Brexit Cost $2.1 Trillion It’s First Day

The Guardian expressed it thusly:

$2.1 Trillion of the worlds wealth was erased on June 24, 2016.
Well, it was actually $2.09 Trillion.  We are supposed to be saddened; what a horrible decision Brexit was we are to think… In one day it cost the world $2.1 Trillion dollars…..

Sad face  😦

But if you google $2.1 trillion (as I did for this article) you fail to find yesterday… (until I post this and then it will miraculously appear, thanks to Google)….

But you do see that $2.1 Trillion was ERASED from the world’s wealth as of August 26th, 2015.  Do you remember that?  I didn’t. Had to have my memory jogged.  But it did happen. and yet we can’t remember it?

You see that as of March 2015, US corporations were stashing $2.1 Trillion overseas to avoid taxes, something the Panama Papers showed us was endemic.  Have you missed that?  Apparently it is ongoing and is not such a great problem that anything has been done to solve it…

We find that in the last 6 years, our economy has only grown by $2.1`Trillion, while our debt has mushroomed $9 Trillion over the same time.   And life goes on, it really can’t be that much of a deal….

If anyone looks at the losses on the big exchanges and sees that they averaged down by 3.5% yesterday, with a little math, you would know then that the total global equity is then 60 trillion.  2.1 of which disappeared yesterday, and will eventually return.

Did your world change yesterday?  I have yet to find anyone’s whose did…..

Which means that $2.1 trillion as a part of wealth’s pie is inconsequential… They don’t miss it really, it comes and goes quite readily.

So that is the portion we need to shift through our tax laws from the elite back to society… We could probably do a lot more, but that would be a start that no one really could complain is costing too much…

But just for the record, if you took that non essential $2.1 trillion and divided it equally among all 7 billion of the world’s population, you would be printing 7 billion cashiers checks for $300 American dollars apiece.  That would go a long way in some of our most impoverished continents… Large families would do well.  Even in the US, a family of 4 would get a free $1200.

Yet no one cares when the rich people lose it… Even they don’t care…

So why are we not taxing sufficiently to meet our societies’ needs?  It is the one single thing everyone in the entire world needs to do…. Tax those who have the money…..

(At this point, some dork always says…. and give to the poor.)

No… build things. Lots of things and put your poor people to work making a decent living while doing something amazingly great for mankind….

By the way…. Bill Clinton put the cost at $3 billion for completely eliminating hunger in the world…. Brexit just eliminated 700 times that amount…. and no one really felt a thing… Think about that for a second….  Then think of what if feels like when YOU haven’t eaten for about 2 hours… then think about perpetual hunger, and that no one cares that we lost $2.1 trillion of the world’s equity wealth.

There is so much we can do…. We need to get started and to get started we need to change the tax laws so the rich pay more… Period… and there is no issue that cannot be fixed by doing this…. Every issue is money centered and we have the money… It’s just in the wrong account!…. Move it over and let’s get started….

Late August Bump, Means Historical Fall Crash

This trend has been consistent. A surprise bump in August puts fear in investors. Then when the third quarter’s financial reports come out after September 30th, with roughly 2/3’rds not meeting projections, on one day in October, every one at once decides to pull out…

That is the problem.

Currently there is no better market across the globe, which is why our stock market has had its good run… But when Treasuries at low percentages look better than stock market negatives, it does make good sense to switch…

Which is nothing new… The only problem is when everyone does it at the same time… It creates an hubris where stocks have no value and their plunge becomes intense…

You may have heard… today opening plunged 1100 points… Today, August 24th, 2015, marked the end of the largest running bull market on record… Good news is that it’s up 950 points… So if you’d already been sitting outside the market and jumped in this morning… this was a good day.. so far..

But that can’t happen forever and if the market had dropped 3300 instead of 1100 that 950 of available reserves would do nothing…

For six weeks we will stumble around and the stocks will slowly rise and bounce back, but the “skittish index” has just now shot through the roof…

When the 3rd Quarter reports emerge, and if they are over 50% below expectations… Get ready…

There is far less resiliency in the middle class now than there was in 2008-2009 “Republican Caused” Depression. And today there are far less Democrats in the House and Senate to approve any bailout which means the majority now think like Romney: let markets correct themselves,keep government out. Herbert Hoover said the same thing in 1929.

The good news is that by wiping out a good portion of the stock market’s profits which 99% now goes to the 1%, is that the middle class now achieves more equity than anytime since before Ronald Reagan. … when it does become more equitable, we need to instill policies that keep it equal like we did in 1932-1933…. Change the rules so that as wealth is re-created, 50% is given to the labor side of the equation, and 50% goes to the capitalist side of the equation…

Taxing more is the simplest and most effective way to achieve that. It worked very well once before.