The six trillion dollar budget would eventually cause national debt to exceed the record level set at the end of WW II. It would rise from 100% of GDP to 117% by 2031.
Biden’s Massive Budget Proposal, WSJ Today
We have been focused on a stock market top June 4-8. That is now only a week away. We have cited numerous metrics of an extended market the last few weeks. Here are a few more.
Ireland opposes the Biden world corporate tax rate of 28%, preferring to keep their rate at 12.5%. For twenty years Irish politicians of all persuasions have refused to tinker with success. From 1986 to 2006 Ireland’s economy grew 140%. Employment doubled and it became a destination country for brains and capital. This past week Chase CEO Jamie Dimon warned against the Biden tax plan.
Average CEO pay is now 307 times the average corporate worker pay rate, is this out of kilter?
The consumer price index jumped to 4.2% in April compared to 2.6% for the year ended in March. As noted in this space, gasoline, copper, and lumber prices are soaring. Note this is the same result LBJ’s first ever $10B budget wrought by the 1970s, inflation and the end of the bull market in stocks.
Here is another long term hold for your portfolio, GSG is the ETF for the Goldman Sachs Commodity Index. It has jumped 50 cents this week near a new high at $15.50.
The wildly speculative Bitcoin has fallen from 64,863 to 36,860, down another 8% yesterday.
Friday’s WSJ has eight columns of new highs for stocks but only one for new lows. This is not a buy signal regardless of what you hear on CNBC.
Exxon management received a setback this week with new board members demanding a switch from fossil fuels to solar and wind. For the two largest energy firms who just years ago boasted of millions of proven reserves in the ground, this will be an exercise in truly turning the super tanker around. Neither stock rallied on the result.
With summer driving ahead, we are still looking for $70 oil. Crude is up to $67.30 this (Friday) morning.
Team Biden thinks doubling or tripling the IRS will find new tax revenue. But studies show spending $2-3 to find tax cheats only results in a dollar of new revenue. The wealthy have the very best CPAs preparing their returns.
Another Biden idea is a higher or retro capital gains tax. But if the market tops as we expect, see column thus far, there will be far fewer capital gains to tax.
Ireland has the right idea, but Team Biden looks to Argentina as their model.