Saturday, September 25, 2010
Greenspan advocates for higher taxes
In a recent Bloomberg article former Fed Chairman Alan Greenspan argues that the Bush tax cuts should be allowed to expire because of concerns about the size of the budget deficit. If you click through and read the article you will note that nowhere does he suggest cutting spending. I continue to maintain that no matter who gets elected that government will continue to grow. I have used the term welfare/warfare state to describe a Democratic controlled government and warfare/welfare state to describe a Republican controlled government. It simply does not matter at this point who is elected as I pointed out the other day when I lambasted the so called "Pledge to America". Quite frankly the things that need to be done to save the country ie entitlement reform, smaller government, deconstruction of the overseas empire are simply not politically possible. Conversely the things that may be possibly achieved politically ie "The Pledge to America" simply are not adequate to solve the problem. That is why gold continues higher. People that can think and have wealth know that this whole game is unsustainable and are moving to protect their wealth from the inevitable collapse of the western welfare states.