Bernie’s Big Ticket Plans; Trump: Print Me the Money!; A Glazing Good Deal for Krispy Kreme

 

Hey big spender…

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Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Studies were done on Bernie Sanders’ spending plan and the results just might churn your stomach, no matter how you feel about the potential presidential candidate. The non-partisan Tax Policy Center and the also non-partisan Urban Institute’s Health Policy Center explain how Bernie’s plan could harm the economy by dangerously increasing the federal deficit and the national debt – an ugly combo. His plan involves raising taxes across all income levels with nobody getting a pass – which almost sounds fair. His plan literally requires trillions of dollars in tax increases but hey, it includes FREE universal healthcare, expanded social security and FREE college tuition. Don’t even pay attention to the strain on economic growth under this plan. Because there won’t be any growth. Just cold hard strain. According to the study, Sanders’ domestic agenda plan would add $18 trillion to the national debt over ten years. That’s not including an additional $3 trillion in interest payments. And that number is just from Sanders’ lofty goal of providing free healthcare for all. The study also mentions a $32 trillion increase in federal medical spending over ten years plus another $3 trillion added for additional long-term care costs. But hey, it’s worth it right? Just maybe not for you. Or anyone you’ve ever known. At least Bernie Sanders would do away with all those annoying premiums, co-pays and co-insurance costs. Those in the lowest income bracket would end up paying, on average, $200 more in taxes. But that additional $200 taxes comes with $10,000 in benefits. So that’s a win. Sort of. For those who whose incomes fall more in the middle, they’ll find their tax bill going up, on average, by about $4,500. Seems awfully steep but hey, that bigger tax bill will get those middle income earners $13,000 more in benefits from the U.S. governments. Not that they necessarily need $13,000 more in government benefits, but whatever. With low and moderate income levels gaining the most benefits, it will leave the lucky top 5% of earners paying, on average $130,000 more in taxes. But if you’re in the top 5%, well then consider yourself fortunate. Or not. Feeling the Bern yet? Your additional $130,000 gets you not much of anything more. Well there is that additional $19,000 in benefits but if that’s not enough then too bad. Bernie Sanders administration doesn’t care about you. Sanders’ campaign officials did release their own cost estimates which, of course, weren’t nearly as traumatizing as those released by the non-partisan outlets. So whose math are you going to trust?

Poetry in motion…

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Image courtesy of Idea go/FreeDigitalPhotos.net

More gems escaped from the mouth of presumptive Republican presidential nominee, Donald Trump. This time he said that the U.S. won’t ever have to default on its loans because it can just print the money. This latest pearl was imparted after he was asked to clearly stipulate his strategy on how to handle the national debt. He insists he never said that he thinks the US should default and renegotiate with its creditors. He also said that he would do his super duper best to try and NOT touch social security – so gallant of him. The Donald also called himself the “King of Debt” because he loves debt. I mean, how could you not? He went on to say ,”I understand debt better than probably anybody. I know how to deal with debt very well. I love debt.” I could not have made up that quote if I tried. Trump wants us to know that he would like to take advantage of a drop in value of U.S. treasury debt and buy it back with better terms. That’s if and only the rates go up and those bonds can be purchased for a discount. It’s a legit tactic but the problem is it’s coming from the self-proclaimed “King of Debt.”

Glazed and not confused…

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Image courtesy of Keerati/FreeDigitalPhotos.net

Krispy Kreme’s Wall Street days are about to be history as the company, famous for its delectable glazed doughnuts, is going private again after being acquired by German company JAB to the tune of $1.35 billion. JAB is getting the yummy company for $21 per share, a nearly 25% premium over Friday’s closing stock price of $16.86. The company, which went public in 2000, boasts over 1,100 stores worldwide. Interestingly enough, Krispy Kreme has more stores outside the US, over 800 actually. Back in August of 2003, shares of the company hit a high of $49.37, but alas, those days are long gone. A majority of Krispy Kreme stores are operated by franchises and plenty of the international franchises have been hit with weaker sales, in part, because of the strong dollar. Krispy Kreme, however, will fit in nicely at JAB, which already acquired Peet’s Coffee & Tea and Caribou Coffee. Wall Street seemed sweet on the acquisition as it sent shares up today over 24% to almost $21 a share.

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