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Senior Advisor

What a predicament

Helicopter Ben is criticised for quantity easing printing trillions of dollars to keep our economy from a collapse. In part responsible for $3k land bweing wrth $10k or more. Here is our problem. Will inflation continue or will deflation be the order for the future. Our land values may drop but cash is poor investment. Or we could convert our over inflated land to cash but gasp! we would have to capital gains taxes. Either way we lose.

 

It makes one wonder if our good fortune is really good fortune. But warren is considered an oracle because he is mostly goven credit for investing peoples money in assets that inflate in value. Some folks must think that inflation is good.

 

So why is our economy in jeopardy now? Perhaps because the taxpayer's boat is not rising with the rest. Who are businesses and companies going to sell their product to with inflationary prices and labor stuck with stagflation. No money to buy inflated goods. In our zeal to oppress labor we are diminishing our consumer base.

 

 Oh I know, it is better to ignore these consumers and find new ones.. Unfortunately, we are not successful at that either. The balance of trade is a great indicator of that. Thus our consumers are driven to walmart and imported goods because american goods are not affordable. And corporate profits are our ultimate goal.

 

But corporations don't want to pay taxes and neither do their stockholders. So who are we going to tax? Labor with deflationary labor rates/

 

So as near as I can tell we don't like inflation and are afraid of deflation. We don't want to pay taxes. We want people without income to pay taxes and we don't want to provide them with a job or pay them for working. So tell mehow in the world are they supposed to pay their share when they don't have a share of the economy?

 

The answer: a transaction tax. A tax that cannot be avoided if you do any business. A dollar changes hands it gets taxed. How do you avoid that tax? Sit on you wealth and do any transaction. Except when you die your assets cannot be transfered without a transaction tax

 

 

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3 Replies
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Honored Advisor

Re: What a predicament

I tend to agree with you about much of what you wrote. Running the printing presses at the mint is the only thing keeping the illusion of being afloat alive. Just like the " flip this house " madness that drove us to the brink five years ago, I truly believe that there has to be a certin part of the price of everything that reflects the "worth-less-ness" of our currency today.

I don't know what is the bet way to deal with this economy. We are happy we have reached the point where we do not have or anticipate any new debts. I guess it is hearing all the Great Depression stories of people losing everything that shapes my thinking that it would be a lot harder to lose something you own free and clear. Not impossible, but not very likely....

We are in a mature business in an area where the hog industry has no real means of expanding. I haveclost virtually all interest in consumer goods, and of enough people like us quit spending, the printiing will have to speed things up for those who still do.

I am happy with sales taxation...you can avoid it, if you elect to limit your spending. Everyone pays it, which is democratic, although deemed regressive.

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Senior Advisor

Re: What a predicament

The barter economy will be back with a vengeance.  Craig's List will be the new swap meet venue.

Farmers will no longer pay each other for services, they will trade as much as possible and keep it all off the books.  In addition, items will be low-balled and the difference paid in cash.  Selling a tractor for $50,000?  Sell that worn out junker for $35,000 and givve the rest in cash under the table or barter for services such as custom farming or hay.

 

By it's very nature, this is a regressive tax.  The rich can afford all the ways around it.  The poor are stuck with handing over green money that can be traced.

 

So, you go out and build yourself a shed, thinking you will save money.  No, the assessor will determine how much you should have paid for it and tax you accordingly.  No sense in building the shed if you though you could save money.

 

Nothing like a new tax proposal to get the lawyer in us thinking.  Smiley Happy

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Honored Advisor

Re: What a predicament

Jim, that shed one has always bugged me...to be taxed on the value of our own sweat equity is the height of unfair taxation. I am waiting to see hat this starving-poor county does with the one row of posts, rafters and roofing, we used to connect two existing sheds this past year. We have about $3000 in it...will bet they slap $10,000 on it.
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