E New New Deal Worries

I admit that I am worried about the New New Deal program coming from Pres. Biden, not because of the plan to increase taxes on the rich and corporations which have developed techniques for evading them, but because of inflation risks if the tax hikes do not get done. The case for spending to cut unemployment was lost with jobless claims last week coming in at 406,000 vs an estimate of 425,00 and a prior week level of 444,000. Unemployment is not the risk so much as lack of candidates for jobs paying too little. But the risk of inflation is scary.

Back in my days as a mother of two pre-schoolers working on Capitol Hill for the Subcommittee on Fiscal Policy, a part of the Joint Economic Committee, I pushed hard for free pre-school in Washington DC such as I had benefited from in Paris, where we had lived before. Instead of the kiddies heading for the basement of a nearby church for daycare, I had to pay for it and also for an au pair to ferry them to and from, as they only had 4 hours per day. Now with my youngest grandchild aged 13, I think I will simply have to pay without anyone in the family benefiting.

I still want to do this, not because I like paying taxes, but because the alternative outcome would be more dangerous a run-away inflation level.

My own tax situation is fraught because my bank had stopped offering me brokerage services and I have spent hours working out my basis for trades done last year, as the data didn't port. Luckily I do have the charts on gains prepared for my newsletter. Now my bank, HSBC, is planning to close its US branches entirely to go Chinese, and I will have to move my personal account.

Business newspaper article

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*Höegh LNG Partners HMLP today reported on its Q1 after its parent in Norway took back the right to own vessels long-term, while the partnership now contracts them only for a short term to its parent. Moreover, the parent can compete with the partners in seeking clients for the LNG carriers. It is not itself for sale but it is looking into doing long-term contracts with outside companies and may also sell some of its vessels. I am in over my depth and there was no information on the quarter I could find from my brokerage. So I wait for word from Norway specialist Gen. Joe Shaefer, USAF-ret, who tipped the stock on how to proceed. I think we may exit (profitably). These are preference shares which we no longer get performance data from Barron's nor from Schwab-TD-Ameritrade.

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William K. 2 weeks ago Member's comment

My take is that the tax hikes will not happen as promised, because that would tax those who have money that talks, and gets it's way. Amazing how that works these days. "Money Talks, Us Others Walks." That is just how it goes.