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Discussion in 'Paper Money' started by CHARLES GINETTO, Jan 26, 2021.

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  1. GoldFinger1969

    GoldFinger1969 Well-Known Member

    Wealth taxes are probably unconstitutional. We needed an amendment to impose an income tax.

    I have never forgotten the working-class French couple who said that they voted for the Socialist Mitterand in the 1980's on the grounds that he would tax the rich....only to find out.....Mitterand and the Socialists considered THEM the rich !!! :D
     
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  3. johnmilton

    johnmilton Well-Known Member

    I thought that we already had a constitutional amendment that allowed the income tax. Perhaps I missed the memo.
     
  4. GoldFinger1969

    GoldFinger1969 Well-Known Member

    JohnMilton, totally agree...the inflation is in the stock market.

    What's going on with the increased market values for every tech-related stock and the shortseller war on hedge funds is ridiculous.

    FWIW, I think if we see any hint of inflation that Powell and the Fed will raise rates which is NOT in stock prices since they are supposed to be on hold until 2024 or late-2023.
     
  5. GoldFinger1969

    GoldFinger1969 Well-Known Member

    No, we do....but I'm saying if you want to tax wealth like Bernie and AOC want you need an amendment for that, too.
     
  6. yakpoo

    yakpoo Member

    We already have a Wealth Tax...it's called "inflation". I have a stack of Savings Bonds I bought in the 80s. I bought them with 80s dollars and now get paid in 2021 dollars...and have to pay income tax on the inflation!!! :confused: That's a double jack!
     
  7. johnmilton

    johnmilton Well-Known Member

    That's the risk you take with "safe investments." At least in recent years they have been paying interest well above the current market.
     
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  8. yakpoo

    yakpoo Member

    My Dad told us to pull our belts tight until we saved $1 for every $1 spent. Then, and only then, could we begin treating ourselves to luxuries (pay TV is a luxury). Yeah...it was painful for a few years, but it was a sacrifice well worth making. Is that "landing on my feet"? Perhaps, but it's an option available to every "Average Joe".

    Today's ethos is..."Buy what you want; beg for what you need."
     
  9. yakpoo

    yakpoo Member

    Perhaps, but 4% was a ridiculously low interest rate in the mid-80s.
     
  10. johnmilton

    johnmilton Well-Known Member

    With no state income tax if your state has one.
     
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  11. yakpoo

    yakpoo Member

    Tax-free Munis paid 9%. Savings bonds began at 7.5% and adjusted every six (6) months...with a 4% floor. I had planned to roll these over to HH bonds that pay a bi-annual dividend...but the government discontinued the HH bond (for some reason).
     
  12. GoldFinger1969

    GoldFinger1969 Well-Known Member

    Buy TIPs.....:D
     
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  13. GoldFinger1969

    GoldFinger1969 Well-Known Member

    That's why NOW accounts and money market funds took off beginning in 1971.

    Banks were limited in how much they could pay by regulators.
     
  14. yakpoo

    yakpoo Member

    Sure...now.
     
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  15. yakpoo

    yakpoo Member

    Excellent comment. Nearly all my gold is numismatic gold, too. The Fair Tax is the answer, but Congress won't even debate the issue...pro or con.
     
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  16. ToughCOINS

    ToughCOINS Dealer Member Moderator

    While a valid macro theory, velocity is only conditionally relevant to determining inflationary levels.

    Just because the velocity of spending is not outstripping the increase in money supply, it does not mean inflation is not taking hold.

    The high unemployment we are currently experiencing breaks the normal cyclic turnover of money, and lands most of the newly injected supply in the coffers of the uber-rich . . . comparatively static.

    Thus, the low velocity poorly represents that segment of the population which truly drives the cost of staples. Virtually every dollar going into the hands of the average Joe is being spent chasing staples right now. Inflation is most definitely gaining a serious head of steam.

    If it's been a long time since you went grocery shopping for your family, why not do so this week, and compare the cost of a week's groceries today against an old benchmark? I think you'll be utterly shocked.
     
    Last edited: Jan 27, 2021
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  17. GoldFinger1969

    GoldFinger1969 Well-Known Member

    I go shopping weekly....and I used to work as an economist so I know something about the mismeasurement of inflation.

    It might be a problem later this year with both fiscal and monetary stimulus colliding at the same time.

    In the mean time...the inflation is clearly showing up in the price of financial assets.
     
  18. johnmilton

    johnmilton Well-Known Member

    My wife has commented about how food prices have soared. We were way over the budget in 2020. Part of it was because we didn’t go to restaurants, but most of it was because of the increases at the food store.
     
  19. GoldFinger1969

    GoldFinger1969 Well-Known Member

    The supply chain disruptions from Covid-19 did lead to price increases.
     
  20. whopper64

    whopper64 Well-Known Member

    You have touched on Jackson's penchant for "hard money and anti-bank" policies, but I've also read that Jackson actually detested paper currency. It is ironic that he is depicted on the very same paper money that he wanted nothing to do with. So let's change the portrait, whether it's Tubman or someone else. Hopefully this thread will not become purely political. And it's not as though the $20 bill (or others) has not seen quite a few changes in it's history.
     
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  21. John Skelton

    John Skelton Morgan man!

    I always thought the idea of putting the picture of a person on currency was to honor them. IMO, Harriet Gunman is more honorable than Jackson.

    Actually, I'm all for putting pictures of animals on currency and in the name of sports teams. At least the animals can't complain about anything!
     
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