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You are quite true on the lack of following Keynes's theory. We only use half of it, government's are great at dis-saving, not so good at saving.

The problem is without a major tax increase, which comes with major economic problems, you can't cut borrowing without cutting spending. If try, as alluded to, you have to monetize the deficit which causes massive inflation. I think that's the fear of those who are afraid the dollar will quit being the major international currency is that we will devalue it too quickly and countries will begin to trade in safer currency.

I agree whole heatedly on your thoughts on the tax rate being too high and actually causing tax revenue to be lower. Are you aware of any studies that indicate what the optimal tax rate would be in the United States?

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Historically, at somewhere between 20%-25% you have diminishing returns in either direction.

I hate inflation. That being said, and as horrible as it is it is the only way out of this mess. People have every right to fear inflation, it robbs money of its value.

Put your money into something tangible that will hold its value. The experts have gone to gold only because they know very high inflation is coming, much too high for interest rates to keep up. I have been telling people for years “get rid of your cash”.

You have, maybe, until the election, after that I expect to see inflation going through the roof. It has to happen, the money is already out there just waiting to be spent.

If Romney decreases taxes and regulations business will take off. Higher employment will put even more money into the system. It will be at least as bad as the Carter years. I bought a house back then at 16-1/2%. Holy cow I couldn’t wait to dump that loan. It will happen again. The bankers will get rich off the inflation, the government will go wild with the extra dollars from inflation and we will be the ones to pay for it with higher rates of tax, and inflation eating at our paychecks which won’t be able to come close to keeping up.

Convert your dollars into silver or gold NOW! It will SOON be too late.

Good luck!