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To: Fiscally Conservative who wrote (41706)	12/12/2012 4:15:33 PM
From: Keith Feral	Read Replies (4) \| Respond to of 223279

FED will buy 100% of all US debt next year. Fiscal cliff not an issue as long as the FED is accumulating 100% of the deficit. The way I see the recovery unfolding, the past 4 years have reduced mortgage bills back to more manageable levels so people have more room to pay taxes. Mortgage interest deductions should be 50% lower than they were before 2009 when mortgage rates were 6%. At 3%, mortgage payments should only generate about half of the interest deduction. As the mortgage deduction falls, adjusted gross income begins to rise so people will have higher taxes. All paths to recovery lead to marginally higher tax rates as tax loopholes are naturally eliminated by the 6% mortgage scandal generated by Greenspan. He was absolutely the number 1 reason this country fell into the abyss by 2008. 16 consecutive interest rate hikes destroyed almost every private mortgage in the US. Oh well, it's all getting better with 3% 30 year mortgages. The unintended benefit for the government is clear - fewer tax writeoffs. We are talking about hundreds of billions in interest deductions every year. For every $100 billion that is not being deducted, the homeowners will be paying an extra $25 billion in taxes. Still a win win for the homeowner, but they will get stuck with a marginally higher tax bill.