The March of the Penguims

Read the entire article, then ask yourself What was behind the great financial crisis in the first place. Bankers will not use the Legacy Loan program, because they would have to write down their losses. The availability of Choice means there is no real necessity of Bankruptcy adoption, so why is Congress and Government so insistent on pumping funding into the Banking system? The obvious rationale has Public stance of fueling the economy; but Banks are not lending anyway, the economic indexes and factors are dropping, and no one is giving any Cash to Anyone who could actually apply it to the production process. No one but I may notice it; still, that Cash is not reaching Storefront, and no Goods are leaving in the Hands of happy Consumers. I am going to rename the financial crisis as the Recession and Recovery of the One-Percenters of 2008-9.

I will provide this analysis by Tyler Cowen because it presents some support to my Above contention, though I do not agree with some of the assessment. Most of the damage which Tyler speaks upon derives from the method that the legislation is written. I first do not agree with the necessity of revenue neutrality, doubting any effective rates will ever be generated on anything where Taxpayers are assured that their Income will not be further taxed; it only means that the primary Consumers will be taxed, but secondary elements will make Money from it. The Reader may not understand that primary Consumer and secondary business are almost never the same. Under those circumstances, any Tax will present a degradation of economic incentive. Cap-n-Trade will be much worse than straight Carbon tax in this effect, though this is a minor side-effect. Tyler’s contention still holds to the belief that there is value in Carbon reduction per sec which I have long abandoned; the rise in Greenhouse Gases may even be necessary to protect from the chill of a little Ice Age of coming decades; watch your History Channel.

I would advise that Readers study this Keynes’ Quote presented by Don Boudreaux. Inflation does possess the destructive power to rob economic participants of Wealth without taxation. The exact statement of the process, though, should also be advanced. Inflation destroys the real payment schedule of previous Wage scales and Profits, reducing the aforementioned before they can be spent. Consistent Inflation minimizes both the desire for hard labor, and the inclination to Save. Monetary policy does utilize Inflation to expand the Money Supply easily, increasing the drift from actual Production Profitability to Middleman interjection of Profits-Taking. Consumers and Labor bear the overwhelming brunt of Inflation and resultant Profits-Taking, which is often greater than any Tax would have been on their Income, Purchases, or Assets. lgl