The price of Gold in limbo awaiting to see what happens with the two different tax plans being presented by the House and Senate. Gold still struggling to pass the next level of resistance at $1,290. Not helping much, is a slightly weaker U S Dollar and higher Treasury yields.
Some small inflows were seen overnight in both the Gold and Silver ETFs.
Looks like some nervous longs exiting the Palladium market and taking profits as the price falls below the $1,000 level.
Is Washington Broken?
Are all the special interest groups having an effect on our representatives in Washington? If you watch the C-span channel and listen to the negotiations from both sides of the isle, you might believe that if everyone gets their way the size of the bill will reach the top of the Empire State building.
So far, the Committee for a Responsive Federal Budget puts the cost of the Republican tax plan at 2.2 trillion over the next decade.
As I said from the beginning, the Republican tax plan is a smoke screen trying to convince the American public that the tax cut is for them when in reality it’s a corporate tax cut for Washington politicians and the Wall Street elite.
So if you clear the fog, you find that the enormous individual tax cut the President is promising for the average family of four, actually comes out to a little under $1,200.00. Let’s divide this by 52 weeks and the average American will have an extra $23.07 more in their pocket each week. And the leaders of the Republican party have the nerve to say that with this money you can pay down your bills, have more money for college or to do repairs to your home. Who is really buying this?
Is it worth adding on trillions of dollars of debt that our children will have to pay in the future for the politicians in Washington to get more donor money from big corporations and special interest groups? And is it worth giving Wall Street executives bigger bonuses? Does anyone really believe that businesses here in the states will fire all the $5 dollar-an-hour folks working for them overseas and bring those jobs back to America with higher wages?
As I’m writing this piece, I am watching on c-span as huge books are being handed out by the House Ways & Means committee to the Representatives. I can’t believe their size; proof that special interest groups have already made their mark in Washington.
One more shocking item that came across my desk was that the Senate plan had a total elimination of state and local property tax deductions (SALT). But it doesn’t affect corporations. They still can deduct their property taxes on their Federal tax returns.
I think I see a pattern developing.
Have a wonderful Friday.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.