Volatility remained high in markets this week as President Trump embarked on a tour of Europe. The ongoing trade frictions between the U.S. and its global trading partners remains a key worry for markets as the rising impact of tariffs begins to directly affect customer wallets.
The Decline and Fall of the Roman Empire has been written about many times over the last two millennia, most notably in Edward Gibbon’s six-volume set of books of the same name.
The week was fairly volatile again as the market awaited the release of the Non-Farm Payrolls report for June to get an indication of the direction the Federal Reserve may take monetary policy for the second half of 2018. Escalating global trade disputes also added to market pressure and volatility, particularly in global stock markets.
For many years, I’ve forecasted that the US will evolve into a police state; that it will begin slowly; then as more and more freedoms are removed, the creation of the police state will accelerate.
We’re now seeing that acceleration, as more and more Americans are detained, questioned and having their property confiscated than ever before.
It was an exceedingly volatile week in most markets this week. Continued trade frictions between the U.S. and the rest of the globe are exacerbating investor fear and uncertainty. Activity in the U.S. bond market appears to be signaling that a recession could be on the way for the U.S., possibly as soon as next year, and that too has increased market jitters.
Periodically, I offer up a statement by Scottish Economist Alexander Tytler, who, in 1787, was reported to have commented on the then-new American Republic as follows: “A democracy is always temporary in nature; it simply cannot exist as a permanent form of government.
In case you’re unfamiliar with the 1966 movie The Russians Are Coming!, it’s a fun romp about a Russian submarine that accidentally runs aground off the New England coast during the Cold War and the local residents who panic and think they’re being invaded. I remember laughing a lot as a kid at some of the antics.
The growing threat of an all-out trade war between the U.S. and seemingly the rest of the world continues to stoke uncertainty and fear in most markets. Until Friday’s trading session, stocks in the Dow Jones Industrial Average were on pace to experience their longest period of decline in 40 years.
As gold dealers, one of the more common questions we get is, “When will gold and silver prices take off again, like they did in 2001 and 2009?”
In other words, investors want to know why they’ve been holding onto assets that have traded in a very tight range for quite a few years and haven’t appreciated meaningfully during that period.
Theft is defined as “the taking of another person’s property or services without that person’s permission or consent.”
Almost invariably, governments pass tax laws and set tax rates without any consultation with the citizenry. Further, no final approval is sought by the citizenry that they consent to the tax or the rates. It is simply imposed.
Most of us tend not to regard taxation as theft, yet, by definition, that’s exactly what it is.