http://www.bloomberg.com/apps/news?pid=20601087&sid=aoQtYnu9Q5Ck To date....the fed has simply removed the "shock" of calamity.... But this comfort's cost has a price tag....which is/will be quite shocking.... Also....the crisis has enabled the govt. to become much larger and more intrusive.... .............................................................................................. Freedom....is worth fighting for.... 10% State....5% Fed Consumption tax only Chips fall where they may.... Is the cure.... ................................................................................................ Otherwise the US/Europe has contracted the Japan disease of an L shaped economic movement (not recovery)....
Rising unemployment + rising transfer payments (see "disposable income" in the US which is up in recent months (!) as unemployment is sky rocketing, which only means more and more government checks are being mailed 24/7 like clockwork) + below trend GDP growth. This is a cocktail resulting in lower tax revenues and higher expenditures for the US government, which will likely result in much much higher tax rates over the intermediate term. I pity the US tax payers, they will get fleeced. Things will get bad in Western Europe tax-wise, too. But much of Europe is used to high taxes, historically -- the US got used to paying 35% in the 80s and 90s. For the "rich" it will probably feel more like 60%+ of their income will goto Uncle Sam by 2015, IMO.
........................................................................................ Exactly....It is incredible how the sheeple keep thinking that someone else is going to pay for it.... Without structural change....and allowing the chips to fall where they may....the future is clear.... The L has a downward tilt.... A 10/5 C tax would produce a "rocket V" recovery.... establishing the next golden era.... ........................................................................... ie watch what happens when people are asked what would be a proper annual govt. health insurance premium.... You mean we "really have to pay for it" ? Then annual amounts will be tossed around.... What % would agree on $50....$500....$2000+....