A government is indebted continually.



Suppose we want to buy bonds or anything that the government issues as a form of investment and savings to buy a car. It is almost a robbery that someone who asks for money (bonds of any kind letters), in the end then you end up charging VAT, gross income, and income tax indirectly if we add 33% + 21% + 8% = 62% . Giving you 27% to 35% of TNA in the best cases, suppose 30% the government is staying with 32% and also you are the one who lends the money.
But that is inevitable, no matter how much you deposit the money in another bank the% VAT and income tax will be.
For some reason the economies of other countries can operate with low levels of taxes, both of VAT and income tax.
This 30% versus 62% of those who did not lend money to the government generates a clear tendency to save, in this way, what makes the investments in the private sector are minimal.
Obviously in the face of this favorable situation of finding a reliable investment that emits the government, occupies a significant portion of the current assets, then obtaining investments for the entrepreneurs is totally difficult. Always the amount for investments will have to be from banks, but at rates much higher than what the government asks for, This makes the profitability of any company, accustomed to evaluate the projects with the financial assets valuation system ( CAPM) are always counted the interest rate on US treasury bonds, the average rate of more than 60 years is 5% but is currently 2.5% or half, which indicates that the US does not need to borrow .
A government needs to cover the expenses necessary to make investments, and to fulfill current accounts, which are the salaries of public employees, education, health and security, as well as all bureaucratic sectors such as justice and the salaries of politicians.
In an inflationary scenario, the government must be abolished in order to cover growing budgets. But how does inflation stop?
What is inflation and how does it arise?

To study the inflationary phenomenon, or the devaluation of the currency we can study it in a closed market. If no new money is generated How can inflation exist?

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