Europe's investor exsanguination

Investors Check Out of Europe

This is the blue model in action.

"Investors are fleeing Europe.

Fund managers are pulling cash out of European equity and debt markets in response to concerns about the continent’s fractious politics, ultralow interest rates and weak banks, and relentless economic malaise.

Investors have sold exchange-traded funds tracking European shares for nearly 15 weeks—the longest stretch since 2008—according to UBS Group AG. Meanwhile, annual net outflows from eurozone bonds were running at over half a trillion euros as of the end of March, according to a Pictet Wealth Management analysis of data from the European Central Bank. That is happening as investors are turning away from Europe’s growing pool of negative-yielding debt.

The money is finding a home in places from U.S. Treasures to emerging economies, helping to push up prices in those markets."

The flight to security is a benefit, but we could do so much more.

The Plan

Reform the tax code eliminating the income tax, the corporate tax, the payroll tax, and the estate and gift tax. Impose a consumption tax, and enhance the EITC (OK so the poor who want EITC would still have to voluntarily fill out a simple Income Tax form, the rest would be forever free of the complex idiotic income tax) to make sure the poor are not hurt by the change. Lock it all up in requiring the people vote by a 50% margin to increase the consumption tax. 

Then the US would take not just the investors but the companies as well. 

The savings in preparation and planning alone would likely pay for any costs, and would certainly be a huge economic boost. The investors would come in droves, the companies would come in droves. 

Then all we would need to do is relax the web of regulations strangling businesses and the economic boom would be epic.

Or we can keep on doing the same o' same o' until the economy ossifies to a stop.