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derivatives which are nothing but examples of gambling over gamblers in order to make quick bucks, what does PJ have to say about American capitalism today now that his book is 15 years or more in the past? – Herb F. P.J. O’Rourke comment: Herb, I’d say those Albanian pyramid schemes are starting to look good. I wish I’d invested in one – I’d probably be down a lot less than I am in the S&P 500 this month. Incidentally, once Albania’s pyramid-scheme-fueled economy crashed in 1997 (with a 59% GDP contraction), the country began to experience real economic reform. GDP growth has been averaging close to 4% over the past five years – well above the EU average. Re: Like Roadkill and Maggots Thanks to Bill Bonner for telling the truth. I have been singing from the same hymnal for decades. The big questions: when the s%!@ hits the fan, what does that look like; how does one prepare; and what is the aftermath? I have little faith that my SS check will continue to arrive. It’s either that, or the dollar will be devalued to the point of worthlessness. – J.C.S P.J. O’Rourke comment: Or both, J.C.S. But don’t be worried – be alerted ! The thing that makes Bill Bonner so valuable as a thinker is not that he’s a doomsayer, but that he has a structural engineer’s view of political economics. Bill sees our finances, politics, fiduciary institutions, and debt and credit flows as all part of one integrated
new programs. They should show us how to pay for the New Deal and Great Society programs before they start another underfunded program. They start these programs by taxing the rich and end up bankrupting the middle class. America need less government and more freedom. – William Z. P.J. O’Rourke comment: William, you hit the nail on the head. (And, like you said, that government tax hammer smashed your thumb.) It never turns out that “just the rich” get taxed. And that tax never turns out to be “very small” the way Elizabeth Warren said her wealth tax would be. (And goodbye to you, Liz. Don’t let the door hit you in the back on your way out.) Not long ago, a friend of mine was talking about the debate back in 1913 over the ratification of the 16th Amendment authorizing a federal income tax. The original proposed tax rate was 1%. Opponents of the 16th Amendment said, “Wait a minute, what if we elect the wrong people and that income tax rate goes up to 2% or 3% or even, God forbid, 6%?” To which supporters of the 16th Amendment replied, “Oh, go on, get outta here, you’re talking crazy talk.” I bought and read PJ’s book wherein he describes 4 countries as examples of good and bad capitalism and good and bad socialism... He criticized Albanian capitalism as a bad example of capitalism because Albanian capitalism was chock-full of pyramid schemes.
Now that American capitalism is over 80%
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March 2020
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