Category Archives: Politics

Bitcoin and paper money has no real value but our planet does

Bitcoin has skyrocketed so far in 2017, but what is it really worth? Its like other currencies like the US dollars; worthless. Its just like gold; worthless. They are all useful as a means of exchange.

The Nobel Peace Prize 2017 was awarded to International Campaign to Abolish Nuclear Weapons (ICAN) «for its work to draw attention to the catastrophic humanitarian consequences of any use of nuclear weapons and for ground-breaking efforts to achieve a treaty-based prohibition of such weapons».

The Earth`s climate has changed throughout history. Just in the last 650,000 years there have been seven cycles of glacial advance and retreat, with the abrupt end of the last ice age about 7,000 years ago marking the beginning of the modern climate era – and of human civilization.

The planet`s average surface temperature has risen about 2,0 degrees Fahrenheit (1,1 degrees Celsius) since the late 19th century, a change driven largely by increased carbon dioxide and other human-made emissions into the atmosphere.

Since the beginning of the Industrial Revolution, the acidity of surface ocean waters has increased by about 30%. This increase is the result of humans emitting more carbon dioxide into the atmosphere and hence more being absorbed into the oceans.

The amount of carbon dioxide absorbed by the upper layer of the oceans is increasing by about 2 billion tons per year.

Money has no real value. Our planet does.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Tax revenues increased from $94 billion in 1961 to $153 billion in 1968 with lower taxes

The Gross Domestic Product in the United States expanded 2,30 percent in the third quarter of 2017 over the same quarter of the previous year, and President Donald Trump is not satisfied with that. His next action to fix that is to cut the taxes.

John F Kennedy was also dissatisfied with economic growth in the early 60s with a growth rate at «only» 2 percent. What he wanted is 4 or five 5 percent growth. Exactly what Mr Trump want, but what happened to Kennedys taxes and is it something to learn?

In a speech John F Kennedy said: “We have to secure 25,000 new jobs a week for the next 10 years in order to provide jobs for all of the people coming into the labor market. That is a terribly difficult task at a time when automation and new machinery has taken the jobs of men. And at the present rate of economic growth or productivity increase, we are not going to have those jobs for people.”

So, automation and new machinery made it difficult in the 60`s? Wow.

The labor force in the U.S in 1960 was 70 million. Now, it is more than twice (160,381 million as of October 2017). The unemployment rate under President Trump is 4,1 percent as the number of unemployed persons decreased by 281,000 to 6,5 million in October 2017.

The unemployment was 5,2 percent in 1964, but it sooner declined to 3,8 percent later on the same year. It continued to fall to 3, percent in 1969. In other words: JFK`s tax cuts were working, and economic growth creates jobs.

Kennedy`s tax cuts were not passed by Congress until his death on February 26, 1964, in the Revenue Act of 1964. Kennedy had the right mindset. Their tax rates was too high and their tax revenues too low.

In 1964, the bill reduced the top marginal rate from over 90 percent to 70 percent. Tax revenues increased from $94 billion in 1961 to $153 billion in 1968. Cutting taxes at that time was not to incur a budget deficit, but to achieve the more prosperous, expanding economy which could bring a budget surplus. And it did.

After the tax bill, made by President Lyndon B Johnson, real GDP grew at 5,8 percent in 1965, and 6,6 percent in 1966. Lower taxes generated more revenue for Uncle Sam.

The concept is very simple but difficult for many to understand. When people have more money, they spend it which means additional tax receipts. Not only that.

Lower taxes will reduce risk-taking which is good for the U.S entrepreneurship. You can imagine what entrepreneurs like Steve Jobs, Mark Zuckerberg, Jeff Bezos, Sergei Brin and Elon Musk have added to the growth of the economy using their ideas to create new firms and jobs?

What would have happen if they all had taken a new job as an ordinary employee with IBM? The answer is very simple: a slower tech industry.

John F Kennedys tax cut model were the model for Reagans. Now, it is time for Mr Trump and it remain to see his model.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Lower tax rate should stimulate economic activity and generate more revenue to the government than higher tax rate

The U.S Senate was positive to President Donald Trump`s tax reform and passed the tax reform bill in the early hours of Saturday morning. The U.S tax cuts are a move to a simpler tax system. Mr Trump said the Americans will love the new system.

It is the largest tax cut in the U.S in history, and it is the biggest package in terms of tax cuts ever. Mr Trump said something beautiful will come out of that picture. The tax cuts will be tremendous and that`s what this country need, he said.

(Picture: United States Debt to GDP)

 

This is a bold decision for Mr Trump. He is trying to do what no other president in the U.S has done since Ronald Reagan in the 80`s; rewriting the tax code. The congress agreed on a tax reform package 31 years ago, and now they are doing the same.

Senate Republicans passed a bill overhauling the federal tax code, and 51 senators voted for the «Tax cuts and jobs act,» with just 1 Republican voting against.

No Democrats supported the legislation.

A significant individual tax cut was proposed by President John F. Kennedy and signed into law by President Lyndon B. Johnson with the belief that cutting tax rates would stimulate investment and spending, with overall beneficial effects (including replenishment of some lost tax revenues).

President Ronald Reagan signed tax cuts into law, which some belive stimulated a doubling in total tax revenues (from 500 Billion to 1 Trillion dollars) during the period from 1980 to 1990.

On the other side; the deficit and national debt more than tripled (from $908 Billion in 1980 to $ 2 Trillion in 1990) because government spending rose even faster than increases in tax revenue.

As a result, income tax receipts as a percent of GDP fell from 11,3% to 9,3% in 1984 and did not to revert to original levels until the late 1990`s, even though overall revenue skyrocketed in terms of real dollars.

(Picture: United States Government debt)

 

President George W. Bush signed two major tax cuts into law: one in 2001 and one in 2003. These are often collectively referred to as the «Bush Tax Cuts». Some people claimed the Bush tax cuts have led to the rich shouldering more of the income tax burden and the poor shouldering less.

Washington Times credit the Reagan tax cuts with the eventual surplus of the late 1990`s. Others doubt this claim however, and instead belive the surpluses were a result of a combination of a decrease in government spending, the passing of the Omnibus Budget Reconciliation Act of 1993 (which dictated several tax increases), and the use of the PAYGO system.

Others claims the Bush tax cuts have conferred the «largest benefits, by far on the highest income households. At the state level, former Democratic Governor Bill Richardson in recent years has supported tax cuts to spur economic growth.

A tax cut is a reduction in the rate of tax charged by the U.S government. The immediate effects of a tax cut are a decrease in the real income of the government and an increase in the real income of those tax rates have been lowered.

Due to the perceived benefit in growing real incomes among tax payers, politicians have sought to claim their proposed tax credits as tax cuts.

In the longer terms, however, the macroeconomic effects of a tax cut are generally not predictable because they depend on how the taxpayers use their additional income and how the government adjusts to its reduced income.

Depending on the original tax rate, tax cuts may provide individuals and corporations with an incentive investments which stimulate economic activity. Some politically conservative opinion-makers, such as Art Laffer (better known for the Laffer curve), have theorized that this could generate so much additional taxable income that a lower tax can generate more revenue than was collected at the higher rate.

(Picture: Laffer Curve: t* represents the rate of taxation at which maximal revenue is generated. The grey curve is as drown by Laffer, however, the curve might not have only a single peak, nor must it peak symmetrically at 50%)

 

However, basic math states that cutting tax rates in half would require an economy twice the size to generate the same amount of tax revenue.

High tax rates doesn`t necessarily mean large revenue to the government. Lower tax rates can increase the government’s revenue. It seems difficult for some people to understand that.

100% tax rate means theoretically zero revenue because taxpayers lose their incentive to work. The economic effect of a 100% tax rate is to decrease the tax base to zero. If this is the case then somewhere between 0% and 100% lies a tax rate that will maximize revenue.

The tax cut shouldn`t be a bearish sign for the investors. Lower tax for the corporations means reduced unemployment and an incentive for investors to invest in new stocks and that will create more new jobs.

A corporate tax cut from 35% to 20% will boost the stock market, and the Senates $1,4 trillion tax bill will also boost the corporate earnings and thats positive for the stocks and the stock market.

The economy is a complicated system. Inflation, political uncertainty and the Fed`s monetary policy can add volatility. It remains to see.

I have said so many times and need to say it once again; this is the most unloved bull market in history.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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$125.00

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The war in Bosnia and Herzegovina came about as a result of the breakup of the Communist Party Socialist Federal Republic of Yugoslavia

Euro Zone is a Danger Zone. It has always been like that and seems like it won`t be any better. 1995 is not long time ago. It sounds like a movie when we hear the story about Bosnian town of Srebrenica were 8,000 muslim were murdered and buried in mass graves.

And worst of all; A military commander is behind the worst atrocity since World War II. The UN Hague tribunal sentenced former Bosnian Serb military commander Ratko Mladic to life in prison for genocide and other crimes. This is unbelievable.

 

The conflict in Bosnia and Herzegovina resulted in a mass grave with about 100,000 people, and that is a huge crime against the humanity. The court also convicted Mladic (74) for violating the rules of war. The crimes wouldn`t be committed as they were, the court said.

“The crimes committed were among the most heinous known to human kind,” Judge Alphons Orie said at the International Criminal Tribunal on Wednesday.

Mladic is not alone. Former Bosnian Serb leader Radovan Karadzic is another one with war-crimes and the potential for reigniting disputes remains high.

This is all about the nations that emerged from Yugoslavia with ethnic lines by five wars. They tried to increase regional cooperation with the goal of following other ex-Communist nations into the European Union.

Bosnia-Herzegovina were annexed by pro-Hitler Croatian puppet state in 1941. Thousands of Serbs, Jews and Gypsies were sent to death camps.

From 1945 – 1991, Bosnia is part of Socialist Federal Republic of Yugoslavia (SFRY).

SFRY was the Yugoslav state in southeastern Europe that existed from its foundation in the aftermath of World War II until its dissolution in 1992 amid the Yugoslav Wars.

It was a socialist state and a federation governed by the League of Communists of Yugoslavia made up of six socialist republics: Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, Serbia, and Slovenia with Belgrade as its capital. In addition; it included two autonomous provinces within Serbia: Kosovo and Vojvodina.

The SFRY tracks back to 26 November 1942 when the Anti-Fascist Council for the National Liberation of Yugoslavia was formed during World War II. On 29 November 1945, the Federal People`s Republic of Yugoslavia was proclaimed after the disposal of King Peter II thus ending the monarchy.

The new communist government originally sided with the Eastern bloc under the leadership of Josip Broz Tito at the beginning of the Cold War, but the SFRY pursued a policy of neutrality after the Tito-Stalin split of 1948, and it became one of the founding members of the Non-Aligned Movement.

Following the death of Tito on 4 May 1980, rising ethnic nationalism in the late 1980`s led do dissidence among the multiple ethnicities within the constituent republics. With the collapse of communism in Eastern Europe, inter-republic talks on transformation of the federation also failed and led to recognition of their independency by some European states in 1991.

This led to the federation collapsing along federal borders, followed by the start of the Yugoslav Wars and the final downfall and breakup of the federation on 27 April 1992.

Two of its republics, Serbia and Montenegro, remained within the reconstituted Federal Republic of Yugoslavia, but the union was not recognized internationally as the official successor state to the SFRY.

Following a number of violent incidents in early 1992, the war is commonly viewed as having started on 6 April 1992. The same day that the United States and European Economic Community (EEC) recognised Bosnia and Herzegovina. (There is debate over the start of the Bosnian War).

The war in Bosnia and Herzegovina came about as a result of the breakup of the Socialist Federal Republic of Yugoslavia.

Following the collapse of Communism in 1991, nationalists win first multiparty elections and form coalition.

A crisis emerged in Yugoslavia as a result of the weakening of the confederation system at the end of the Cold War. In Yugoslavia, the national communist party, the League of Communists of Yugoslavia, was losing its ideological potency.

Meanwhile, ethnic nationalism experienced a renaissance in the 1980`s after violence broke out in Kosovo, while the goal of Serbian nationalists was the centralisation of Yugoslavia, other nationalities in Yugoslavia aspired to the federalization and the decentralisation of the state.

Bosnia and Herzegovina is a former Ottoman province and has historically been a multi-ethnic state.

The war was part of the breakup of Yugoslavia, following the Slovenian and Croatian secessions from the Socialist Federal Republic of Yugoslavia in 1991, the multi-ethnic Socialist Republic of Bosnia and Herzegovina.

This was rejected by the political representatives of the Bosnian Serbs, who had boycotted the referendum. Following Bosnia and Herzegovinas declaration of independence (which gained international recognition), the Bosnian Serbs, led by Radovan Karadzic and supported by the Serbian government of Slobodan Milosevic and the Yugoslav Peoples Arma (JNA), mobilised their forces inside Bosnia and Herzegovina in order to secure ethnic Serb territory, then war soon spread across the country, accompanied by ethnic cleansing.

Events such as the Siege of Sarajevo and the Srebrenica massacre later became iconic of the conflict.

2,2 million were displaced. 20,000 women were raped, and 100,000 killed during the war.

People with inside information said Serbia waged war in Bosnia. Serbian strongman was Slobodan Milosevic who died in 2006. Mladic was arrested 15 years after he went into hiding following the fall of Slobodan Milosevic.

Bosnia-Herzegovina is deeply divided nations with three truths about the same war. Bosnia is one of the poorest nations in Europe and three ethnic groups are making them a crippled state with a complicated power structure.

They are also divided by religion were Bosnia is home to 3,517 million people were 50% of them are muslims, 31% Serbs and 15% Croats.

Pakistan defied the UN`s ban on supply of arms and airlifted missiles to the Bosnians Muslims, while after the Srebrenica and Markale massacres, NATO intervened in 1995 with Operation Deliberate Force targeting the positions of the Army of the republica Srpska, which proved key in ending the war.

The war brought to an end after the signing of the General Framework Agreement for Peace in Bosnia and Herzegovina in Paris on 14 December 1995.

This is the most devastating conflict in Europe since the end of World War II.

Is it over now? Why do some people talk about a silent civil war in Europe right now?

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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$125.00

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Robert Mugabe resigned as President after a military takeover and his successor will be former Vice President Emmerson Mnangagwa

Zimbabwe has been a disaster for a long time now. People are suffering and most of them want a change. I have a few friends from Zimbabwe who are born there and they have told me a lot of inside information about the country.

I also have some friends who have been running businesses over there and that has been a bad choice so far. Who is it to blame on? 93 years old President Robert Mugabe who has been ruling the country for about 37 years.

The big crisis began on November 6 when Mugabe fired Mnangagwa as Vice President in an apparent attempt to clear a path for his 52 years old wife, Grace Mugabe, to succeed him. Mugabe started to lose his grip on power.

Zimbabwe`s top generals launched what amounted to a military coup, placing the veteran leader under house arrest.

Robert Mugabe resigned as a President after a military takeover and the humiliation of impeachment. Mugabe`s successor will be former Vice President Emmerson Mnangagwa. A long-awaited change that people in Zimbabwe are celebrating at the moment.

Mnangagwa is nicknamed “the crocodile” for his political cunning and longevity. He has been accused of orchestrating a string of massacre in the early 80s to consolidate Mugabes power, when he served as the leader`s spy chief.

The violence left up 20,000 dead, mostly supporters of Mugabe`s political opponents, but Mnangagwa denies the allegations.

Many historic things are happening in the world right now and this is one of them. A historic day for Zimbabwe that began when the countrys military leaders staged an unprecedented intervention to prevent the ascent to power of Mugabes wife, Grace.

At the beginning it looked like a coup, but now it seems like a popular revolt. People in Zimbabwe has been suppressed for a long time and today is a historic day for them. A new day. Hopefully for a better future for them all.

Robert Mugabe wrote in a letter “I have resigned to allow smooth transfer of power. Kindly give public notice of my decision as soon as possible.”

Southern Rhodesia was used as a name until 18 April 1980, when the name Rebublic of Zimbabwe was formally proclaimed. The colonial history of Southern Rhodesia lasted from the British governments establishment of the government of Southern Rhodesia on 1 October 1923, to Prime Minister Ian Smiths unilateral declaration of independence in 1965.

Following the Lancaster House Agreement of 1979 there was a transition to internationally recognized majority rule in 1980; the United Kingdom ceremonially granted Zimbabwe independence on 18 April that year.

In the 2000s Zimbabwes economy began to deteriorate due to various factors, including, the imposition of sanctions, such as among others the Zimbabwe Democracy and Economy Recovery Act of 2001, following the switch from Willing Buyer, Willing Seller to Fast Track land reform and also due to intensive economic corruption.

Theresa May said Mugabe`s resignation provided the country “with an opportunity to forge a new path free of the oppression that characterized his rule.”

Mugabe came to power as a freedom fighter and people looked at him as their own Nelson Mandela, but he ended up being a despot. His hardline policies pushed Zimbabwe into poverty.

Its flourishing economy began to disintegrate after a program of land seizures from white farmers, and agricultural output plummeted and inflation soared.

I wrote about it in an article from march 29, last year. The headline was “Sell your shares in Zimbabwe before April 1.”

It all started in year 2000, when Mugabe changed his economic policy and implemented land reform. Mugabe granted farmland owned by white citizens to indigenous black Zimbabweans. They turned from an agriculture exporter to an importer, which resulted in 94 percent unemployment rate and hyperinflation.

Mugabe also wanted to take over all diamond operations. He eager to nationalize Zimbabwe`s diamond industry, and news from Zimbabwe leaves little to be desired about the small former British colony.

Last year Mugabe said the country`s wealth had been looted by the existing miners.

“The state will now own all the diamonds in the country. Companies that have been mining diamonds have robbed us of our wealth. That is why we have now said the state must have a monopoly,” Robert Mugabe said in an interview with the state broadcaster in February last year.

Foreign investors were warned about their investments. Sell your shares to blacks or close before April 1st, was the message.

Companies owned by foreigners face closure unless they sell or give up 51% of their shares to black Zimbabweans by April 1, said indigenization Minister Patrick Zhuwao last year.

Mugabe also said this last year: “If white settlers just took the land from us without paying for it, we can, in a similar way, just take it from them without paying for it.”

 

SAVE1

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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High quality Polo shirt with Shinybull logo. This version is made from breathable 100% cotton. Short sleeves and ribbed armbands.

$125.00

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High quality Polo shirt with Shinybull logo. This version is made from breathable 100% cotton. Short sleeves and ribbed armbands.

$125.00

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