sa44ron

Weekly Outlook: Is This Reflation?

There is a solution. And now that the pork barrelling is (hopefully) done, it can be implemented. The only thing to get the consumer/public involved is to have a one or two year moratorium on taxes, namely, personal income taxes, corporate income taxes, and especially capital gains taxes. The savings would be put to the best use of each consumer. When they have their own house in order, then they will step out and take some risk. Without this sense of security, the private sector will not venture out! If it means paying down loans, then that will shore up the bank balance sheet. And isn't that what the Fed is trying to do. I don't mean to be critical of government, but every time government touches money, 50 percent or more disappears. For every dollar of taxes, there is only 50 cent of service. The efficiency of tax dollars goes down again when government builds a project. And public capital pushes private capital out of the market. So the best bang for the buck is lower taxes. It can be done now before another $10 Trillion dollars are spent over the next five years. And taxes will be cut in five years anyway, because that will be the only thing left to do.