Neo-com Democrats like Sen. Bernie Sanders (a self-professed socialist), continue to run around like Chicken Little, hollering the sky is falling, or in Sanders’ case, the economy is falling, especially after Congress passed the tax reform bill which was signed into law by President Donald Trump.
However, every economic indicator here in America is proving Sanders wrong. Unemployment is down, jobs are up, the Dow Jones has hit record highs and employers are already responding to the benefits of the tax cuts.
Additionally, what is happening here in America is also impacting the world economy, with global stocks reportedly closing at record highs and the Euro seeing its best year since 2003, when George W. Bush was President.
(Zero Hedge) – With just a few hours left until the close of the last US trading session of 2017, and most of Asia already in the books, S&P futures are trading just shy of a new all time high as the dollar continued its decline ahead of the New Year holidays.
Indeed, markets were set to end 2017 in a party mood on Friday after a year in which a concerted pick-up in global growth boosted corporate profits and commodity prices, while benign inflation kept central banks from snatching away the monetary punch bowl. As a result, the MSCI world equity index rose another 0.15% as six straight weeks and now 13 straight months of gains left it at yet another all time high.
In total, world stocks haven’t had a down month in 2017, with the index rising 22% in the year adding almost $9 trillion in market cap for the year.
Putting the year in context, emerging markets led the charge with gains of 34%. Hong Kong surged 36%, South Korea was up 22% and India and Poland both rose 27% in local currency terms. Japan’s Nikkei and the S&P 500 are both ahead by almost 20%, while the Dow has risen by a quarter. In Europe, the German DAX gained nearly 14% though the UK FTSE lagged a little with a rise of 7 percent.
Craig James, chief economist at fund manager CommSec, told Reuters that of the 73 bourses it tracks globally, all but nine have recorded gains in local currency terms this year.
“For the outlook, the key issue is whether the low growth rates of prices and wages will continue, thus prompting central banks to remain on the monetary policy sidelines,” said James. “Globalization and technological change have been influential in keeping inflation low. In short, consumers can buy goods whenever they want and wherever they are.” …
When Ronald Reagan pushed tax cuts, Democrats preached gloom and doom like they are now, but what happened was a great boost to the US economy which also had a positive impact on the world economy. Guess what, the same thing is already beginning to happen and if it continues, it will really hurt Democrats running in the 2018 midterm elections.