That’s a hard title not to like.  It’s the one used by Tom Evslin to describe why Bear Stearns went bankrupt

Tom’s got a lot of other great posts up recently like this one about stealth taxes.  Ah yes, why raise taxes when you can hide them?  And if you think this blog is all anti-government, check out this post about checks delivered to election workers.

Odd that Tom Evslin didn’t mention money supply increases as a stealth tax.  We just had one to the tune of $600 billion. 

A money supply increase is a tax on those already holding said currency, right?  Double the amount of currency and currency that you’re holding just got half as valuable.

If the USA owed China more than $1 trillion beforehand, well a 5% increase in money supply means we just taxed them 5% of that or $50 billion.  Nice money when you can get it.

Tags: Videos, China, Industry, Tom Evslin