Because Markets, Because Marxists
- Yesterday saw benchmark European TTF gas go negative(!) due to warm weather, which in no way means an end to the structural energy crisis.
- In China, stocks slumped, and Hong Kong stocks collapsed the most following a CCP Congress since 1994: the US Nasdaq Golden Dragon market went up in a puff of smoke.
Why can't we see the same tax trend around the world now tax cuts have been firmly rejected?
- There are whispers of tax audits of foreign companies
- Every Western democracy has property tax, wealth taxes, and inheritance taxes
- If you are already in a hole, why not stop digging and start to build a different growth model
Might we see the financial sector forced to lower its fees; narrow the spread between loan and deposit rates; cut staff salaries; downsize; and reduce the range of services offered?
- This would be hugely popular - as opposed to removing bankers' bonus caps and cutting top income tax rates.
- Banks would then be worse-placed to face a wave of bad loans from the property sector, so more state action would surely be required.
What markets-who-read-no-Marx are suddenly upset about can be reasonably construed as not being entirely unreasonable in the bigger picture
- The real problem is that not having read Marx means one does not know that while the Communist Party Manifesto advocates for progressive income tax, abolition of inheritances and private property, free education, nationalization of transport and communication, centralization of credit via a national bank, and expansion of publicly-owned land, these are not what Marx actually wants
- Marx wants a new state, including revolutionary and disintegrating elements
Global Implications
- Unlike the UK, markets will not Truss China up because Marxists are "because Marxists."
https://www.zerohedge.com/markets/markets-are-finally-grasping-china-marxist-state
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