Tuesday, April 30, 2024

Beware of 2025

 

Hiding Money Matress

QUESTION: Hi Martin, What are you thoughts on holding cash into 2028? You said cash was king, but there would come a time to abandon cash. It seems this CBDC thing is what you are talking about. Do you have any time yet?

See you in London

Kind regards,

HF

ANSWER: Europeans are much more familiar with canceling currency. Those governments are much more Marxist and have been canceling currencies routinely since WWII. What happens is you are forced to bring your cash in to swap it for the new version. In this case, it will be digital. What they are going to do is then look to see who accumulated that cash. If it is a large chunk, you may be taxed, and the burden will be on you to PROVE you paid the cash.

You are better off swapping it out for gold, stocks, and even real estate outside of the Blue States and generally cities. As people migrate from those regions, the people left behind will have their taxes increased. California is the #1 state people are leaving. They have noticed, and as I have been warning, you should have got the hell out of that God-forsaken state. They are now imposing an EXIT tax to leave. The downside of real estate is that they impose a property tax on it annually. Some states include even your car. People I know used to have Ferraris no longer because they paid a sales tax to buy it, and then you are taxed on the price you paid for it annually as property tax. If you keep the car for 10 years and it depreciates, the taxes you pay just to have it will consume half the price of the car or more.

We are through the COVID crisis when it was wise to hold the case. Now, you do not want to hold cash into 2028. We are facing STAGFLATION, so inflation will rise faster than GDP. Thus, the purchasing power of cash will decline. Then, when they do the CBDC, which they plan to introduce as soon as January 2025, they will cancel all cash, force you to bring it to the bank, and report how much you had to the IRS.

Don’t Come to Norway – Taxing Our Way into 2032

 

Norway Y Combined 4 28 24

In 2021, the Extreme Left Labour Government seized power in Norway, overthrowing the eight years of Conservative rule. Labour won 48 of the 169 parliamentary seats, one less than in 2017, but the Conservatives lost nine seats and were left with only 36. We can see that 2021 was low for the US dollar after COVID against the Norway Krone, and ever since the leftists seized power, they have been steering Norway in that direction where all Marxist regimes have died violently and inevitably.

Berlin Wall Falls

All leftist governments impose their will to crush any individualism. They are obsessed with someone who has more than they do. Every leftist government ends in utter disaster. They reduce the standard of living and inevitably drive the most talented people out of their domain. Every Marxist government, from Russia to China, has committed suicide by suppressing innovation, and the most talented people will always seek to leave. In the case of Communism, they built the Berlin Wall in 1961 to prevent people from fleeing. These LEFTIST governments are now moving to impose an EXIT tax if you seek to leave their depressing economic domains. Human nature will ALWAYS prevail, and this is why every single government that has abused its power and then tried to prevent people from leaving with EXIT TAXES or a version of the Berlin Wall crumbled to dust and is all buried in a common grave by history.

Marx ten commandments socialism

The Bible is a very interesting historical document. Socialism violates the Ten Commandments, and I am shocked that nobody has challenged this progressiveness of taxation as a violation of their religious beliefs. This very reason this prohibition against LEFTIST political agendas is in the Ten Commandments is because human nature has never changed, and such LEFTIST experiments have been tried for thousands of years and have always failed.

Sparta Coinage Spears

Communism first appeared in historical records back in Ancient Greece. This was a classic battle, like our modern Cold War. Athens was a capitalistic system that had its own internal battle between the Oligarchy and Democracy, which we still have today. Sparta was a communist state, so much so that it NEVER adopted coinage, and these spits were maintained to PREVENT people from hoarding wealth—sound familiar with electronic money and canceling currencies? The Spartan system was based on the idea that the collective came before the individual. This is the cornerstone of all LEFTIST regimes.

Corinth Staters 5th-4th century

Marx believed Communism would prevail because Sparta defeated Athens in 404 BC. However, Sparta was in league with its neighbors, especially Corinth, whose coinage competed with Athens in trade. So Sparta was the Communist state, but it was aided by other capitalistic cities to knock out the financial capital of the world so they could replace it.

Philip II AR Tetradram Mint State

This division eventually led to the opening of the door for the northern Macedonians to take all of Greece under Philip II (359-336BC) and his son Alexander the Great. This Cold War between effectively Spartan Communism and Athenian Capitalism weakened Greece and allowed them to be conquered by Macedonia, which was not originally part of Greece.

To be a Spartan citizen, one had to undertake the Agoge’s rigorous military education. Only those who had completed their education in the Agoge were entitled to be citizens. The criteria for a Spartan citizen were very high. While the system ensured that the Spartans were well-trained warriors, it also led to problems replacing those who died in battle. To be a citizen, the Spartan had to pay his way into the agoge, such as supply his armor. The economic burden upon the common people was its undoing. Lacking a flourishing economy because people were steered into the military for the state, it sealed its fate with a gradually declining economic base. With the rising costs over time, fewer and fewer people could afford to pay their way into agoge.

Sparta emerged victorious during the Peloponnesian War in 404 BC, and by 400 BC, it had replaced Athens as the greatest military power in the Greek world. However, it neither contributed to the economy no less art and creativity. Then, in 371 BC, in just about 31.4 years by Thebes, the Spartans were defeated in the battle for the first time. They lost that military power and Greece’s leadership. Nothing lasts forever. During that entire period, Sparta never issued any coinage because it was an anti-capitalistic state.

Exit Tax

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Whenever a LEFTIST government turns to restrict the movement of people by building Berlin Walls to keep them in or an EXIT tax to confiscate their wealth as a punishment for leaving since they are not being taxed to pay any fair share of the state when they are not there, the end is merely inevitable. The LEFT will always impose dictatorial decrees and refuse ever even once to consider that what they are doing is against human nature and the basic human right to live in peace.

In recent developments in Norway, the failure of the government’s economic policies has been taxing the “hated” rich; they are planning to introduce a more stringent exit tax to punish anyone who leaves their draconian policies. This move has attracted much criticism from many sources, but historically, the LEFT has never listened. Even in the United States, just look at those states that have extreme LEFT regimes, and you will find EXIT Taxes as well.

California Exit Tax 2

California Exit Tax

 

California in the US is an absolutely horrible place, and it is following the same path as Norway. California is no longer a place to invest, as is the case with New York and most of the New England states.  New Jersey has an EXIT Tax applied if you sell your home and buy something in another state. Connecticut has a 2.25% EXIT Tax. New Jersey has an Exit Tax. All of the LEFTIST government sees you as just an economic slave. It has nothing to do with paying your fair share – they are only interested in economically punishing you. If you do not get the hell out of these states, it will only get worse because they NEVER have enough and will NEVER change their policies until there is a political revolution and they are voted out of power. But the brightest will always leave, and in the end, they commit economic suicide, no different than ancient Sparta.

Yellen tax on Unrealized Gains

Spearheaded by Finance Minister Trygve Slagsvold Vedum, the initiative aims to deter affluent Norwegians from relocating to countries with more favorable tax regimes, such as Switzerland, by imposing a hefty tax on unrealized gains. Here in the USA, Janet Yellen wants investors to pay a tax on the increase in the value of stock every year, even if it is not sold. So if a stock goes from $100 to $150 you must pay tax on that $50. Then there is a crash, and it drops 25%. You will get no tax credit, and then it bounces 10%; you owe on that 10% bounce.

Tax Robbery

These people are absolutely destroying capitalism and Western Society. We have only 8 years left because this entire economic system will collapse. This is unsustainable. In Australia, the LEFT wants to confiscate all your wealth upon death and you should be prohibited from leaving anything to your children. Everyone should start from ZERO – except LEFTIST politicians of course. This is what 2032 is all about. These people are destroying our future and the very foundation of a free society.

Friday, April 5, 2024

How to Destroy a Nation in 2 Generations



Inheritance 2

QUESTION: I believe you analyzed inheritance and how altering it had contributed to society’s decline. Politicians here in Australia are talking about when you die; everything should go to the state because it is not fair that one person inherits more than another.

I would greatly appreciate any comments you might have historically on that subject.

Bret

Inheritance Tax

REPLY: Yes, I forgot when I did that analysis. It was a long time ago. Inheritance Taxes are Marxist and highly destructive economically. Suppose you have a company worth $100 million; your children must pay 40% taxes. They have to fire people and sell assets to cover the tax. This has been HIGHLY destructive in farming. Heirs have been forced to sell off farmland to pay the tax. This is how large farming companies and Bill Gates have accumulated farmland. This exploitation of the heir reduces productivity and thus reduces GDP and employment.

Before Marxism, inheritance became the primary reason the first son inherited everything during the Middle Ages, and the second son was donated to the church to become a priest, whether he liked it or not. In ancient times, if you had many children and evenly divided an estate among them, you effectively destroyed society’s productive capacity.

Charlemagne 11There had previously been two types of marriage in France, temporary and permanent, until the Catholic Church insisted on only permanent marriages. Charlemagne married all his daughters in only a “temporary” marriage, meaning that they possessed no legal right to the throne or property. That was the distinction between the two types. The question of inheritance was a major issue historically.

The ancients knew the consequences of dividing estates (partibility) among heirs. Sparta in Greece rewarded fathers based on the number of children. Sparta wanted soldiers, so the more children, the better. But Sparta undermined its own economy in the process. Production of children was rewarded in Sparta, and the fathers of three or four sons were exempted from military service and other economic burdens. Aristotle is sharply critical of this practice and wrote:

“It is obvious that, if there were many children, the land being distributed as it is, many of them must necessarily fall into poverty.”

If you create a major company like Ford Motors and you die, then the government is only interested in grabbing taxes. They think nothing about the jobs this company creates. The ancients realized that even dividing it up equally among the heirs destroys the productive capacity of the entity. This is why they evolved into the first son who inherited everything to preserve the estate rather than destroy it.

Jefferson Greatest Threat

After 2032, we MUST prohibit any such idea of direct taxation (income/inheritance) as the Founding Fathers of the US Constitution intended. They understood this lesson from the past – Marx was a hateful, jealous person, only concerned with not having as much as his neighbor. This is what has brought us to the brink of disaster. Our government has followed Marx rather than those who created the Constitution out of experience.

Paine on Govt

Thomas Paine was famous for saying: Give me liberty or death. But he also made it very clear why history repeats fro the people refuse to ever learn:

“Government, even in its best state, is but a necessary evil; in its worse state, an intolerable one.”