Japan's Insane Tax-At-All-Costs Political Class

This will be my 800th posting on this blog. I think it is fitting that, after all that has happened, as through the short history of this blog, the economy of Japan and most western nations are close to collapse, as Japan's national debt is over 200% of GDP, as the US government has surpassed the legal limit on the debt ceiling for that nation and into de facto bankruptcy, as silver hits a new 31 year high to nearly $44 USD an ounce and gold is knocking at the door of $1500 dollars an ounce, that this 800th blog should be about taxes and the economy.

BEATLES CARTOON - TAXMAN

Once again, the news shows that our rulers never learn their lessons when it comes to taxation and debt. After the disastrous events of the last month starting on March 11th and continuing today, once again, the government of this country shows that their only answer to our financial problems is to raise taxes.

Jiji Press reports:

Tokyo, April 18 (Jiji Press)--Japan is considering raising the consumption tax by 3 percentage points for a limited period of some three years to secure funds to rebuild areas devastated by the March 11 earthquake and tsunami, officials said Monday.

   Japan will be able to secure 7.5 trillion in annual tax revenue by raising the tax rate to 8 pct from 5 pct, government and Democratic Party of Japan officials said.

   The nation is preparing the first supplementary budget for fiscal 2011 with the spending amount of some 4 trillion yen. The budget will be covered without new debt issuance.

   Tokyo is likely to compile more budgets for the current year, as many in the government and the ruling party believe that more than 10 trillion yen should be spent in total on the reconstruction of the disaster-devastated areas.

   To finance the second and later budgets, the government will issue reconstruction bonds. Many think that the revenue from the envisioned tax hike should be used entirely to redeem the reconstruction bonds, the officials said.

It says in the first paragraph, "Japan is considering raising the consumption tax by 3 percentage points for a limited period of some three years..." Sure. Only three years, right? And after that, we're supposed to believe that the Japanese government will have their financial house in such good order and fine shape that they can cut taxes? What planet are these people living on? Has the Japanese government ever cut taxes? How, pray tell, are they supposed to be able to do that when the economy is so bad and, as I mentioned, our public debt has surpassed 200% of GDP?

History also shows us what happens when sales taxes are raised. There will be a correlating drop in sales equal to the percentage of the sales tax; raise taxes by three percent and sales will drop by three percent. And who winds up paying for this kind of sales tax hike? Not the ultra-rich or corporations who have all sorts built-in tax advantages. The rich only have to spend a few percentage points of their income for basic foodstuffs. The average middle class household is spending 15~25% or more just for survival. Hit them with a sales tax increase and you hit them below the belt. 

The good example goes like this: Say, average millionaire wants to buy a new yacht? No problem. It's needed to entertain guest so it is a business and tax write-off. But, say, the single mother with a two kids whose husband has run off and doesn't pay any alimony, is not buying yachts and diamond necklaces, she is scrimping and saving to buy milk, eggs and rice. and the basics she needs to survive.

A 3% hike in her grocery bill hits hard. 

The average household is is also expected to carry the burden of massive public debt created by the government. It is this government who arbitrarily decides to tax one class of poor people to give to another class of poor people (in this case, the average Japanese family gets taxed to pay for the suffering and reconstruction of the poor who suffered in the Tohoku disaster) all the while the government takes a margin for delivering these services and gives no-bid reconstruction contracts to their cronies.

Nikkei 225 at ¥9441 on April 19, 2011

The economy is already in desperate shape. Japan's credit rating has been downgraded in the last year and the Nikkei 225 is wheezing away at under 9,500 (it is at 1/4 the amount it was at the height of the bubble economy) and it has also been reported that 15.7% of Japan's population now live below the poverty level. Think about that. 

And, with all of that, with all of this suffering and misery caused by badly thought out government policies, these people want to raise taxes? They must be completely insane.


Japan owns trillions of dollars in US government bonds that were bought with tax monies taken from the public. The value of these bonds have lost some 40% over these last 10 years due to the rapid decline of the US dollar, yet, even with this, the Japanese government has painted Japan into a corner whereby we cannot unload this debt without causing a quick rise in the yen and hurting Japan's export economy.

Silver & gold price explosion is flashing warning signs about the economy

Gold breaks new record to $1503 the day of the posting of this article

Not only that, at least twice in the last 365 days, Japan (and most recently foreign central banks) has intervened in the dollar x yen rate and flushed billion of yen (billions of US dollars) in foolish attempts (that haven't worked) in order to lower the value of then yen.


The fact of the matter is that, for reconstruction, as Peter Schiff points out, Japan should want a stronger yen as that would make our buying of oil and raw materials as well as other items needed to rebuild the ravaged areas cheaper.


But, no! As usual, when it comes to doing something about the economy, the government cannot admit its errors and try to strip them away. As is the case now, and has always been the case, the government of Japan's answer to financial problems is not to cut spending or to sell poorly valued and foolishly bought US government backed securities (that lose value every day), but the answer is, and always will be to spend and raise taxes.


That is why our economy has been so messed up for this last 20 years and that's why is is so easily predictable that our economy will be messed up for at least the next decade or more as Mish Shedlock so skillfully points out.


The politicians who live on dead and proven failure Keynesian economic policies are leading this country down the road to ruin. It will be soon enough, at this rate, that Japan will be like the Philippines. Throw this situation in with how the youth of this country have no where near the dedicated and hard work ethics of their fathers and grandfathers and you have a chemistry that spells out for a very grim economic future indeed


When we look back at what happened in twenty years from now, we'll not be surprised for a second that Japan will be jokingly referred to as the Northern Philippine archipelago. 

More on Japan's Debt Bomb

In a follow up to my last post, about Japan's debt and S&P cutting Japan's credit rating, my good friend Ira Hata, sent this to me:

Here are comments on the Euro, Yen and potential bullish consequences for the US equity markets for the first half of 2011.
  

While there is serious resistance near 138 & then 140 – 142, the Euro according to the chart below could be ready for more upside in 2011 which should be supportive to US stock market 1st half 2011


As things now stand a rising WLI, growing M2 money supply growth rate, QE2 in full force, and fiscal spending from past packages kicking in, all suggest staying with the trend and buying any market dips. To be a bear right here you would have to be fighting both the Fed and Uncle Sam (fiscal and monetary stimulus) and completely ignoring the message of the markets  … the bull case for the next few months could strengthen even further with another development, subsiding of the euro debt crisis

Thus, if this exchange rate breaks out the bears will have to take a back seat, AGAIN!

What’s changed in Europe?

In reality, there are still clear sovereign debt issues to worry about in Europe, however, a global coalition is moving to support European debt that is lifting their credit markets. Things first began to turn when China and Japan decided to step in the ring and buy European debt, but momentum is building as other Asian countries are looking to do the same. This mutually beneficial decision helps Asian markets particularly by cheapening their currencies and bidding up the Euro to help their export-driven economies.

 

Euro could stay strong and or Yen could weaken… 

From Bloomberg:

Japan's Credit Rating Cut to AA- by S&P on Debt Load

The yen and bond futures fell on concern the downgrade will push up the cost of borrowing for Japan, where public debt is about twice the size of gross domestic product. Vice Finance Minister Fumihiko Igarashi this week said the government must fix its finances to avoid a debt crisis that could trigger a “global depression.”  …  economist at BNP Paribas in Tokyo. “Once bond yields spike and the fire is lit, the amount needed to finance Japan’s borrowing needs is going to jump and it’s going to be too late.” …  Japan joins developed economies including Portugal and Spainin being downgraded.    Debt to GDP: Japan’s burden exceeds 200 percent … (estimated that China’s ratio of debt to GDP would be 20 percent in 2010)
AA-  is the third-highest grade

Some people have asked why this is so important now as Japan has been getting away with kicking the can down the road for the last twenty year. For a very interesting explanation on that, watch the video below. This video was created originally to promote AGW, but It explains the concept of exponential growth in a very simple and easy to understand way. If you can understand this concept - and the Rule of 70 - then you will understand why Japan's credit rating getting worse and a few points increase in borrowing is a very big deal for Japan.





Thanks to Mish Shedlock for the video

Japan's Debt Bomb Explosion! Fuse is Getting VERY Short!

I warned you about this in a post just a few weeks ago and now it has happened! Read here, here, here and here. Actually, even I didn't expect this to happen so son, but here we are! Japan's Credit Rating has been cut for the first time in 9 years! 


As Bloomberg reports:


Japan’s credit rating was cut for the first time in nine years by Standard & Poor’s as persistent deflation and political gridlock undermine efforts to reduce a 943 trillion yen ($11 trillion) debt burden.

The world’s most indebted nation is now ranked at AA-, the fourth-highest level, putting the country on a par with China, which likely passed Japan last year to become the second-largest economy. The government lacks a “coherent strategy” to address the nation’s debt, the rating company said in a statement. The outlook for the rating is stable, S&P said.

The yen and bond futures fell on concern the downgrade will push up the cost of borrowing for Japan, where public debt is about twice the size of gross domestic product. Vice Finance Minister Fumihiko Igarashi this week said the government must fix its finances to avoid a debt crisis that could trigger a “global depression.”

“I hope this serves as a warning for the government, they have absolutely no sense of crisis,” said Azusa Kato, an economist at BNP Paribas in Tokyo. “Once bond yields spike and the fire is lit, the amount needed to finance Japan’s borrowing needs is going to jump and it’s going to be too late.”

It is possible for companies to have higher ratings than the local or foreign currency ratings of their home country, S&P said in a May 2009 report. The best candidates have a robust export base, little reliance on the public sector and sell products with “relatively inelastic” demand. The S&P report said businesses with sales mainly in local currency, subject to regulation and heavily dependent on imports probably won’t pass stress tests without “heavy overcollateralization or reserves.”

Finance Minister Yoshihiko Noda said Jan. 24 the debt burden has risen to a point where Japan can’t rely on bond sales to cover revenue shortfalls. Economy Minister Yosano warned the same day that such a reliance on such sales could lead to a jump in borrowing costs.

“If we continue relying on bond sales to make up for spending that exceeds revenue, we could see long-term interest rates increase or a deterioration in our debt ratio, causing Japan to lose credibility globally,” Yosano told parliament.

Japan’s borrowing costs are among the lowest in the industrialized world, helping it fund its debt load. The yield on the benchmark 10-year bond slipped 1 basis point to 1.23 percent as of 10:47 p.m. in Tokyo. It touched 1.26 percent in Jan. 19, the highest since Dec. 16.


With this news, interest rates on Japanese debt start creeping up again. 2011 ~ 2012 the year's Japan finally goes bankrupt? We've been avoiding the bullet for so long. But, it is well known that things that cannot continue will stop. 


Gold and silver has been dropping a bit recently, now is the time to start protecting yourselves and your families finances. 


Thanks to Mish Shedlock

Japan's Economists Have Lost Their Minds... Fortune Tellers Haven't...

Students of Austrian economics and those who realize that the current fiat-based money system built on debt and credit is now headed for the end game.


There is not much time left for people to protect their assets and families by divesting out of fiat currency based investments and into commodities and real assets like gold, silver, oil - and, possibly land. This is a well understood trend in the west (unless, of course you are a Keynesian economist or from the Chicago school).

The fast rising price of gold and silver over these last ten years are the proverbial canary in the coalmine. Gold and silver have stupendously outstripped stocks in performance over this time. In fact, silver increased in value over 85% in 2010 alone.


But now, some clowns in Japan are predicting a return to the bubble days of the late 1980's. In fact, they write as if the bubble is a good thing.... 


Japan Times reports:


Remember the bubble? In case you don't, Shukan Gendai (Dec. 20) reminds us that the economic bubble of the late 1980s was an era of rocketing salaries, stock prices and property values, yet accompanied by little inflation. Wealth was seen everywhere. Catching a cab downtown at night required flashing a ¥10,000 bribe at the driver just to get him to stop.

Over 20 years later, the bubble era seems like a wonderful, distant dream. However, 2011 could well be different. According to the weekly, Japan is now on the verge of a new economic bubble for the 21st century.

Some of the major economic indicators already are showing strong promise as we begin the new year. As this story was going to print, the stock markets were climbing, the dollar strengthening, and the price of gold, a favorite asset in bad times, falling.

That last sentence is a real laffer. Gold is falling? Oh really? 10 years ago, gold was $300 (USD) and ounce. Last time I looked (about 5 seconds ago) it was $1,361!

Sorry, but gold, like any other asset has up days and down days... Saying that the price of gold is falling because it has gone down a few percent over this last 10 days is hardly responsible reporting... Gold, as with any other asset, trends are not judged over a few days or weeks.

This writer, obviously not schooled in Austrian economics, doesn't understand cause and effect. The article continues:

On the home front, more money will flow into the equity markets, nudging stock prices higher. That would be thanks in part to a likely 5 percent cut in the corporate tax rate, leaving Japanese companies with more money to invest, Nobuyuki Fujimoto, an executive at Traders Securities Co., Ltd., tells the magazine.

As for the overseas factors, the U.S. Federal Reserve has already been playing the central role. Through its quantitative easing, the Fed is flooding the world with dollars. All that money has to go somewhere, and one favorite spot is Japan, thanks to its relative stability.

"Since the Lehman Shock, a huge amount of quantitative easing has been under way in order to restore the U.S. economy. The global economy is in a state of 'excessive money.' That money has been circulating, including flowing into Japan," says an executive at a major brokerage that the magazine does not identify.

The inflows are already happening, with foreign investors reportedly returning to Japan in search of decent returns after a long absence.

"Data tells us that from November, overseas investors suddenly started buying Japanese stocks. The world is paying attention to Japan's stock markets," the brokerage executive says.

Yes, the Central bankers are all printing money as fast as they can. That money has to go somewhere. Japan has benefitted from the Carry Trade all these years. But with US rates at zero too, the yen carry trade is no longer so attractive. The solution? Buy undervalued Japanese stocks and land. That's what the foeigners are doing.

Japan has benefitted because of bad situations in the USA and the Eurozone... But with Japanese debt surpassing 200% of GDP... This situation will probably end, in a crisis for Japan, this year... Then you'll see everyone run for the exits. (Here is a related article showing Japan's gross debt at 226% of GDP here and here is another article with data from the Wall Street Journal talking about the coming crash of the Japanese Yen. 

Problem is that this fiat currency they are using is quickly losing it's value. What actually is happening is that the west is trying to export its inflation to Japan. 

Hardly a good situation for the Japanese people. 

But, then again, when you are so desperate for some good economic signs, even reading the stars becomes "data." The article continues:

Shukan Economist (Jan. 11), usually a buttoned-down, rational publication, begins its issue by turning to the Chinese zodiac as a guide for how Tokyo stocks will perform this year.

Its article is titled, "A good omen for Japanese stock prices through the zodiac's leaping year of the rabbit." Astrology portends a profitable year ahead, the magazine says. This is the year of the rabbit, after all, and rabbits like to jump. The magazine figures stock prices will jump as well. A data chart purports to show a strong correlation between the animals of the year since 1949 and the historical performance of the Tokyo Stock Market. 

Well, perhaps using a fortune teller to predict the market is strange, but I'll be these fortune tellers were just as right or wrong as main stream economists and writers who failed to predict the 2008 market crash and wrote about how strong our market fundamentals were back than. Chuckle!

This bizarre idea that the bubble was a good thing and its return should be hailed as good news defies logic. Then the writer adds another weird comment that is another total head-scratcher:

Maybe it's too early to bring out the vintage champagne, gold-flake sake and other iconic treats of the late '80s. But after a couple of decades of economic stagnation, even modest signs of growth are worth getting excited about.

Sorry, but two decades of money printing and Japanese stimulus should show anyone that more money printing and stimulus are not the answer to our problems. They certainly do not mean the economy is improving.

If printing money and giving it away did improve the economy, then why would anyof us have to work? Why not just print and print and print and give it all away! We'll all be rich, right? The government can print to its heart's content to pay it bills, right? Wrong.

The bubble of the 80's were good times living on borrowed money. That's why is is called a "bubble" (a "bubble" means artificial growth)  When the bubble burst, the party ended. We've been paying for that party for the last 20 years.... Trust we are still going to be paying for it this year and for the foreseeable future...

Mr. Japan Times writer, if you think living in a bubble situation is good, and that this sort of fake economy means that the real economy is good, then I have a suggestion for you: You can live just like the bubble days! You have a credit card, right? What's to stop you from spending and spending like the 1980's today?... Nothing...

Well, nothing except that you will have to pay for those charges on your credit card and those excesses tomorrow. As it is with the individual, so it goes for the state.

Welcome to economics 101 and the real world.

Debt! Which is Worse Off Japan or USA Part II

In a former blog, the question was asked, "Which is worse off, the USA or Japan, when it comes to debt?"

I asked my friend and world famous investment advisor Mish Shedlock about it and he graciously replied:

Japan is worse off - Their problem hits first (Japan already has debt at 190% of GDP - USA debt 87.6% as of May 15, 2010). Also Japan is much worse off because of demographics – a much older population... Timing is the key! The USA actually has some time to do something (even if we know they won’t) 


Now, Japan expert Marc Abela (who is running the Mises Institute site in Japan chimes in:

Mish is unfortunately wrong (IMHO) this time around (as in "180 degrees" wrong) on the situation if his conclusion is that "Japan is worse off" (note that I only agree with Mish's viewpoint "once in a while"... I also tend to disagree with him with respect to his approach to the "deflation/inflation" argument as well). But I have a tremendous amount of respect for his work so far.

To lay it out like it is:

The company called the "Japanese government" has debt of up to 200% times that of the company called the "Japanese economy" (GDP) but the "Japanese economy" (i.e. Japan as a country) in aggregate still has plenty of savings (both in local and foreign denominated assets).

Now the company called the "USA government" located within the USA feeding (as in "parasiting" - just like any "government" does) on the company called the "USA economy" has a debt of up to 100% of the country's overall GDP but:

Point 1. 100% of that US debt has been borrowed from abroad - mostly because the local domestic pool of savings has been completely (totally) depleted years ago.

Point 2. 100% of the debt in the USA is very short term (3 months? 6 months? type of material) - a lot shorter than in most countries (even some in Europe believe it or not).

Point 3. Finally most of the GDP numbers in the US (up until last year at least) were comprising of mostly consumption and not much investment (70% versus 30%) where as in Japan the situation is still closer to a 60/40 ratio (if not even better than that? it was even better than that in China a few years ago - don't have the latest data for both countries).

Now let us put things in perspective because a lot of people tend to repeat what most bankers seem to get wrong... regarding...

Point 1: put simply, imagine I (USA) had borrowed from YOUR parents 100% of my $50,000 early salary, and you (JAPAN), had borrowed 200% of your $50,000 early salary from YOUR parents (Japanese citizens). Most wannabe bankers today would argue that "well, 200% versus 100% - Japan is clearly in worse shape". But if your parents still have plenty (loads) of savings (Japan) then YOU can still fuss around quite a bit - while I have to cross fingers that your parents (for mine are totally broke - and my parents already owe your parents as well some amount!) will keep on lending "me" more money (for I borrow from "abroad" - just like the USA does today). As a result JAPAN is in a much better position due to its massive amount of savings (both in domestic/foreign currencies) and local financing of the government debt.

Point 2: Also, time frame, very subtle but quite important, imagine I owe you $500,000 and I promised you the cash "all of it" for next week latest I swear to god - this gives me only 7 days to find the money. The chances I default on that debt are 100% (unless I print my way out of it and get my printer going 24/7 in an attempt to dilute my current pool of paper fiat IOU/promises). On the other hand if I owe you $1,000,000 but I have 10 years to find it then sure, I'm still stuck, but "stuff" can somewhat still happen. The debt in the USA is just like the ARM loans banks were providing to sub-primers, it's in a great proportion "short-term" material - waiting to reset big time in a few weeks? in a few months? As a result the company called the "JAPANESE government" is still somewhat better off - even though it's just a matter of "time".

Point 3: Finally, if I borrow $10,000 from you each year and yearly 70% of that money is spent in me partying building myself pools traveling getting me some plasma TVs and new imported SUVs - chances 10 years later I reimburse and make good on all the money are usually slim. On the other hand if I borrow the same $10,000 from you each year and I only spend yearly 60% on the same kind of stuff - this means I have "invested" what's left 40% like Japan has (which is a 33% increase when compared to just 30% like in the US) by building nets to fish and/or factories towards building "productive" assets, then this usually means I'm still more likely to reimburse my debt. As a result even in point 3, JAPAN is still better off.

As a result, because of 1. mostly foreign borrowing, 2. very short term borrowing, 3. quite poor GDP "I/C" ratio, the USA is in much worse shape than Japan whatever matrix you use - even though yes, sure, just saying "200% versus 100%" may be quite misleading. The USA has today no other option but to print it's way out - unless it finds more suckers (central banks around the world?) to borrow from in an attempt to postpone facing the issue. Wait. Not only that - the above problem was the problem we had "before" 2008, while we still had Bush and Greenspan in office - i.e. we had this problem already while having (supposedly?) a limited republic on our side (ouch) and Ayn Rand's reasoning with us from Greenspan's school (ahem). Now that we have Obama and Bernanke with us - the sky is the limit to the hanabi we can get. Not that I particularly like the combo "Kan/Shirakawa" of course...

.... If the USD drops more and more heavily and faster every month (to 70? 60? 50? 40?) while burping here and there with tiny cardiac surges faking up in the upcoming weeks/months we'll know who was right (Mish or Me)... Now both currencies will drop when compared to commodities that are fixed in volume - so GOLD should rise versus both (all) paper currencies. But assuming GOLD is the non-moving line - one car will be feeling as if it is going backwards much faster than the other one..
.

NOTE! I do not exclude the possibility of "international bullying". This means - I do not exclude the eventuality where the US would simply use its "force/power/army" to keep having Japanese continue lending "more and more" money to the USA (and I do not exclude also corrupted Japanese politicians from accepting this as a temporary solution to kick the can further down the road) - but the more we wait to resolve the current imbalance the more the end result scenario will hit a harder wall.

Japan has been doing everything it could to prevent the USD from losing value over the past 24 months - and I keep insisting, they can't do anything, but most bankers just keep on telling me no Marc you'll see one USD will be worth 110 JPY in a week. Still waiting I am - cares to reply the Yoda in me... :)

Note finally that the more Japan throws their good savings after US consumer debt the heavier the USD will fall the day JAPAN runs totally out of savings. We're witnessing the very first interplanetary "vendor financing" in history. And just like all good "vendor financing" stories - they usually do not end very well. I'll take anyone on the above three points... anytime...

Debt! Who is Better Off? Japan or USA?

By Mike in Tokyo Rogers


When it comes to public debt and the coming economic turmoil, who is better off Japan, or the USA?


I received a letter from a friend who asked me this question. It read;


Just a quick question. When it comes to debt, I wonder which is really worse off. I read somewhere that Japan's debt basically comes from the Japanese public, where as the US debt is from various countries. Therefore, when analyzed who is worse off?  (Sic)


My answer: Thanks for the question. But, please do not get the debt issue confused. Japan's debt is not "from" the Japanese public. Nor is USA debt "from" various countries. The debt is Japanese or USA government created. The governments created this debt through public spending on projects, war and social welfare with money they do not have. 


Remember that the government does not have any money.  The government can only take money from business and the public by borrowing it or taxing the people (they can also print and debase the currency which is a backdoor tax on the public)... Later, someone has to pay back this debt.. In the case of Japan, the public bought the debt as investments... In the case of the USA, foreign governments have bought the debt as investments...


Regardless of the confusion as to who created this debt, I understand the basic question and think it is a great one.  Instead of me just making my remarks I decided to ask someone who I definitely look up to for advice when it comes to this kind of subject and that is my friend, Mike "Mish" Shedlock. Mish Shedlock runs one of the most-read economic blogs in the world and is a registered investment advisor representative for SitkaPacific Capital Management.


I slightly rewrote the question to Mike:


When it comes to debt, I wonder which is really worse off; the USA or Japan? Japan's debt is basically held by the Japanese public, where as the US debt is owned by China, Japan, Saudi Arabia, etc... (various countries).  Therefore, when analyzed, who are worse off? The average Japanese or the average American? 


Mike's answer: 

Japan is worse off - Their problem hits first (Japan already has debt at 190% of GDP - USA debt 87.6% as of May 15, 2010). Also Japan is much worse off because of demographics – a much older population... Timing is the key! The USA actually has some time to do something (even if we know they won’t) 

Me: To sum up; the USA is better off than Japan, for now, because Japan's debt percentage to GDP NOW is larger and because the percentage of the Japanese population that is no longer in the workforce is larger.  

Another person wrote and asked me "What should we do?" Now, that's a great question too! (realize that most people still, to this day, are not thinking about one or two years into the future when this entire situation is really going to start hitting home).

I answered:  

So, what do I recommend? Get out of debt, live within your means... Fight anyway that you can government spending and increased taxation. Get the government warfare and welfare state off our backs. Allow the free market to shake out the sick parts of our economy...

Own gold and silver and oil. Try to become self-employed or to start your own business for tax purposes.


If you want good advice on this subject... I suggest reading Mish Shedlock everyday! http://globaleconomicanalysis.blogspot.com/

Keywords: Mish, public debt, USA,