[jonnycsd]

Fractional reserve banking is the ubiquitous practice where banks take in demand deposits and lend out a portion (or fraction) of those deposits to borrowers. The banks are counting on the fact that not everyone will want to withdraw their deposited funds at the same time. Of course this exposes the banks to some degree of risk in the form of a “run on the bank” if too many people want their money at once. Jimmy Stewart explains this scenario elequently in “Its a Wonderful Life”

Eliminating fractional reserve banking would require banks to have a one dollar of cash on hand (not necessarily paper cash) for each dollar deposited in a demand account (i.e. your typical checking or savings account). Loans would only be made based on longer term deposits into the bank (such as CDs).

[jonnycsd]

Or we (ie the Fed) could “print” the money needed to pay it all off. Of course that would put some inflationary pressure on the dollar.

Rich’s post under finance and investing titled “The US Government Will Not Choose Deflation” explains the mechanics of how that could be done.

http://www.pcasd.com/the_us_government_will_not_choose_deflation

[jonnycsd]

Or we (ie the Fed) could “print” the money needed to pay it all off. Of course that would put some inflationary pressure on the dollar.

Rich’s post under finance and investing titled “The US Government Will Not Choose Deflation” explains the mechanics of how that could be done.

http://www.pcasd.com/the_us_government_will_not_choose_deflation

[jonnycsd]

Or we (ie the Fed) could “print” the money needed to pay it all off. Of course that would put some inflationary pressure on the dollar.

Rich’s post under finance and investing titled “The US Government Will Not Choose Deflation” explains the mechanics of how that could be done.

http://www.pcasd.com/the_us_government_will_not_choose_deflation

[jonnycsd]

Or we (ie the Fed) could “print” the money needed to pay it all off. Of course that would put some inflationary pressure on the dollar.

Rich’s post under finance and investing titled “The US Government Will Not Choose Deflation” explains the mechanics of how that could be done.

http://www.pcasd.com/the_us_government_will_not_choose_deflation

[jonnycsd]

Or we (ie the Fed) could “print” the money needed to pay it all off. Of course that would put some inflationary pressure on the dollar.

Rich’s post under finance and investing titled “The US Government Will Not Choose Deflation” explains the mechanics of how that could be done.

http://www.pcasd.com/the_us_government_will_not_choose_deflation

[jonnycsd]

This makes sense to me. Figure the revenue is driven by change in ownership triggering a higher tax basis – and there is also some new property too. The retired couple sells the SFR to move into a condo or assisted living place, and that may double or triple the tax basis on that property. And even though sales are off from the peak, they are still pretty decent in both valuation and volume from a long term perspective. Also, this revenue stream includes commercial as well as residential so gotta look at that too – new tanks at the gas station? A face lift at the strip mall? A new medical office building? All that figures into the equation. Plus all that stuff that hasn’t changed hands in decades still gets the 2% bump each year, right?

The big “ah ha!” for me is how this is another crystal clear data point demonstrating that we have a spending problem and not a revenue problem. Pensions, corrections and schools are the areas where spending increases have been the greatest – and the citizens are not getting value for money in any of these areas. State Employee unions are driving it – basically holding the politicians hostage by threatening to block-vote them out of office unless they play along. Welcome to clientelismo third world government.

[jonnycsd]

This makes sense to me. Figure the revenue is driven by change in ownership triggering a higher tax basis – and there is also some new property too. The retired couple sells the SFR to move into a condo or assisted living place, and that may double or triple the tax basis on that property. And even though sales are off from the peak, they are still pretty decent in both valuation and volume from a long term perspective. Also, this revenue stream includes commercial as well as residential so gotta look at that too – new tanks at the gas station? A face lift at the strip mall? A new medical office building? All that figures into the equation. Plus all that stuff that hasn’t changed hands in decades still gets the 2% bump each year, right?

The big “ah ha!” for me is how this is another crystal clear data point demonstrating that we have a spending problem and not a revenue problem. Pensions, corrections and schools are the areas where spending increases have been the greatest – and the citizens are not getting value for money in any of these areas. State Employee unions are driving it – basically holding the politicians hostage by threatening to block-vote them out of office unless they play along. Welcome to clientelismo third world government.

[jonnycsd]

This makes sense to me. Figure the revenue is driven by change in ownership triggering a higher tax basis – and there is also some new property too. The retired couple sells the SFR to move into a condo or assisted living place, and that may double or triple the tax basis on that property. And even though sales are off from the peak, they are still pretty decent in both valuation and volume from a long term perspective. Also, this revenue stream includes commercial as well as residential so gotta look at that too – new tanks at the gas station? A face lift at the strip mall? A new medical office building? All that figures into the equation. Plus all that stuff that hasn’t changed hands in decades still gets the 2% bump each year, right?

The big “ah ha!” for me is how this is another crystal clear data point demonstrating that we have a spending problem and not a revenue problem. Pensions, corrections and schools are the areas where spending increases have been the greatest – and the citizens are not getting value for money in any of these areas. State Employee unions are driving it – basically holding the politicians hostage by threatening to block-vote them out of office unless they play along. Welcome to clientelismo third world government.

[jonnycsd]

This makes sense to me. Figure the revenue is driven by change in ownership triggering a higher tax basis – and there is also some new property too. The retired couple sells the SFR to move into a condo or assisted living place, and that may double or triple the tax basis on that property. And even though sales are off from the peak, they are still pretty decent in both valuation and volume from a long term perspective. Also, this revenue stream includes commercial as well as residential so gotta look at that too – new tanks at the gas station? A face lift at the strip mall? A new medical office building? All that figures into the equation. Plus all that stuff that hasn’t changed hands in decades still gets the 2% bump each year, right?

The big “ah ha!” for me is how this is another crystal clear data point demonstrating that we have a spending problem and not a revenue problem. Pensions, corrections and schools are the areas where spending increases have been the greatest – and the citizens are not getting value for money in any of these areas. State Employee unions are driving it – basically holding the politicians hostage by threatening to block-vote them out of office unless they play along. Welcome to clientelismo third world government.

[jonnycsd]

This makes sense to me. Figure the revenue is driven by change in ownership triggering a higher tax basis – and there is also some new property too. The retired couple sells the SFR to move into a condo or assisted living place, and that may double or triple the tax basis on that property. And even though sales are off from the peak, they are still pretty decent in both valuation and volume from a long term perspective. Also, this revenue stream includes commercial as well as residential so gotta look at that too – new tanks at the gas station? A face lift at the strip mall? A new medical office building? All that figures into the equation. Plus all that stuff that hasn’t changed hands in decades still gets the 2% bump each year, right?

The big “ah ha!” for me is how this is another crystal clear data point demonstrating that we have a spending problem and not a revenue problem. Pensions, corrections and schools are the areas where spending increases have been the greatest – and the citizens are not getting value for money in any of these areas. State Employee unions are driving it – basically holding the politicians hostage by threatening to block-vote them out of office unless they play along. Welcome to clientelismo third world government.

[jonnycsd]

IMHO both parties suck, though it is through no fault of thier own. Our governmental system was fundamentally damaged when the 16th amendment was ratified. Of course the damage wasn’t revealed until the Supreme court closed thier eyes to the 10th amendment in the 1960s. Repeal the 16th amendment and start enforcing the 10th and the country will right itself quickly. Until that day it really doesnt matter who the president is or who you vote for. K-street is calling the shots, all the rest is just whitewash.

[jonnycsd]

IMHO both parties suck, though it is through no fault of thier own. Our governmental system was fundamentally damaged when the 16th amendment was ratified. Of course the damage wasn’t revealed until the Supreme court closed thier eyes to the 10th amendment in the 1960s. Repeal the 16th amendment and start enforcing the 10th and the country will right itself quickly. Until that day it really doesnt matter who the president is or who you vote for. K-street is calling the shots, all the rest is just whitewash.

[jonnycsd]

IMHO both parties suck, though it is through no fault of thier own. Our governmental system was fundamentally damaged when the 16th amendment was ratified. Of course the damage wasn’t revealed until the Supreme court closed thier eyes to the 10th amendment in the 1960s. Repeal the 16th amendment and start enforcing the 10th and the country will right itself quickly. Until that day it really doesnt matter who the president is or who you vote for. K-street is calling the shots, all the rest is just whitewash.

[jonnycsd]

IMHO both parties suck, though it is through no fault of thier own. Our governmental system was fundamentally damaged when the 16th amendment was ratified. Of course the damage wasn’t revealed until the Supreme court closed thier eyes to the 10th amendment in the 1960s. Repeal the 16th amendment and start enforcing the 10th and the country will right itself quickly. Until that day it really doesnt matter who the president is or who you vote for. K-street is calling the shots, all the rest is just whitewash.

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