The idle rich socialists who just bought the presidency lost little if anything in the economic manipulation that cost the rest of the country about 20 trillion.

How do I know this?

Because they are rich enough that it makes no sense to take any risks whatsoever.
- they only have pocket change in the stock market. It can go down, you know, so they don’t do it.
- Their liquid funds are in U.S. government or municipal bonds. Money in Treasuries is largely hidden offshore (see the article recently posted about UBS). Onshore money is in tax-free municpals.
- the rest of their fortunes is in real estate, which ultimately is very safe and inflation proof. In addition, real estate taxes are 1% or less for the idle rich, who have rigged the tax systems in their favor.
- contrary to popular belief, they have only pocket change in “businesses”. Business can lose money, and they don’t need that.
- and since they don’t work, they can’t be laid off

You may say, you’re nuts PR, but I know this because once a family reaches a threshold of wealth, there is no reason to want more. After all, one can only have so many yachts. But the threshold of wealth is very high. It’s even possible to predict it, and take my word…..you won’t get there. The threshhold is the amount that can generate the income you want from 1% of your liquid assets. Let’s say you are content with 1 million spending money per year. You then need $100 million in income-producing assets to maintain it forever. Since you as a parasitic idle rich person will have about 50% of your wealth in real estate, it means that the threshold to be truly wealthy is about $200 million.

The reason for the 1% is that you, as a parasitc idle rich person, need your little nest egg to keep pace with inflation. Inflation runs about 3% per year. Municiple bonds pay about 4% per year. The difference is 1% per year. You can only draw out 1% and while protecting your unearned fortune from inflation and still minimize the risk.

This is also the reason that sabe average people don’t invest in municipal bonds. They only barely keep pace with inflation. You cannot amass any wealth for your heirs or retirement.

So you see, municipal bonds are really just a tax avoidance hoax for the parasitic idle rich. The Moron will never take that tax dodge away, becasue the parasitic idle rich are his puppet masters.

http://www.businessinsider.com.....hew-2009-2

You are a unique young person to have the wisdom you just stated.

I don’t seem to get the idea that if you just toss money at problems and they will magically go away, especially money we don’t have and just digging ourselves deeper into a hole I doubt we’ll ever get out of.

Look, Look. Dick and Jane have money. See the money. Money, money, money. See Nancy steal the money and throw it down the drain. Dick and Jane had money but now they have none. It is gone. Gone, gone, gone. Do you have any money?

The interest is paid on the accumulation of many years’ debt, so it won’t triple becasue of one more trillion. The whole debt is in the range of 10 trillion. In addition, the interest on most of the 10 trillion is fixed because the bonds have already been sold. And new debt is being financed at very low rates.

But, since interest rates on Treasury notes are so low now, they WILL increase substantially in the next few years, and the interest on new debt and some debt that has to be refinanced will explode.

Because so much is already financed, it’s hard to see an immediate explosion to 27%…….but over time it will get there.

In the private world, financing day-to-day operations usually means insolvency is in the cards.