MODIFIED COMMUNISM IS A SUPERIOR ECONOMIC POLICY, AS LONG AS INTEREST RATES ARE LOW!

By Mikkel Roland Egesberg – BusinessDaily.eu – I have a headage right now, but I will probably present my economic theory here later on…

Point is instead of putting taxes, T, on private consumption, C, where Government spending, G, equals taxes, G=T, a government should lower taxes to 0%, and live on borrowed money, sort of like an Investment bank! The Only government tax I like is VAT, VALUE ADDED TAX! According to my calculations it should be on 100%, meaning VAT=100%. All VAT from FOOD should be given to the farmers to subsidize thier investments, this way if there is a food shortage, the problem would be less, because Foreigners cant just steal the food at low costs, without giving back a 100% extra to the farmers investments in new technology and equipment, I! This way the Citizens will still have their own money, which they can use as they please, they won’t have problems with income TAX, and TAX fillings, they wont have to pay company taxes, other than VAT=100%, and the goverment should make all investments it can, where their profit equals or surpass interests rates on the money it borrows from Government bonds! Borders should be closed, there should be Tariffs and Duties on imports (I)

(remember that GDP=C+I+G+X-M, so exports actually increase GDP, so it would not be wise to tax exports,X. except perhaps on raw materials, perhaps such as wood or oil, that are hard to replenish – perhaps there should be capital restrictions, so National Wealth is not trapped in USA, like Chinas Wealth…USA runs a huge trade deficit, and since NX=S-I (trade balance equals savings minus investments), it means USA does not save enough to finance its own investments and would have to borrow from Denmark, Germany or others to cover their huge investments and this is how it should be for Denmark optimally, why because you can increase you GDP with investments, I, paid by foreigners, with a National Profit as long as the interests we borrow at is lower that our profit! BORROWING IS GOOD FOR THE STATE and should be motivated, and National Money should be kept National so they dont end up on some other country’s tradedefecit, meaning we finance their investments! Also remember that M*V=P*Y, many economists will tell you that its the M you have to look at is M0, there is M0,M1,M2,M3, with M3 being the broadest, the one including eurodollars, meaing US dollars abroad, outside the USA…so too it is for euroeyen, Japaneese Yen located outside Japan, which is bad for a economy since Money times Velocity, M*V equals Goods and services times Prices, the more wealth a country can absorb, the wealtheir it becomes, so you wanna look at own money stored Nationally, plus all Eurocurrencies from abroad that is in a Natinal Economy, that, times Velocity,V, is the Wealth of Nations!) – By Mikkel Roland Egesberg – BusinessDaily.eu