Tag Archives: Entitlements

The Writing Is on the Wall: There Will Be Wealth Taxes

What is a government to do, when a slowdown in population growth occurs after it has committed itself to age related entitlements? In this case, inter-generational income redistribution from the young to the elderly will not be sufficient to cover the costs. The answer is to find another tax base, which this time looks to be a wealth tax. Indeed, it has already arrived. Learn more about financial diversification consistent with this reality. Continue reading

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Is the Printing Press Engaged for the Duration?

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A printing press is a handy thing to have. When a government or central bank can fund itself with money or claims on money, it can buy a lot of things and solve a host of problems, all without the need to tax. I wish I had one. Continue reading

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The Now Generation Government Has Failed the Marshmallow Test: Making Sense of the Fiscal Cliff Outcome

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Over the past five years, the government has applied the usual demand-side remedies in the epic battle against The Great Recession. The graph shows the time profile of past recessions and recoveries as compared to the Great one that we … Continue reading

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Denial, Default or Treasury Currency: the Hobson’s Choice

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Spain’s financial vulnerability has been in the spotlight recently. The trickle-down from a single bank’s insolvency gives us a glimpse of how country funding shortfalls are likely to be handled in the coming decades. The Spanish bank in question, Bankia, … Continue reading

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