The New CS Board

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Higher taxes, interest rates are inevitable; ‘Things will get crazy’ – Gareth Soloway : https://www.kitco.com/news/2021-03-29/Higher-taxes-interest-rates-are-inevitable-Things-will-get-crazy-Gareth-Soloway.html

My Comment : So with rates rising (gold negative) due to higher inflation (gold positive), what happens to the POG ? One thing is certain: rates cannot be allowed to rise above 2% because it would bring down the economy. 10Y is currently at 1.74%.

Excerpt:
The question is, is the corporate tax rate going to go to 25%, or 28%,” Soloway said. “I’m also curious to hear what the long-term capital gains tax could be raised to. I think if we get a raise in the long-term cap gains let’s say starting in 2022, you could see major selling and profit taking into this year as well.”

Ultimately, the government will have no choice but to raise taxes and allow interest rates to run higher, Soloway said.

“I think it’s inevitable. The printing of money has got us in a situation where not only do you have to raise taxes to pay for this printing of money but you also create the inflation scenario where that interest rate is going to driven up because of it,” he said.