About 1.25 million Americans would pay more in taxes next year if President Barack Obama’s latest plan is approved. The White House wants to allow taxes to rise for households making more than $250,000 by boosting the top marginal tax rates to 36 and 39.6 percent (currently, it’s 33 and 35 percent).
From GoldCore Gold Borrowing Costs Hit Post-Lehman High - Hong Kong Jewellers And Banks Face Supply Issues Gold is little changed near a one-week high, and is marginally higher in dollars as the dollar has retreated from a three-year high, and higher in most currencies.
In a quiet corner of Davos this week, Davide Serra (hedge fund manager) and Nouriel Roubini (doom-monger) laid out to the great and good attending just exactly what their puppet central-banking transmission channels were doing to our world.
By Russell Glaser
There are two major factors driving the value of the euro; interest rate differentials and the European debt crisis. At this stage, only the debt crisis is having an impact on forex trading.
For the past few years, many in the turnaround profession have warned that insolvency numbers should be far greater than the official figures indicated. They felt that companies were being kept alive artificially – propped up by banks’ lenience on repayment and low interest rates. Yet recently, a number of commentators have shifted their position on this, indicating that some companies once classed as ‘zombies’ were actually doing better than first thought.
The Fed's lucky streak of luring bond investors with low interest rates may be drawing to a close. Nevertheless, the extended period of low borrowing costs has bred a new breed of investor. To the bulls and bears, we can now add the ostriches - those who bury their heads in the sand of declining debt service ratios while refusing to face up to intractable levels of total US government debt. If these ostriches were to actually look at the numbers, they would realize that it is their investments which are made of sand.
Antonio Fatas submits:According to Paul Krugman, the euro is one of the main factors behind the crisis in Greece and other European countries. The fact that Greece (and Portugal, and Spain and Ireland) cannot devalue their currencies is having a negative impact on their growth which lowers tax revenues, increases government deficits and raises the possibility of default.