Daily Digest

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Daily Digest 4/29 - Who Controls The Gold Price, Will Trump Spark An Offshore Drilling Boom?

Saturday, April 29, 2017, 11:39 AM

Economy

As College Deadlines Near, Families Wonder What They Can Pay (jdargis)

Many of the teenagers are disappointed: Yes, they got in — often by putting in the biggest efforts of their young lives — but no, they may not be able to afford to go to their dream schools after all. And as the deadline to make a choice nears, many families find themselves asking complex questions about whether they should pay five figures more per year — and six figures more over four years — to reach for a first-choice college that simply will not discount any further.

What I Learned About Civil Unrest During The Los Angeles Riots 25 Years Ago (Wendy SD)

This was the case in L.A. when police abandoned the intersection of Florence and Normandie to rioters, turning a local incident into a regional conflagration in 24 hours. This is the case today whenever police stand by and allow fringe groups to battle each other in our streets and on our campuses, catching up innocent people in the violence and allowing the destruction of private property—and, frequently abridging the First Amendment rights of non-liberal speakers.

Under the Trump Tax Plan, We Might All Want to Become Corporations (jdargis)

The opportunity to game the system arises from the huge gap between the tax rate paid on individual income — up to 39.6 percent now, or 35 percent under the Trump plan — and the low rate on business income the president proposes, of 15 percent. He seeks to apply that rate to all businesses, including “pass-through” organizations such as limited liability companies and S corporations, and that is where the opportunity for games arises.

Who Really Controls The Gold Price? The Answer is Quite Surprising (yogmonster)

The gold price is in DARK ORANGE while the oil price is in BLACK. We can plainly see the price of gold and oil have moved in tandem, especially after Nixon dropped the Dollar-Gold peg in 1971. While the oil-gold price movements are not exact, they parallel each other quite nicely. Thus, when the oil price skyrocketed during the 1970’s, so did the gold price. The same thing took place in the 2000’s.

Standing at the Precipice of Next Great Crash - Mike Maloney (yogmonster)

If you think there isn't going to be another epic crash like the one we had in 2008, wise up. Not only is it coming, it could be far, far worse thank any of us would like. The fact that as of the release of this interview, you still have some time to prepare, may be something of a miracle.

NSA ends spying on messages Americans send about foreign surveillance targets (jdargis)

The NSA says it has two ways of collecting intelligence from Internet communications. One is what the agency now refers to as "downstream"—which is the new branding of the PRISM program revealed in the documents leaked by former NSA contractor Edward Snowden. Downstream collection is accomplished by going to Internet providers and gaining direct access to the accounts belonging to targeted individuals. The other method of collection is "upstream," which is the term used to describe the direct collection of messages from Internet traffic using a deep packet inspection query system called Xkeyscore and other components of a platform known as Turbulence.

Will Trump Spark An Offshore Drilling Boom?

The road to new drilling in the Arctic and Atlantic Oceans will be long and bumpy, for several reasons. First, any attempt to open up the Arctic and Atlantic Oceans will be met with tough litigation. The President’s authority to reverse the Obama administration’s move is debatable. Second, the Interior Department will have to include tracts of drilling in its Five-Year plan, and putting acreage into the plan requires extensive environmental analysis that could span several years, especially for the Atlantic Ocean, where no drilling has taken place yet.

California drought: then and now (jdargis)

Getty Images photographer Justin Sullivan documented California’s severe drought conditions in 2014 and recently returned to the same places to compare the drastic change after the state’s exceptionally wet winter. Governor Jerry Brown has ended the state’s water emergency status in all but four counties.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/27/17

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

2 Comments

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1447
Duplicate Taxation

Trump wants to add to the duplicate taxation by nixing the SALT deduction.   Our tax code is so crazy.   If all deductions were removed and double or more taxing eliminated the rate could 10% for individuals and corps along with cuts in spending.   When the US introduced the income tax the rate was 2%.   Also capital gains should be indexed to a true inflation measure or not taxed at all.

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 419
Re: Duplicate Taxation

FWIW: I think the overall plan is higher taxation, via a VAT that will be introduced later as Congress Balks at Trump's Tax Plan. My guess is that Corporations will end up with a lower federal rate, but at the cost of a VAT tax that shifts taxation from income to consumption.  I think as it stands the Trump tax plan is Dead-on-Arrival, and will require massive changes. Consider that they haven't even managed to repeal ObamaCare.To add a spanner into the works, it appears that the US is on the edge of another recession. I think if tax revenues continue to fall, there zero support for tax cuts.

I think taxes will need to go up because the Federal gov't runs about $1T annual budget deficit and there zero support for major spending cuts, and entitelment cuts are off the table. With more and more boomers filing for social security, budget deficits are going to soar. I noticed that SS cap increases are now increasing at about $7K per year (previously is was less than $2K), but since so few americans make more than existing cap, further cap hikes is likely squeezing blood from a stone. Either the Gov't needs to start increasing the tax rate for the payroll tax (currently 15.3%) or they need to bring in a new tax (like a VAT - national sales tax) to offset massive budget deficits caused by entitlements. I believe for 2016, the combined annual entitlement costs was about $1.9 Trillion, which is half of the federal ($3.8T annual Budget) Since the Federal gov't only takes in about $2.8T in revenue ($1T annual deficit) that leaves only about $900Billion to fund the federal govt, which about $430Billion is needed to pay the interest on the federal debt. Clearly, time and options are running out!

 

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