Thanks a lot, Alan...

The stock market continued its pathological codependency on Alan Greenspan yesterday, shedding over 100 points from the DJIA after contemplation of the nuances of the spaces between the letters of the words spoken by Mr. Greenspan in front of a Congressional committee. His subtle hinting -- as faint and insignificant as the rate of return on my 401K money market account -- that short-term interest rates could possibly be on the cusp of a potential examination for an assessment of appropriateness, leading to the definite chance that perhaps something different could someday ensue, sent institutional investors into smothering spells, forcing the Manhattan Rolls-Royce dealership to cut back on the free clotted cream being served with scones at the afternoon tea on the showroom floor.

For us little guys, the main effect is the proverbial "rock and hard place," as we get the hit on our meager stock portfolios without any offsetting actual interest hike in our meager money market accounts...the worst of both worlds, as it were. Good thing we're all in it for the long haul. Right?

Comments

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The eurasian has an experimental proposal: The Federal Reserves, should be prohibited from lending money to banks.

To expand the money supply, the fed should distribute new money to all taxpayers equally.

To get a portion of this fed distributed new money giveaway, banks can borrow from depositors say by raising interest rates banks pay - in so doing enabling both new money and old money to benefit from the hopefully higher interest.

Each taxpayer whether individuals, partnerships, corporations will have the same vote with respect to the distributed new money. With such new money, they can spend such on whatever products or services they want. As such they will be the ones to decide which products, which services to stimulate with this new money and not the government.

Posted by: The Eurasian at April 21, 2004 12:31 PM

Interesting proposal. I'd expand it to say that the taxpayer would receive this new money based on the percentage of said taxpayer's gross cash income paid as federal income taxes. Corporations who exploit bad tax regulations to the point where they pay no taxes even though their revenue streams were quite healthy get nothing. Might kill two birds with one stone.

As an alternative, corporations get nothing, as they don't really exist (taxpayers or not). The individual stockholders would be the beneficiaries of the new policy.

Posted by: Eric at April 21, 2004 12:39 PM

%%% EXPERIMENTAL %%%

This portion of my proposal , "To expand the money supply, the fed shoud distibute new money . . . . . . " is actually a new form of taxation that I am also proposing.

When new money is circulated, my process taxes all the old dollars by getting a portion of their purchasing power. That is why the new dollars have purchasing power!!!!

Even the dollars in the underground economy will end up taxed by this eurasian tax collection process.

This process can make tax filing unnecessary. Maybe, what you will need to send them is your name and your address so they will know where to send the check and whose name to put in the check. Maybe you will also need to give them your social security number so they can distinguish you from all other people who may also have the same name as you. Or the Government or Federal Reserve money give away can be sent electronically via your bank account.

And if this process makes tax filing unnecessary, they wont be able to compute these things you mentioned such as, "percentage of said taxpayer's gross cash income paid as federal income taxes" , etc.

Since there are around 250 working days a year, every 2 and a half days that taxpayers waste doing their tax papers is actually 1 percent of the GDP not produced. If they spend 5 days, that's 2 percent of the GDP not produced because instead of working producing GDP, they are just doing their tax return. By making unnecessary the filing of these tax returns and enabling people to work producing GDP and GNP instead, this has the potential of increasing GDP and GNP by 1-2 percent. And if bookeepers, accountants are no longer that necessary, these accountants and bookeepers etc will be used to produce other forms of GDP and GNP instead, and our GNP and GDP will really accelerate!!!!! I know that just increasing the employment rate from 95 to 96 percent caused the US Government to end up with a surplus because of the larger GDP despite the fact that 95 to 96 is only approximately a 1 percent increase. I predicted on CSPAN when Rep. Jackson and his father were being interviewed by BRYAN LAMB that the GNP will rise by 1 percent with 1 percent more people working. The result surprised even me because the rich people on top of the economic totem pole, with their know how, made that ADDITIONAL GNP PRODUCED BY THESE 1.21 MILLION PEOPLE AT THE BOTTOM 5 PERCENTILE WHO NEVER WERE EMPLOYED IN THEIR WHOLE LIFE grow even faster!!! It was a mistake for GREENSPAN TO CONTRACT THE MONEY SUPPLY SO THAT THESE PEOPLE WOULD HAVE NO WORK AGAIN JUST TO SATISFY THAT 2OTH CENTURY ECONOMIC RULE WHICH SAYS THAT THE EMPLOYMENT RATE MUST NOT EXCEED 95 PERCENT BECAUSE IT WILL BE INFLATIONARY. BUT AS PREDICTED BY THE EURASIAN ON CSPAN AND THE CRAIG ANDERSON SHOW YEARS PRIOR, THE PEOPLE AT THE BOTTOM WHO NEVER WERE EMPLOYED BEFORE IN THEIR WHOLE LIFE DID PRODUCE REAL GNP, AND THE HIGH INFLATION RATES PREDICTED BY THE 20TH CENTURY OLD ECONOMIC RULE NEVER MATERIALIZED!!!!!! AND THEY WILL CONTINUE TO BE UNEMPLOYED UNTIL THEIR DEATH UNLESS GREENSPAN OR/AND HIS SUCCESSORS TAKE THE POINT OF VIEW OF THE EURASIAN THAT IT IS IN THE BEST INTEREST OF THE RICH AND THE GOVERNTMENT AND THE COUNTRY IF WE PUT THESE PEOPLE AT THE BOTTOM TO WORK . IT IS ABOUT TIME TO UNDERSTAND THAT THAT ARBITRARY RULE TO INTENTIONALLY LEAVE THE BOTTOM 5 PERCENTILE OUT OF WORK IS AN EVIL, PERHAPS THE GREATEST OF EVIL THAT 20TH CENTURY ECONOMISTS PRODUCED, WHERE MILLIONS AND THEIR DEPENDENTS ARE FORCED INTO A LIFE THAT TEMPTS PEOPLE TO WORK AS PROSTITUTES, THIEVES, ROBBERS, WIFE SUBSTITUTES, DRUG ERRAND BOYS, PICKPOCKETS, SHOPLIFTERS, PHORNOGRAPHY ACTRESSES, PANHANDLERS, ETC, AND IF UNLUCKY, PRISONERS, WHICH THEN LEAVES THEIR DEPENDENTS TO BE ALSO TEMPTED INTO A LIFE OF CRIME. IT IS JUST GOOD THAT SOMEHOW, NOT ALL END UP AS CRIMINALS OR VIOLATORS OF THE LAW.

Posted by: The Eurasian at April 23, 2004 08:59 AM
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