LANDON-FILLMORE SYSTEMS

Daily Dose: Thursday, 3/26/2020

 

This bill before congress is going to be a complete disaster. Here’s why.

 

1) The money given to families is a carefully crafted tax credit. It’s not designed to give money to people who may need it but more people likely to vote. Taxpayers in middle brackets. By not giving money to everyone, they tell the people they really don’t care about you unless you pay taxes. What about non-taxpaying disabled veterans?

2) Being a taxpayer doesn’t apply to corporations. They get loans regardless of their tax status or even if they are US based tax paying corporations.

3) These companies are ALREADY being bailed out by the Federal Reserve.

4) Adding loans to old loans doesn’t make companies profitable.

5) The result of the quarantine will be more negative than the cash will be a positive. That’s because it’s causing hospitals to have to prioritize away from normal operations and towards, what’s essentially, a flu-like virus.

This means delays in heart surgeries, cancer treatments and voluntary surgeries like hip replacements.

6) The money is highly inflationary. When the federal reserve buys bonds they print the money. (It’s not earned) That means a bond (or an ETF) is replaced in a brokerage account with cash. This cash has to be spent ON SOMETHING.

Right now, the virus has caused blockages in supply chains. This means we’ll be flooded with money and not much to buy. This leads to hyper-inflation.

 

Note: We sold out of gold shares KGC and AU but retain options. We believe markets could correct.

 

We are not accounting for the prospect of exponential losses. (click to read)

 

The most advanced systems in the world. (Click to view)