Oct 28, 2021
12:03:49pm
12:03:49pm
How is what the rich are doing any different than what the federal government is
doing?
The rich are using very efficient assets (at least using recency bias, time will tell) to leverage and gather more resources to do whatever it is they want, whether more investment, or lifestyle or whatever. The reason they can do this is because there is such massive difference between interest rates and expected rate of return for their investment (mostly stocks).
The federal government is doing the exact same thing, except instead of a stock or set of investments, the federal government (and the fed for that matter) is using the American consumer as the collateral to lever up like crazy to do whatever it is they want, whether it be infrastructure (arguable what that word means these days), or just handouts (aka lifestyle). The reason they can do this is because the world will buy the debt up like crazy while the American consumer is expected to continue to be the most predictable place of growth.
The taxes are a big part of this, but interest rates being nothing are even more important to this whole equation.
The rich are using very efficient assets (at least using recency bias, time will tell) to leverage and gather more resources to do whatever it is they want, whether more investment, or lifestyle or whatever. The reason they can do this is because there is such massive difference between interest rates and expected rate of return for their investment (mostly stocks).
The federal government is doing the exact same thing, except instead of a stock or set of investments, the federal government (and the fed for that matter) is using the American consumer as the collateral to lever up like crazy to do whatever it is they want, whether it be infrastructure (arguable what that word means these days), or just handouts (aka lifestyle). The reason they can do this is because the world will buy the debt up like crazy while the American consumer is expected to continue to be the most predictable place of growth.
The taxes are a big part of this, but interest rates being nothing are even more important to this whole equation.
- Bio page
- Cougforgood
- Joined
- Nov 14, 2014
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- Apr 24, 2024
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Messages
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10/28/21 10:46am
10/28/21 10:50am
10/28/21 10:53am
10/28/21 10:55am
10/28/21 10:58am
This is incorrect man. They can wait until they pass away, get a step in basis on their assets, and have all that growth
10/28/21 11:11am
10/28/21 11:56am
10/28/21 10:46am
They can let the debt run up forever and then have it paid for with assets that have stepped up in basis at their death.
10/28/21 10:39am
10/28/21 1:05pm
10/28/21 10:53am
10/28/21 10:55am
10/28/21 10:57am