patrick.net

From the article: ""It's not that the stock market is gaining value... it's that our money is losing value. And so if you have a debased currency... a devalued currency, the price of everything goes up."

If we can reduce the amount of annual deficit by at least small to moderate cuts to the budget, then ultimately the value of the currency will increase.

I think this is being done by holding the budget constant, while tax revenues increasing due to inflation and/or Federal Reserve policies (i.e., capital gains taxes increasing due to rising stock market from major banks using Fed money). So what about tax receipts?

Well, The Washington Times (http://www.washingtontimes.com/news/2013/apr/12/taxpayers-beware-federal-tax-collections-hit-recor/#) reported that the Treasury projected business and individual collections at $2.71 trillion for this year (2013) — higher than the previous high $2.5 trillion collected in 2007. That’s more than even the Congressional Budget Office projected. CBO estimated the 2013 collections at $2.07 trillion.

So $600 billion more in 2013 for tax receipts than what CBO projected?
This is the type of growth we need to put a major dent in the debt.

robertoaribas says

I've never ever said things can't go wrong. But I'm not going to join an end of the world cult

I agree Rob. Let's see the proof and evidence. I want to see the debt to GDP curve start to bend downward, etc.

The fears of inflation have not materialized. The fear of coming hyperinflation armageddon will prove to be false. The raises are insuffcient to warrant hyperinflation and the american consumer is very important to the point that powers that be will never allow it to occur here. That in part explains why gold has experienced a beatdown and predictably proven itself to be an emotion driven speculative vehicle for apocalypse believers rather than a so called store of value.

Sounds like the Gold Bugs are ramping up the paranoia to sustain their crumbling market.

They obviously appeal to the doom and gloom, money in the mattress crowd and apparently a lot of old people who should know better.

APOCALYPSEFUCK is Shostakovich says

Schiff dares not call it what it is: Cannibal Anarchy.

Bitcoins might be the currency of the future. They are made of bits of human flesh, right? Money that you can eat is money that has intrinsic value.

Bigbubbabear says

That's an excellent article about what Schiff and Bubba are both expecting ...

I would expect that from Schiff. I listen to him, but I do not necessarily follow 100% of his advice. He is a good canary in the gold mine when it comes to the S&P 500 being over-valued and over-bought, as well as when Federal Reserve practices (i.e., interest rates, etc.) start to significantly damage the economy.

Plus let's look at Temecula zip code 92591. The median annual income is around $45,000 per year in 2010, and I doubt it has risen more than 5% since then given the way employers (even the Federal Govt) has managed payroll. Reference:

http://patrick.net/housing/irs_data.php?zip=92591

Now the average home price is $302,900 according to Zillow for this zip code.

That means the price to income ratio is about 6.7 !

The Zillow rent index is $1,840 for zip code 92591. That means rent is about 49% of median income !

Somebody explain to me how for middle-class towns like Temecula, CA can continue to operate like this ?

Also, I looked at an affordable home (see http://www.zillow.com/homedetails/13244-Bandera-Dr-Corona-CA-92883/17953682_zpid/)
and notice it paid $3,900 in 2012 for property tax on an assessed value of $210,000. It recently sold for $245,000. Still, the property tax rate is 1.6 mils, or 1.6% of the value !!!! Property taxes seem high to me !

adarmiento says

The median annual income is around $45,000 per year in 2010, and I doubt it has risen more than 5% since then given the way employers (even the Federal Govt) has managed payroll. Reference:

On city-data.com, it lists that zip code median household income as $74,135 in 2010. Not sure where the data sets are different, but $74K is not too far off at these low rates.

Yet.

Ah, you quoted me before I edited. That's okay, I'm not going to change it back.

Cleaned up all the shit n giggles that was going on around here. Any future personal attack posts will also be deleted.