Higher - 21st May 17
Stocks, Commodities and Gold Multi-Market Status - 21st May 17
Stock Market Day Trading Strategies and Brief 20th May 2017 - 21st May 17
DOW Needs to Rally Big or Correction is Next - 20th May 17
EURUSD reaches DO or DIE moment! - 20th May 17
How to Get FREE Walkers Crisps Multi-packs! £5 to £28k Pay Packet Promo - 20th May 17

Market Oracle FREE Newsletter

Why 95% of Traders Fail

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

© 2005-2016 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