There is a certain logic. The bank fees and restrictions and higher rates for the middle class is exactly who voted for the deferred taxes. In a broad sense, that is. Upon decomposition we find the generational divide, the kids get hit with the taxes and the boomers get a pass. A federal sales tax would hit both grops equally.
Importantly, the tax is applied to the kids in amounts determined among unelected board members, probably slightly outside the power of coinage. It is not the Supremes that will stop the practice, it is the street rebellion which will do noting but grow as the taxes rise. The Supremes will rule once the Senate decides to reign in the practice. Then the House will speak up, then we get a revenue sharing agreement.
At least that was the ex post look at the Nixon version. Except the boomers were the kids and they had the WW2 parents. We all attend to this devaluation function twice in life, once as plaintiff and once as defendant.
Remember the kids rely on regulated banking, they do not have the entry fee for shadow banking. Stuck, so to speak, with the government run banks. Retail is where the taxes get collect, the shadow banks are full of tax dodgers. It will blow up very shortly, we are in essence talking no taxation without representation, sort of fundamental to the USA. Pandemic and technology along separate paths are forcing the pace of competitive banking. The senate cannot keep out the likes of facebook for long, and bitcoin offers a universal, hedged currency exchange.
One of the dim witted fintech groups will start coalescing a trading platform for the kids, their own shadow bank, then Congress is royally screwed. It will be one Swift bank account, and a secure hot wallet sand box. We can do this without the Fed, we can do this regardless of any fake theory from MIT.
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