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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: vegetarian who wrote (101661)	6/29/2013 4:50:11 AM
From: Haim R. Branisteanu	6 Recommendations Recommended By Cogito Ergo Sum dvdw© KobaltBlauw Maurice Winn RJA_ and 1 more member Respond to of 219583

One very basic concept for sovereign states is the promotion of moderate inflations. Asset prices appreciate with inflation and therefore sovereign states can charge capital gains as most capital gain taxes are not adjusted to inflation. A asset rich country mostly in natural resources increases their tax income by the raising of mineral resources prices. Therefore for example for Russia a high oil price is better for their budget deficit than a low crude oil price which will lower the government tax revenues Secondly issuing long term debt under moderate inflation is in actuality depreciating the debt own to the public and debasing the currency and lower the actual debt to natural resource ration of a country All in all moderate inflation is a great solution for sovereign countries with a budget deficit and therefore no CB will strive to achieve a ZERO inflation rate long term Rob Peter to pay Paul is a proven long lasting solution for any state. This is how today countries can sustain a bloating bureaucracy which is working only for their own self-interest and their best interest is to sustain the existence of a state,