Terry, for money to have any value at all, it must first be seen as a matter of faith on the part of the issuer. The full faith of the United States government is what gives our money value in the eyes of the world. When that faith is destroyed, then our money is not valued.
Warning To All: Taxes Next Year (2011)
by Scott77 39 Replies latest social current
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Terry
Terry, for money to have any value at all, it must first be seen as a matter of faith on the part of the issuer. The full faith of the United States government is what gives our money value in the eyes of the world. When that faith is destroyed, then our money is not valued.
That good "faith" is and always has been based upon our Economy which is what???---the production capacity and technological bedrock of our nation.
Production entails PRODUCING "something" rather than promises. We have always grown out of our depressions and recessions.
The last time was the INTERNET BOOM of the 90's.
Our production capacity has eroded because THOSE JOBS are too pricey (because of Unions) and the cheaper labor swallowed it up.
The underlying fragility of the times in which we now live is this: the Baby Boomers are retiring. The are the GREAT WAVE of humanity which immediately followed the horny soldiers returning from WWII.
This GREAT WAVE of baby boomers was the manpower (and woman-power) creating the production capacity as well as the consumer base.
When Boomers retire the wave is gone and only little waves follow thereafter!
With the ACTIVE PRODUCERS retired nobody (i.e. fewer) takes their place as consumers or creators.
Baby Boomers become a GREAT WAVE of LIABILITY to the younger generation of mini-waves.
The promises made by non-producing GOVERNMENT (and all the other programs created to buy votes) ENTITLEMENTS is a ENORMOUS check post-dated without funds.
When that check bounces the "faith" in our currency expires because it is the GREAT DISAPPOINTMENT as applied to reality of economy.
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GrandmaJones
The faith is the faith in the government itself. When you lose faith in the government, you have no faith in its currency. Let's take a hypothetical situation of a country called Lumbago. Lumbago produces shoes, corn, clothing, etc. Prices are stable. Suddenly there is a military coup. Within days, certainly weeks, although the production of goods has not changed, the currency experiences massive, even astronomical inflation. It is not the production that changed. It is the perception as to the stability of the government. Do you see my point?
It's not that I don't agree with the viewpoint that the value of money is tied to production of goods and so on, it's just that I am making a point that it is just as much a matter of faith as anything else. When you are watching Squawkbox in the morning, the anticipation is always on "what is the fed, the central bank going to do...(fill in the blank) because every financial equalizing action is tied to what a government does or does not do.
I would like to carry on further, but unfortunately, it is time to get a drink and get settled to watch "The Closer", one of my favorite shows. But I'll check these posts later.
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Terry
The faith is the faith in the government itself. When you lose faith in the government, you have no faith in its currency. Let's take a hypothetical situation of a country called Lumbago. Lumbago produces shoes, corn, clothing, etc. Prices are stable. Suddenly there is a military coup. Within days, certainly weeks, although the production of goods has not changed, the currency experiences massive, even astronomical inflation. It is not the production that changed. It is the perception as to the stability of the government. Do you see my point?
The farmer plants, the farmer tends the crops, the farmer reaps, the farmer takes the harvest to market and THE FARMER owns the proceeds from the effort to spend as he sees fit. That control and ownership is his incentive to BE a farmer.
When a Military coup overturns the government---it is the MILITARY who now seizes control AND ownership of all the assets of the country.
This destroys the incentive of the farmer to plant, toil and labor at the harvest as a mere pawn of the state.
The economy, at that instance, is not for the benefit of the ones doing the work.
Real Life Example:
Look at China. The Communist overlords forced at bayonet point the constant 5 year plans for "growth" and "prosperity" until they had starved millions into their graves.
Only Hong Kong really flourishes as a successful economy because the model is not communist (i.e. Military dictatorship) but Capitalist.
By Capitalist I mean THE RIGHT TO OWN your own property and control how your money is spent.
Faith in a country's GOVERNMENT is a misnomer. Governments are nothing compared to the ECONOMY of a country.
Our government changes hands all the time rather peacefully only because we have a functioning economy!
The last election sent a very strong shot across the bow of overspending at the government level.
Conclusion: FAITH in Government means nothing unless there is enough incentive by labor and capital to OWN and CONTROL the fruits of all their efforts.
When you target the owners and producers at the top you send a shock wave down through the economy. Hiring stops, prices go up and production goes down, unemployment rises and the consumer ceases to participate.
A TAX is somebody controlling how YOUR money (the fruits of your labor) is to be spent, whether you agree or disagree.
The greater your tax burden the less control and ownership you have of the very thing you have earned, produced and value.
The less control you have over what you earn the less incentive you have to go through the trouble of laboring for it.
Most companies don't begin to earn an OWNED dollar until around June of each year because all the rest has gone to taxes!
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Farkel
Terry,
They just don't get it. You are wasting your talents, time and logic with people who are intractable and stuck on a Marxist fantasy.
But I think you already know that.
Farkel
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BizzyBee
In just six months, the largest tax hikes in the history of America will
take effect.Going from 35 to 39.6 is a larger tax hike than when it went from 15% to 67% in 1917?
Or from 25% to 63% in 1932?
Or from 31 to 39.6 in 1993?From Elsewhere:
Yes... I just confirmed that the entire list of items is a false urban legend:
http://urbanlegends.about.com/od/government/a/Hr-3590-Income-Tax-On-Health-Insurance.htm
Add factcheck.org to that list:
http://www.factcheck.org/2010/05/health-care-law-and-w-2-forms/
Unfortunately, there are people who will believe this without bothering to check its accuracy. The GOP counts on their voters not bothering to check facts.
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eric356
My opinion: The last thing this forum needs is people posting MORE paranoid forwarded email chain letters.
Also, the author hasn't been watching the news over the last few weeks.
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TheLoveDoctor
My opinion to all this is that we need something as drastic as thevenusproject.com supported by thezeitgeistmovement.com Iv spent much time reading and listing to video's on both these sites. At this point this is the way to go. However some might not agree with some stuff but it makes logical sense. the world being controled by a few that dont know what the hell there doing, many are greedy for money or power and the list of reasons can go on and on. Now you the person that is reading what im saying and that might check these sites out must remember, most of us don't like change. And to fix the mess mankind is in is going to take a global effort. that meens some of the thoughts in these websites suggest change you might not be willing to accept. the facts remain that something big must be done--no bandaids
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Razziel
A dollar's worth of goods and services hasn't been directly tied to a dollar in the overall economy in a very long time due to fractional-reserve banking. It's actually worth many times that. This has been great for overall growth of the economy but it definately is a root cause of all the boom/bust cycles during the times there is a glut of commercial bank money chasing finite investment opportunities in goods and services. If you model the modern (consumer-driven) US economy as one giant company, with the taxpayers as shareholders, and the taxes as the investment, the greatest return on equity (ROE) is almost always given by providing the tax breaks to small businesses and the common consumer, not to large businesses or wealthy individuals. Many large businesses are already close to their terminal growth rate, especially in the U.S. market. Many are so awash in cash that they can no longer provide an acceptable ROE with their profits. They either buy back their shares, or return the money to their shareholders in the form of dividends, which lets the investor find a greater ROE elsewhere. Dropping a few billion in the back pocket of companies like these does little to stimulate the economy. Wealthy individuals (non-business owners) likewise do little to stimulate the economy when given extra money. Much of it goes into long-term investment vehicles and tax shelters, which actually serves to remove it from the economy in the short term. Short-term, the greatest ROE and stimulus is provided by tax breaks and stimulus checks to consumers. This money does not go into savings or get diverted to tax shelters. It's immediately pumped into the economy. Intermediate is to provide the tax breaks for small and medium sized businesses that still have large growth prospects (i.e. job creation), or the wealthy small business owners who then may plow some of that money back into their business. Long-term is to heavily subsidize and improve the education system. This has the longest time to maturity but also has the greatest potential return. It expands the consumer base, which drives long-term growth. It provides the technical skills necessary for the American worker to compete globally, and it will result in a reduction on entitlement benefits and social programs.
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Razziel
Where did my paragraph breaks go? hah