Wall Street & Washington Are Running America into the Ground

I like to think of myself as an optimistic guy. Not today. Today, I have to come to grips with an ugly truth. And yes, there’s an investment angle in this.

As a nation, we depend on our leaders to guide the country along, hopefully to a better tomorrow. Too bad for our children, then, that Wall Street and Washington are joining forces to loot America to its bare bones rather than build for the future.

Now, I expect some people to argue that “America is the greatest nation on Earth.” And sure, by many standards, that’s still true. But the future is out there, and it ain’t pretty.

I’ll give you just one example:

By next year, China’s Gross Domestic Product, the broadest measure of the economy, will overtake the GDP of the U.S. year.

China! We’re losing to Communist China!

What’s more, within another decade, India will push the U.S. even further down the list, as this chart from Standard Chartered Research shows:

This is happening even though China’s GDP growth is projected to slow down. It’s that just ours will slow down even more.

Truth be told, thanks to the government shutdown, we don’t have the data to accurately forecast U.S. GDP. But using what’s available, the Atlanta Fed forecasts that fourth-quarter GDP in the U.S grew at 2.8%.

Meanwhile, China is growing at around 6.5%.

So, what happened? America stopped investing in roads, bridges, water systems and other infrastructure. We stopped investing in innovation and invention.

Meanwhile, we tax people too much to pay for multiple foreign wars at the same time.

Here’s a quiz for ya: The White House admits that the U.S. is actively involved in SEVEN foreign wars right now. How many can you name? I mean, without clicking through on that link.

Fun fact: Donald Trump didn’t start ANY of them. These are wars that already existed … some of which we’ve been fighting for years!

But sending our brave men and women overseas to fight in wars that Americans know little — and care even less — about is only part of the problem …

We also spend billions and billions of dollars for warplanes that are too expensive to fly into battle and warships that have guns too expensive to fire. Weapons systems that, by the way, even if they worked, are little use in these expensive brush-fire wars Uncle Sam keeps jumping into.


Does our government waste money on other things? Yes! I’m only scraping the tip of the iceberg here. But I think you get the picture.

And we don’t spend money on things we SHOULD fix. Flint, Mich., still has undrinkable water, five years after that crisis started. And you know what? Thousands of American cities and towns have polluted water. Flint isn’t even the worst!

Another fun fact: By 2020, the average American water pipeline will be 45 years old, and some will have been in the ground for as many 150 years.

From water pipes to roads to bridges — our infrastructure is literally falling apart. That’s your investment angle. Through individual stocks or Exchange-Traded Funds.

Two ETFs to consider are the Invesco S&P High Income Infrastructure ETF (NYSE: GHII) and the ProShares DJ Brookfield Global Infrastructure ETF (NYSE: TOLZ). Both pay nice dividends. Dividends are a plus in the kind of bear market we’re in now.

Oh yeah, we’re in a bear market thanks to the same feckless elites who are looting America. I told you about it HERE and HERE and HERE. And research shows dividend-payers and -growers are cushioned against the worst of a bear market’s downside while still offering plenty of upside.

So what are the elites doing about America’s infrastructure crisis? Well, they’re stuffing their pockets with taxpayer money, whether they work on Wall Street or in Washington. They’re building up big cash hoards, probably in preparation for fleeing to offshore bolt-holes for when the manure really hits the fan.

Sure, they’ll say otherwise. I’m just judging them by their actions.

What You Can Do About It

#1. Get involved. Start voting. If the rascals in office are looking out for corporate fat cats, and not for you, then throw them out! If they won’t hold Wall Street accountable, find someone who will.

#2. Work toward your own independence. Americans have grown used to having a government that will bail them out. People from Puerto Rico to Louisiana to California will tell you things are changing. You can’t count on Uncle Sugar anymore.

#3. Invest like your future depends on it. One part of independence is financial independence. Start taking control of your own investments. Do the research. Get ready for a wild ride in the markets.

The future isn’t written in stone. America doesn’t have to hit the rocks. But we need better leaders if we’re going to steer to smoother waters. And when I look at the chuckleheads in power, I just don’t see it yet.

Good luck to us all,

Sean

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Comments 2

  1. Stephen Ettinger January 16, 2019

    SEan,
    Years ago we invested in CEMEX – so we coulds make money in the Infrastructure Market. Until the U.S. of A. takes WAR MONEY and starts to dedicate it to Real Infrastructure rebuilding, we don’t hav e aprayer in hell for our infrastructure rebuild. ?when we had our Depression as my dad used to tell me, Roosevelt Built like crazy. To put people back to work, get a paycheck, and to get people out of squaler. It was energy shifted into a direction to get people moving. – NONE OF THAT AT THE FEDERAL LEVEL IS HAPPENING. Roads are falling apart right blew my tires right here in the New York / Long Island area, Long island Railroad Tunnels are crumbling. Amtrak tunnels are crumbling ( A FEDERAL TRAIN SYSTEM), and the most densely populated area in the United States can’t get out of it’s own way. Millions of people including people from the military could be shifted to Domestic Projects to rebuild America. Oh My God how it would lift this Country and economy. My State (New York) is doing their own building. So we are taxed to death here in NY. You Have Fed Taxes, State Taxes, Nassau County Taxes and then all those little taxes on every Utility Bill. All that money sucked out of peoples pockets. Can you imagine after all that – Now how does anyone send a kid out of State like my wife and I to Virginia Tech so our son can study Architecture, and go do something good for the people. How does a family earning $150,000 Gross year, pay all those hand me outs, and still cover a $50,000/year education?? – No one is addressing this and the Deficit on College load defalts by kids that can’t find a job is spiraling out of control. But Washington wants to build an F-22 Raptor plane for 3 Billion Dollars and the sit on Aircraft Carriers to look good!. – I want to throw up. My dad is gone now. a TANK COMMANDER UNDER PATTON. HE saved Thousands of lives when he and his comrads leveled Berlin with his Tank Batallion. He saved thousands, never waved any pom poms and never complained. THAT WAS A WAR TO END ALL WARS. Went to work, 1 company 50 years, and gave the Goon squad behind TRUMP all the future power of the world to strip everyone of all their money so nothing is left except an over inflated stock market, over heated Housing Market, Too much cool aid for to many years, and now the roost is coming home. With the current Administration running the country into the ground, the Country got what it voted for. A God damn coward who hides behind the internet and tweets like a kid without his lollipop. My dad saved this country like so many and he is now rolling in his grave over the complete stupidity running this country I 1 man. Closing down serviced to build a wall. 5 Billion buys you 120 miles. there is a 2000 mile Border. WAKE UP AMERICA! Sean, buying Gold as Larry Edelstein used to tell me is pure speculation. It’s nothing more than insurance. If the Market crashes, fiat currency goes right into the toilet, we are all DOOMED. Only hold in your hand gold to use as a tool for purchasing goods for survival is what gets you thru. But you can’t buy power, heat, natural gas for your home if a service disruption occurs. Do you have answers for service disruptions? Say 2- 4 week window until all FED COIN OPERATIONS ARE UP AND RUNNING? – What do you tell your readers when Fed Coin is set up and service disruptions happen for a 2-4 week window until all the banks are keyed over to a digital currency? Banks closed, no cash, credit cards are shut down and there are service disruptions in the food supply say 2-4 weeks which includes drinkable water. WHAT DO YOU TELL YOUR READERS??????????????? – It’s coming. I am not out in Arizona with space and plenty of privacy. I live with people on top of people for 100 square miles. WHAT DO YOU TELL YOUR READERS? –

    Larry Edelstein always said, DON;T BUY PAPER ASSETS. When a Market melts down,. those paper assets can be used to wipe your ass with. LARRY TOLD ME (1 ON 1) TO BUY THE REAL HOLD IN YOUR HAND HARD STUFF ONLY. Larry told me to ride the hard asset paper up as the market takes off one more last time, and then to get out before that magical 31,000 number comes about and then dives on a huge crash. By then I am out, and cashing in my paper for hard assets. – Any Truth to ANY OF THIS.
    Thank yo.

    Stephen Ettinger

    Reply

  2. Paul Katz January 16, 2019

    “Chuckleheads in power” must be Trump & co.

    Reply