The Healthcare Gold Tax And Stagnant Wage Tax Revenues

ΩΩGold hoarders get hammered by Congress.  Goldman Sachs spends record amounts bribing Congress so they get to do business as usual.  And the US wonders about depressions and tries to not look at Japan too closely even though we are aping the Japanese in many bad ways.  Clegg, in the UK, admits the Iraq war was illegal which sets up howls in London, how dare he tell the truth?  And Germany, like China, is retrenching and strengthening its defenses.

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Gold Coin Dealers Decry New Tax Law – ABC News

Section 9006 of the Patient Protection and Affordable Care Act will amend the Internal Revenue Code to expand the scope of Form 1099. Currently, 1099 forms are used to track and report the miscellaneous income associated with services rendered by independent contractors or self-employed individuals.

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Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change.

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This provision, intended to mine what the IRS deems a vast reservoir of uncollected income tax, was included in the health care legislation ostensibly as a way to pay for it. The tax code tweak is expected to raise $17 billion over the next 10 years, according to the Joint Committee on Taxation.

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ΩΩWay back when I showed clearly, from history, how people who hoard gold always get fleeced by governments or if there is chaos, by armed paramilitary forces or alien raiders, gold fanatics would howl with rage.  But if we don’t notice history, we are doomed to repeat failed experiments.  A general rule of thumb: when governments either debase the currency (this includes debasing gold) they also simultaneously force gold holders to play along or else, die.

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ΩΩDepressions favor savers so governments raise taxes on inert savings and one area of key interest is gold hoarders: they are attacked first and foremost.  I predicted that far from being unpopular, taxing gold or confiscating gold or forcing gold savers to hand over the gold as the currency is degraded, all of this is often wildly popular.  Gold markets as played by Goldman Sachs or JP Morgan is no different from hog bellies or wheat markets: when it goes up, they speculate and when it looks to decline, they short it so it falls faster and harder than if this were a natural market driven by actual users and no speculators.

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ΩΩOf course, taxing speculators is a great scheme except they tend to run the government or have set up many systems so their wealth is hidden from governments.  Often, it is both, simultaneously:  Goldman Sachs Spends 40 Percent More On Lobbying In Second Quarter, Not content with having GS members run our Treasury or the Federal Reserve or be best buddies with the VP or owning the President, they also have to insure our entire Congress is totally locked down so they operate as employees of the international pirate banking scheme rather than as regulators.

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ΩΩNo one regulates Goldman Sachs to the point, the SEC can only slap them on their $4 millionPatek Philippe’s Platinum World Time wrist watches.  The amount assessed against them for defrauding investors to the tune of many billions of dollars is the amount they pay for less than 100 Patek Platinum watches.  Ridiculously small.  Normally, to prevent crooks from being even crookeder, the fine has to be at least double the cost of the fraud, not one tenth or less!

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German authorities plan to buy another stolen tax CD | Germany | Deutsche Welle | 22.07.2010

German states are cracking down on those who seek to avoid paying their taxes and have showed greater willingness to purchase such illegally-made discs.  According to the SZ report, state authorities in Germany are currently negotiating – or have purchased – seven tax CDs.

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ΩΩUnlike the US government which is owned by the tax cheaters (who get their taxes cut if they can’t hide their incomes!) Germany’s government is more socialist and therefore, more interested in hunting down lost tax revenues.  For the last year, they have been very hard at work, prying out the secrets of the Alpine banking gnome community and have hit gold, of course.  That is, they are forcing the rich to cough up some of their wealth.

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ΩΩIn the Anglo countries, people can threaten to flee to Elizabeth’s tax havens.  The US allows this because the very rich want us to allow this and since they own Congress, this continues.  Of course, it will end eventually the other way, namely, with social collapse, if the rich evade their serious obligations for the running of our empire: Rockefeller Study Outlines “Doom Decade”: Life For All But Super Wealthy Will Be Hell On Earth

The study envisages nation states all over the world literally losing control of their public finances and the ability to retain order and stability with “violence and crime more rampant”. It also envisions global coordination and interconnectedness between nations breaking down altogether to be replaced by proxy wars and low level conflict.

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“By 2030, the distinction between “developed” and “developing” nations no longer seemed particularly descriptive or relevant.” the report states.  The only ones able to prosper in such an environment (surprise surprise) are the global elite and the super wealthy:

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“The global have/have-not gap grew wider than ever. The very rich still had the financial means to protect themselves; gated communities sprung up from New York to Lagos, providing safe havens surrounded by slums. In 2025, it was de rigueur to build not a house but a high-walled fortress, guarded by armed personnel.” the report states.

ΩΩWhen a government is ready to fall, the spearhead is always the military rank and file.  Of course, we see this in many countries in the form of military coups.  Often, they are not supported by popular will but rather, are most often outside aggression whereby a military is owned by foreign powers, not the natives they oppress.  Often, the true owners of a country’s military is a greater empire.  For example, the US hosts, supports, trains and enables many coups across the entire planet.  Generally, this is to control illegal drug profits by funneling them to the right bankers (who own the government in the US and UK) or they want to control resource extraction or important transit points.

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ΩΩMuch of US foreign aid is actually our empire paying foreign military to occupy their own countries in the name of our imperial multi-national corporations.  Most of these countries are very small in physical size such as Egypt, thus, easily controlled with a few billion a year in US taxpayer obligations.  But the US isn’t the only empire on earth.  We have more than one rival. None of whom have to spend nearly as much, bribing soldiers in various countries to be treasonous rats.

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ΩΩHere are two headlines from Forbes which amuse me:  Economic Quagmire For The U.S. – Forbes.com

Something must be done by public policy, but what? A central banker of my acquaintance says our mistake was in going from an $800 billion stimulus to nothing. Better to have a stimulus program that began with $800 billion and then stepped down to $600 billion the second year, $400 billion the third year and $200 billion the fourth year. In hindsight I don’t believe we would have seen a $2 trillion stimulus program approved two years ago. So it’s mainly wishful thinking.

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ΩΩThe problem with this entire scheme is painfully obvious: every President doubles or in the case of Reagan, triples our national debt.  Clinton just began to pay it down when Bush took over and instantly doubled the debt again.  So it NEVER really goes down.  The few times it did, the person in charge who taxed us enough to make it go down and who reduced military spending, that political party was dumped and replaced with a wild spending President and Congress.

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ΩΩOf course, the GOP is taking turns with the Democrats, whining about our rising debt but this is totally insincere as well as cynical and a fraud.  They always double the debts.  It is certainly true that once a government spends on something, they have to keep on spending on these somethings or we get a contraction in employment and the money flow slows down.

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ΩΩThe danger, of course, is running up too much debt too quickly as we see with Japan.  Japan has a very slow GDP growth which means the government, which is accustomed to seeing debt accumulate at the old rate of over 3% is seeing a rapid deterioration in GDP to debt values due to sub-3% GDP growth.  Just as we saw in Greece and the other PIIGS in the EU, a negative GDP growth rate translates very rapidly into too-high GDP to debt ratios.

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ΩΩThis is the hole we are falling into: our GDP, ravaged by nearly half a century of invasive mercantile free trade deals which caused a collapse in US manufacturing is behind our low job creation culture and our lack of GDP growth.  So our pre-free trade debt accumulation habits which were kept at under 50% GDP debt are no longer functional due to our low GDP growth overall.  Yet, we ring up debts at a speed more suited for a +4% GDP growth rate.

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ΩΩThe harsh reality  is, we can’t double our national debt every 8 years while our GDP creeps along, growing only half that rate.  Keeping our debt in line with our GDP growth is key to keeping solvent.  We haven’t done this in many years.  Neither has Japan.  Germany imposed a 3% debt growth rate on the other EU members back when that confederation (all confederations are doomed to fail due to this) was first formed.  Of course, this rule depends on GDP growth and this has been a contraction and of course, during contractions, governments spend freely as we see in Japan and the US and UK.

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ΩΩThe EU is shattering due to this business.  If this rule of only increasing spending when the GDP is increasing means no one can fix a contraction via spending.  It makes a contraction worse, cutting spending yet this is exactly what we see in Europe and what is being imposed on the US due to our need to sell half of our debts overseas.

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ΩΩThis is why the extension of benefits to the unemployed were held up in Congress.  This didn’t help our sputtering economy any.  But had to be done to display energy and determination for our lenders who happen to all be nations running trade surpluses with the US.

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ΩΩRight next to the previous Forbes article is this one:  How To Invest In China – Forbes.com

On my latest appearance on CNBC’s “Capital Connection,” with Chloe Cho, one of the hosts asked me if Western investors should invest in China right now. I may have surprised many who know I think China is the growth story of the 21st century. I said retail investors should think twice about investing directly in Chinese companies listed in the U.S. and might be better off not investing unless they can stomach real risk.

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Why? First, Chinese company stock prices remain very volatile, because of hedge funds. There are only several dozen good Chinese companies traded on the New York Stock Exchange and NASDAQ, so hedge funds control an inordinate amount of Chinese equity….

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…Even when investing in private Chinese companies you need to take politics into account. A sudden morality campaign by the government might mean shutting down things like micro-blogging sites without warning, or imposing limits on online gaming (gaming addiction among youngsters is increasingly being viewed as a serious social problem). That would hurt the stock prices of online game companies like Netease, Shanda and Sohu.

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ΩΩThe US tried to grow GDP and government tax revenues via expanding and legalizing many forms of gambling.  At this point, we are now wall to wall, sea to shining sea casinos, gambling dens, every tiny rural corner store now is a major gambling host, this is the most wasteful, destructive form of economic building one can do.  But ‘sin taxes’ are the easiest to raise!  Just like taxes on gold hoarding.  The main point here is, the first Forbes article is all about how the US is now in a ‘quagmire’ and the second one is how we should invest in China but be aware that China’s government may launch moral crusades that prevent getting money from say, kids addicted to video games or online gambling, for example.

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ΩΩUS sanctions against North Korea provoke Chinese anger – Telegraph: The US empire still is throwing its weight around in Asia.  Not only are we running war games on the border of North Korea, Sec. Clinton was running around there, mouthing off, as usual.  The US could stop the North Koreans dead in their tracks by opening the border.  Instead, we menace the border and thus, justify the government there.  We do the same with Iran, over and over again.  Ease up and Iran will liberalize and grow more friendly.  This isn’t our plan, it is the opposite.  For opposition leads to more money spent on our military, the only thing growing faster than our GDP and a prime reason why we are going bankrupt.

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Nick Clegg’s ‘illegal’ Iraq war gaffe prompts legal warning | Politics | The Guardian

The deputy prime minister insisted he was speaking in a personal capacity, as a leading international lawyer warned that the statement by a government minister in such a formal setting could increase the chances of charges against Britain in international courts.

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Philippe Sands, professor of law at University College London, said: “A public statement by a government minister in parliament as to the legal situation would be a statement that an international court would be interested in, in forming a view as to whether or not the war was lawful.”

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ΩΩChina is justifiably angry about US military aggression in Korea and will punish us, bit by bit, over time, in bond markets.  The US brushed off the Chinese dropping our bond rating but the world did notice this, especially the Japanese who hold a lot of these bonds.  Now we have London with Clegg telling the truth.  HAHAHA.  About time!  Of course, it was a total crime and Bush, Cheney, Powell and Blair all should be put on trial, punished and then executed (as per all ‘war criminals’ we judge guilty).

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ΩΩOf course, Clegg is going to back track and resume lying.  It puzzles me as to why this blatant lying is allowed.  It was obvious from the first month of the invasion, the UN had disarmed Saddam and he was the victim of a vicious imperialist invasion!  Now, earlier, I mentioned Germany.  Here is more news about how the Germans are reacting to the New Reality now that the New World Order is obviously in collapse: Running for the Door: German Giants Flee Wall Street – SPIEGEL ONLINE – News – International

Deutsche Telekom is just the latest German blue chip to say goodbye to the American capital market. In an emblematic departure, Daimler, the first German firm to be listed in New York in 1993, officially quit trading on the NYSE on June 4, saying that it no longer needed a presence in New York to attract international investors. And Munich-based insurance and financial services giant Allianz abandoned the NYSE last fall….

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…”In the 1990s, there was a great euphoria for joining the American capital market, especially for mergers and acquisitions” says Rüdiger von Rosen, the managing director of the Deutsches Aktienenistitut, an association that represents publicly traded German companies.

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The 1990s and early 2000s was the era of the mega merger on Wall Street, highlighted by the $81 billion merger of Exxon and Mobil in 1999, and the ill-fated $164 billion merger between AOL and Time Warner in 2000.

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Daimler’s $36 billion marriage with Detroit automaker Chrysler, commenced in 1998, underscored the thought that a listing on the American capital market meant that German companies could compete with American rivals to gobble up competition and expand their international presence. Giant German firms like Siemens, Allianz and SAP could offer simple stock swaps to acquire other firms listed on American exchanges. Deutsche Telekom, for example, used its position on the NYSE to aquire a handful of mobile telephone operators and turn its T-Mobile subsidiary into the United States’ fourth-largest mobile carrier today….

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…For their part, officials at Deutsche Telekom and Daimler say there are fewer reasons to miss a listing in New York these days. Advances in electronic and Internet trading allow foreign investors to buy and sell shares directly in Frankfurt instead of going through foreign listings in New York, London and Tokyo. Even for large investment firms, it no longer matters if a company is traded in Bombay, Belgrade or New York.

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ΩΩMost trading in the US markets are now computer-driven. I know some of the computer geeks working on Wall Street who cobbled together these algorithmic robotic dealers.  Eventually the shouting brokers will be broken down and removed and the markets will sway up or down silently, all day and all night, no rest, no interventions and periodic hiccups like the one that happened this spring that scared the bejeezus out of everyone.

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ΩΩThe Germans joined the party here because of the flood of Japanese ZIRP carry trade lending which poured into hideous buy out or buy up deals like the ones named in this story.  Many of these deals were odious, obvious frauds or ridiculously overloading debt onto a slender profit base.  The major cause of the global financial collapse was this flood of funny money being hosed into all possible businesses and corporations even ones that were totally inappropriate.

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ΩΩMany of these deals were being sought out because they would create monopolies.  The growth of monopolies is still racing onwards.  We have fewer and fewer free corporations that aren’t really part of a monolith, most of our ‘choices’ in grocery stores are really products being sold by just 4 corporate entities.  There are many fewer banks today than 35 years ago, nearly 80% of them are gone or gobbled up.

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ΩΩThis goes on and on and on.  The more mergers and take overs, the fewer choices we have and the greater the monopolies.  Even in the investment banks, this is true.  Just a decade ago, there were 8 mega-banks holding 90% of the Derivatives Beast and now there are only 4.

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ΩΩAnd one last story, one I find rather funny.  The mainstream media went hog wild, attacking Arizona for trying to stop the flood of illegal aliens.  Well, Arizona has won, hands down.  The President is responding the way they really wanted, the lawsuit stopping Arizona’s illegal alien laws was a sop thrown to liberals.  But here is the truth:  Barack Obama sends 1,200 National Guardsmen to seal Mexican border | World news | The Guardian

About 1,200 soldiers from the US National Guard are to be deployed along the border with Mexico from 1 August to try to tackle the twin problems of illegal immigration and drug-smuggling.

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About half of the troops are to be sent to Arizona, which is at the centre of the national debate over illegal immigration. The state is planning to introduce a law next week to crack down on people entering unlawfully.

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The squeaky wheel gets lots of grease.  Texas’ border with Mexico is often quite violent and just as difficult and twice as long as Arizona’s border but the Texans didn’t make a row about this so Arizona gets the lion’s share of the defense forces.  As I keep saying, the primary job of our military is to protect the US and our borders, not hang out in Korea, trying to start WWIII.  It’s about time our troops came home and they are not coming home nearly fast enough.  We are in a disaster footing here at home.  It is vital we set realistic priorities.  Instead of trying to stay in Afghanistan and Iraq.  We must flee, flee before it is too late.

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15 Comments

Filed under .diplomacy, .money matters, Free Trade, gold, Politics, war and peace

15 responses to “The Healthcare Gold Tax And Stagnant Wage Tax Revenues

  1. nah

    The US empire still is throwing its weight around in Asia. Not only are we running war games on the border of North Korea, Sec. Clinton was running around there, mouthing off, as usual. The US could stop the North Koreans dead in their tracks by opening the border. Instead, we menace the border and thus, justify the government there. We do the same with Iran
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    worried about purchasing power…. show them the end of a gun
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    i cant think of a reason to pretend that the government needs unlimited power to distribute our wealth and debt… the con game of high finance and corporate synergy’s look like the worst management of the 20th and early 21st century… we produce debt LOLz!
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    http://video.google.com/videoplay?docid=-181259944046452879&q=iluminati&total=111&start=0&num=10&so=0&type=search&plindex=4
    .
    so then i told them they could forget about it

  2. PLovering

    @nah, “Clinton running her mouth … ”

    Saw my first ‘Hillary For President’ sign today.

    The magic president must be p … urinated.

  3. don

    What should have been in the initial health care plan and not the gold tax………
    http://rawstory.com/rs/2010/0722/woolsey-robust-public-option/

  4. nah

    http://www.zerohedge.com/article/guest-post-why-we-need-3rd-party-2012
    I’m sorry to be the bearer of bad news. There are no easy solutions. There are only painful, more painful, and really really painful solutions. Both mainstream corrupted political parties have had the chance to put the country back on a prudent fiscal path. They have both failed miserably. One party will spend the country into oblivion and the other country will try to democratize the world with their military machine. There are no fresh ideas from either party. There are the same old stale ideas and rhetoric.
    .
    when i was a child there was a challenger joke it was lewd and distasteful but the kids loved it… this, is that joke
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    what were the last words from the challenger shuttle herd in houston? hey, whats that button do.

  5. DeVaul

    You know, I am not surprised by this gold tax scheme. I always figured that the government planned to take back all the gold it sold off to US citizens.

    It did not make any sense to sell it in the first place if it was not going to be used as money, so I figured they were going to sell it, book the profits, then pass laws later to confiscate it somehow. This is easy to do if you control the government and bribe the necessary people.

    Also, you use the old divide and conquer game. You point fingers at the gold hoarders and all their articles about getting rich, rich, rich, and then tell those who had no idea gold was even for sale that they cannot be paid until the gold is returned to the treasury. Gold bugs will find their own neighbors are their biggest enemy, and the government will use them as informers and local enforcers of the new laws.

    When I use the term “government”, I am of course referring to GS and JP Morgan and the other rich dudes who run the place. “Their” gold will be safe — offshore on some pirate island or in a cave in the Alps that we don’t know about, but which they will worry and fret about incessantly.

    The best way not to be fleeced by the government is to not own anything they want. I seriously doubt GS or JP will want my numerous family photo albums and scrapbooks, or my family histories and genealogies.

    You cannot outsmart the GS and JP rats, who waste their entire lives in pursuit of wealth while destroying everything they touch and exporting their misery to countless individuals everywhere.

    You can leave this world with the kind of memories they don’t want, or you can leave with the kind of memories that they will have forever. It’s your choice.

  6. well each dynasty falls in due time. expect
    unemployment to keep growing. expect the society to loose its threads. this is not all doom and gloom. the universe has its own ways

  7. Don’t forget that this is also another attack on small business. A lot of people are buying gold and the amount of paperwork that this is going to require is going squeeze the small business owner out.

    ΩΩΩΩΩΩΩΩΩΩ

    ELAINE: Absolutely correct. The heavy hand at the till or rather IN the till.

  8. “About 1,200 soldiers from the US National Guard are to be deployed along the border with Mexico from 1 August to try to tackle the twin problems of illegal immigration and drug-smuggling”

    Two simple steps will reduce or eliminate these issues in very short order: end the “war on drugs” by de-criminalizing what is clearly a personal choice matter, and rescind NAFTA…

  9. emsnews

    Nothing on earth is stupider than the war on drugs except for the war on the poorest peasants of Afghanistan…that is really stupid. And they sell opium, too. Hmmm…really stupid wars….! :(

  10. PLovering

    @Elaine, This is what happens to bloggers who speak truth to power in Austria.

    Meet Austrian blogger Jane Burgermeister.

    http://www.janeburgermeister.org/

  11. Claire Voyant

    JP Morgan Chase which is heavily involved in gold/gold derivatives trading has been shorting gold quite heavily. Seemed counterintuitive, but … makes sense now — thanks again, Elaine!

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  13. Very good article. Insightful and entertaining as always!

  14. Thanks for the interesting post, subscribe to RSS

  15. very nice technology. i hope future is very nice

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