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I have a comment to add as an addendum to my earlier post re negative rates. I used an example where the CB subsidized banks with negative wholesale rates to allow them to maintain their usual spread at very low retail rates. That was being nice to banks. Maybe too nice. After thinking about...

I think I already pointed out the defect in this thinking. Your ignoring return on capital > economic growth rate. Do the calculation for a family that pays on 70% of their income at 20% -- far more realistic than your example based on an atypical family. At a fixed, flat rate of 20%, for...

As many see it, Wallet, the results show that he either did not do much until very late, and then not in a very effective way, or else he was extraordinarily inept. I personally believe he did not know what to do, and was too proud to ask. He promotes himself as a stable genius who knows...

How are you defining "progressive". There is nothing progressive about a flat tax . It is flat, not progressive. A flat tax taxes all dollars , no matter their order earned, at the same rate. That's flat, not progressive because the millionth dollar is taxed at the same rate as the 10,001-th...

Thanks. You are a super fast typist! I regret never taking typing in high school, because when I was in high school in the 1950s, boys were all supposed to have secretaries when they grew up. My how times have changed -- and for the better! See my slowly edited response above. It is...

I don't see that as correct. Let me think about it. I'm getting spread = (higher rate) - (lower rate) when lower rate is negative I come out with a greater spread the more negative the rate goes. I am still puzzled by your arithmetic. I would think if the bank operates at a 3% spread for...

This is what I need clarification on. I had always assumed that the spread would be maintained. I never understood why low wholesale price of money would necessarily imply a reduction in the spread. I also thought the cause of bank troubles in Europe was lower demand due to recession and...

I disagree of course. The devil is in the details, and by the time you put in all those cut-outs you no longer have a simple tax, which is supposedly the main appeal. A progressive tax, taxes, progressively, each dollar earned in the order earned, at exactly the same rate for everyone so it is...

debt at 100% of GDP is high but not exceptionally so. Modern nations using fiat currency can run deficits indefinitely so long as productivity permits it. The debt will never be paid off, nor need it be, nor can it be. Paying of the debt would cause a calamity. Nations without trade surpluses...

Unforntuantely I can't read Barrons. They want me to subscribe, and there is zero chance of that. I gave up reading barrons tears ago, and never regretted it. My favorite Barrons article was touting GM Stock in the headlines while GM was on a down hill slide to certain bankruptcy. Nice help...

ha ha ha.

Don't be silly.

how so?

The least fair of all tax schemes is a flat tax.

Never short a stock because you think it's too high. Don't expect markets to make sense.

I recognize that I have failed to communicate. It is not a matter of the relative "goodness" of deficits versus investment. It is simply a fact that if we define net nominal savings as that part of aggregate savings that exceeds aggregate investment, then, in the absence of net positive...

This is a problem created in the religionist's mind. It does not exist in the scientific realm, which has nothing of substance in common with faith-based religion. In the religious sense, science is faithless. Science does not involve itself with religion; nor should the faithful cloud their...

To be sure, we are not living in Calvin Coolidge's time! (My ultra conservative Grandfather's favorite President.) I am one to think that deficits can be easily too large and that there will be undesirable consequences from the accumulated effects.. I say that, though i'm not at all certain...

I know, for those of us with no brain, google is a godsend. Google is how I learned Donald still plays with his toy soldiers in the sand box. He's got one he calls john. John is constantly getting captured. Donald enjoys torturing that one. Another one he calls james. He just leaves James in...

Can I help it if everything I know came from google!!!