As a free reader of The Tucker Letter you may not know this, but we don’t discuss politics.
The grand distraction that ruins family gatherings, raises blood pressure, and in some cases causes derangement, has little to do with money.
Some people disagree. Many of those have very little money. They don’t realize the U.S. Treasury collects roughly ~18% of GDP in taxes…regardless of who sleeps in the big house.
And if taxes don’t matter, that nullifies half the rhetoric of one side. Don’t forget, there was a period during the chart above where personal income tax rates shot to as high as ~70% for the “wealthiest.”
Then you’ve got social issues. Those are very hot right now. It seems like half the show wants you to hate anyone who doesn’t agree with its ideas. Few notice the irony that hate towards anyone nullifies virtue.
The haters, the triggered, and the malcontent can’t see through the rage to notice nothing changes. Absolutely nothing.
In the Fed’s system, GDP has to grow, it must grow. If it falls, the whole game ends in an instant. That can’t happen, it won’t happen.
This measure of U.S. output needs to rise. In nominal terms at least. That means, the numbers get bigger.
And if you personally fail to grow at the same pace…you’ll be left behind.
Every time that chart inches higher, it takes a few more dollars to stay in the game.
Don’t worry about the complainers who grumble over gas prices, the cost of eggs, or the inability to send junior to college. Once you see the game for what it is, none of those things matter. The cost of an omelet is the least of your worries.
You see, the Fed wants you to play its game. It wants you to earn, pay taxes, and speculate.
In fact, the Fed wants you to be a successful investor. That means you’ll pay a lot of capital gains tax. Instead of fighting them, try indulging them. It’s more fun, and less effort.
I realize this is a lot to take in. And there’s no candidate offering you a solution. But as a free reader of The Tucker Letter, you might not understand the problem. I’d like to fix that today.
People often think of me as a “gold bug.” But it’s not entirely true. They miss the point of why I like to have some gold.
I don’t think about government collapse. If that happens, we’ve got major problems. Be careful what you wish for.
I also don’t think I’ll transact in gold, walk around trying to buy things, or even outsmart those people worried about egg prices.
Gold is a way to keep score. It’s the best way. And right now, it’s the only way to light the path we didn’t choose.
And while that chart might look impressive, I’m not a gold trader. I don’t care too much about a little lurch higher in gold prices.
What matters to me is everything else. The way I see it, it’s my job to embrace the Fed’s new system.
Forget about grandpa’s lessons of capitalism. Saving money from the paper route, or all the thrifty behavior we learned about last century. That was then.
The Fed doesn’t want us to roll quarters and save. It wants us to buy things, and sell them for a profit, and pay taxes. That doesn’t sound so bad when you think about it.
And that’s what we do in The Tucker Letter, beyond what you see as a free reader.
You’re missing the actionable part of the letter.
You’re also missing the most important section, the postscript.
In the postscript, you’ll learn what I’m up to away from the market. You might be one of those people who wants just the stock symbol, and has no time for anything else. I understand. You’re busy hustling, because you have to, and just need the answers.
But if you had time for the question, you wouldn’t need the answer.
Readers know over time, you get a look inside how I see the world. After a while, you don’t need me anymore. In fact, you might not need to rush back to hustling either.
What successful investors know is, the more you learn, the easier it gets.
That’s why I’d like to offer you a special discounted rate to come learn with me. Join me, even if it’s for just a trial period. Quit whenever you’d like.
You might notice this is the maximum amount of marketing we send you. If you can even call this marketing.
That’s because this letter will never be a sales tool. It’s a lifestyle letter, and if you don’t appreciate being inundated with marketing, come join us.
My guess is, you’ll stay for a while.
Back with more on Thursday at 9:00 AM.
E.B.