Government Options
Stocks moved sideways today, starting higher, but pulling back at the end of the session.
Bonds strengthened slightly (lower interest rates) as did the Dollar.
Gold feel $11 today.
Oil was up slightly, and is holding its recent highs – bad for you and the economy.
In the news today…..
Food for thought – How will the government pay for the debt that we are building up at record pace??? Here are some options for you to think about:
- Raise income taxes
- Raise social security and medicare taxes
- Institute a flat tax – similar to the European VAT.
- Institute a wealth tax
- Change course and roll back the projected multi-year spending
- What would you do?
Here are the last numbers for today:
Dow Jones 30 Industrial – 9509 (up 3 points)
10 Year Treasury Bond – 3.49% (down 0.06%)
Euro – $1.4295
Gold – $944 (down $11)
Oil – $74.37 (up $0.48)
Gasoline $2.05 (up $0.05)
I am surprised that oil prices have held firm despite the soft global economy. Jeez, what would oil prices be if global growth returned to trend.
Paying for all this spending will be a problem. Essentially the USG (that’s us) is moving private debts on to the public debt load PLUS making up for the slack consumer spending with government “stimulus.”
Really we’re just borrowing from the future to enjoy benefits now.
We’ll probably have to do all 5 things you list plus others such as reduce benefits while find an “acceptable” way to monetize the debt too.