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Old 06-11-2020, 06:43 PM
 
10,547 posts, read 4,580,802 times
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Quote:
Originally Posted by Taggerung View Post
Government spending is always financed by taxation.

Either they take your currency or they take the purchasing power of your currency.
Not always.

When the Fed monetizes debt, we need no taxpayers.

The Treasury issues bonds, and the Fed creates the necessary money out of thin air to buy them.

The Treasury then has those dollars without engaging the taxpayer.

Any amount of potential inflation if any from that new money will depend on when in an economic cycle and where in the world it goes.

There are certainly times where we might want some inflation. Where low general demands, unemployment, recession/depression and even deflation are worse problems.
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Old 06-11-2020, 07:04 PM
 
5,226 posts, read 2,905,753 times
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Real, meaningful stimulus would be keeping the $600 a week going through Q1 2021 and extending standard unemployment to 99 weeks.
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Old 06-11-2020, 08:21 PM
 
23,360 posts, read 16,075,092 times
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Quote:
Originally Posted by RJ312 View Post
Real, meaningful stimulus would be keeping the $600 a week going through Q1 2021 and extending standard unemployment to 99 weeks.
That stimulus you speak of is tied to unemployment; so what happens when people are recalled back to work? And or in case of self employed, independent contractors and gig workers money starts coming in again?

While what you are suggesting does make sense to point; tying it to unemployment provides a disincentive for many to return working. It also provides an incentive for employers to lay people off because even if they have to pay UI claims, it likely is less than keeping people on the books when sales/work is slow. Long as they are getting that extra $600 any moral wavering about employees losing a bulk of their income being laid off evaporates.
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Old 06-11-2020, 09:10 PM
 
Location: Tennessee
27,595 posts, read 20,591,792 times
Reputation: 33426
Given current politics, there is no more help coming for regular working people.
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Old 06-11-2020, 10:37 PM
 
2,600 posts, read 990,345 times
Reputation: 6538
Quote:
Originally Posted by mathjak107 View Post
whether those taxes come or not is really not going to be dependent on the debt level
The debt is going to service itself? Oh that’s right, your a big fan of TLT and when rates go negative the fund will fold space and become a magic unicorn flying around and squirting gold eagles from its butt.

Higher taxes are coming and the biggest plum on the tree is the stash of funds in retirement accounts.
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Old 06-12-2020, 07:38 AM
 
5,226 posts, read 2,905,753 times
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Quote:
Originally Posted by BugsyPal View Post
That stimulus you speak of is tied to unemployment; so what happens when people are recalled back to work? And or in case of self employed, independent contractors and gig workers money starts coming in again?

While what you are suggesting does make sense to point; tying it to unemployment provides a disincentive for many to return working. It also provides an incentive for employers to lay people off because even if they have to pay UI claims, it likely is less than keeping people on the books when sales/work is slow. Long as they are getting that extra $600 any moral wavering about employees losing a bulk of their income being laid off evaporates.
The disincentives for working are really only for the low wage service sector people. For middle income, white collar office workers ($45,000 - $80,000 annual salary), the $600/week is a life line. For middle income, white collar office workers, the $600/week + whatever they get in state unemployment roughly replaces 100% of their salaries. They need that. Also, interviewing for white collar jobs is a pain in the butt. It's easier for low wage service sector workers to get jobs because their interview process and job application processes are a breeze.

When the $600/week disappears, the middle income white collar office workers are going to be in a world of pain. Their jobs are harder to obtain and their interview processes are more protracted. The low wage service sector workers will have jobs again in 2 weeks. The white collar office workers are going to be out of work for some lengthy period of time.
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Old 06-12-2020, 07:41 AM
 
10,547 posts, read 4,580,802 times
Reputation: 2153
Quote:
Originally Posted by TimAZ View Post
The debt is going to service itself? Oh that’s right, your a big fan of TLT and when rates go negative the fund will fold space and become a magic unicorn flying around and squirting gold eagles from its butt.

Higher taxes are coming and the biggest plum on the tree is the stash of funds in retirement accounts.
Our Federal taxes are based on our income, not national debt.

Sure we could levy a tax to cover more of it, but that won't be very popular.

Choice would be to monetize more of our national debt or pay more taxes? And that answer might depend on our level of inflation.
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Old 06-12-2020, 08:57 AM
 
Location: Washington Park, Denver
8,082 posts, read 7,505,926 times
Reputation: 9105
Quote:
Originally Posted by the tiger View Post
What does this mean for me a tax paying law abiding citizen in the country of the United States of America?
https://www.cnn.com/2020/06/10/econo...ing/index.html
That you are looking for something to be outraged about.
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Old 06-12-2020, 12:01 PM
 
Location: Log "cabin" west of Bangor
5,993 posts, read 7,197,666 times
Reputation: 11443
Quote:
Originally Posted by TimAZ View Post
Wealth taxes are coming, both state and federal. Twenty years ago a politician named Jessie Jackson proposed a “one-time” levy of 10% on all retirement accounts with the money going into the general fund to buy social justice. If the Democrats control Congress and hold the Presidency again, we could see similar proposals to raid the $trillions in savings (aka hoarded money) that are readily available. Nothing is sadder than a politician with no money to spend.
If that were to happen, I would revolt.
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Old 06-12-2020, 01:08 PM
 
10,547 posts, read 4,580,802 times
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Quote:
Originally Posted by Zymer View Post
If that were to happen, I would revolt.
Obviously Trump, Mnuchin and Powell know how to avoid that.
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