Nations face slow fiscal death - Arthur Laffer

[pmbug]

The world is looking at a debt crisis that will span the next 10 years and it's not going to end well, economist Arthur Laffer Jr. has warned, with global borrowings hitting a record of $307.4 trillion last September.

Both high-income countries as well as emerging markets have seen a substantial rise in their debt piles, which has grown by a $100 trillion from a decade ago, fueled in part by a high interest rate environment.

"I predict that the next 10 years will be the Decade of Debt. Debt globally is coming to a head. It will not end well," Laffer, who is President at investment and wealth advisory Laffer Tengler Investments, told CNBC.
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Debt is piling up and it won't end well for the world, economist warns

He really went out on a limb there.

 

[nickndfl]

 

[chieftain]

The progeny of the Laffer curve?

 

[Casey Jones]

The Laffer Curve is real. It doesn't take a lot to understand that.

Tax income, or investment, at one percent, and see how little you take in.

Tax income or investment at 99 percent, and see how much you pull in.

The only question is, where is the happy medium.

It was proven without doubt to be relevant, when the 1982 tax cuts were passed and Treasury receipts went UP. Which didn't please the Left at all - they see taxes as a tool for manipulation and punishment, not for revenue for legitimate government functions. Which is why Barry the Kenyan INSISTED in raising CapGains taxes, even after being shown that cutting them brought more income in.

He was out to punish successful investors.