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alstry (36.01)

Time To DOUBLE Taxes??

Recs

17

October 12, 2009 – Comments (9)

As we now KNOW....tax receipts to government is evaporating.  And government spending and consumption is 50% of GDP.....without government spending, we have a very small GDP.  You know Medicaid, Social Security, Defense, Food Stamps, Unemployment and general spend drives our economy.

The problem now is without tax receipts coming in government can't spend.....and American NEEDS government to spend to maintain our economy.  Since incomes are evaporating and barely covering debt service....evidenced by Fastenel's release this morning demonstrating large revenues declines....

Fastenal sales Q3 sales fall 21.7% to $489 million

...is it time we start taxing assets and savings????  Right now, government is spending about  $2 Trillion more than it is bringing in....and if September's decline in tax receipts is any evidence of the effects of zombulation.....it is likely the deficit is going to explode.

You see....Zombulation policies mathematically strip an economy of its revenues until revenues are practically nothing.  You simply can't bail out the banks, cut off credit and raise interest rates to the private sector that is massively leveraged, and not expect massive defaults and revenue evaporation to BOTH government and the consumer....80-90% of GDP.

No we know BOTH are occuring, defaults and revenue implosion.  Unless we restructure.....conditions will get much worse.  In the mean time, government must raise more taxes or the dollar will simply become a worthless piece of paper due to deficit spending exceeding the GDP of most of the largest industrial nations in the world.

We see it threatening with exploding gold prices and rising oil prices despite lower usage.

What do you think....should government tax everyone's savings account 50% of value....about $2 Trillion dollars....so our largest consumer can keep spending another year?

Fools...sometimes living in the real world can be a bit taxing........welcome to reality.

 

9 Comments – Post Your Own

#1) On October 12, 2009 at 8:51 AM, alstry (36.01) wrote:

Prepare to get used to the word:  UNPRECEDENTED!!!!!!!

Unprecedented tax receipt drops and Unprecedented sales drops.

Go long Gannett at your own peril (although the short squeeze has a little more to play out so you are probably cool for a few more days). According to the Minneapolis Star Tribune, in a memo submitted to staff on Friday, "USA Today publisher David Hunke said the average circulation at the Gannett Co.-owned newspaper was 1.88 million from April through September. That marks a loss of 398,000 copies, or 17 percent, from the same period the year before at the newspaper, which is printed on weekdays only." The reason for this unprecedented drop, which will put the paper in second position behind a growing Wall Street Journal, is the "growth of online news and the slump in travel pummel the newspaper."

http://www.zerohedge.com/

Black and Decker's sales were DOWN 23%.....

Remember....a DEPRESSION is only a 10% decline in GDP......if sales and tax recipts are declining by UNPRECEDENTED double digit rates......how can the recession be ending??????

Hmmmmmmmm

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#2) On October 12, 2009 at 9:46 AM, leohaas (32.35) wrote:

Why not quadrupple the taxes? I mean, if you want to balance the budget, that would get us closer.

Balancing the budget is just what Hoover tried to do. Result: Great Depression. Keynes taught us that that was exactly the wrong thing to do. Just wait a year or two and we will know who was right: alstry, or the Keynesian Obama advisers.

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#3) On October 12, 2009 at 9:56 AM, alstry (36.01) wrote:

Soon you will learn...on a long enough time line....everything dies....even Keynes.

If we keep the same policies....are you ready for $200 Oil....$300 dollar oil...$500 Oil.....it really won't matter....money will be worthless...it always ends that way under Keynsian models.

That is what happens when the policy is to bankrupt the citizens and save the banks.....and that is always what happens with Keynes.....but your teacher omitted that chapter.

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#4) On October 12, 2009 at 10:08 AM, alstry (36.01) wrote:

MAYBE $1000 Oil????

A Finance Ministry official says Kuwait does not want any delays to implementing a unified Gulf currency plan.

The official Kuwait News Agency on Monday quoted Finance Ministry Undersecretary Khalifa Hamada as saying Kuwait supports issuing the new currency "on schedule."

http://finance.yahoo.com/news/Kuwait-No-delay-wanted-in-apf-258869603.html?x=0&sec=topStories&pos=6&asset=7fc559cd15c5e0a621b081cd69ca7470&ccode=mp

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#5) On October 12, 2009 at 10:11 AM, jdlech (< 20) wrote:

Alstry, that's the case with ALL economic models.  Did your teacher omitte the part about running a surplus during economic boom times?  Bush certainly did!

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#6) On October 12, 2009 at 10:18 AM, devoish (97.40) wrote:

Doubling income taxes would not be unprecedented. We have halved them in the recent past.

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#7) On October 12, 2009 at 10:33 AM, lquadland10 (< 20) wrote:

END THE FED. IMO

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#8) On October 12, 2009 at 7:46 PM, DarylDad (< 20) wrote:

Alstry,  Why do you believe this Nov. will be different than now when the market keeps going up? Today it nearly hit 10,000 again.  I am always intrigued by your posts.  I find it confusing that GS has men in the government and took a bailout and are taking huge bonuses off of the money they made from the taxpayers bailout, the hx of gas prices soaring because of their insider actions, etc..  But how is this going to come to a head?  Is there anything we can do with our weak dollars and stocks to secure our families from the economic collapse? Please have some suggestions and solutions for the common reader after pushing their scared sh--less buttons.  Thanks.

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#9) On October 12, 2009 at 7:47 PM, DarylDad (< 20) wrote:

Alstry,  Why do you believe this Nov. will be different than now when the market keeps going up? Today it nearly hit 10,000 again.  I am always intrigued by your posts.  I find it confusing that GS has men in the government and took a bailout and are taking huge bonuses off of the money they made from the taxpayers bailout, the hx of gas prices soaring because of their insider actions, etc..  But how is this going to come to a head?  Is there anything we can do with our weak dollars and stocks to secure our families from the economic collapse? Please have some suggestions and solutions for the common reader after pushing their scared sh--less buttons.  Thanks.

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