The Federal Reserve Is The Cause Of The Bubble In Everything
A tax on money raises prices, like a consumer tax. Right now it looks like a half point tax The more tax he Fed collects on money the greater desire to hold non-monetary assets, like homes and stocks.
If central banks are in the tax collection business, then everyone should be fairly taxed. Everyone means even government agencies. Hence we want to broaden the eligibility for Fed accounts so no one escapes the tax.
Basically the Fed is forcing us into a triple entry accounting system, assets, liabilities and Fed taxes. Not a problem for sandbox, but the minimal model has no third term,. In the minimal, the currency banker is considered profitless, and sandbox can do that too. We be flexible in sandbox.
The Fed need be clear, simply state that they are a government monopsony and we can officially target the tax Right now the central bankers are totally confused, as is our senators and we are doing the spiral as that tax becomes a free variable for the primary dealers. The primary dealer clients thus get in tax free, their future tax is hedged in a way that we cannot do out here in the hinterlands.
Failing to understand the Fed tax duties causes money to leak into the non-monetaries which is a market share loss for the Fed. We end up like Japan, mostly central bank funding government and everyone else settling on non-monetary assets. Government become useless, it has no tax and spend authority left.
The total cost of the tax is the amount each generation defaults, about 30%. Sandbox can handle that, no problema. The problem is the Fed and the senators again, they are unaware and we get sudden stop. It is not the default, it is the sudden, almost hysterical, method by which government defaults. The fear of a Nixon hock is driving the central bakers a bit nutty.
Basically the Fed is forcing us into a triple entry accounting system, assets, liabilities and Fed taxes. Not a problem for sandbox, but the minimal model has no third term,. In the minimal, the currency banker is considered profitless, and sandbox can do that too. We be flexible in sandbox.
The Fed need be clear, simply state that they are a government monopsony and we can officially target the tax Right now the central bankers are totally confused, as is our senators and we are doing the spiral as that tax becomes a free variable for the primary dealers. The primary dealer clients thus get in tax free, their future tax is hedged in a way that we cannot do out here in the hinterlands.
Failing to understand the Fed tax duties causes money to leak into the non-monetaries which is a market share loss for the Fed. We end up like Japan, mostly central bank funding government and everyone else settling on non-monetary assets. Government become useless, it has no tax and spend authority left.
The total cost of the tax is the amount each generation defaults, about 30%. Sandbox can handle that, no problema. The problem is the Fed and the senators again, they are unaware and we get sudden stop. It is not the default, it is the sudden, almost hysterical, method by which government defaults. The fear of a Nixon hock is driving the central bakers a bit nutty.
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