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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (109442)	1/1/2011 10:27:54 PM
From: russwinter	4 Recommendations Read Replies (3) \| Respond to of 110194

Certainly, a reason I came back here is to hear your views on this, thanks for the commentary. As an aside the US local government system has become highly dependent on property taxes, and now taxpayers are being gouged. The Census just reported that property taxes are up 7.7% YoY. How can that be, given that per Case Shiller and Core Logic property values fell 25%, including 5% in the last year. Bad numbers, or means someone is being screwed. In China the local governments have used straight out land speculation to support activities. Not sure which is worse, but similar outcomes in the end.

To: GST who wrote (109442)	1/2/2011 12:30:53 PM
From: Lee	Respond to of 110194

No doubt that both the Fed and many States fund themselves with debt. Likewise much of the China miracle is also the result of deficit spending. Much of this deficit spending is plain old money printing. Money printing benefits mostly the cronies at the top and results in a taxes for the rest. Taxes both formal and inflation. As long as China can continue to print money they may continue their "miracle." But I would be careful relating this miracle to the brilliance of their planners.