Last week, we discussed how people in Japan and Europe, and potentially in the U.S., were hoarding more cash at home.
Let's add to the scenario this week with theory that negative intererst rates may pose the risk of killing capitalism as people withdraw cash from the system and choose to stuff if under a mattress or in a cookie jar instead.
Meanwhile, the US government collects record taxes in the first half of 2016, under economic conditions with little sign of economic growth. And despite record cash flowing in, government continues to run deficits.
We continue to watch a presidential race like no other unfold in the Republican Party.
At least one GOP convention delegate has suggested she'll vote for Hillary Clinton in November rather than back Donald Trump. This is the same Republican Party that demanded a loyality pledge from Trump.
And it may seem trivial, but Fox News host Megyn Kelly had a private meeting with Trump on Wednesday. Is Kelly trying to mend fences, do damage control, and distance herself and her network from any GOPe treachery that lies ahead? Also of note, CNN's Anderson Cooper crushed Fox and Kelly in the ratings Tuesday night when Cooper's guests were Trump and his family.
Meanwhile, Ted Cruz is being compared to Moses... And has proposed a flat tax to replace the federal income tax.
Is there really any political will in DC to eliminate the IRS? Or is Cruz doing what other Republicans have done in the past, using the idea of "flat tax" or "fair tax" to distract from other issues, while generating some buzz for his fundraising pitch?
Cling to your normalcy bias at your own risk. Join us Friday at noon as we continue to connect the dots in perilous times.
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