Ty Andros, of Traderview, joins us again this week to review the current global economic events. The head of the European Central Bank has started telling the truth, and the world might never be the same. Socialism just isn’t working out like the brilliant architects of the collectivist scheme planned. In fact, they’re collapsing faster than anyone ever thought possible. Europe and the US must eliminate needless regulations and cut taxes to unleash the private sector.
Tax increases, like those in the UK, have not yielded the tax revenues that were anticipated. Increased taxation on the rich never works because the wealthy can determine when and if they are going to recognize income and how much taxes they will pay. The system has been designed to accomplish this end, and it has been very effective. There is no way redistributive systems will ever succeed. Therefore, the best thing the government can do is get out of the way and allow the free market to enrich all of society. Capitalism has always worked this way, and it always will.
During our chat, Ty also questioned the use of Greece’s gold reserves in an effort to collateralize new loans. When Greece ultimately defaults, this will leave the country completely impoverished, and it will result in years of impoverishment to the population. Ty fears the US’s gold is gone or has long since been sold off. We hope his opinion is incorrect, but we’ve seen far too many governmental schemes to think otherwise. But at some point, we will all learn the truth.
Please fill out the subscription box on KerryLutz.com to receive your free Financial Survival Toolkit.