TS-- You hit the key. The majority think borrowing now is cheap,
but the real rate is extremely high, caused by the lack of inflation.
The US has never had to face it's deficit spending because it has been able to keep the dollar strong. The question now is, can they keep it strong? And, for how long?
brillig.com
TAXES AS SHARE OF GDP AT HIGHEST LEVEL SINCE WORLD WAR II!
According to the latest figures coming out of Washington for
Fiscal Year 1997, federal taxes captured 19.8 percent of the
gross domestic product [GDP], the highest level since 1945, when
federal revenues captured 20.8 percent of GDP. And the previous
postwar high of 19.7 percent occurred both in 1969 and 1981,
years that were followed by recessions, warns the Institute for
Policy Innovation on Monday morning.
The Institute spreads Christmas cheer in a press release: "While
politicians of all stripes in Washington are congratulating
themselves on projections of a balanced budget, and are giddy
with visions of administering projected budget surpluses, they
need to be reminded that taxes are not just received by
government -- they are paid by taxpayers and are extracted from
the private economy. What these statistics tell us is that if
the budget is balancing, it is balancing on the backs of
taxpayers at a historically high burden. Taxpayers might rightly
ask: Why is the tax bite back up to World War II levels when we
are living at peace? Why are we paying taxes at the same level
that we were when the nation had leveraged its economy to the
max in order to preserve civilization?"
And he said"Let there be peace on earth and goodwill toward
man". |
