Tuesday, July 28, 2020

It is all about crowding out the retail banks

If feds let jobless benefits drop, key California Dems have “backdoor borrowing” idea to extend them

What Krugman calls lack of demand is really untaxed banking, mainly sales taxes in the case of California.  All of these pension systems bet the economy of scale is maintained or increased.  Then comes the limits on that, and the search is really then about scrambling for taxes, Fed taxes, sales taxes, find what ever fool wants to pay them.  Even the Fed pumping the market is mostly about collecting Fed taxes and supporting pension investments.

It will not work any more, we have run to that limit.

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