Last year’s warnings echo louder as M2 data forecasts inflation surge, dismissing deflation fears. In Florida, over half of renter households strain under excessive rent burdens. Brace for wealth erosion as Biden’s historic Capital Gains Tax proposal looms, while gold’s ascent prompts speculation of $3,000 per ounce.
In situations where the government runs record deficits and engages in significant money printing, tax hikes may be considered necessary to address fiscal imbalances and mitigate inflationary pressures. Increasing taxes can help reduce government borrowing and spending, thereby curbing inflationary pressures caused by excessive demand fueled by deficit spending. Additionally, higher taxes can also help offset the expansion of the money supply and prevent excessive inflation by reducing the amount of money available for consumption and investment. However, the decision to implement tax hikes is complex and must consider various economic factors, including the potential impact on economic growth and consumer purchasing power.
Pointed this out last year but reiterated it a month ago: those worried about deflation were (and are) dead wrong as monthly M2 is still set to return to growth for Apr; in fact, on a weekly basis, M2 is already up 0.3% Y/Y for Mar 25 and 0.8% Y/Y for Apr 1; inflation isn't over: t.co/1vt5eunpg5 pic.twitter.com/GOvKwmRZfa
— E.J. Antoni, Ph.D. (@RealEJAntoni) April 24, 2024
In Florida, 54% of renter households are cost-burdened, meaning that their rent expenses take up too much of their income, according to the Atlanta Fed's rental-affordability tracker.
— unusual_whales (@unusual_whales) April 24, 2024
Biden has proposed the HIGHEST Captial Gains Tax in more than 100 years: 44%!
Kiss your wealth GOOD BYE!
🚨🚨🚨 pic.twitter.com/8ioZmFDgVU
— Wall Street Silver (@WallStreetSilv) April 24, 2024
Analysts: Gold to $3,000 Per Ounce? Why Not $5,000?