Friday, March 22, 2013


...of asset taxes for various EU countries in order to achieve compliance with debt/GDP figures.

This is the kind of thing that, if enacted, will have all kinds of unintended consequences (like asset holders effecting both the numerator and the denominator of the debt/GDP figure)

This is a good demonstration of a fatal flaw with most economic prescriptions.

Assets are NOT fungible items, merely differentiated by price, yield, and other internals.  They have unique features which includes a political and military matrix of influence.

So, when countries begin floating asset taxation directives, the assumption that investors will not steer clear of such assets in the present and future is hopelessly confused.

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