You are sounding like that Peter Schiff gold nut, except it makes perfect sense. I suppose raising taxes would need to be offset by government spending, like in Europe, to avoid a deflating economy with insolvent banks. Trouble is, a 3% deficit may grow an economy 3% one year, but in year 2 you need a 6% deficit for 3% growth (over simplifying of course). Without growth, all the borrowed money in mortgages etc. would shrink the money supply when being paid back?
There is so much debt in the system that the whole financial system runs on EBITDA. And as we all know from watching how "growth" companies operate, that could go on for a long time, until one day it doesn't. Trade one day at a time.
You are sounding like that Peter Schiff gold nut, except it makes perfect sense. I suppose raising taxes would need to be offset by government spending, like in Europe, to avoid a deflating economy with insolvent banks. Trouble is, a 3% deficit may grow an economy 3% one year, but in year 2 you need a 6% deficit for 3% growth (over simplifying of course). Without growth, all the borrowed money in mortgages etc. would shrink the money supply when being paid back?
You may be right! It just gets curioser and curioser.
There is so much debt in the system that the whole financial system runs on EBITDA. And as we all know from watching how "growth" companies operate, that could go on for a long time, until one day it doesn't. Trade one day at a time.
Correct. I'll put my estimate at seven more years of this... no reform is coming.