Buy now before the tax

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The economy is increasingly adjusting to an ongoing and rowing tax battle. Inflation? Yes, bu it is real, it is a sales tax in effect, and it is real money, like today even.

We saw this in japan before the sales tax increased, a buy now then sudden stop after the tax. Real inflation? Yea, a rise in the cost of consumer goods across the board. But the sudden stop incurs a drop in prices.  This is not enough to kick off another rate cycle.

The consumer know we incur a cost after the passage of stimulus. They bet on buying now, paying the credit charges. Not sure they should be betting on sudden passage.

Why he sudden discovery?

The consumer knows, we have been invaded by the Californians. The consumer will be taxed, one way or the other, soon. A rational expectation if not taken too far. They have seen this before, recently, the sudden appearance of monster Obamacare taxes. Thus knowing the intermediate sequence, they are betting them selves into a binomial. Balance their puts and calls on the essentials of life.