I am sick and tired of people trying to dance around Taxes. The basic element is that the federal government is spending far too much, and collecting far too few tax revenues. The Condition cannot last for any length of Time, or We are going to experience market forces far more adverse, than deficit spending is beneficial. I also tire of the argument of Revenue Neutrality, some assumed position where taxation should never become greater, in the interest of sustained economic performance; who can point to a period of sustained economic performance? These things last as long as they do, and rarely for any great length at all–think decades here. There is some gain to GDP, if all you consider is whether your Salary will be paid until the end of the year. User fees are taxes, but We need them; especially if We continue to adopt expensive programs which can only be paid through to the next Recession anyway. Real advantage insists that We cancel the bad garbage, before We spread the new garbage, but such a thing will never happen.
What is wrong with this assessment? Congress evades the constraints of a Debt Limit, and so, the Debt Limit should be abolished. This reminds of the Farmer who tore down his fence line, so that his neighbors could not complain that his Cows were out again. Those neighbors are important by the way, at least in the nature of the Debt. Almost all of the segments of foreign society from which we borrow has previously suggested some methodology for elimination of American debt from their portfolios, and possibly substituting an alternate Currency for the Dollar as an international Trade instrument. One of these times, they might take themselves seriously, and then Americans will be searching for alternate Currencies to pay their bills. Speak no Evil, lest they send you the bill in the worst form possible.
We are so clearly in a superior position, both at Home and Internationally, that the beige book can hardly find improvement. This after the Spending of How many Dollars on worthless efforts to stimulate the economy? One of the worst aspects of the current Recession is the inability of Any to report failure of any type; everything is getting better, except that really nothing is getting better. I won’t call the beige book of the Fed a disaster, yet if One withdrew the Inflation which purportedly does not exist, there might be reported losses. I don’t think that the reportage would be a bother either to American Worker or American Investor, as they would like some recognition of their problems. lgl