Hi FR1, You could be right about AG on his courageous and unequivocal support of cutting taxes. I am on a different time zone and therefore have to depend on the written news. Did he say anything remotely like: "I support the tax cut plan"? or did he fudge his sentences as he normally does, so that history can be easily revised? If he did, I am surprised, as he usually is not that straightforward.
Another way to look at the onedotodd trillion tax cut is that:
(a) Investors lost onedotodd and growing trillion of false value over the past few months (no complaints here as I had captured and realized some of the falsehoods);
(b) The government will make up the difference by cutting onedotodd trillion of taxes over the next ten years (no skin off my nose as I make a living in HK);
(c) The FED will cheapen the currency by the time US investors get the full onedotodd trillion in the form of lowered taxes (I am OK with this as HK$ is linked to the US$, and we can borrow as fast as the next guy on the planet at the same US$ rate, have convenient access to Lexus SUVs, as long as we know the plan and get with the program);
(d) The government will raid the US investors Social Security piggie bank (nay, pipe line) throughout the entire period and spend it on old fashioned aircraft carriers and new fangled but easy to circumvent rocketry defense against whomever (actually defend large long term US treasury holder Japan and large short term US treasury holder Taiwan against similarly large short term US treasury holder China/HK); and
(e) The baby boomers will then retire on cheapened money, hollowed out CSCO, and pay back the Japanese on their long term loans to the US, wearing China made clothing and clicking on Taiwan made PCs.
Interesting game plan. Let us hope that there will be no tax increases in the interim, and that the Japanese do not need the money for their own oldsters.
I have taken out a small Japanese Yen loan and bought some high yield Euro bond fund, just for fun. I hope AG sticks to his plan. We like to bet on just about anything in HK. |
