God himself could not sink this ship, sir!  You are sitting on an economic cyclone that will destroy the American Economy forever. People act like David Tepper is a genius but he’s not. But he is a clear thinker. He understands one thing that controls your economic futures. It is also what caused the wreck of Merideth Whitney. I for one maintain that Whitney’s municipal bond call and defaults were flawless except for one variable. The key is Socialism. US ECONOMY SUCKING WIND RIDING HOSPICE VENTILATOR DEPRESSION LOOMS.



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David Tepper once got his head stuck between the bars of his Baby Crib. That is probably where he came to understand Socialism. His sisters bailed him out of a tight spot.


Municipal Bonds are instruments of the wealthy.

These bonds are 100% backstopped by taxpayers. So is Gov employment and state pensions. All guaranteed and backstopped by the taxpayers. This is Socialism.

A small town that has 1000 z-turn mowers has moved a competitive lawnmowing sector into the inefficient space of Government. These now Highly paid, leafblowers will get Government pensions making them even higher paid at the hands of government which saps the private sector. Why should a small town be mowing grass instead of putting the mowing out for bid to the private sector?


Obamacare did the same thing to 1/6th of the economy.

Maynard Keynes, the great British Economist actually said that during a recession the Gov spending should increase to draw out the economic slack caused by a shrinking private sector. In good times Keynes said the Gov should shrink and allow the private sector to grow. But of course, Keynes has been misrepresented to suggest Socialism and the massive expansion of gov taking over the private sector would prevent recessions. Think about that! He never stood for such rubbish.


Those are the conditions we have had for many years: the endless expansion of Government and shrinking of the private sector.

The economy is weak. Employment utilization is horrific. But the Gov spending and expansion are backstopping the poor conditions. The FED as backstopping the banks QE. The Trump Tax plan is borrowed Trillions. That is backstopping the pretend tax cuts. Gov. Spending is expanding rapidly under Trump. $4.6 Trillion if you include the omnibus package. This is Socialism and it destroys the private sector by shrinking it. Manufacturing as part of the GDP stands at just 16%. Under Reagan, it was 40% of the GDP.

Trump’s claim that a mere 15% reduction in Corp tax will lead to a massive migration of companies back to America is fiction. What business would want to come here to be overregulated by the EPA, taxed to the hilt by Social Security, hammered by Obamacare, and enter the most litigious swarm of lawyers on earth? It will never happen. Further, the premise is absurd. 90% of US Corporations already pay less than 20% corporate income tax a year. General Electric paid 1% last year.


Please do not call Defense industries Capitalist.

These companies are state-run operations. Prototyping is paid for by Taxpayers. Equipment for building the weapon system is paid for by Taxpayers. Taxpayers pay for all the R&D all the prototyping and all the cost overruns. Then when this technology leads to a commercial product, the Taxpayer get nothing. Reducing corp tax in this instance simply give the Taxpayer even less.

Look at Musk, look at Buffett, both have mastered the game of Government Tax credits.

Buffett gets them for his solar-powered energy farm and Musk bags down about $4 billion a year from the Government for electric cars and solar panels. Obamacare insurance companies feed off the same gravy train. This is Socialization. This is masking a dreadfully weak economy. It is government taxpayer funds used to prop up crony businesses.


Merideth Whitney did not understand the principle of backstopping.

Tepper has it down cold. As long as the government keeps spending and keeps encroaching and gobbling up industries, you won’t see a recession until it is blowing the economy to pieces. Because the same weapons the Gov uses to lessen a recession, it is now using to mask it.

A socialist scheme long used by the Federal Gov has been to backstop local taxation. For example in Florida Doctors are Taxed at the rate of $250 a year for some kind of medmal cap scheme involving infants injured during birth. Doctors write this tax off their Federal Returns. Who then pays for it? You do! That is Socialism backstopping a Tax Scheme. This is known as Tax shifting.


The same thing applies to property taxation.

Why should some real estate broker in New Mexico be paying the property tax of some Hedge fund operative in Connecticut? If you are Tepper do you honestly think that the RINOTAX bill will scrap property tax deductions for the rich? Never! LOL. It’s socialism. The insane property tax states are backstopped by the Federal Gov. So you the citizen taxpayer are footing the tax bill of Matt Lauer for his multi-million dollar oceanfront home in the Hamptons. How does that feel? Then again he is “Dad of the Year”, now Molester Dad of the Year.”

While Merideth Whitney failed to see the Socialism intervention, the same is true of all those hedge managers that have been calling for a recession and collapse of the ballooning markets for the past two years. Tepper is right. Socialism can go on indefinitely until the economy blows apart. All it takes is more government borrowing and spending.


Ironically, many billionaires are Democrats.

Dems have always spent like drunken sailors. But when Bush II came alone he spent to the point of alcohol toxicity. Obama took it to the point of Ammonia in the brain and Trump has simply buried the needle to the point of unconscious life support.

It is going to come down hard. When it does, it will take bonds and the dollar with it. So even if you are sitting in Cash, you could lose a quick 25% of your buying power. Asset prices will drop through the floorboards. The Bitcoin looks like a safe haven next to what’s coming.


What is Tepper doing?

My guess is he is buying Yuan as a hedge. The point at which I believe the US Economy “Goes Greece” is as soon as the Yuan achieves dollar Reserve Status and starts to be used to Trade oil. There is talk of a gold-backed Yuan Oil Futures.

The Yuan is presently being used to trade Iron ore in Australia and saving the Australians 14% v. trading in the US Dollar reserve. I believe that this Yuan reserve currency will trigger a massive asset value collapse in the USA that will never recover. This is exactly what happened to the British Sterling in 1944 following the Anglo Amerian Loan. That is the crescendo event where Americans replaced the Sterling with the US Dollar Reserve.

Remember back in 1944 the USA was a bit like modern-day China in that they made massive amounts of consumer products, of every kind. China now leads in consumer products, agriculture, and industrial production. They are also the largest buyer of US Oil. In simple terms, the China tail is wagging the ever-shrinking US Dog.


There will be no US recovery from this.

While the US bullies the rest of the world with 800 Military bases worldwide, other countries have good reason to put an end to US economic dominance. Without endless Military Spending, the US would have little clout especially with the rise of China, Russia, and India. Because of Trump, even Saudi and OPEC are moving closer to China.

Once the Yuan trades in oil, US Dollar Reserve Currency folds. It will fold identically to the pound sterling in 1944 losing half its value in mere months.

Trump’s agitation of building a military base in Israel and blabbering about moving the US Embassy to Jerusalem has inflamed all Muslims. Neocon Bush followers may enjoy the US Warmongering but Oil the Commodity is controlled by Russia, and OPEC. Trump’s stupidity will link the YUAN as the Reserve Currency for Oil.


The Demise of the US Dollar Reserve will upend the United States Economy.

Obama wanted to use the Dollar Reserve Currency as a weapon. He used it against Russia. This pushed Russia and China Closer. Soon other countries with oil and commodity producers moved in the same direction. In the United States, this caused the bankruptcy of the five largest US Coal companies when the Australians abandoned the Dollar Reserve and traded iron ore and coal with China in Yuan.


So it’s coming. The great great Depression.

All of the signals are here. The rising debt of the consumer. Asset inflation is rampant across all assets. Wages are stagnant. Manufacturing has dropped to just 16% of the US Economy, down from 40% during Reagan. Employment Utilization the worst in US History other than the Great Depression.

It is ironic that you have this Fake Businessman at the helm who has absolutely no feeling for the damage he is causing the US Dollar Reserve. When Obama made the US Dollar Reserve political, other countries such as Petro Superstate Russia and China took notice.

They mistakenly thought Trump would not use the Dollar Reserve as a weapon. He said he wouldn’t during the campaign so China and Russia stood by and waited. When Trump started using Sanctions more aggressively than Obama, the die was cast.

Trump has now gone far off the deep end with alienating virtually all the other petrostates. It is now only a matter of time before the dollar reserve currency gets replaced by the YUAN.

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