Answer structural reforms.... Elimination of each country's IRS equivalents.... 10% consumption tax at point of sale.... That's it.... Collected by townships.... .................................................................. Next....comes township governance...more democratic than the US form....projects by internet vote.....best competitors win..... You know the rest.... Everyone is famous in a small town......
"In other words, we expect available consumer liquidity in the form of credit-card lines to decline by 45 percent." ------------------------------------------- What's the big deal? If I have a 10k credit line with a 2.5k balance, what the heck do I care if they cut the credit line to 5K. I think anyone who maxed out their card(s) do so pretty quick, so this is not going to have much of an effect. The CC cos are probably cutting the lines on their best customers. If people don't have credit cards, retailers can bring back "lay-a-way'. Lay a way is probably an accounting pain in the ass but hey, a sale is a sale.
CC useage is on the up and up each month, whilst core debt is also increasing. I imagine CC companies have decided that near to 1T is sufficient debt to play with and will allow fees and penalties to do the hard graft rather than growth. regards f9
I agree that most of the decrease will come from unused credit lines. I personally have lots, that I never asked for and the banks can take back if they want. The banks need to shore up their own leveraging and this is one fast way to do it. They'll also tighten up on any user who has been persistently delinquent, and raise fees on those who are late but pay their bills. Bottom line: the U.S. population will have to learn how to live without borrowing from China and the Middle East, and China will have to learn how to live without an obese U.S.
Credit/Debt was a parasite and it now risks dying as its host is gravely ill. Intelligently evolved parasites adapted long ago to ensure their host never became seriously ill, let alone died. That would ensure that the parasite would have to find another host quickly, or itself risk death. There is no way to overemphasize the importance of this condition or this story. It will deal a crushing blow to an already staggering economy. "Down goes Frazier!"
Credit/Debt was a parasite and it now risks dying as its host is gravely ill. ------------------------- Imo, credit cards are a safegaurd for the IRS, to keep business honest. We can't have cash business's. The gov't probably liked people making small purchases with CC's. Credit wasn't designed for buying a pack of cigarettes, some gum and a soda but this was never discouraged because the transactions are accountable. The ease and promotion of a cashless society included no cash for saving.
China has substantial potential in a rising middle class. Does this mean US has weight watchers. This flirtation with massive credit inside an economy that believed deficits did not matter will pass into history along with WMD. Namely the fools who caused all the damage will pass unscathed. regards f9
That speaks directly to human ingenuity and survival instinct. All these government proposals may eventually do little more than force more people to break the law when sufficiently squeezed. But as someone said, "The law is an ass."
it takes years for China to accumulate 2T and US manage to spend that amount in what, days? interesting