Monday, April 5, 2010

Jeff Saut weekly for April 5

Jeff Saut of Raymond James this week:
Ladies and gentlemen, we don’t have a tax shortfall problem; we have a
government spending problem. As the Washington Times writes, “For the
first time since the Great Depression Americans took more aid from their
government than they paid in taxes.” Manifestly, our government is
becoming an increasing “spender” in the economy and that should worry
you. Indeed, a recent study from the sharp-sighted folks at the GaveKal
organization shows what occurred in the United Kingdom when the
government became an increased “spend” in that economy. By examining the
nearby chart:

The market has rebounded on massive stimulus but the piper will be repaid some years down the road.
Remember Roosevelt's programs required a devaluation of the dollar.  Devaluations devastate the savings of the middle class.

No comments: