Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (26321)	1/17/2010 2:23:33 AM
From: Larry S.	1 Recommendation Respond to of 71477

I agree that we have been in a slump since the Dot-com bust but the growth the in the prior two decades was largely artificial as well. At the time, I believed that Reagan's tax cuts did everything the Supply Sidders claim but how can one know. He raised the payroll tax to create the surplus in the SS TF that Bush couldn't see and maintained the Unified Budget to hide the deficit created by the tax cuts and increased spending. A lot of the money from the tax cuts went into the worst malinvestment boom ever, taking advantage of Telcom Dereg. On balance, I look at the curve of debt since the end of WWII and it is clear that it took off in the early 80s and the borrowed money stimulated growth and was probably the foundation of the apparent good times. Further, elimination of Glass Steagall during Clinton years stimulated to change of Wall Street to Las Vegas East and the growth of the parasitic financial institutions on the Street. My understanding is that the financials provided only 16 percent of corporate profits in 1980 but provide about 40 percent today. I agree that the Gov. will do what it can to hold things together but I don't see any possible course other than serious inflation (printing) to reduce the value of the debt. The calculation of the CPI has been fudged already to reduce benefit growth (reduced cola) and the illusion of a greater GDP growth. The fudging started under Reagan but the changes under Clinton were larger. Spending more than we can afford continues. Enough for tonight. Larry