Imagine not paying taxes by April 20th for the last 15 years.
The government would be all over you like a fat kid on cake.
Yet, Congress is exempt from the deadlines that constrain us regular citizens.
All regular appropriations bills have been combined into after-deadline package omnibus deals in all but two fiscal years since 2007.
That’s not the way it was supposed to be.
In 1950, Congress passed its first Omnibus spending bill as a one-off experiment.
The tactic wasn’t used again until the 1980s, and then only sparingly.
Politicians keep promising to do better.
They never do.
That’s why Kevin had to go.
Unfortunately, things will get worse before they get better — both politically and economically.
We’re going to lay out our forecast for both and the best way investors can capitalize on this drama.
Prepare for Pain
Maybe you’ve noticed markets haven’t exactly been bullish lately.
It appears the media might finally be catching on to the cause: government spending.
As we discussed in a previous issue of Wealth Whisperer, when the Fed hiked interest rates, it made government debt more expensive to service.
At our current trajectory, interest as a percentage of government revenue will skyrocket in 2024 and explode by 2027.
Our calculations showed that interest would grow from 9.7% of receipts in 2022 to 13.3% in 2023 and peak at 20.1% in 2033.
This means we must either cut spending or raise taxes by 25% now to balance the budget or eat a 33% tax hike in 2033.
(Most) lawmakers know this but can’t seem to get past their hatred for one another.
Tactics like government shutdowns are performative nonsense that ring especially hollow when congressmen raise money off them.
Joe Biden pretended as if he cared about the debt until he blew open the country’s spending.
And when Republicans were in charge of all three branches of government, they managed to cut taxes without tackling spending because… that’s hard….
This whole drama is likely to play out in favor of the Democrats.
Because we see two possible outcomes.
- A conservative like Jim Jordan is the only one that can get the votes necessary to become speaker.
- He forces the shutdown in <45 days, right around the holidays.
- Biden and the Office of Management and Budget (OMB) director do everything they can to make it LOOK bad.
- The public gets pissed, and we get a bill to reopen the government discharged from committee or some other means that hits the floor.
- It passes, spending isn’t cut, and the government reopens.
- No one person can get the votes to become speaker.
- We get a power-sharing agreement like you see in other countries (i.e., the United Kingdom).
- Government spending doesn’t get cut.
Quite simply, government shutdowns never achieve what the instigators seek, and they ALWAYS work against them in the next election.
Blood Hits the Floor
No, the real change will come from us, the people.
When people start caring en-masse about our debt, things will change.
And nothing gets folks revved up like a hit to their pocketbooks.
Let government debt grow long enough, and it WILL spill into the economy.
Imagine a decade of 1970s-style economic growth driven solely by government debt.
You won’t have to wait much longer for that dream to become a reality.
Either the Fed pulls back on interest rates and inflation explodes, or it holds the line and government spending declines.
Heck, within a decade, you’ll have social security benefits paid out at 85% of their prescribed levels because they aren’t fully funded.
At that point, it won’t matter which party controls Congress or the White House. When spending cuts become a populist opinion, it will happen.
We aren’t saying change can’t happen before then. It’s just unlikely.
There was a bill passed in 1973 that laid out how Congress should craft and pass budgets.
It’s ignored every year.
People don’t change unless there is an incentive to do so.
That’s why we expect government spending to remain elevated for the next several years before things hit the proverbial fan, making now the most critical time to extract gains from the market before there are few to find.
With expanded volatility, now is the best time to take advantage of the options market.
You see, options provide leverage, turning a 2% move in a stock into a 200% move in a near-dated call option.
The trick is knowing when and where to make these timely bets.
Normally, that’s beyond most traders, even ones with years of experience.
But Bryan Perry’s Eight-Month Millionaire Blueprint changes all that.
Check out the following table:
In 2020, one of the worst years in the market, Bryan’s Beta Test turned $5,000 into over $1 million in a matter of months.
But this wasn’t just a one-off.
He did it again in 2021 and 2022, each year starting with just $5,000 in the test account and pushing it over $1 million before the end of the year.
However, Bryan believes there’s just ONE MORE chance for this blueprint to work.
After that… well… that’s the lost decade for the market we’ve been talking about.
Now is your chance to get in on Bryan’s fourth and final Eight-Month Millionaire Beta test.
But don’t wait too long.
Folks are already starting to catch onto the government’s budgetary problems.
And once it gains traction, the Eight-Month Millionaire Blueprint is over.