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<p>[QUOTE=&quot;MEC2, post: 1983549, member: 38692&quot;]I subscribe to no school, but do have a basic grasp of math and logic, which tells me that since we&#039;ve run out of buyers for treasury debt, and now the Fed is the debt purchaser of last resort, we are at the precipice of having to simply create cash to pay debt service and fund the government. The shell game of QE cannot go on forever, and if it can&#039;t, it wont.</p><p><br /></p><p><br /></p><p><br /></p><p>The effective tax rate on high earners is already 50% in most areas. How much more do you think you can get? If you taxed 100% of all income over $1 million, you still wouldn&#039;t balance the budget. Plus, you will quickly find 39.6% of something is worth more than 100% of nothing - who would work anymore once they made $1 million? Nobody, they&#039;d simply get paid in options, futures, or other compensation. </p><p><br /></p><p>So - you&#039;d be running up smaller deficits, but you wouldn&#039;t pay it down, and destroy the capital pool for investment, startups, and nearly all charitable contributions. </p><p><br /></p><p>Having done that, where does the &quot;unrepentant commitment to real economic growth&quot; come in now that nobody has the money to invest? Why risk capital when it will be confiscated upon success?</p><p><br /></p><p>This also begs the question what kind of country think it deserves more than half of any dollar a man earns.</p><p><br /></p><p><br /></p><p><br /></p><p>The uber-wealthy aren&#039;t paying incoming tax. It&#039;s people trying to become wealthy that do. High marginal income tax rates have been the stick old money has been using forever to keep away new money...</p><p><br /></p><p><br /></p><p><br /></p><p>Well if we retrograde the US to mid 19th century levels of affluence, we can quickly modernize and experience growth too... like most Asian countries have. But there is a maximum scale, and China is rapidly approaching the point if not reached the point of permanent single digit growth. It&#039;s insane to compare an evolving third world economy to a first world economy. </p><p><br /></p><p><br /></p><p><br /></p><p>Imminent but apparently landing somewhere else... however, inflation has landed squarely here, where - gas, food, energy - all are at record high prices. </p><p><br /></p><p><br /></p><p><br /></p><p>The initial round of QE de-leveraged $2 trillion in bad securities caused once again by price inflation in a commodity (real estate) - you cannot revalue a commodity without deflating it&#039;s price. But after that, QE became a way to cover the fact we couldn&#039;t sell our sovereign debt at issued rates. This has nothing to do with credit worthiness of the market, banks were FORCED to take cash in QE and simply sat on it. Simply pushing money into the economy does not create growth, you cannot force borrowers to take money, even at negative rates - ask Europe.&nbsp; </p><p><br /></p><p><br /></p><p><br /></p><p>Not sure how any of your argument can be serious considering the downgrade in US government credit worthiness - for the first time in US history. You cannot tax your way to prosperity.[/QUOTE]</p><p><br /></p>

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