Quote from Scataphagos:
1. Weak $USD
2. Higher taxes to come
3. World's lowest interest rates
These policies PREVENT CAPITAL FROM FLOWING TOWARDS USA. And, where possible, drive capital AWAY!
As capital creates business and business employs workers... where then are our unemployed going to find jobs?
Is the government going to be the only employer? As the government produces NOTHING, where is the money going to come from to provide government jobs?
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And.....
Cap and Trade....forced health insurance costs.....higher tax rates....insistance on military continuance.....and this list is just beginning.....
And....
The lobbyists that are in control.....have no reason to change their course....They spend $millions to make $billions....and will continue until breakeven....just another business....
The polys cannot add or subtract....THEY do not teach this at Harvard....
I ncome
D ebt
V aluation
I + D = V
The US needs lots of V....mainly from entrepreneurial businesses....
And there is no policy to expunge the Japan style bad debt
on the bad banks books....on and on and on.....etc....
All policies point towards a more negative equation....
We saw this coming a long time ago....
The last tool....structural tax change.....and THEY do not recognize the opportunity....
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The baby boomers are going to pay big time for the "levered 20+ year ride"....even though what they might save is too small....there is no reward....
And zero rates cause "risk" to get overpriced...
And the interest rate trap.....What fool is going to buy a long term US bond ?
What happens to a 5% bond when rates go to 10% ?
Thus the trap....Ask Japan....
