Friday, August 12, 2011

A more sane view instead of 0 interest rates for the following two years

Message to the IRS, the U.S. Treasury, and to the Federal Reserve Board:

Here is some simple math that applies to lots of folks in the United States:



Income = I(t) = A(t) * ROA(t) (Assets and ROA)

A = A(t)(1 – RL(t) + ROA(t)) (Rate of Living and ROA)

ROA(t) = (SX(safe rate) + RY(risky rate))/(X + Y) (X and Y are % of assets in each)

RL(t) = CPI(t)*Z(A,C, t) where Z is a varying coefficient and a function of A, C = consumption, and time

Assume:

RL(t) is a positive number

SX = 0 because S = 0

RY(t) is as in P(1:1 gambling)

Then:

A ----> 0

Therefore I(t) ----> 0 and IRS revenue ----> 0


These facts are mathematically indisputable.

And the rest of the folks?

1. Those who live from taxes do not contribute to revenue
2. Those who do not have jobs do not contribute to revenue
3. Those who do have jobs are getting paid less and less in the deflationary outsourcing cycle so their contribution to revenue is declining and ----> 0


Fellas and Gals Somewhere in U.S. Financial Decision Making:

Your POR cannot work. Not only is it not working, it hasn’t worked and mathematically CANNOT and NEVER WILL work. Please review the above math and try to make a change in some of the variables you control in the above equations. Thank you.