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To: TobagoJack who wrote (108873)	2/24/2010 11:28:05 AM
From: THE ANT	5 Recommendations Read Replies (4) \| Respond to of 116555

And I still say inflation helps only those whose assets have been bought on credit as other assets may go up with inflation but not as much as wages.Inflation knocks out at least one of the three props of asset prices which is credit.The amount of credit that can be serviced goes down greatly with inflation and in isolation would put assets below long term value while now they are still 50% overvalued. I still do not think we have come to an understanding of even the basics here in the USA.First the model of wealth based on consumption that worked after WWII is broke.That only worked when the world was in ruins except the USA.The inability of the US people to consume like they did is the solution not the problem.Soon we will be on par with the Chinese Next,we are already more socialist than Europe.In Europe there may be better socialized health care and a better safety net but the price of this is borne by all.Most levels of society pay some tax on income and a lot on VAT and other consumption taxes.The people in turn have one small car and a small apt on average.In the US 40% of the people pay no Fed tax(excluding FICA or medicare where the pay less than the benefits they receive) or less than no tax (the same people that are making $8 an hour and driving SUVs to work)Obamas tax plan is to have this 40% go to 60%. In regards to increasing taxes on the wealthy,half no longer are wealthy.In my state those left wealthy pay 36% federal tax about 9% state 3% medicare(i am not counting 12% FICA on first 100K income)and lose about 5% of their deductions for about 53% tax bracket on their last $ and Obama wants to make this 56% total.Face it there is no money there, thats why Europe has VAT.Thats why the USA will have a VAT or similar tax! Finally,I can not get my fellow Americans to realize that they will only accumulate real wealth over the next 10 years by hard work.The last 20 years was not real.GDP growth after inflation is likely to be 2.5% max.Take out 1% population growth a year and you get 1.5% a year.Now consider slow deleveraging and current overvalued assets and asset managers and wolves like London Guy and his friends taking bites out of your flesh. The sooner we come to terms with the above the better.Most are living in the past