U.S. has committed financial suicide

[ScottA]

Long but interesting read (.pdf) about the tax laws that Bush passed and Obama is in the process of tightening up. These laws suposedly designed to stop offshore tax shelters will result in the total sell off of US based assets by foriegners.

Here's a snip-

The financial crisis has given momentum to anticapitalist,
and thus anti-market forces in the USA
(and elsewhere). That promises little good for this
part of the world, but it makes it somewhat easier
for investors to take their leave. Our bank is in
the process of recommending our clients to exit
from all direct investments in US securities. This,
on the grounds of the threat of inheritance tax
coupled with the uncertainty as to whether one
might not, one way or another, be turned into a
US person.


Top link on this banks home page entilted "Farewell America"
http://www.wegelin.ch/home/aktuell.asp

Direct link-
http://www.wegelin.ch/download/medien/presse/kom_265en.pdf

[harry51]

We've sure come a long way from the days when all the federal gov't revenue was derived mostly from taxes on imports at ports of entry, haven't we?

[ScottA]

I'd say so Harry. Where they got the idea they could tax everyone on the planet I'll never know. It can't and won't work. I like the part where they said-

"with the uncertainty as to whether one might not, one way or another, be turned into a US person".

Almost sounds like they are affraid the US will take over the world.

[ScottA]

This is somewhat related:

More US wealthy opt to surrender their citizenship

As offshore havens comply with transparency demands, a growing number of ultra-wealthy Americans are handing back their passports

http://www.wealth-bulletin.com/rich-life/rich-monitor/content/1054959505/

The rats are fleeing the sinking ship. So now it's not just the money that's leaving.

[muldoon]

in a somewhat sour and related note, I have an appointment this next week to go get my kids passports in order.  Mine and my wifes are already good to go.  Don't think we'll be using them for anything as dire sounding as the above articles, but better to have it and be prepared for a trip than not. 

Your not kidding about money leaving the usa scott - It is tracked in the "TICs" report from the treasury, it runs 2 months behind the calendar, ie we just got data from June.  The flow of money from the US has been escalating for quite some time - and that is before the recent issues of the last 3 weeks.  I am rather concerned about what it will be saying come November/December. 

Here is the June 2009 issue from the source:
http://www.ustreas.gov/tic/mfh.txt

heres an image of that data representing year over year starting in the 1970s. 
go ahead, you'll have to click it - I didnt want to ruin the suspense by putting it inline. 

http://www.loopy.org/0820-tic.jpg

[harry51]

"with the uncertainty as to whether one might not, one way or another, be turned into a US person". 

The arrogance implicit in that statement just infuriates me. These apparatchiks think they can just make a claim of jurisdiction over anyone, anywhere, and confiscate their property or even incarcerate them if they don't knuckle under as demanded. They clearly don't understand the concept of the sovereign citizen. Maybe it's time for a very pointed object lesson.

[glenn kangiser]

So any ideas on a safe country if one were to leave the US?  Seems like globalization with the same type of antics is everywhere, at least for the most part. 

I guess Bush considers Costa Rica safe - that's apparently his bug out destinaton.  Hope I got the country right.

[muldoon]

I thought Bush bought in Paraguay, could be wrong. 

I don't really know much about safe countries, nor do I know what will happen here or anywhere else.  But I think it's just a good idea to have some options open.  My wife was born in central america, and she has some family down there.  Her and my children are bilingual, so language is not a huge concern for me.  We have friends in Costa Rica and Chile, but to be honest I never thought alot about living there.  Belize is supposed to have a stable government, but who knows? 

I would want a country without large social debt obligations as safe.  The need for those countries to raise the funds to pay the debts are what really hurts them and destroys their ability to actually grow.  This rules out alot of them (especially Europe and any socialist south american countries). 

I really cannot see myself leaving or abandoning the US, but I could possibly see the need to go somewhere else for a few months to years if the situation were precarious enough. 

[glenn kangiser]

Yup - you are right.  Paraguay it is.

http://www.cco.net/~trufax/general/bush_family_paraguay_hideaway_up.html  Over 100,000 acres

[Pox Eclipse]

You know who else says the US is going down the tubes?

Russian Professor predicts collapse of U.S. in two months

Check out that map, Glenn; California is going to be under the thumb of the ChiComs!

[ScottA]

Nice try Pox. This thread is not about a conspiricy theory.

These tax laws are alredy on the books and the results can already be seen. This is just one of many ways the US is being dismatled. I saw this financial crisis comming 2 years before it happened because I watched what the government was doing. The first clue was when congress raised the minimum payments on credit cards. At that point I knew they where starting a money drain on the American people. This was followed by a tightening of all forms credit. The jacked up fuel prices of last year where another clue. The end result of these tax laws is to drain money out of the US economy causing the market to crash. These policies are likely being pushed by the governments creditors with the notion this will increase tax revenue to use to pay on the debt. What it really does is make credit cost more by making US investments more risky. You'd have to be blind to not see this is all being done on purpose.

[peternap]

I agree with Scott, Pox. This the economy, not how JFC survived and is currently controlling Obama Via remote control.

I've been saying for a long while now, that we are going to melt down. I'd love to be wrong but when I get away from the charts and look aout the window, I don't see any improvement.

I have no idea exactly WHAT is going to happen or WHEN...but I see a government buying lottery tickets because the house is in foreclosure and they want to save it.

I don't have a passport, never did. I've traveled out of the country before and I don't see where the borders are any more secure now.

I also, don't have any intention of going anywhere. This i my home and this is where I'm staying.

[MountainDon]

I have never seen any other country where I would rather live when all things are considered. There have always been more negatives somewhere else than what I perceive here. The grass is not always greener on the other side of the fence.

[glenn kangiser]

You know who else says the US is going down the tubes?

Russian Professor predicts collapse of U.S. in two months

Check out that map, Glenn; California is going to be under the thumb of the ChiComs!

I read that when he first predicted it - looks like he has the book now.

While I don't agree totally with his details, he may not be too far off with his prediction.  Most of the guys on the job I am on don't see much work in the future. 

Most companies don't see a lot moving as far as construction goes - houses have come down from the $350's to the $170's or less.  I guess if they sell some of those they can prolong the agony.

Lawyers and class action law suits have put an end to selling condos in CA. 

[Virginia Gent]

I have never seen any other country where I would rather live when all things are considered. There have always been more negatives somewhere else than what I perceive here. The grass is not always greener on the other side of the fence.

I agree with this 100%!

And I remember seeing that Russian guy's cut-up of how America will look after it breaks apart. I have to say that that is what led me to believe he was a crackpot. Saying that Virginia will side up with New England is what made his prediction a farce, to say the least. However, all levity aside, it is kind of depressing to know that there is the real possibility that I may be robbed of the kind of life I have so envisioned for myself, and family, because of how the chips seem to be stacking. I'm planning for the worst (as best I can) but praying daily for everything to work out without having to experience that.

[Sassy]

http://www.youtube.com/watch?v=FpTAFGN2oWE

[ScottA]

Bloomberg is reporting this now.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aJstU9MVcYSg

[glenn kangiser]

Likely more will follow suit.  What can they do but try to protect themselves?