Apparently those spending bastards in Washington are “considering” a V.A.T.
To the Washington Post article here.
Really? A V.A.T. on top of everything else here? Cut the spending!!!!! And I don’t mean the “lowering next years growth from an increase of 8% to only 6%”, I mean only spending 90% of what you spent this year.
You know, what we all have to do when we cut back.
The Financial Times has an opinion piece from John Taylor that should scare those of us in the U.S.
“So how else can debt service payments be brought down as a share of GDP?
Inflation will do it. But how much? To bring the debt-to-GDP ratio down to the same level as at the end of 2008 would take a doubling of prices. That 100 per cent increase would make nominal GDP twice as high and thus cut the debt-to-GDP ratio in half, back to 41 from 82 per cent. A 100 per cent increase in the price level means about 10 per cent inflation for 10 years. But it would not be that smooth – probably more like the great inflation of the late 1960s and 1970s with boom followed by bust and recession every three or four years, and a successively higher inflation rate after each recession.”
Our first podcast, appropriately titled “Work In Progress”. Please feel free to comment.
A great article from Business Week about perhaps MORE ethanol being put in our gas.
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