David Stockman: Trump stock bump in danger, debt looming, no corporate profit surge coming (VIDEO)

The “Trump bump” has been dramatic. There was a collective sigh of relief from investors as they watched Obama fly away on Marine One. Maybe, finally, the economy would be allowed to breathe.

Perhaps to some degree. But David Stockman warns correctly that the debt monster looms over the economy and that the debt monster is hungry. If we see a real move up in interest rates that debt, roughly 20 TRILLION dollars, is going to be much more expensive to finance.

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The High Cost of a Home Is Turning American Millennials Into the New Serfs

This is an excellent piece and pings directly on what we have seen firsthand. Millennials are being regulated, by many means, right out of home ownership. The author makes the point that despite the spin, Millennials actually want their own homes. They want families. They don’t necessarily want to spend their lives in tightly packed cities. They just can’t afford homes, families, or to move. Few Millennials will admit this but it’s true. But hey, the mimosas are bottomless at brunch.

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Here are the 52 public companies that make the most money from the federal government

Image: CNBC

This headline comes from CNBC and is misleading. These companies don’t “make the most money from the FEDERAL GOVERNMENT,” Taxpayers are making these companies rich, not the government. It’s not the government’s money. It’s yours. Too many people forget this.

Why are we going into massive debt, in part, to pad the bottom lines of these companies?

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Officials Behind $500 Million Vikings’ Stadium Subsidy Get Free Luxury Box Tickets for Family and Friends

No…

The only NFL game I’ve ever been to was when I was fresh out of college and working on The Hill. And I saw it from a one of those box seats suites. The only things I really remember are that I think the Patriots were playing the Redskins, that the fried chicken was the best I’d ever had, and that in the suite it didn’t feel like I was at the game. It was like I was in a hotel bar or something.

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What is the “Broken Window Fallacy” and why is it important to understand?

Some people just can’t see that earthquakes, hurricanes, and (I’m not joking) alien invasions (“broken windows”) just aren’t good for the economy. This is true even if people are paid to rebuild cities or paid to wage anti-Martian warfare. It’s not complicated. But some very intelligent people can not grasp this basic concept. Some still embrace the thoroughly debunked concept of the “multiplier effect” in the economy. There is no multiplier. There is redistribution. Wealth comes from innovation and ingenuity and creation and risk taking.

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The potential ‘economic catastrophe’ that no one is talking about

David Stockman and the co-Founder of ACC Hunter Lewis have both long talked about this thing that CNBC says “no one” is talking about.

Our debt has ballooned under Obama but we’ve been able to service this debt at ultra-low rates. However rates don’t stay low forever, even and perhaps especially when it feels like they will. When rates move up just a bit the cost of servicing our debt is going to increase big time. That will put significant pressure on the economy.

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Doug Casey: The Greater Depression is going to be worse than even I thought it would be.

The Crash of 2008 didn’t just go away (as too many of us know). It still hangs over the globe. But things have changed. We now have more debt on the books and an even more emboldened political class.

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Central Banks May Choose Helicopter Money Over Negative Rates

Here comes the Fed…Hooray.

The definition of “helicopter money” appears to be shifting a bit. Generally it means pouring currency (printed by a central bank) into the economic system by directly depositing it into accounts. What type of accounts appears to be an open question. Whatever the Fed chooses (assuming that it does) it is a bad idea however.

How about we let rates adjust to where they should be naturally? How about we let things clear. How about we get real now,

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Charles Hugh-Smith – Why Real Reform Is Impossible: We Can’t Believe the Mighty Titanic Could Actually Sink

This one isn’t an uplifter but it is a sober assessment which deserves attention. Sobriety is a valuable thing, especially when dodging icebergs.

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