Trump’s Federal Freeze – Shrinking the Public Sector

January 30, 2025

Armstrong on Government

President Donald Trump implemented a widespread freeze on federal loans and grants, ordering all agencies this week to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.” He was forced to back off after a federal judge halted some of the freeze. The public sector has been multiplying in recent years to the point that there are thousands of agencies whose true purpose are unknown. While many view the act as extreme, public sector growth has become detrimental to our economy and one must determine what exactly the government is funding.

As Adam Smith wrote in “Wealth of Nations”:

“Like an improvident spendthrift, whose pressing occasions will not allow him to wait for the regular payment of his revenue, the state is in the constant practice of borrowing of its own factors and agents, and of paying interest for the use of its own money.”

The wealth of a nation is composed of more than money or gold, for the original idea of “money” did not embrace the concept of true wealth. Money is merely our mental measure of wealth. Cultures in different parts of the world all conceive of money but it is merely how they measure this universal concept of wealth.

There is only one constant and that is the greater the size of government, the lower the production of national wealth. Therefore, the higher the percentage of a nation’s work force is employed by the public sector, the lower its real national product. We saw this in Argentina as of late. Of course, government wishes to include itself in the GDP calculation and it counts government workers twice in many countries. It adds total government spending and adds that to total personal income. By doing this they count all government employees twice for they do not back it out of the total government spending. So we have bogus statistics in GDP as well for the economy appears better when government hires rather than the public sector. That is why we will see unemployment rise under Trump but in all actuality that figure will not be indicative of the overall health of our economy.

Now, Trump specifically is asking for more information on 2,600 programs to determine their legitimacy. Biden implemented a slew of DEI iniatives and programs that do nothing but TAKE from our economy. The Office of Management and Budget (OMB) sent the aforementioned companies the following questions:

  • Does this program provide funding that is implicated by the directive to end discriminatory programs, including illegal DEI and “diversity, equity, inclusion, and accessibility” (DEIA) mandates, policies, programs, preferences, and activities, under whatever name they appear, or other directives in the same EO, including those related to “environmental justice” programs or “equity-related” grants?
  • Does this program promote gender ideology?
  • Does this program promote or support in any way abortion or other related activities identified in the Hyde Amendment?

“It means no more funding for the green new scam that has cost American taxpayers tens of billions of dollars,” White House press secretary Karoline Leavitt said Tuesday at her first news briefing. “It means no more funding for transgenderism and wokeness across our federal bureaucracy and agencies.” The new press secretary, who actually responds to questions, said it is “the responsibility of this president and this administration to be good stewards of taxpayer dollars.” Welfare aid programs are not vanishing, rather, the government is reevaluating its spending to best direct dollars.

Organizations promoting woke gender ideology, DEI, and the green new deal will be the first to go but a significant cut is needed to restore some order. The fear mongering about Trump eliminating Medicaid and food assistance programs are unfounded. The new administration must determine what agencies are legitimate and eliminating services that do not add to our society in any meaningful way is the first step.

Argentina is an excellent example of how quickly an economy can recover when we remove socialistic programs. There were 341,477 people in the public sector on government payroll when President Milei took office, and his aim is to eliminate 70,000 needless positions. From December 2023 to October 2024, Argentina reduced the national administration was reduced by 10% and state-run firms decreased by 12.6%. Reducing the national administration alone saved the government $3.82 billion in the short-term, not accounting for future payouts, additional staffing, or pensions. Yet he began by eliminating services that were simply unnecessary.

Milei.PublicSector

Milei first eliminated useless agencies such as the Ministry of Culture, Ministry of Health, Ministry of Labor, and Ministry of Social Development. In his words, Argentina WAS a poor country that could not afford these departments that do absolutely nothing to improve the nation’s economic conditions. No one noticed when he reduced the cabinet by 50%, but the economy certainly took note and posted its first budget surplus in 123 years this December.

“The deficit was the root of all our evils — without it, there’s no debt, no emission, no inflation. Today, we have a sustained fiscal surplus, free of default, for the first time in 123 years. This historic achievement came from the greatest adjustment in history and reducing monetary emission to zero. A year ago, a degenerate printed 13% of GDP to win an election, fueling inflation. Today, monetary emission is a thing of the past,” Milei proudly announced.

Yes, other factors contributed to Argentina’s recent success, but moving away from socialism and ever-growing social programs was paramount. Socialism NEVER works but world leaders refuse to learn from the past.

Under Biden, we saw manufacturing flee the US. The jobs reports often looked promising but they failed to recognize the rising public sector that can never contribute to GDP. We have seen what happens when governments grow to disproportionate figures and it never ends well. The longest reigning empire, the Roman Empire, fell as a direct result of an oversized public sector that bankrupted Rome. The private sector produces economic growth, while government is a public servant consuming the wealth generated by others.

Deep State

 

The Deep State is more than a swamp; it is an ocean. It is so deeply rooted that I wish Trump all the best, but I am not sure he will be able to root out the core corruption. That will probably take a sovereign default, and history warns that a revolution will often follow. This time, the government is entrenched in bribing the people to retain power, giving them free food and circuses, and they will be the government alone, as they used to say in Rome.

 

Free Speech in Germany Only if You Agree With Government

January 30, 2025

 

Oliver Wendell Holmes Young

Supreme Court Justice Oliver Wendell Holmes, Jr. made it clear what Free Speech was in Schenk v. U.S., 249 U.S. 47 (1919) (1919), ruling that a restriction is legitimate only if the speech in question poses a “clear and present danger”—i.e., a risk or threat to safety or to other public interests that is serious and imminent. Yelling fire in a crowded movie theatre is not free speech. There have been many cases involving freedom of speech and of the press over the years, and what is taking place in Europe is a rejection of free speech. In Britain, they sentenced a man to 20 months in prison for saying he was tired of paying taxes to support migrants who then raped their children. They are defining much that simply disagrees with government policy as “hate speech,” which is expressing a political opinion.

Hugo Black Supreme Court Justice 1937–1971

In Everson v. Board of Education, 330 U.S. 1 (1947), Justice Hugo L. Black on the Supreme Court traced the origins of the First Amendment to a bill establishing religious freedom that Jefferson drafted and introduced in the Virginia General Assembly in 1779, but was finally passed only in 1786 demanded by James Madison. This had three main sections prohibiting compulsory religion requirements of any kind, maintaining that men were free to express their opinions on religion and choose how or if to worship. That was a fundamental right as citizens and it was the foundation as a natural right of mankind. Justice Black wrote:

“Yet we are free to declare, and do declare, that the rights hereby asserted are of the natural rights of mankind, and that, if any act shall be hereafter passed to repeal the present or to narrow its operation, such act will be an infringement of natural right.”

John Marshall Harlan II 1955 1971 Supreme Court

Justice John Marshall Harlan, whose grandfather had been on the Supreme Court from 1877 to 1911, delivered the decision in Cohen v. California, 403 U.S. 15 (1971) where the state criminalized the word “f–k” being used in political protests against the government. He made it clear that the State may not, consistently with the First and Fourteenth Amendments, make the simple public display of this single four-letter expletive a criminal offense. Starmer in Britain imprisoning people for merely saying migrants raped their children was a criminal offense and sentenced a man to 20 months in prison.

Freedom of speech includes the rights to:

  • Not to speak (specifically, the right not to salute the flag).
    West Virginia Board of Education v. Barnette, 319 U.S. 624 (1943).
  • Of students to wear black armbands to school to protest a war (“Students do not shed their constitutional rights at the schoolhouse gate.”).
    Tinker v. Des Moines, 393 U.S. 503 (1969).
  • To contribute money (under certain circumstances) to political campaigns.
    Buckley v. Valeo, 424 U.S. 1 (1976).
  • To engage in symbolic speech (e.g., burning the flag in protest).
    Texas v. Johnson, 491 U.S. 397 (1989); United States v. Eichman, 496 U.S. 310 (1990).

EU OMG

What you MUST understand is that the EU is collapsing. The failure to ever consolidate the debts has led to (1) disparity among members, and (2) the Euro has never been able to replace the dollar, lacking a unified debt market to attract capital. The more desperate the financial crisis unfolds in Europe between war and debt, the more authoritarian the government will become. This is why Scholtz has the audacity to claim Germany has free speech as long as you are not their opposition. You cannot have free speech and ban the political speech of your opposition.

2025_01_29_18_43_03_Japanese_investors_dump_Eurozone_bonds_at_fastest_pace_in_a_decade

With all the talk of war in Europe, we are starting to see a massive exodus of European investment by foreigners. The Japanese dumped a record $53 billion worth of Euro investments, and we see the same from European investors trying to get out before capital controls coincide with the first bullet fired. The European leaders are braindead. They cannot grasp that the harder they beat their war drums, the more smart money will get out of the EU before it is too late. The Euro has been in an overall bear market decline since 2008.

Euro Swiss Q 1 1 25

 

Market Talk – January 29, 2025

January 29, 2025

Market Talk 2017

ASIA:
The major Asian stock markets had a green day today:
• NIKKEI 225 increased 397.91 points or 1.02% to 39,414.78
• Shanghai closed
• Hang Seng closed
• ASX 200 increased 47.90 points or 0.57% to 8,447.00
• SENSEX increased 631.55 points or 0.83% to 76,532.96
• Nifty50 increased 205.85 points or 0.90% to 23,163.10
The major Asian currency markets had a negative day today:
• AUDUSD decreased 0.00195 or -0.31% to 0.62330
• NZDUSD decreased 0.00059 or -0.10% to 0.56576
• USDJPY decreased 0.393 or -0.25% to 155.164
• USDCNY decreased 0.01372 or -0.19% to 7.26133
The above data was collected around 12:24 EST.
Precious Metals:
•  Gold decreased 11.01 USD/t oz. or -0.40% to 2,751.58
•  Silver increased 0.297 USD/t. oz. or 0.98% to 30.690
The above data was collected around 12:31 EST.
EUROPE/EMEA:
The major Europe stock markets had a mixed day today:
•  CAC 40 decreased 24.89 points or -0.32% to 7,872.48
•  FTSE 100 increased 23.94 points or 0.28% to 8,557.81
•  DAX 30 increased 206.95 points or 0.97% to 21,637.53
The major Europe currency markets had a mixed day today:
• EURUSD decreased 0.00092 or -0.09% to 1.04213
• GBPUSD increased 0.00012 or 0.01% to 1.24432
• USDCHF increased 0.00245 or 0.27% to 0.90680
The above data was collected around 12:47 EST.

US/AMERICAS:

US Market Closings:

  • Dow declined 136.83 points or -0.31% to 44,713.52
  • S&P 500 declined 28.39 points or -0.47% to 6,039.31
  • Nasdaq declined 101.26 points or -0.51% to 19,632.32
  • Russell 2000 declined 5.77 points or -0.25% to 2,283.1

 

Canada Market Closings:

  • TSX Composite advanced 53.85 points or 0.21% to 25,473.3
  • TSX 60 advanced 2.54 points or 0.17% to 1,537.38

 

Brazil Market Closing:

  • Bovespa declined 623.38 points or -0.5% to 123,432.12
ENERGY:
The oil markets had a mixed day today:
•  Crude Oil decreased 1.161 USD/BBL or -1.57% to 72.609
•  Brent decreased 0.928 USD/BBL or -1.20% to 76.562
•  Natural gas increased 0.0297 USD/MMBtu or 0.95% to 3.1517
•  Gasoline decreased 0.0168 USD/GAL or -0.82% to 2.0343
•  Heating oil decreased 0.0106 USD/GAL or -0.43% to 2.4392
The above data was collected around 12:49 EST.
•  Top commodity gainers: Wheat (2.77%), Platinum (2.14%), Coffee (2.15%) and Cocoa (3.02%)
•  Top commodity losers: Crude Oil (-1.57%), Cobalt (-2.26%), Palm Oil (-2.22%) and Rapeseed (-1.55%)
The above data was collected around 13:57 EST.
BONDS:
Japan 1.1960% (-0.1bp), US 2’s 4.22% (+0.013%), US 10’s 4.5520% (+1.4bps); US 30’s 4.79% (+0.006%), Bunds 2.5785% (+1.8bp), France 3.315% (+2.6bp), Italy 3.6570% (+0.3bp), Turkey 25.66% (+22bp), Greece 3.412% (+2.2bp), Portugal 2.963% (+1.9bp); Spain 3.178% (+2.1bp) and UK Gilts 4.6290% (+0.77bp)
The above data was collected around 14:00 EST.

US Seeks to Boost Semiconductor Chip Manufacturing

January 29, 2025

AI Chip

The chip shortage has been at the top of mind over the last week after the launch of DeepSeek, a novel AI service intended to compete with ChatGPT. Semiconductor manufacturers have left the US and previous plans to attract domestic production have failed. President Donald Trump has proposed a new idea to force production back to the states through tariffs.

The CHIPS and Science Act launched under the Biden Administration injected $52 billion into American chip manufacturing. Intel was awarded $7.9 billion in 2024 to boost factories in Ohio, Oregon, New Mexico, and Arizona. Still, these incentives have not been sufficient to attract new chip manufacturers to the US, with the bulk residing in Taiwan.

Trump believes that throwing cash at companies is not enough to boost domestic production. “They’re gonna build their factory with their own money. We don’t have to give them money,” Trump added, later claiming: “They’re giving the money, they don’t even know what they’re going to do with it.” Instead, he is proposing tariffs between 25% to 100%, believing companies will come to the US to avoid these impossible taxes.

Semiconductor.Chip_

“The only way you’ll get out of this is to build your plant —if you want to stop paying the taxes or the tariffs— you’ll have to build your plant right here in America,” Trump added. “That’s what’s going to happen at record levels.”

Now, Taiwan hoped to strengthen trade with the US through these highly demanded chips. “In the face of authoritarian expansionism and the challenges of the post-pandemic era, Taiwan seeks to bolster cooperation with the United States in the semiconductor and other high-tech industries. This will help build more secure and more resilient supply chains. We look forward to jointly producing democracy chips to safeguard the interests of our democratic partners and create greater prosperity,” Taiwan’s President Tsai Ing-wen stated.

Democracy is exactly what China does not want Taiwan to have. Russia means nothing to China. The one aspect that China has repeatedly warned the US not to meddle in is its One China policy. Chinese President Xi believes he can reunify Taiwan with mainland China in a “peaceful” manner. Taiwan’s president Tsai Ing-wen has been deemed a terrorist of sorts by China as no president has ever been so outspoken about securing Taiwan’s sovereignty. The main reason that he was able to speak bluntly was US protections, with former President Joe Biden ensuring the protection of Taiwan at all costs and US politicians like Pelosi flocking to China with open discussions of neutralizing Chinese threats.

Taiwan ECM 2

Trump has told Taiwan that it must raise its own defense budget from 2.45% of GDP to around 10%. Remember that Trump is a businessman who happened to become involved in politics. He has likened America to “an insurance company” for Taiwan and believes the nation should pay for protection. Moreover, he is now accusing Taiwan of stealing America’s chip manufacturers and reducing its competitiveness in the tech race.

The US undoubtedly needs to boost chip manufacturing as geopolitical tensions may dampen the already strained supply. Yet, it takes about a year to get a plant up and running. Businesses will need to move now and fast to avoid not only potential tariffs but also Chinese influence over Taiwan.

DeepSeek Launch

January 29, 2025

deepseek

It was only a matter of time before an innovative mind created the next mainstream AI tool to compete with ChatGPT. In a massive step toward AI advancement, Liang Wenfeng of China launched DeepSeek, an open-source large language models (LLM) intended to compete if not one day overshadow ChatGPT. The launch immediately wiped $1 trillion off the US stock exchange and the tech competition between China and the US is coming to a head.

ChatGPT is run by OpenAI. Its creation marked the dawn of a new way of interacting with the internet and accessing information. Users can ask AI to instantaneously perform actions and it is reshaping the way the world operated. People have created businesses based on ChatGPT. There have been countless warnings of AI replacing human jobs. Governments are still uncertain how to regulate these services and the data they pull from users. Of course, countless services like ChatGPT have launched in recent years, but DeepSeek may be the next best alternative.

Wenfeng hired all the top minds graduating from Chinese universities and paid them top dollar to create DeepSeek for a fraction of what it took to create ChatGPT. OpenAI’s GPT-4, launched in 2023, cost $100 million to develop; DeepSeek-R1 began with a $6 million investment.

ChatGPT write own code

Semiconductor chips are shaping the tech race. It takes semiconductor chips to operate these AI programs and that has been an ongoing problem for American companies. Chinese companies do not have such problems. There is much speculation that ChatGPT did not require the estimated 10,000 GPUs and 3,500 NVIDIA servers. Nonetheless, DeepSeek is operating on less. Now, DeepSeek has around 50,000 NVIDIA H100 chips but they cannot speak about the matter due to US export controls.

President Trump stated that DeepSeek is a reminder that American companies need to be “laser focused” on competing with China. Everyone is impressed at the low operating costs. “Instead of spending billions and billions, you’ll spend less, and you’ll come up with, hopefully, the same solution,” Trump noted. Some US politicians are already calling for a ban. “The U.S. cannot allow CCP models such as DeepSeek to risk our national security and leverage our technology to advance their AI ambitions. We must work to swiftly place stronger export controls on technologies critical to DeepSeek’s AI infrastructure,” Rep. John Moolenaar, R-Mich., the chair of the House Select Committee on China, said Monday.

Hangzhou DeepSeek Artificial Intelligence Co., Ltd, owned and funded by hedge fund High-Flyer has inserted $2 trillion into the US markets at the time of this writing. Critics claim that DeepSeek censors available information based on what the CCP will and will not permit. Still, investors seem extremely bullish on DeepSeek, which has already surpassed ChatGPT as the most downloaded AI app on the Apple app store.

Trump Reinstates Military Members Discharged over COVID Vax

January 29, 2025

vaccine card

A massive round of applause is in order for Donald Trump’s executive order to reinstate service members who were discharged from the military for refusing the COVID-19 vaccination. Not only will these men and women be reinstated, but they will receive back pay and benefits.

“The Executive Order directs the Secretary of Defense to reinstate all members of the military (active and reserve) who were discharged for refusing the COVID vaccine and who request to be reinstated,” according to the White House fact sheet.

The Department of Defense and Secretary of Defense Lloyd Austin should be ashamed. The Biden Administration discharged over 8,000 service members from 2021 to 2023. These men and women were willing to die for our country but that was not enough. The vaccine mandate was eventually repealed in 2023, but only 43 of the 8,000 troops chose to return to service. Could you blame them?

2023_12_10_09_31_22_Video_Heart_issues_skyrocketing_in_military_US_Navy_medic_says

A class action lawsuit filed on behalf of discharged troops claims that they were completely denied any due process. There were no hearings or judicial procedures. The vaccine was unlicensed and military members are not required to take unlicensed, experimental vaccines. We saw a similar issue take place in the 90s when the government attempted to order military members to take an anthrax vaccine. Congress realized that patriots were less willing to take the vaccine, saw the rise in side effects, and repealed the COVID vax mandate in 2023 but it was too late. Congress never agreed to back pay or offered apologies to the members who were forced to take the mRNA drug.

WokeMilitaryUS

Joe Biden as the commander in chief is one of the reasons military recruitment numbers have plummeted in recent years. His failed withdrawal of Afghanistan will go down as one of the worst military debacles in recent US history. His messaging was completely disrespectful and anti-patriotic throughout his presidency. He attempted to shove DEI initiatives down the throats of troops and embarrassed our military members by having transexual activists act as recruitment leaders. Absolutely no one trusted Joe Biden to lead this nation.

Has the World Lost Its Collective Mind?

January 29, 2025

2004_Why_Antarctica_will_soon_be_the_i_only_i_place_to_live_literally_Environm

 

What is astonishing is all the outrageous forecasts about global warming and how the entire earth will be destroyed. We will all be forced to flee to Antarctica was so absurd, yet the press loved to push this nonsense out so our government would panic, raise taxes, and shift money to fake analysis to pretend they are doing something all because it was in the press. Here are two stories on that pretend theory from 2004 and 2015. You would think it has been 20 years, and we would have seen something. Instead, we have the coldest winter in more than 50 years, so they claim it is all caused by driving to work or the kids to school.

 

2015 Climate fleeing to Antartica

 

I am surprised that Biden didn’t hand Klaus Schwab the Presidential Medal of Freedom for his scare tactics to get the virus going and tell us how wonderful lockdowns were because they were quiet. The objective was to shut down small local businesses and end commuting, so now we have an office space crisis that will hit the economy as people have been forced to work virtually. This was all part of the climate change agenda.

2022 Germanys Greens Pro War DER_SPIEGEL

The German Greens now want war to conquer Russia to shut down its fossil fuel production, which is the largest in the world. The Greens now want bloodshed to save the planet from climate change. What used to be up is now down, and it seems like the entire world has lost its collective mind. NATO bombed the hell out of former Yugoslavia to bring peace. Napoleon and Hitler sought to conquer Europe to end all wars. It’s incredible how people justify taking the opposite action to create some fictional noble cause.

 

 

 

Pelosi Dumps AI Shares

January 29, 2025

NVIDIA Y Array 1 28 25

QUESTION: Well, we now know that Pelosi is using Socrates. You said the AI bubble would end in January, and Pelosi sold her AI stocks at the end of December. You just said that volcanos will become active on Greg Hunter’s show, and in days, they say there is a hidden volcano a mile wide off the California coast that is about to erupt. Did you ever advise Pelosi?

Jay

ANSWER: No, I have never advised Pelosi. If she tunes into Socrates, I do not know. I doubt she would use her real name. As far as volcanoes are concerned, it is a simple correlation that they cluster around solar minimum. Some have suggested an increase in Gama Rays during the solar minimum, which penetrates the earth and perhaps stimulates volcanoes. I do not know if that theory is correct or wrong. All I can say is that there is a correlation that aligns with the solar minimum.

Market Talk – January 28, 2025

January 28, 2025

Market Talk 2017

ASIA:
The major Asian stock markets had a mixed day today:
• NIKKEI 225 decreased 548.93 points or -1.39% to 39,016.87
• Shanghai closed
• Hang Seng increased 27.34 points or 0.14% to 20,225.11
• ASX 200 decreased 9.80 points or -0.12% to 8,399.10
• SENSEX increased 535.24 points or 0.71% to 75,901.41
• Nifty50 increased 128.10 points or 0.56% to 22,957.25
The major Asian currency markets had a mixed day today:
• AUDUSD decreased 0.00386 or -0.61% to 0.62539
• NZDUSD increased 0.00055 or 0.10% to 0.56690
• USDJPY increased 1.016 or 0.66% to 155.528
• USDCNY increased 0.02302 or 0.32% to 7.27502
The above data was collected around 16:12 EST.
Precious Metals:
•  Gold increased 21.45 USD/t oz. or 0.78% to 2,762.93
•  Silver increased 0.198 USD/t. oz. or 0.66% to 30.372
The above data was collected around 16:14 EST.
EUROPE/EMEA:
The major Europe stock markets had a mixed day today:
•  CAC 40 decreased 9.21 points or -0.12% to 7,897.37
•  FTSE 100 increased 30.16 points or 0.35% to 8,533.87
•  DAX 30 increased 148.40 points or 0.70% to 21,430.58
The major Europe currency markets had a mixed day today:
• EURUSD decreased 0.00592 or -0.56% to 1.04328
• GBPUSD decreased 0.00569 or -0.46% to 1.24421
• USDCHF increased 0.00195 or 0.22% to 0.90420
The above data was collected around 16:18 EST.

US Market Closings:

  • Dow advanced 136.77 points or 0.31% to 44,850.35
  • S&P 500 advanced 55.42 points or 0.92% to 6,067.7
  • Nasdaq advanced 391.75 points or 2.03% to 19,733.59
  • Russell 2000 advanced 4.84 points or 0.21% to 2,288.86

 

Canada Market Closings:

  • TSX Composite advanced 130.3 points or 0.52% to 25,419.45
  • TSX 60 advanced 9.9 points or 0.65% to 1,534.84

 

Brazil Market Closing:

  • Bovespa declined 775.82 points or -0.62% to 124,085.68
ENERGY:
The oil markets had a mixed day today:
•  Crude Oil increased 0.807 USD/BBL or 1.10% to 73.977
•  Brent increased 0.501 USD/BBL or 0.65% to 77.581
•  Natural gas decreased 0.3268 USD/MMBtu or -8.84% to 3.3702
•  Gasoline increased 0.0268 USD/GAL or 1.32% to 2.0529
•  Heating oil decreased 0.0112 USD/GAL or -0.45% to 2.4519
The above data was collected around 16:19 EST.
•  Top commodity gainers: Wheat (1.96%), Lumber (2.07%), Coffee (1.87%) and Palm Oil (1.59%)
•  Top commodity losers: Orange Juice (-2.06%), Rice (-1.83%), Natural Gas (-8.84%) and Zinc (-2.05%)
The above data was collected around 16:25 EST.
BONDS:
Japan 1.1970% (-2.25bp), US 2’s 4.21% (-0.003%), US 10’s 4.5430% (+0.2bps); US 30’s 4.78% (+0.008%), Bunds 2.5500% (+4.7bp), France 3.289% (+1.4bp), Italy 3.6490% (+1.9bp), Turkey 25.44% (-8bp), Greece 3.390% (-1bp), Portugal 2.944% (-0.6bp); Spain 3.157% (+0.1bp) and UK Gilts 4.6210% (+3.01bp)
The above data was collected around 16:28 EST.

 

UK Council Tax Hike – Britain’s Glory Days are Gone

January 28, 2025

Britain Big Ben Flag

Revolutions have begun over less. UK lawmakers plan to raise taxes on over four million households to cover a portion of their fiscal mismanagement. Homeowners may see their bills raise by a full 25% in certain areas as councils plan to use a loophole in the law to exploit the people.

Local government is not allowed to raise taxes over 4.99% without an election and approved referendum. To bypass the law and will of the people, councils plan to invoke Section 114 to declare themselves bankrupt. Secretary of State for Housing, Communities and Local Government Angela Rayner of the Labour Party would need to approve the measure. Rayner has been pushing to eliminate local government authorityRules for thee but not for me apply to Rayner as she managed to avoid paying taxes on her own home sale by looking for a loophole and simply feigning or, more likely, admitting stupidity.

The Royal Borough of Windsor and Maidenhead in Berkshire, Lib Dem-run, is naturally pushing for the largest increase of 25%. They claim it is a wealthy area and the people can afford to pay over five times the usual maximum. The party’s North Somerset Council believes homeowners should face a 15% penalty as well. Labour-run Bradford council pleaded with the UK government last year for a bail out worth £220 million, but even that was not sufficient as they are seeking to increase taxes by 15%. The party’s authority in Birmingham would like to raise taxes for a second consecutive year to 9.99%. Eight authorities in total are seeking to abuse the legal loophole of Section 114 to rob citizens.

A spokesman for the Ministry of Housing, Communities and Local Government attempted to deflect any responsibility. “Councils are ultimately responsible for setting their own council tax, and we will put taxpayers at the forefront of any decision,” they told the Daily Mail.

Did I mention that these tax hikes will NOT cover each council deficit? Governments are absolutely ravenous for funding and do not care how hard the people are hit.

I recall when Maggie Thatcher was under fire for proposing a poll or head tax whereby each taxpayer would pay the same fixed sum dictated by the local authority. I warned Maggie about imposing a poll tax. She thought the people would take the supervisory role as a check on the government if they had skin in the game. But I knew from history it would not unfold as she had hoped.

In Britain overall, aside from this proposal, the tax hike as a percentage of gross domestic product to a record 38.2% will be the highest in modern British history, resulting in government spending not seen outside an emergency or war. While he claims that the additional £40 billion ($80 billion) is to invest in the future, it will undermine the future of Britain.

Britain UK GDP Y 6 4 24

Our computer has been projecting that the British pound will collapse and penetrate the 1985 low as we move into the years ahead. Last year saw a Double-Directional Change on the yearly level for the pound, and we are looking at an unprecedented economic decline into 2026. This is what the LEFT refuses ever to comprehend. They are Marxists until the end – Britain’s glory days are gone.

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