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Tag Archives: Debt

Japan Economy Shrinks the Most Since 2011 Quake Due to Tax Increase

Abeconomics is a Hail Mary throw if there ever was one. Though many will argue otherwise there is a limit to “money printing.” Are we reaching the point where the system just starts eating itself in Japan? Very possible. If an increase in the sales tax meant to help pay for the gigantic Japanese debt does this to the Japanese economy they face a bit of a problem to say the least.  Raise taxes, reduce revenue. Looks like Tokyo is way over the Laffer Curve. (And it appears to have done it with a sales tax, not even an income tax increase.) But even getting below the curve by reducing taxes is unlikely to help much because the debt black hole must be financed somehow.

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The Pentagon Overpays for Almost Everything—Massive waste, Massive crony capitalism

The Department of Defense has been given a free ride pretty much since World War II. The Military Industrial Complex which President Eisenhower warned about in his farewell address (former 5 star general Eisenhower) is very real and it has grown and grown taking up ever more of the American economy. The contractors and the services are awash in taxpayer money. Your money. And much of this money isn’t being used wisely. It is going to hyper expensive parts procurement (see above), and for programs in sub-Saharan Africa, and jets which catch fire on the flight line (The F-35) and Lord knows what else.

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Americans are getting into debt to afford food, gas

Credit is artificially cheap thanks to the Federal Reserve’s unwise experiments of the last 6 years. This cheap credit has filtered down to the consumer to some extent. But now prices are rising (also thanks to the Fed) and this cheap credit is being used by consumers just to make ends meet – again. (While at the same time feeding the rise in the price of consumer goods.)

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