The point of no return!

I think that The West is already past the point of no return:

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We could simply raise taxes.

Blasphemy?

Did the genius Buffett mention raising taxes? CNN underplays the entire concept.

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The problem has gone beyond raising taxes. In the UK we are now paying over £100 billion a year in interest on government debt. One pence (1p) in income tax raises about £5.5 billion in taxes. The interest payment on our government debt is just about covered by the amount basic rate tax raised. So, if we doubled our basic rate of tax (ignoring The Laffer curve) would just about do it. It’s not going to happen here and its certainly not going to happen in the USA.

Solution? Just keep borrowing and printing the currencies into oblivion.

Gold is going back up :slight_smile:

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Your imagination is running wild.

Yep, nothing to worry about really! Wonder where Buffett got such an idea from.

Yeah, you know those old timers…

DB2

We also have massive assets that could be used to reduce national debt. Gold in Fort Knox is on the books at $32/oz.. Today is worth $3500/oz. Why not revalue to market and reduce national debt.

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And retire debt by paying it off? You are coming dangerously close to suggest reopening the gold window Nixon had shut more than 50 years ago.

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To reduce the debt you have to hand over the revalued gold to creditors. If you don’t balance the budget you just postpone reckoning day.

The Captain

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I was a founding member and continuing supporter of the bi-partisan (originally fairly evenly GOP and DEM) Concord Coalition

It had early triumphs that led to the national debt shrinking. Bush2 and company feigned horror at the idea of wiping the national debt and began the GOP’s commitment to feigned virtue while funneling money to the wealthiest.

We need to raise inheritance, income tax, and Social Security bite (just a bit) on the wealthiest classes, who how buy the votes to bankrupt the government.

Hunting down scofflaws (raise IRS budget at least until the cost benefit margin goes to 1:1, similar with financial institution transactions), corruption and stupidity (yeah, the military industrial complex) is useful, but is 2nd order.

Just sayin’.

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“Bush2 and company feigned horror at the idea of wiping the national debt and began the GOP’s commitment to feigned virtue”

One of the great gaslights in American History. In previous admin, there had been talk showing that Nat-debt could be eliminated in a decade or so. Under GWB, the national treasure was basically blown up and up in smoke. While at the same time boasting that they are the party of fiscal responsibility. What an absolute joke. Reminds me very much of current regime, in that regard.

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Dear Paul,

The debt is the underpinning of the financial system.

Don’t be fooled by the chicken little nonsense. The debt is a projection of US power.

Mark to market is very standard in industry or finance.

Accurately reporting market value of our gold reserve should improve our credit rating.

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Revaluing will not automatically reduce national debt.

Improving the credit rating from AA+ to AAA won’t reduce national debt. Paying off our creditors is the only way to reduce national debt.

Here’s a brain buster - Even if all the gold in Fort Knox were valued at $3000 per ounce, and then we added all of the other US gold reserves, it wouldn’t cover the interest on our national debt.

I have a mortgage, my home’s value has gone up dramatically. I still owe the same amount to my lender.

I wish you were my lender.

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It is standard when you are trying to calculate the value of an enterprise. No one care what the enterprise value of the USA is, because it isn’t for sale.

All anyone cares about is if the US can make its bond payments on time. The US has a long history of doing that and that keeps our borrowing costs low. The bonds are not backed by our gold reserves, national parks, or any other assets. They are simply backed by the promise to pay.

TIG in charge has suggested we should default, and that our debt problems go away. After all, it worked for him six times, and he has long history of simply stiffing his creditors. Many people admire this about him and think we should apply his business practices to the government . I think this is a very foolish course of action. I think we are far better simply paying our bills and living within our mean instead of trying find people to rip off.

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This.
Many folks say TIG is a “failure” businessman. But, he has simply used the RULE OF LAW, private equity tactics, legal tax “loopholes”, etc, to “harvest wealth” from an asset, then dump the carcass on other people.

Rule of Law is NOT moral or ethical.
It’s merely “what is legal”.

I concur.

I cannot understand TIG by viewing his actions from my perception (Golden rule, Silver rule, Platinum rule) …
In order to understand, I think I must try to look at it from TIG perspective (predator).

:disguised_face:
ralph

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Yes, but your “etc.” crucially includes breaking contracts with people without the means nor time to fight him, over and over and over and over again. Same with his “romantic” life, “family” life, and now his politics.

A functioning society would long ago have shunned him out of public existence. And yes, I see Trump as a “last warning” symptom rather than a root cause. We need to restore a sense of public (not private) morality.

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How does revauluing an asset reduce debt???

And if you want to revalue things, gold is nothing. Instead revalue the federal holdings of real estate, that’s good for many trillions more!

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“Fiscal responsibility” inhibited the program that had been in force since the 80s: enrichment of the rich. So Greenspan did as bidden, and defined a lack of government debt as a problem. That gave legitimacy to two rounds of “JC” tax cuts, funded by debt.

The same program is in force now, with TIG saying Prole spawn will only have three dolls, instead of 30, so the rest of the money can be redistributed away from the Proles, and into the hands of the “JCs”.

Rant #37, still right, after 20 years.

Steve

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