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

To: stsimon who wrote (170169)	4/4/2021 8:26:10 PM
From: sense	Respond to of 217620

I would argue that a simpler solution is available, the same one that was successfully used in the United States after WWII, dramatic tax increases on the rich. The United States Federal Government has unlimited taxing ability. It will be used. IMHO. Leaving aside the "success" of raising taxes leading to the... ??? Subsequent history not really pointing to any imbalance adopted on the side of fostering deflation being a real future benefit. That policy is inherently deflationary in order to foster wealth transfer... which is still denied by those fostering the policy the most... The fraud that inflation and deflation are opposites... and thus evidence of one is accepted as proof in the absence or "opposite presence" of the other ? No one seems aware that X inflation might be tied to X+ deflation at the same time... even segmented in distribution within the economy... which is a homeostatic system... not "money is fuel, go"... but "money is fuel, brakes are on too"... the outcome depending on the balances. But QE working as "wealth transfer" and not as "accelerating the velocity of money" because "printing causes inflation"... is only now being recognized, by most... so when Powell says "inflation is not a risk now"... what he's really saying is "the stimulus thus far is not enough to overcome the deflationary impact of QE" but also "that booming post-Covid global economy we're all talking about... isn't real"... because if it was... there would be more than the transitory whiff of inflation we see... tied to lag in stimulus money being spent. If there isn't a demonstrable acceleration in the velocity of money... there will be no boom... and there will be no meaningful acceleration in inflation. So, not really a point in trying to dig out of a well that's dug in a sink hole... sinking faster than you can dig... But, also, the politics are backwards... Democrats are no longer the populist party... rather than the party of the billionaires and bankers... liberal socially... but unwilling to fund anything more than a token... which is all that is likely to be put on the table with any chance of success... or, without also pairing the headline in increases with new loopholes... as it has ever been. I don't think you will see more than a token tax increase... not just because it would obviously crash the system in a linear enough way to generate accountability... but because everyone inside the game knows the debt will not ever be paid back, only grow forever... as that is how it is structured by design... and that is as it must be... unless and until we are ready to get rid of central banks and fiat money... only more when the fiat you do have is not just fiat... but a form of fiat that makes debt the standard in a substitute for gold backing the money. If raising taxes would slow the rate at which the debt increases... enough to enable a real plausibility of digging out from under the pace at which debt increases... even if that would be enabled as perception ? I don't think that's possible... even in perception... but in real impact it is more likely to kneecap the economy and forestall growth rates required to enable even the perception... which would still be a lie.