http://www.gainspainscapital.com/ One would think the govt. would start thinking more seriously about downsizing.... Time for structural changes....yesterday....
did it happen in argentina ? obama's idea of downsizing is for the entire federal government to save $150 million while hundreds of billion are being tossed around like pennies. is this your idea of a joke?
............................................................... Much worse than a joke.... This is the product that comes from a two party by advertising lobbyist system run by a pack of lawyers.... ..................................................... Beating a dead horse.... 1) States 10% consumption tax, Fed 5% 2) No income or corporate taxes Let the chips fall where they may.... The US will attract the best businesses and jobs in the world.... ...................................................... By default the US goes to a different broad based structural tax....looks like VAT +....in the opposite direction of downsizing...."income downsized while the take increases"....
libertad I like your posts very much and your ideas but... I would like to know your thoughts on if you agree it is the lack of cheap energy for now (be it genuine recourse scarcity or by industry monopoly) that has pretty much caused the US and global economy into tailspin and if that is the case it really doesnt matter which tax or political system there is implimented no? Cheers.
You didn't ask for my opinion, but I'm so surprised at your question I'm chiming in anyway.... On a scale of 1-100 with 100 = biggest factor causing tailspin, "lack of cheap energy" rates no higher than 5, imv.
.................................................. I like your ideas as well.... Free speech can sometimes be a good thing.... Grats to ET.... ................................................. In terms of energy....The IBs have provided the means whereby revenue to oil owners has been stabilized by dollar hedges.... You will note this handily when actual demand does not change proportionately relative to prices....What is even more interesting is how this important aspect is glossed over by the media.... What does become interesting is the catch22 with regards to this hedge....as alts become more heavily researched as price movements become more extreme....then this process relaxes when price extremes pass....Also note that the hedge is certainly not perfect but offers more reward to the oil producers.... ................................................. As an aside....The senior partner with Buffett recently mentioned that electrical energy storage combined with sun-produced electricity is a necessity for a better worldwide economic future....ie BYD is a company that could be a game changer.... ....................................................... The tax picture does matter because of individual property rights and ownership....More and more government means less and less individual ownership and incentives.... As I have mentioned previously a proper worldwide universal stock market is the key to advancement worldwide....The reason being efficiency and wealth by merit.... Successful globalization cannot happen without this.... .................................................... The current political system is inefficient and has become fascist. Management needs to be state by state not from the Fed....The Fed should be directed by state mandates.... Albeit regulations with regards to wealth distribution are needed....based on individual merit....not govt, handouts.... ie A change in the tax structure to 10% consumption tax per state....5% to the Fed....would turn the US into the most attractive home for all of the world's best businesses....and the jobs that go with them.... All of the world's "individual golden carrots" would be dangled to the entire world's populations by the USA....the best entrepreneurs in the world would be cemented to the USA.... And although the tax take may seem small to "Washington's finest lawyers"....the tax take would dwarf what the US has ever experienced before.... ........................................................ And the core energy question.... Why Iraq, Iran are of interest ? Iraq has very low lifting costs and could be an oil price stabilizer....Iran also has a long way to go to full development.... This is why the US is in Iraq....To secure one of the lowest cost producers.... And very true..... "A car is worthless without fuel....It does not matter what type of car...."
Thanks for your opinion. Would you care to comment on your point of view? Wasnt the 150$ barrel of oil back in 08 the straw that broke the camel's back if you have an economy prety much based on consumption?
Also, you didn't ask for my opinion but here goes. The price of heating oil has sucked up much of the disposable income of those who heat with oil. If you get assistance, no biggie, but for the rest of us spending 6-8 hundred a month during the winter, forget about it. The price of wood went up, for those who heat with both wood and oil. There is no cutting back or economizing.
Let's take gasoline. With the average(?) motorist driving 15,000 miles per year and getting 15 mpg, that's 1000 gallons of gasoline. At recent "normal" prices of $2.50/gal, that's $2500 per year in gasoline costs. When gas was $4.50, that's $4500 per year. Sure, $2000 is something. But if that presses one's budget too much, cars and behavior can be modified to reduce "motoring fuel" costs back to near $2500 per year. (Remember, in Europe they pay $7-$9 per gallon. By comparison, our fuel costs are waaayyyy cheap.) The "800 Gorilla in the room", however, is the "massive deficit spending, government is much too large vs. private sector, high unemployment which will soon be recognized as STRUCTURAL, unfunded social liabilities, overspending by consumers, housing/credit bubble, and the move towards Facist/Socialist America", complex.... threatens everything we've loved about our country.
The problem with this is our workers just aren't that smart anymore due to the poor education system we have. In order to completely execute your idea, we have to completely open the borders in order to attract a better quality of worker. Are you willing to do this? If not, the restrictions on immigration will not allow enough intelligence to flow into the US (I can't believe we've gotten to this point)