The Easter Bunny did it!

I have been fumbling around for something to write about this morning, and finally decided to include this Post from Mike Shedlock. I would like to position myself, and explain I disagree with Mike about the issue of Taxation, but agree wholeheartedly about the horrors of splintering the Tax base with idiot Charges. The real Cause of the extreme Spending of Government is not usurious Government unions and agencies; it is the misguided belief that One could reduce the primary source of Government Income–the famous lowering Taxes through the entire taxable base–which immediately shifted Government Thought to directional taxes which no one can afford. The average American probably saved about 6% of their total Income on lower Income taxes, and paid about 8-9% of total Income through increases in seizure taxes for Property holdings and necessary Services. Example: A $400k equipped ambulance will cost a Taxpayer about $800 to visit a household, while the huge charge will pay for only about half the Cost of the Service; even though a uniform Withdrawal of the Cost from Income Tax would only equal about $34 per Individual Taxpayer per year. The fractionalization of Taxes and Charges will always cost about 60-80% more than the original Cost due to the collection method.

Read this Thing which might help you in understanding the Mess which the Banking sector has placed Us. I will not try to explain it to the Reader, I myself being particularly dense, but will simply say Bankers (Correction: CDS writers) convinced Investors to gamble for about a 8% Profit on their money that Mortgages would not default; even though current Mortgage Writing practically guaranteed a failure rate in excess of 20%. It still might have succeeded if the CDS themselves did not forbid alteration of Mortgage terms, except with the immediate loss to the CDS Investors. This fact ensured that Investors had only about a .8/2 minus the number of years of the Mortgage of getting a total Return of their Investment with the ascribed Profit (don’t ask Me to explain that one!). The whole thing gets too complicated for me, so that is Why I never invest in anything I can’t understand.

I cannot think clearly today, as the Easter Bunny dumped too much Sugar inside my physical system (Why do Children always insist you try their Candy?). Why do I ever claim that Children ever led me down a Primrose Path? What amazed me was the relative little Cost which this Easter brought Us. Costs in the Stores seemed almost normal, and there was high availability of Product. It might take a Recession to bring honest Pricing to the Retail world. lgl