Author Topic: My absolute apathy on Tax Cuts  (Read 850 times)

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Offline Allentownjake

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My absolute apathy on Tax Cuts
« on: December 07, 2010, 02:10:33 AM »
 :yawn:

The Federal Budget Deficit will expand.  There will be no significant spending cuts and there will be no significant tax increases to fund the large deficit.

What the political class in both parties have right now is a blank check in a politicized Federal Reserve which will simply print whatever they need.  This temporarily divorces the political class of the consequences debt financing.

Temporarily, however the more you print, eventually the market calls all bets.  The laws of supply and demand take over and each new dollar printed buys less stuff, particularly from non-domestic sources.  Gasoline and fuel derived from oil are the primary product we import that comes to mind.

Since the result will be inflation, a hidden tax governments resort to when they don't have the will to cut spending nor the ascent of the people to raise taxes, I pretty much  :yawn:

As long as you have a central bank willing to monetize debt, the country is headed on a dangerous path.


I hope we shall... crush in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country." --Thomas Jefferson to George Logan, 1816.