Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20
U.S. Long Bond: Let's Review the "Upward Point of Exhaustion" - 27th Jun 20
Gold, Copper and Silver are Must-own Metals - 27th Jun 20
Why People Have Always Held Gold - 27th Jun 20
Crude Oil Price Meets Key Resistance - 27th Jun 20
INTEL x86 Chip Giant Stock Targets Artificial Intelligence and Quantum Computing for 2020's Growth - 25th Jun 20
Gold’s Long-term Turning Point is Here - 25th Jun 20
Hainan’s ASEAN Future and Dark Clouds Over Hong Kong - 25th Jun 20
Silver Price Trend Analysis - 24th Jun 20
A Stealth Stocks Double Dip or Bear Market Has Started - 24th Jun 20
Trillion-dollar US infrastructure plan will draw in plenty of metal - 24th Jun 20
WARNING: The U.S. Banking System ISN’T as Strong as Advertised - 24th Jun 20
All That Glitters When the World Jitters is Probably Gold - 24th Jun 20
Making Sense of Crude Oil Price Narrow Trading Range - 23rd Jun 20
Elon Musk Mocks Nikola Motors as “Dumb.” Is He Right? - 23rd Jun 20
MICROSOFT Transforming from PC Software to Cloud Services AI, Deep Learning Giant - 23rd Jun 20
Stock Market Decline Resumes - 22nd Jun 20
Excellent Silver Seasonal Buying Opportunity Lies Directly Ahead - 22nd Jun 20
Where is the US Dollar trend headed ? - 22nd Jun 20
Most Shoppers have Stopped Following Supermarket Arrows, is Coughing the New Racism? - 22nd Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Bush Stimulus Plan - $500 Tax Rebate for Everyone!

Economics / Money Supply Jan 19, 2008 - 12:19 AM GMT

By: Brent_Harmes

Economics

Best Financial Markets Analysis ArticleI couldn't believe it.  I was sitting in the airport the other day waiting on my flight and CNN mentioned that the government is seriously considering helping our economy make it through this credit crunch by giving each of us a check for $500! 

Here is a quote from The Associated Press about it.


WASHINGTON (AP) — United for urgent action, the White House and Congress raced toward emergency steps Thursday to rescue the national economy from a possible recession, including tax rebates of at least $300 a person — and maybe as much as $800. Federal Reserve Chairman Ben Bernanke endorsed the idea of putting money into the hands of those who would spend it quickly and boost the flagging economy.

and

Aides to lawmakers involved in the talks said the White House is pressing for tax rebates of $800 for individuals and $1,600 for married couples. Lawmakers were likely to settle on a $500 rebate for individuals, said an aide involved in the talks, with details for couples and people with children still being negotiated.

Full Link: http://ap.google.com/article/ALeqM5h19_YeGzwzlmJhx42iIA7nJF0_UAD8U80C3O1

They are calling this proposal a “tax rebate” but it doesn't really matter what it is called, the fact is that realistically this currency will have to be created out of thin air and given to the citizens to spend.  This is currency abuse and one of the reasons precious metals should continue to soar.

For anyone that has seen Mike Maloney's presentation “Silver, High How?- The Moon” this was like déjà vu.  This is straight out of the play book that Mike said would be used to try to reflate the economy.  “Once the massive debt load starts to pull our economy down toward deflation the government will resort to emergency measures, including giving tax rebate checks to people to spend.  If small rebates don't work they will resort to giving you back your taxes for an entire year, or whatever it takes”.     He has been saying this would happen for years…it sounded extreme at the time…but it is happening right now! 

Think about it.  The Federal Government giving away currency just for fun?  Don't they usually make a big deal out of making sure they are the ones on the receiving end of tax transactions? 

Make no mistake this is an emergency measure the White House and the Democrats are proposing.  They will be doing more damage to the US dollar if this actually goes through.  A currency is only of value if it is in relative short supply and people actually want it.  Why will our foreign trade partners continue to be willing to exchange us their real products (cars, TV's etc) for a currency we are flooding the world with and is being devalued? 

This is exactly the kind of environment where the precious metals absolutely shine since they are a true store of value. 

Silver Update

True to history silver came back, touched the triangle pattern and headed up.  Silver is finally taking a “pause to refresh” allowing for another entry point after the run from $14 to $16.25 (16% in less than 30 days). 

Short term potential to the down side is probably around the triangle area ($15) and to the upside ($30).

By Brent Harmes

http://goldsilver.com

Subscribe or Manage Your Newsletter Subscription Here | Buy Gold and Silver Online

Copyright © 2008 Brent Harmes

GoldSilver.com offers vault storage accounts at Brinks Security in Salt Lake City, Utah. The minimum investment required for vault storage account is 20 ounces of gold or 1,000 ounces of silver. For more information call us at: 702-799-9000

Disclaimer : All claims made by GoldSilver.com should be verified by the reader. Investing is not suitable for everyone and readers are urged to consult with their own independent financial advisors before making a decision. Past performance is not necessarily indicative of future results. GoldSilver.com will not be liable for any loss or damage caused by a reader's reliance on information obtained in any of our newsletters, special reports, email correspondence, or on our website. Our readers are solely responsible for their own investment decisions.

Brent Harmes Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules