[EMAIL PROTECTED] wrote: >> During the Bush administration huge deficit have occurred; because, the >> government is spending more than it is taking in from tax revenues. The >> Bush Administration has even reduced taxes, mostly on the wealthiest >> Americans, at a time when it is spending money like a drunken sailor. >> To finance the shortfall the government is borrowing form other >> countries like China by issue US Treasury Bonds. This kind of reckless >> financial irresponsibility can't go on forever. > > We have at least partial agreement here, on facts, if not on reasoning. > However you have to keep taking shots at the 'tax breaks for the wealth'. > They are the only ones who pay taxes. The poor don't. They get refunds when > they've paid no taxes. The lower-middle income people don't pay enough for > the services they receive. It's the well off that pay the substantial share > of taxes. Also, please don't continue to buy into the fallacy of equating > tax rates with revenue. These lowered tax rates y'all whine about have > resulted in higher governmental revenue. If all you want to do is punish the > rich, higher tax rates will work. If you want to increase revenue, lower > them some.
We have a progressive tax system, which which I agree, because of the principal of diminishing returns. The wealthy are in a much better position to pay a higher tax rate; because, they essentially have all the necessities covered and are really pretty much set for life. The middle class struggles and a much greater percentage of their income goes for the bare necessities of food, clothing, and shelter. The poor can't make end meet and ofter go without some necessities. A progressive tax system is fair, and reflects the high morals of a civilized people that care for those who don't have enough or who are burden beyond their means. The USA taxes the wealthy that have more than they need. For whom much is given, much is expected. > > > This leaves us with the problem of the left... lowering government > expenditures. That is a no-no. There is power connected with the > distribution of the money they they just will not give up. Unfortunately, > during the past few years, the Rs have played along with this nonsense. It > just be something in the water around DC. During the eight year of the Clinton Administration the deficit was eliminated and a hefty surplus was turned over the the Bush Administration at the end of the Clinton era. With responsible government the budget can be balanced without placing a heavy tax burden on the backs of the American people. > > > Getting back to the more current question -- of course inflation is in the > government plan. Pay off the debt with cheaper dollars. Whether it's right > or wrong is one aspect. The fact that it is happening is another. What this > means is that if you listen to the conventional wisdom about saving your > money, you will be royally screwed. You put a dollar in the clutches of the > bankers. Several years later they give you a dollar back, plus interest. > However it will only buy 75 or 80 cents worth of merchandise. The action may > be made sincerely thinking saving is good. However the banks use your money > and pay it back to you with cheaper dollars. The dollar's fall against other currency is a reflection in anticipation that inflation will be used to service the nation debt, so this is a kind of hidden tax driving up the prices of good and service within a global economy for anyone standardized on the USA dollar, . It would much more up front and honest to tell the American people that government spending must be reduced or taxes must be raised. At least then the American people could better plan their future. > > The wealthy, on the other hand, ( and don't read any kind of moral depravity > here) invest in equities... stocks, real estate, gold... and these values go > up with inflation. Pete may say I'm looking at them as being more deserving, > but not so! They just understand the system better and make it work for them > rather than against them. Inflation will drive down stock prices faster than you can say Bear Market. The stock market is made up of companies that buy and sell real estate, provide insurance, banks, auto manufactures that invest money in plant and equipment, etc. Inflation can cut the value of a bond portfolios in half as inflation drives up interest rates and rates of return on more current debt offerings increase over the old rate returns of debt investments in your portfolio. The best place to be invested during an inflationary period is in precious metal or hedge fund that have 10 or 20 percent of the portfolio sold short, or you could make a killing just sell stocks short yourself, and cover the stock you borrowed to sell with pennies on the dollar replacement stock (eg cover the short sell), after inflation has done its dance. Inflation is never a good thing. > > The problem is a lack of understanding of economics by the general > population. Schools perpetuatethe 'save your pennies' myth and don't touch > on supply and demand theory. It's no wonder that so many people fall for the > eroneous economics of the left that tells them that the government will > supply all kinds of goodies for them, even if they don't produce and it is > all the fault of the selfish, evil rich that they don't have everything they > want. That, friends, is true voodoo economics. Anything that is NOT up front with the American people, and doesn't result in a balance budget is voodoo economics. > > Larry Miller > > --- StripMime Report -- processed MIME parts --- > multipart/alternative > text/plain (text body -- kept) > text/html > --- > Regards LelandJ [excessive quoting removed by server] _______________________________________________ Post Messages to: ProFox@leafe.com Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
