N.Y Gov. Cuomo’s decision to suspend driver’s licenses of tax scofflaws is just another stepping stone on the path to economic collapse and the “big reset” that’s coming due to the exponential growth of govt. Another recent story about the U.S. Govt directing agents to cover up programs used to investigate Americans is in the same vein. For those that think this is a good thing because govt is going after “tax cheats”, you need to stop listening to the mainstream media, look at the issue from a broader perspective, and do your own research.
It’s easy to misunderstand what’s going on unless you know your history and can take a step back from the propaganda and see the forest for the trees. Collecting every bit of digital data about you and storing it forever is not about stopping terrorism. Not only does this cost money, but if terrorism was subdued, it would constrict the flow of money going to the corporations benefiting from the govt contracts. How is it possible that the U.S. govt knows where every bar of gold you have is stored or every foreign bank account resides, but they couldn’t stop the Boston Bombings by two kids using cell phones even when Russia warned them? Obama says not to worry about the NSA because Congress is overseeing them, but what if Congress is denied access to NSA information?
The primary purpose for all the data collection of Americans is to collect every bit of taxes, penalties, and fees to maintain the power and perks of those in govt. Money collection is a much more profitable use of govt power, which is always abused, and as history consistently demonstrates, leads to economic implosion, followed by the eventual Revolution. Think about it, the govt couldn’t even stop the payment of $300,000 in military pay to the Ft. Hood shooter. Do you think they will stop payments and benefits to themselves? If you still think we can continue spending more than we are ABLE to collect in taxes, you will have the opportunity to revolt soon enough. The downward spiral caused by the negative feedback loop due to higher taxes slowing economic growth (which reduces tax receipts) will lead to civil unrest.
I would prefer a proactive approach be taken by our govt to reform the financial and political systems that have run amuck due to destructive blackmail and bribes. Unfortunately, this would require politicians to admit they were wrong and all those that are benefiting from all the fraud to suddenly say enough is enough. As Armstrong consistently documents, the Revolution never comes before the economic collapse. It’s the economic collapse that produces the discontent that lights the fire for Revolution (or as Gerald Celente always says, “when the people lose everything, they lose it”).
As I recently discussed, there is no real capital formation in oppressive govt’s! Long-term economic growth can NEVER be achieved through higher taxes. Taxes reduce savings, which is the foundation of true capital formation. Your govt’s actions to track down every dollar is sending capital underground and overseas, which will ground the economy to a halt. Freedom, Liberty, and the rule of law is why the USA grew into the most powerful economic engine the world has ever known. Going down the path of Socialism/Communism/Fascism will produce the same outcomes of all those countries that have already taken this path.
What Does All This Mean for Markets?
The stock sell off that started on Tuesday will have legs, but the blow-off top (fed by the Fed and the flight of foreign capital into dollar-based assets) is still to come. Who knows how long the pull-back will last, but it’s safe to say it will last until the invisible hand scares as many investors out or onto the short side before it starts its epic final run to the upper boundary of the Jaws of Death pattern (16,500 – 18,000 on the DOW, or higher if the run-up last until the end of 2015). Gold will spike higher when it is understood that the COMEX and LBMA vaults are depleted of physical gold, and once again when the sovereign debt crisis renders fiat currencies worthless.
As the sovereign debt bubble burst, the banks will not be bailed out by tax-payers this time. Instead, the banks will be bailed out by their own depositors – a process called “Bail-ins”. It could be done through a frontal assault, as was done to depositors in Cyprus’ banks, and account holders with MF Global. The bailouts will also be provided by homeowners that have equity in their homes when Obama vaporizes the govt-back mortgage monstrosities (Fannie & Freddie), and formalizes the process of enabling large REIT’s to buy up foreclosed houses for pennies on the dollar with money provided by the Feds. Most of what is done in govt is done to make money for those that blackmail and fund campaigns.
Read the paper on “Resolving Globally Active, Systemically Important, Financial Institutions”, which was jointly published by the Bank of England (BOE) and the Federal Deposit Insurance Corporation (FDIC), and tell me if you come to a different conclusion. A regulatory and legal framework is being put in place that will allow the banksters to escape the financial havoc they have inflicted on society.
Europe has elaborated on the “bail-in” plan (more information on the coming “bail-ins” can be found here and here). You are nuts if you don’t think the same thing is in store for U.S. bank depositors, and retirement accounts. The IRS is now refusing to issue tax ID numbers for single-member LLCs that are owned by an IRA, which “was” one way to protect your IRA. Even if you assume you are protected up to FDIC limits, which is a naive assumption in the case of financial collapse, the consequences to the economy will be felt by everyone except the elite who are Hoovering up gold like the NSA does your private data.
BTW, one of the scumbag bankster banks, Bank of America, is finally being sued by the DOJ. One can only guess why BofA is being singled out when all the big banks were guilty of the same thing. Someone at BofA must not have been going along to get along, and needed to be made an example of, or maybe they decided to stop laundering money for drug cartels (nah!). Regardless, it will only be news if a high-level exec sees some serious jail time, instead of the standard cost-of-doing-business fine.