Slider,
I am responding to you not to re-engage in a new battle of SargeK vs Boiler Room (manipulators) like occurred several years ago. But, to present a view of present/future, price/risk perspectives against a background of fraudulent tax and welfare policies erected on a fiat depreciating currency (US$). Prospects of events that may unfold as the general public becomes increasingly more aware that their trust in government has been betrayed do not have a happy face.
SOTB – >>>snip// it's not about having a "crystal ball" and making a call on the future...as much as it's about being able to determine "discrepancies between price & risk" -- in the present.//snip// so the transfer of all of those Trillions of Dollars of Social Security contributions over the coming decades can be channeled into the greedy hands of the Investment Bankers//snip // I do know a "discrepancy between price and risk" -- when I see one.<<<
As I see it, the Trillions of future SS income taxes are already offset by SS expenditures on current and promised benefits. The ONLY MEANS of converting current SS deficits (created by Business Expensing of individual FICA income taxes) into positive cash flow is by changing the law (eliminating the deduction), raising the tax, reducing CURRENT and PROMISED benefits or a combination, thereof. An explanation of the current SS DEFICIT and reforms necessary to correct the situation may be found at debtism.com and related articles.
Though the need for significant tax and welfare reform is urgent, I suggest it is highly unlikely until after the meltdown begins, because any serious discussions of reform WILL REVEAL the fraud that has been perpetuated over several decades. Many citizens still believe that the Government has been saving surplus Contributions (second income tax on wages) to fund “Baby-boom” retirement. As they learn that their savings have already been spent and that the so-called surplus is an accounting anomaly, they will become outraged and distrusting of political (government) commitments.
No one knows when the full truth about SS will become common knowledge. When it does, the proverbial s..t will hit the fan. How the government, the Fed, the markets, foreign central banks, etc. will react to predictable public outrage is highly speculative from any perspective.
Trust, once betrayed is damn difficult to reestablish. Dollar hegemony is already facing serious challenges, and only a small minority of Americans are aware of how much of US prosperity has been gained by exporting $100 dollar bills that cost 6 cents to produce to import valuable commodities that are becoming increasingly in short supply in the face of global demand. In retrospect, we probably should have let China SLEEP!
FWIW
SargeK |
