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Politics : Stockman Scott's Political Debate Porch
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To: Cactus Jack who wrote (19393)5/20/2003 11:58:04 PM
From: Jim Willie CB  Read Replies (2) of 89467
 
if they tax consumption, then entire US tax system would undergo a very painful change

not an effing chance in hell

with our economy 70% consumption-based, that would mean the govt would probably increase taxes in a big way
so what happens?
consumption drops 5-8% in the first few months
then what?
the economy goes into the shitter

there are many potential solutions
the trouble is that each requires a long transition period that involves a US Economy depression
for political reasons, no big changes, no big pain pills
politics will prevail, deeper investment in the status quo

and with the status quo, we will see strorms hit our shores relentlessly
the dollar decline is something I have expected, talked about to the point of being more obnoxious than usual
the lower dollar will soon hit foreign banking systems
they are loaded to the gills with TBonds
altho the bonds have risen in dollar terms, the currency loss due to translation is starting to have a big impact

the bond fact that few are aware of is that rates must fall a huge amount for a 5% gain in principal
but if dollar drops some more, then losses to foreigners will occur

I think the key is Saudis
they and their Bahrain, Oman, Qatar buddies are selling TBonds behind American backs
they will say the right thing, and screw the buck

/ jim
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