Trump Tax Cuts Will Start Monumental US Boom – Martin Armstrong

By Greg Hunter’s USAWatchdog.com (Early Sunday Release)

Legendary financial and geopolitical analyst Martin Armstrong says the Trump tax cuts are going to be a very positive move for the U.S economy. Armstrong explains, “It’s huge, I cannot tell you how much. . . . Any company that doesn’t bring its cash back under this deal should be sold short, basically.  You bring it in because who knows what will happen when the politics change.  It’s a one-time deal.  You get to bring it in, and you better get it in fast.”

Armstrong thinks you cannot overestimate the effect Trump tax cuts will have on the U.S. economy. Armstrong goes on to say, “It’s monumental.  It really is a very pro-business situation, and that’s going to grow jobs, etc.  Small businesses and pass-throughs have been abused.  They have been abused.  A small business tries to get a loan from a bank, and 70% of them are declined.  It’s really more of a pro-business type thing.  I mean in what you are paying out in taxes, in our office, we could hire ten more people.  You have to understand what it does, it then puts pressure on everybody else.  We already have Canadian companies standing up and saying we are going to have to move to the United States if this keeps up.”

Armstrong says the rest of the world is freaking out about the Trump tax cuts because they are going to lose business. Armstrong says, “Absolutely, China, I had to fly to London to meet with very senior people and they met me in London. . . . You have to grasp the structural differences outside the United States. . . . If this tax thing goes through, our models are showing we should be reaching the 37,000 to 40,000 level (on the DOW) at least by 2020.”

There is also some bad news. Armstrong is worried about central banks continually buying bonds to suppress interest rates.  Armstrong says, “Yes, absolutely.  We are in the biggest bond bubble in history, not a stock bubble, but a bubble. . . . The scary thing in Europe is the ECB (European Central Bank) has been basically supporting the governments.  It is subsidizing all the governments in the Eurozone.  We are looking at almost 10 years of quantitative easing with that, and it hasn’t helped the economy.  If the ECB backs off, who’s going to buy the debt?”

How does this end? Armstrong says, “Our computers are showing that interest rates are going to go up faster than anybody has ever seen in history. . . . You are looking at a doubling of interest rates very, very rapidly. . . . Gold and equities are the place to be.”

Join Greg Hunter as he goes One-on-One with Martin Armstrong of ArmstrongEconomics.com.

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After the Interview: 

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Comments
  1. FC

    A very confusing interview on the future of the economy from monumental boom to the rapid increase of interest rates, it appears to be anyone’s guess.
    I’ve been strong-armed into purchasing more physical insurance.

    • Greg Hunter

      FC,
      You cannot go wrong with physical stuff under your direct control.
      Greg

      • Randy RHCE

        Greg, that’s the best advice I have ever heard. If you can touch it, and you own it free and clear, it is generally considered a primary asset. Paper assets (Tertiary) are generally a paper claim on a primary or secondary asset. I own three properties that are free and clear, except for the annual property tax; that’s one way to lose this asset if you don’t pay the annual tax. I would encourage your listeners to do one simple thing. If you own a primary or secondary asset such as land; it requires a paper claim such as s deed or title, same for vehicles. I would make sure I have the physical paper on hand to back that claim up. I would not trust the “Ethereal” electronic digits. This is fairly cheap to do.

        • DBCooper

          Randy, Please bear in mind that a deed is a color of title and anything in law that is in color or is colored is a suggestion of the truth … hence … a deed is not proof of ownership wear as a title or patent is proof of owner ship. All of the properties that make up our ‘homestead’ are owned with certified patents signed by the then President, Woodrow Wilson. Hope this is helpful. Yours in Faith and Liberty, FN, DB.

        • tin foil hat

          Randy RHCE,
          Someone bought this house for $199,000 in 2008, he/she couldn’t sell it for $80,000 and the home was foreclosed. The property tax is over $8,800 – more than 10% of what the house is worth.
          If you can’t touch it and put it in your pocket, it is probably not going to help you much in an environment similar to the Weimar Republic. You’d need gold to help you keep the properties.

          https://www.zillow.com/homes/177-Merion-Rd,-York,-PA-17403_rb/

    • This sceptred Isle

      Agreed. Some valuable insights but like Austin Fitts, a bit confusing. How can there be an economic boom in the middle of a historic rise in interest rates and a debt crisis? Surely in this environment lending will be at rock bottom levels.

      • philipat

        Interest rates can’t rise too much further because USG can’t afford the interest on the existing and growing debt, so I don’t see that happening. However, I also don’t see the Tax cuts causing any type of economic boomlet. The effective tax rate of the S&P Companies is presently 13%. Trump’s great big tax cut reduces Corporate tax rates to 21% and 12% in Ireland where US “IP” Companies (Mostly Tech and Big Pharma) have Trillions stashed. So why would they bring it home now? One thing we do know for sure about the “elites” is that they are greedy which supports their staying with the status quo.

    • David M

      We know the current stock bubble is the direct result of low interest rates in the bond market. How can stocks benefit from a sharp rise in interest rates? Is Martin saying that we should look to the banana republics to get a better idea of what to expect here? A sharp increase in interest rates cannot be a positive for financial assets unless your money supply growth is off the charts. Martin feels that billions of dollars of corporate money coming back to the U.S. would be wonderful for job creation and foreign investment. If you believe that a higher dollar is in the cards why would you buy any hard assets? Do you really think that a higher dollar is just what we need when you are running a 600 billion dollar trade deficit? How will you export anything if the dollar goes up another 20%? Also, you forgot to ask Martin why he is bullish on both financial and hard assets at the same time. They generally do not move together. Great web site Greg.

      • Peter S.

        Precisely. Armstrong says buy the tax cut boom, and he may be correct BRIEFLY, but I say sell the news. Polls have shown these cuts will be used mostly for further buybacks. They will not be used for R&D, since the American consumers are tapped out. But they will aid the 1% at getting out at the top,