It’s obvious to most conscious people that Obama thinks govt’s humongous hammer has minor consequences in its hunt for nails and money. What apparently is not so obvious to many are the consequences of Obama’s Marxist actions. The reason I say “not so obvious” is because even those that understand that less freedom means less economic prosperity, don’t seem to understand their rights are being sacrificed daily for the benefit of govt, and at the expense of the economy. The most recent example appears in Obama’s 2016 budget, which targets retirement accounts.
Sub-market returns on you Social Security CONTRIBUTIONS is bad enough, and we are also going to be expected to accept cuts in our Social Security payments. However, now Obama thinks you should be taxed on your retirement savings, which were supposed to be tax-free. Whether it happens through taxation or a govt-induced market collapse, the bottom line is your retirement will get a significant haircut. Why? So those in govt can keep their jobs, perks, and power.
If you don’t have a retirement account, one may think, who cares. This uniformed attitude is the same apathetic garbage behind those that say, I have nothing to hide, so who cares if the NSA vacuums up all my personal information. If you don’t understand the NSA is all about tracking money and not terrorists, then you just haven’t done your homework.
Whether you have savings or you don’t have anything to hide from taxing authorities, or you don’t believe in free speech because you have nothing to say, the issue is many people do, and everything is connected – meaning the ripple effect of capital trying to get off the grid, because of govt overreach, contracts everyone’s economy.
Another example of how the govt’s desperate hunt for cash will destroy markets, is occurring in real estate. The new requirements for mortgages, combined with rising rates, and the banks unwillingness to lend long term, will kill the core real estate market when the economy turns down again in 4Q15. Govt’s hunt for cash and paying off contributors is increasing mortgage paperwork, and requiring the borrower to account for all cash flows in and out of bank accounts.
These new govt requirements on banks to report transaction details on borrowers is similar to the FATCA requirements on foreign banks to report account details on Americans – and these requirements have nothing to do with terrorism or money laundering (the govt is already well aware that our big banks launder money for drug cartels, and the head of the NSA admitted under oath that the billions spent on hovering up everyone’s personal information has MAYBE thwarted ONE terrorist attack).
The tracking of all your personal dealings is all about tracking and confiscating money, and the banks are simply the govt’s bloodhounds, and it is YOU that is being hunted. The methods are varied, and are being employed by broke govt’s all over the world – and it will not end pretty!
Using police as money collectors is well known, and Twisted has written about the ticketing techniques and civil asset forfeitures. The picture below is of Malaysian police, and if you’ve rented a car in Europe lately, then you may be aware of how desperate they are.
These intrusions into our privacy, whether you unknowingly think it is okay, are more than just inconveniences. They cause savers and investors to pull their money off the table and further reduce the velocity of money, which is already at Great Depression levels.
Yes, Obama may be worse than most, but the same thing would occur (and will occur) under any of the establishment candidates because they all prioritized their own jobs, perks, and power above the needs of citizens. Govt is getting increasingly broke, and they will get increasingly desperate to hold on to power. Targeting your retirement account, which Twisted has written about extensively, is just another example of govt desperation and the priority of govt to place their own interest above those of the country. Throughout history, the prosperity of a nation is directly linked to its freedom. As our privacy and freedoms erode, so will our prosperity and standard of living. Everything is connected!
If you continue your research, you will also find that most western governments have already adopted the “bail-in” strategy as the next “solution” for bank failures, and govt-backed deposit insurance is being rescinded. If you read the fine print on your bank statement, you will find that as a depositor you are actually a lender to the bank and assume the associated risk (caveat emptor).
If you are not familiar with the term “bail-in”, it simply means confiscation any portion of your bank account that’s necessary to keep your bank from going bankrupt during the next crisis, and it’s already happened in Cyprus, Poland, and the commodity firm owned by John Corzine, MF Global. The bail-in is being used because selling another tax-payer funded bail-out is politically impossible.
The next logical thought might be that once people get wind of the scheme they will simply pull their money out of the bank, especially since rates are near zero (assuming there’s not a bank holiday, eliminating access to even an ATM). Well, govt has a “solution” for that as well.
You see, big money has already started to get out of the system, not only because of the fear of bail-ins, but because central bankers are moving into the negative interest rate regime, where depositors are actually being charged for keeping their funds in the bank (already occurring in Europe). As an aside, this demonstrates just how clueless central planners are – if zero rates for seven years and unprecedented money printing has not stimulated the economy, then lets double down, even if it means instituting the insane notion of negative rates.
As with all insane behavior, the hole of depravity must be dug deeper and deeper. What do these sociopaths think is the solution for keeping people from taking their money out of their bank? Simple, ban cash and move to all electronic money. Yes, this is the solution being debated in the ivory towers of flawed economics. Twisted also wrote about this last year when Bitcoin was being permitted to take off so people can get used to the idea.
These sociopaths think they can sell the idea of eliminating cash by arguing it will eliminate the underground economy, drug trade, and other illegal activities. While the elimination of US dollars may prove problematic, since the world uses dollars, it won’t be as hard for the euro and the yen. Of course, the real motive is to tax anything that moves to make sure they never need to reform or heaven forbid, down-size themselves. I wonder if they have considered the impact on their own illegal activities. How will they hide their bribe money and payoff’s to blackmailers?
Speaking of blackmail, this is the real scandal in the Denny Hastert affair. You see, the other job of the NSA, besides looking for lo0se change for the govt, is to find dirt on powerful people for the sake of bribery. As Twisted documented back in 2013, whistleblowers have explained how the NSA bugged Colin Powell, Patreus, Obama, and even Supreme Court Justices (which would explain the “Citizens United” case).
If you don’t already know, this “solution” to confiscate retirement accounts or bail-in your savings to save the banks that finance political promises (lies) will of course fail. Just as taxing the productive class produces less productivity, capital always finds a way to get off the grid well in advance of govt’s desperate attempts to save themselves. All of the actions of govt to squeeze the last drop out of their citizens results in declining trust and confidence in govt, which is directly linked to economic activity. The more desperate govt becomes, the more money seeks safety off the grid, which is why the velocity of money is currently at Great Depression levels and the value of diamonds, fine art, high-end real estate, and stocks continue to rise.
History provides the recipes of successes and failures. It would be nice if just once we could evolve enough to not repeat the same mistakes. I guess this too is part of human nature and cycles, which necessitates always going back to the school of hard knocks.
Solutions have been documented, but they won’t be implemented by the establishment, nor will the necessary changes be made by generations of brain-washed adults who sit around with their hands in their pockets, like these adults that walk around while an innocent girl gets man-handled by a cop. If proactive protests do occur, it will be the youth that rise up against the establishment fraud, corruption, and abuse, and it will likely be first evident in the EU, where more than half the countries have 50% youth unemployment. Don’t worry, our youth will get their chance when the pain level is ratcheted up next year.