Thursday, October 4, 2007
In the last days of the Roman Republic there were endless calls for debt cancellation.That wont happen in this country but with the largest debtor in the country being the Federal Government and with the voters overpressed by their own debts and facing an ever-increasing tax burden the obvious 'solution' is hyper-inflation. It happens to all giveaway states, as the nations of South America and Africa can verify. In ten years my $50,000 monthly Social Security check might only buy a Slurpee at 7/11 but my fixed rate mortgage will be paid off. Its a great way for the government to raise income taxes without taking any legislative action. If the average school teacher makes $800,000 a week the tax code that was put into place to punish millionaires will confiscate a huge chunk of her 'excess income', leading to increasing calls for pay increases and hence more inflation. The wealth of the 401k yuppies will melt like a snowball in August. Luckily we'll have free health care, just like in Cuba. In fact we'll probably have an economy just like in Cuba if the befuddled, Oprah-watching mouth breathers elect Hillary and give her increased majorities in the House and Senate.