Posted on 11/30/2011 5:36:50 AM PST by TSgt
as total wages increase, for any given or constant rate the total tax paid will increase.
If inflation is 10% and wages increase 10%, taxes will increase 10%. That’s a wash.
The worry is, a run on the banks. A bank stock at a certain price will cause all confidence to be lost in management and not only a dumping of that stock will occur but cause the little people to withdrawal all their funds out of that bank but contagion causing other banks to be caught up in a run for no other reason than a panic means all (major) banks will be government supported at all costs (means taxpayer monies will be used, again).
In these dire times, a worthy ambition. But preservation of principle should also include staying even with inflation.
yitbos
The only way I see staying even with inflation is either investing or buying something that tracks and keeps pace with inflation. Saving or putting money in the bank with be a losing proposition but most people won’t have the extra money laying around to try and protect themselves from inflation (the hidden tax).
During inflationary times even maintaining principle is a losing cause when you get right down to it.
The wash is to the tax payer.
To the government there is a net increase in revenue with which to pay down debt. The devalued (inflated ) dollars are worth less than the indebted dollars.
or better yet, runs back to his sprawling estate and socks it into a mason jar and tosses it in the pool out back...
Yes, inflation makes it easier to pay down old debt.
No, inflation does not increase real revenues when tax brackets are adjusted for inflation.
How accurate is the government's measure of "inflation?" Aren't there private companies who come up with different numbers from the government?
The government measure is probably pretty accurate.
I’m not aware of any private numbers.
If you find some, please let me know.
One, recently developed by economists Roberto Rigobon and Alberto Cavallo, is the MIT's Sloan School of Management Billion Prices Project (BPP) (http://bpp.mit.edu/ ).
They have slightly different inputs but, in general, are pretty comparable to the U.S. government's BLS indexes, especially over the longer periods, as most price inflation indexing schemes' input-related spikes are generally "self-correcting" over time.
Data for the USA is at http://bpp.mit.edu/usa/
Ref: NIA Backs Sarah Palin In Inflation Dispute - FR, post #6, 2010 November 17
Ref: Misconceptions about the CPI (FR Thread to Prove or Disprove CPI and Shadow Stats)(17page PDF file) - FR, posts #31, #40, 2011 April 15
All three, if, and how, and when.
How? By printing.
When? When their dollar liquidity issue recedes.
“By printing.”
Your catching on. “IF” and HOW Printing, is NOT “paying back”
And the “when”: Hear Merkel this week about the “when”?
The 08 actors are still on stage.
Printing and buying dollars and then paying back is "paying back".
And the “when”: Hear Merkel this week about the “when”?
Are you confusing Germany's reluctance to loan Greece money with Germany paying back dollars the ECB borrows from the Fed?
Just another point you're confused about.
No, the ENTIRE “paper” (papered-up, digital entries, etc.,)”crisis”:
http://forex.fxdd.com/134554/forex-trading/merkel-euro-crisis-cant-be-resolved-overnight
http://www.thefiscaltimes.com/Articles/2011/11/22/Merkel-EU-Bonds-Wont-Fix-Euro-Crisis.aspx
“moral hazard” breach, etc., terms others may use..regardless
the cover for the so called “printing” will be:
1. sustained (”marathon”) /rising prices
2. unresolved (”marathon”) mass unemployment, (Spanish style), spread out more here.
The actors and cast, are still on stage. “Act II” “The Merkel Marathon” the “when”, the never, the black hole.
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