Posted on 11/22/2008 9:32:40 PM PST by Admiral_Ritt
As the Federal bailout bonanza prepares to spread beyond the mortgage and financial sectors to fill Detroit's depleted coffers, few economic or policy analysts have spared a thought for the destitution of the U.S. government itself. Put simply, our government doesn't have enough spare cash to bailout a lemonade stand let alone a bloated and failing industry that is losing tens of billions of dollars per month. Washington can only offer funds that it has borrowed from abroad or printed. Unfortunately, the nation is in the grips of a delusion that money derived from these sources has the power to heal. But history has clearly shown that borrowed or printed money only has the power to destroy.
(Excerpt) Read more at caps.fool.com ...
Here is what Life will be like in the USA in 10 years.
Taxes 1)the top rate of taxation will be 90%.
2)Most white collar requiring college and Skilled blue collar workers earnings will be taxed at 50% for a 40 hour work week in general.
3)All Private Health Care Plans will be assesed 50% tax on the premiums paid
4)ROTH Ira's will be Elminated and folded into taxable IRA's. Tax Rate will be 30%-40%.
5)All Rental Property will be assesed 15% Tax on Gross rental Income.
6)50% Inheritance taxes, (Except for the Very Wealthy)
7) Communities will convert to the GATED type if they can affort it in Large Numbers & Private Security will a huge Growth Industry.
8) Mass Migration to Sunbelt from Snow Belt, as Enviromental restrictions push cold weather climate cost of living out of limits for most.
9) Your Dollar is going have 20% of the purchasing power in the international market that it has now.
10) Majority of the Manufacturing base will government sponsored thru Revolving Loans/Grants.
11) High Crime, No Significant Jail for Non-Violent Offenders (tax evasion high crime though)
In terms of loss of global power, I think it is going to be the equivalent to Pre-WWII UK Versus Post WWII UK
I don't think it can be stopped. I am pretty sure the Democrats will use all the means a their disposal to win the next presidential elections.
If I had young children, I would seriously consider emigrating to greener pastures. Especially if my profession were portable and somewhat lucrative. the rest of us, well socialism is kind of a life isn't it.
Whose Fault was it? who Brought us this point? Who could have/should stopped it
Bush & Obama. (Bad Loans & Growth in Defecit was Bush) Obama will finish us after being weakened by Mr Bush.
I sure hope I just turn out to be delusional than rather than right
See my tag line.
You're delusional. Do a couple of shots of NyQuil and call it a night.
Yeah where in the F would you go ?
A couple of weeks ago I was reading something and the person (forget who) made a really good point about using the term “middle class.” They said that this is breaking of people into “classes” is marxist/socialist speech. It results all this class warfare rhetoric. In America, there are no set classes as people can move up or down- mobility. The right has really done a poor job of framing arguments.
Clockwork Orange Odinga style.
COOS
warm NyQuil over vanilla bean ice cream thats what mommy would give us to get us to sleep
These are not mutually exclusive! "I'm paranoid, but am I paranoid ENOUGH."
until the elites start sharing the poverty, its a no go.....
over the years, we've had people here on FR criticizing the unions for demanding this or that, and in the next breath, defend the country club jet set getting multimillion dollar bonuses and severance pay .....
forget that.....if we want to follow true free market ideology, then losing companies don't grant golden parachutes to their losing management......losing companies don't pass around losing managers and CEO's like some cheap whore....
let there be consequences when you plunder a company....the same should be true for union AND management....
So what’s the bad news?
My friend we are already there. My wife and I have a combined adjusted gross income of about 135K. If you add income tax, property tax, sales tax, state tax and hidden taxes such as that on gasoline that you do not see on the pump but are there and are real, WE ARE AT THAT 50% RATE. However, if one realizes that anything you buy has the taxes that are paid by the manufacture and the taxes on the worker that made the product the rate of taxation is even greater than 50%
“if we want to follow true free market ideology, then losing companies don’t grant golden parachutes to their losing management......losing companies don’t pass around losing managers and CEO’s like some cheap whore....”
No, if we follow true free market ideology, the companies themselves would decide whether anyone gets a golden parachute. Do you really not understand the difference between unions and executives? Unions use monopoly powers, special legal status, and out-and-out violence to get what they want. Executives have no such luxury, and must rely on convincing people to give them what they want without recourse to any of the above shortcuts.
As for the argument that we should control where the money goes so long as we’re bailing them out, that’s as good a reason not to bail anyone out as anything I’ve ever heard.
AL-BABY, AS TO WHERE TO GO:
New Zealand, Singapore, Australia,
Chile(my choice, I have instructed folks there to look for real estate for me), not an accident that most are relatively geographically isolated.
Take a look at their GDP vs National Debt, before making
selections.
I would not choose a European Country, (even Ireland)
Their downfall will be more violent and precipitous.
Also I should note if things get substantially worse(very improbable outcome) than I have warned, look for States With alot of easily exploitable Natural resources to be tempted to OPT OUT unofficialy of Federal control.
People forget that once the benefits of a Federal Compact vastly outweight their cost, it will functionally cease to exist.
This is why tax cut initiatives have to be looked at in conjunction with spending control. The true measure of tax burden is the ratio of government spending plus government mandates relative to the economy.
Higher or lower taxes lead to temporary stimulation/repression of economic activity, but don't change the problem in the long run. Even if taxes are low, if spending is kept high, the long-term effect will be inflation. You can pay now, or you can pay later.
The Admiral may have a bleak view, but he's outlined some of the things that could happen. To his list, I would add restrictions on the type of investments you can hold to ameliorate the problem (e.g., precious metals -- FDR restricted gold), and severe currency controls so you can't take it with you if you emigrate (I think we have some form of that now, in that if you renounce citizenship, its a taxable event).
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