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Government is Coming - Watch Your Back

Government Bail-OutAugust 15, 2014 | by Steve McCurdy


The Coming Grab


Sovereign debt levels have been driven to unprecedented, insane levels in all the Western democracies by irresponsible political leaders. The cruel irony is that now there is only way out and only one group that can save these same reckless politicians. That one group, of course, is us, the productive, taxpaying citizens of these democracies.  Get prepared and keep one hand tightly over your back pocket, because your government has already begun coming after your money. Washington needs a bail-out.

 

Stealth Capital Controls


We have explained here and here how governments use capital controls to corral   and plunder private wealth in times of financial crisis. We have also explained that the state and the media will not refer to these measures as capital controls, but instead will call them by pleasant-sounding euphemisms that will appeal to your patriotism.
 
We’re writing today to let you know that the implementation of capital controls has already very quietly begun, under the radar as they say. At least three “stealth capital controls” have been quietly put into place already this year.
 
1) FATCA – The “Foreign Account Tax Compliance Act” became law on July 1, 2014. Among other things, this law imposes a literal blizzard of record-keeping and reporting regulations on all foreign banks and financial institutions that do business with Americans. In our article “IS FATCA A FINANCIAL WRECKING BALL,” we speculated on what the real motives behind the legislation might be. It is now obvious that its principal purpose is to discourage foreign banks from doing business with Americans, thereby making it more difficult for US investors to diversify politically by offshoring assets. The law is obviously working, as many major foreign banks will no longer accept deposits from American citizens.
 
2) Exit Fees on Treasury Bond Redemptions – The Federal Reserve knows that interest rates US Government Bondsinevitably will have to rise, and they know better than anyone when that will happen. When it does, bond prices will drop and bond investors will begin heading for the exits. Accordingly, to discourage a mass sell-off of Treasury bonds, Fed officials have asked financial regulators to impose special “exit fees” on bond funds ahead of the rate rise.
 
3) Exit Fees and or a Total Freeze on Money Market Funds – The Securities and Exchange Commission recently voted to impose new regulations on money market accounts. The most important of these regulations is one that encourages money market fund managers to impose a fee or to freeze assets “during times of stress,” and this includes both personal and institutional accounts. 
 

What Comes Next?   

 
As we have reported, there is a growing consensus among Western governments and central bank that ultimately, the only solution to the world’s deficit-laden economies is a one-off tax on private wealth.
 
How much money would the wealth tax have to generate in order to be effective? We don’t know at this point, but in the United States such a tax would have to generate about $12 trillion to reduce the national debt to 2001 levels. To give that number some perspective, total Treasury Department income tax revenues are approximately $3.5 trillion per annum, so a one-time wealth tax would have to generate proceeds equal to three and one-half years of income tax revenues.
 
Capital FlightWe believe that the three “stealth capital controls” explained above are preludes to a one-off wealth tax. They are designed to prevent “capital flight” by keeping private money where it is and by identifying all assets held abroad by American citizens. As all shepherds know, before you can shear the sheep you have to get them all in the pen.
 

What Can You Do?
 

It is clear that the US Government is moving toward additional capital controls and wealth confiscation. Given today’s political climate and economic environment, we believe both are approaching rapidly. But it’s your money, and you are not helpless. You are not without alternatives. We communicate regularly with experts in asset protection, offshore investing, secondary citizenships, and foreign real estate, and we will keep you constantly updated on what you can do as the saga unfolds. In order to ensure that your money is really yours, you must develop a workable Plan quickly. We will not be given advance warning when the government finally plays its hand, and it’s better to be a year early than a day late. 
 

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