Tax Data Shows That The Latest Market “Narrative” is Really a “Myth”

There’s a special report that I look forward to on the 8th business day of the month. This month, that was the 11th. Only this month, it wasn’t there. It’s the Monthly Treasury Statement for the preceding month from the US Treasury.

We love that data because it’s raw, unadulterated, and unmanipulated. It gives us an inside look at critical sectors of the US economy. It covers the entire month, not just a snapshot on a given day, and it’s only 8 days old when they give it to us.

Even better is the end of month Daily Treasury Statement, which is released the day after the month ends. I’ve been accumulating that data for years. Not only is it pure unmanipulated reality, it’s real time.

I issue a detailed monthly report about key line items, like withholding, non-withheld, corporate and excise taxes. And I’m always happy to pull a juicy tidbit from that report for you every so often.

Then around the middle of the month, I report on the Monthly Treasury Statement. The monthly data provides additional details on Social Security versus income tax withheld, and in the categories of Excise taxes. Those are like Federal sales taxes on numerous items, like guns, alcohol, your phone bill, tobacco,  as well as the better known levies on  aviation, and gas at the pump.

It’s great data and I was looking forward to finding and reporting something interesting for you. But alas, this month it’s nowhere to be found. The government shutdown has delayed it. I guess  we’ll just have to go without for now.

But that’s the nice thing about the Daily Treasury Statement. They’re still publishing it and we need not wait until the end of the month. And boy does it have an interesting story to tell this month.

A chart of the data shows that the current market narrative is really a myth! Click here to see for yourself.


This Chart Shows That Bankers Are More In LaLa Land Than 2000 Or 2007

You’ve seen all the headline news stories about the Fed changing its tone in recent weeks. The Fed is going to pause rate hikes. And it will think about slowing the pace of balance sheet “normalization,” if the market seems to need it. As you know, normalization is just a euphemism for shrinking its balance sheet and draining money from the banking system. And that is assuredly something frightful. The Fed is now doing its darndest to make it seem less so.

Along with the Fed suddenly singing soothing lullabies to the market we’ve all heard the sweet talk from the US Treasury about calling in the bankers and the PPT, all of whom cheerily profess to love you and caring about you and your investments. It’s all about feeling good.

Whether they were really manipulating the market or not, I would hope that you have no doubt that the manipulators were doing their best to manipulate you and your fellow investors over the past few weeks. But what about all those soothing words? Do they matter? Or is it true that money talks, and you know what walks?

Well here’s something for you to look at that should concern you. It suggests that bankers have all too quickly forgotten the lessons of the past, and that once again they have their heads up their… cloud servers.  Yeah, that’s it, cloud servers. 

I mean, you should see their behavior. In fact you will see it because I’m going to share a picture of it with you. I just found a little history that is very disturbing indeed in terms of what it teaches about the present.

Click here to see what it is