Paranoid Theory on Financial Future

[jazzdude]

Not related to the tax discussion, but my wife also distrust the long term financial future (I do all of our long term investing). she wants me to pull it all out and buy airplanes and property...her words. So tempting - I hate being a responsible adult. 

If the dollar crashes and destroys the financial markets (which is why I'm assuming your wife distrusts long term financial future), buying airplanes/stuff and property only works if you can defend your property and that property retains value through an economic crises/collapse.

I guess what I'm trying to say is to buy more guns and ammo :)

[brabus]

1 hour ago, jazzdude said:

 

If the dollar crashes and destroys the financial markets (which is why I'm assuming your wife distrusts long term financial future), buying airplanes/stuff and property only works if you can defend your property and that property retains value through an economic crises/collapse.

I guess what I'm trying to say is to buy more guns and ammo 🙂

 

Ha, oh I’ve been doing some buying. My reloading equipment/supplies has skyrocketed over the past year. Ironically my wife who says buy planes and land, then gives me the look when another package arrives in the mail for me...”let me guess, gun stuff” - “you bet your ass it is!”

[DosXX]

4 hours ago, pawnman said:

Real estate, stock market, and grocery stored don't provide demand for dollars?  The value of currency is based on government taking back some of the currency they issue?

Gonna need you to explain that one in more detail

Never said it's the only source, but yes it is a primary source. Like was said, the government doesn't actually need taxes to fund anything. The reason bitcoin, gold, or any other alternative currency will never take over the dollar is because the government requires taxes to be paid in dollars. 

Just look at Cuba, the dollar from expat community runs the economy there. They eliminated taxes after the cuban revolution, and the national peso is now essentially worthless there. It got so bad they created an alternative cuban "dollar" pegged to the value of the US dollar to attempt to maintain some level of control. I'd argue part of the reason the peso isn't used in the economy anymore is that they eliminated demand for it by removing taxes.

 

[Seriously]

US Government finance is not equivalent to your personal finances. Being the world's reserve currency, the US has special powers. 

https://www.investopedia.com/modern-monetary-theory-mmt-4588060#:~:text=Modern Monetary Theory (MMT) is,comes to federal government spending.

[Clark Griswold]

On the subject of dollar devaluation.... thinking some on this and I don't think we (the USA) can devalue our currency as we are currently doing via money printing and I've come to the conclusion it erodes moral credit, moral standing, our own morality.

I thought about it this way, if a friend borrows your car and returns it in the same condition it left, with a full tank of gas and basically clean, you have a good friend who is trust / credit worthy.  If you loan your car to that friend and he returns it dirty, low on gas and with a few new scratches and dings, you don't have a trust worthy / credit worthy friend, you are associated with a user who took advantage of you.

I realize that international flows of trillions of dollars, yen, pounds, etc... are complex but fundamentally when we borrow money from others and we pay them back in less worthy dollars via consciously devaluing it, it is an immoral act.  Morality at its most basic level being the control of one's personal appetites and extendable to countries / nations. 

Other countries devalue their currencies and stave off the wolf until the next crisis but we are supposed to be different, why we are the leaders (for now of the some what free world).

Just my thoughts, worth what you paid for them but to stir the pot.  This position would involve some discipline / sacrifice but worth it in my estimation.

Edited May 10, 2021 by Clark Griswold

[JimNtexas]

On 4/12/2021 at 11:07 AM, pawnman said:

Basically.  It scraps all other federal taxes (income, capital gains, employment, etc) and replaces it with a universal national sales tax.

Along with the proposal was the "pre-bate", or paying a monthly payment to low-income folks so they aren't crippled by the tax until tax return time.

That is fine if and only if the 16th amendment was repealed first.

[pawnman]

6 hours ago, JimNtexas said:

That is fine if and only if the 16th amendment was repealed first.

My fear as well... it'll be sold as a replacement, then we'll end up with a national sales tax AND an income tax.