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Napanee, Ontario | I have, and the major difference between past collapses and now is that the debt/ tax roll spread was mach narrower. Taxes wern't raised, they were already high. People used to pay much higher personal and capital taxes. DEBT/GDP rates could afford to be higher, because they were supported by buoyant tax revenues. Now, since every job and corporation has been outsourced to China/India and the Grand Caymens, Ireland, ect, and combined with cut after cut from the Bush's tax reforms (gonna stay away since that is boiler room material), the reality is a declining and stagnant tax roll against an exploding debt load.
We can't keep using the old yard stick and past comparisons in this environment.... because the comparisons don't fit anymore. At no other time in history has nearly every major economies' central bank been co-coordinately buying their respective government issuing bonds. The world is broke. Its plain as day. This isn't like other monetary collapses. Fed never in history has bough HALF of the US notes traded in the market daily.
If you were to go back to 2006 and tell some banker this was going to happen, they would call you insane. But here we are, 7 years later, running through uncharted territory.
If we see 20%, it is the end of times, the US is broke, and almost every american / world citizen will be in foreclosure.
Orrrr, do think they (FED/ ECB/BoJ/ect) maybe just keep their fingers on the scale some more?? | |
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high land/cheap int. vs lower land/higher int.
