Peter Schiff has been saying that all of the “help” the US government and the Federal Reserve have offered up during the coronavirus pandemic isn’t helping. In fact, it’s made the situation worse. In a podcast last month, Peter said that all of the money printing and stimulus allowed people to keep spending, but they aren’t producing anything.
Nope. Productivity still works fine, it is just hidden from the Fed in the shadow banks. The Fed books are thus uncertain, but your shadow books are still working fine.
The real problem is the Fed no longer is a banker, it is now a permanent tax collector. We will pay the Fed taxes on entry and exit as we need to clear taxes, but central banking is now done elsewhere by large investment banks. The cost is not of productivity, but of the extra steps needed to clear taxes, and the crowding out of states and cities who longer have tax opportunities.
We do not want this inefficient tax precisely because it makes fiat transactions uneconomical and thus not taxable and this is killing the locals. It is fiat banking itself which has lost productivity. But the fiaters have some neat technology which we can leverage if we can pull the Fed out of its tax collection business.
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