Mike, how do you think of this?
dailyreckoning.com
- The tax revenues to the government must be trending to, oh, about zero. All those losses that have been taken in the stock market (paper losses) have yet to be claimed, and the total amount of the losses is staggering. And since deducting losses in excess of gains is capped at a measly $3,000 per year, tax revenues far into the future have yet to be reduced. Each and every year, damn near every financial entity in the country will be deducting prior-year loss carry-forwards against current gains (if any), thus reducing their total tax due, plus another three grand apiece.
Hey, you! Congressperson! What does THAT do to your precious budget? Must be about time to start telling bigger lies and declare that the budget is actually in surplus! The funny thing is how a $155 billion per year deficit looks so big now. But just you wait. In a short time, it will seem like a drop in the bucket.
And the guys who are buying long bonds paying, net of taxes and inflation, zero-to-negative interest rates? "Hahaha!" I laugh mirthlessly. "You trusted a government over the long-term? Hahaha! You bet the farm that your government wouldn't debase a fiat currency?" As a coda, the charts indicate that the recent rise in bonds is about over. Note: the long-bond topped out in 1998, four years ago. |
