Recaps Note: These posts were by a special request – While they may be controversial and opinionated they are not necessarily the shared opinion of Dinar Recaps or supported by same.
Post From KTFA By Memphis » April 24th, 2014, 7:48 pm • Post 4
No discussion on capital controls/taxation in America is complete without mention of The Affordable Healthcare Act.
This blog passes my test on the matter and it's companion beneath shows how all things are connected. None of these gov't actions take place in a vacuum without unintended consequences that they lack the ability to comprehend.
Capital Controls - What are they and why should we care? Part 4
The Cadillac Tax – Obama Will TAX All Your Benefits as part of Obamacare
Posted on April 22, 2014 by Martin Armstrong
Whenever the government enacts some program there is always a hidden agenda. Bush Senior had to veto the Clean Water Act because the add-ons that had nothing to do with clean water exceeded the cost of the clean water by about double. Then the Democrats went on TV to lie to the public saying Bush was against the Clean Water.
This is one reason why amendments to any bill outside the subject matter should be unconstitutional. However, the greatest fraud these lawyer-politicians pull off every time is tell you they are doing something good for a poor shmuck and the real agenda is to get the rest of the people.
In Australia they called it the luxury tax that they would go after the fur coats, French wines, and Ferrari sports cars. The dumb people cheered – ya – go get ‘em. The tax passed and what was included? All electrical products.
OBAMACARE was perhaps the most toxic enactment ever to be implemented by the Democrats using the poor to raise taxes on the working class – not even the “rich”. The left-wing press that ridicule the Republicans for trying to repeal it deserve what they are going to get – much higher taxes and the future of their children will be destroyed.
Not only will OBAMACARE cap small business from expanding due to its massive penalties, but it will soon begin to tax benefits employers give workers - ALL WORKERS. That is correct.
At the discretion of the government, they will be able to move the line at which any benefit that exceeds some arbitrary number not adjusted for inflation will become taxable income. The Obama secret agenda has been to raise taxes in every possible manner and OBAMACARE was the typical political way to get people to cheer for raising their own taxes.
Obama wants to personally raise taxes back to 70% but without the deductions and to include ALL benefits as income.
OBAMACARE had a CRIMINAL penalty if you did not have health insurance.
Why should you go to prison if you didn’t buy insurance? That the Republicans managed to have stricken.
But what remains inside this toxic bomb is something far more dangerous and it will not hit the economy with a soft caring touch. This is what has become known as the Cadillac Tax component and if the press would tell the people about this, the Democrats will lose the Senate.
You never heard of that? Well, thank the media that is behind Obamacare for not telling the truth. If they have not told you the truth, then surely it was not intentional. If that is the case, they are too stupid to be journalists and are contributing to the destruction of the United States by their ignorance. Oh that’s right. The Pulitzer Prize is for Yellow Journalism.
EVERYONE who gets healthcare as a benefit, including retired persons who have worked for the private or public sector, will wake up and find that those benefits are suddenly TAXABLE income. Yes – that is correct.
If it costs your employer $1000 per month for your healthcare, that will be taxable income. Hence, you will pay about $4,000 more in taxes for benefits worth $12,000.
There is absolutely NOTHING the Democrats will not tax. Everything you get as a gift, benefit, or find in a parking lot, will be taxable income. This is the real reason Obamacare should be repealed. It would have been cheaper to just pay the medical expenses of the 8 million who signed up than to tax the other 300 million.
The coming decline in the Economic Confidence Model after 2015.75 will be the worst decline since the Great Depression because these people are destroying world trade, causing capital to hoard rather than invest and create jobs, and then the agenda is to raise taxes back to 70% while eliminating currency to prevent people from avoiding taxes.
We can no longer afford “representative” government that only represents themselves. These people are lawyers and have no understanding of the economy. They only see their power to enact laws and never the consequences. Thomas Paine in his Common Sense warned that:
“Society is produced by our wants, and government by our wickedness; the former promotes our happiness positively by uniting our affections, the latter negatively by restraining our vices. The one encourages intercourse, the other creates distinctions. The first is a patron, the last a punisher.”.
Indeed, government is evil and seeks to dominate, dictate, and control the people whereas civilization is produced from the bonding of people for a mutual benefit.
Government only seeks to dictate and control obstructing the development of society to conform to its own desires and self-interest. Obama is following in the footsteps of Thomas Paine’s warning.
He is going to go down in history are perhaps the worst president in the history of the country, This man tore apart the work since Nixon to end the Cold War, and is determined to eliminate all tax breaks of the Kennedy and Reagan Tax Cuts. Obama is a communist at heart, merely allowing private ownership of assets as long as he can tax everything to get. He believes he has a right to your money and to decide how it should be spent commingling that with his idea of using the NSA both domestically and internationally without restraint to ensure you comply with his laws.
The Two Most Dangerous Ideas
Posted on April 23, 2014 by Martin Armstrong
There are two ideas that have been responsible for killing more people than anything in history and they both came from the French elite.
The first was the idea that land was wealth.
This was propagated by the Physiocrats who argued agriculture was the wealth of a nation.
Adam Smith’s Wealth of Nations was a direct response to that idea showing that the true wealth of a nation was its people and its total productivity.
This old world concept remains the greatest problem that plagues Russia to this day with the concept that landmass means power. Those that cheer Russia is getting bigger do not bother to look at the economic facts.
Under this theory that landmass is power, then why did Japan reach the second largest economy with only 145,925 square miles with a GDP of about $4.866 trillion and Algeria with 919,595 square miles reached only $325 billion GDP?
Russia does not need more land. It has 6,592,800 square miles. However, its economy is half that of Japan even on a bad day – just $2.383 trillion with all its oil, gas, gold and platinum reserves of which Japan had none.
If Russia focused on building its economy as did China, it could be a major economic power. Landmass does not make a country great. It is the total productivity of its people who constitutes its National Wealth.
The second idea to come from the French Elite has been Communism and this notion of “social justice.” Europe thought that what made American economically powerful was a single currency. They failed to see that its taxes were half of that in Europe and the regulations promoted small business formation rather than suppress it.
The European who cheered the Euro was more valuable than the dollar missed the entire point of economics just as Russian who only see Russia getting bigger and that is most important.
Europe failed to understand that it is the people who are a nation’s greatest asset and their total productivity. This is why Communism failed for it suppressed the very element that makes a country rich – the total productivity of its people. Communism was a French idea they sold to Marx.
The French elite like Christine Lagarde and Thomas Piketty are at it again determined to impose their brain-dead idea of “social justice” upon the world that made Russia so hated. No other idea has been responsible for more wars and the death of millions than this French idea of “social justice”.
To survive the future, it is time to realize “social justice” suppresses economic growth and lowers the living standards for everyone. Not every country can have a trade surplus. Someone has to have a trade deficit. This theory is simply insane.
It is indistinguishable from handing out the same grades in school regardless if the students show up at all for we have to be fair to everyone. This is about as stupid as thinking that landmass equals power.
Both of these ideas threaten our future like nothing ever before. If we are not careful, we will once again see half the population of the world killed by these two terrible ideas.
"Note from Memphis:
There are important realities facing America that can only be recognized as we each set aside any person political leanings. For some this is a difficult shift in their thinking.
In this spirit it is important to recognize that I have no personal "favorite", no leanings toward ANY political party. Money feels no such emotions and any proper study of global finance must thus be an un-emotional one.
Finally, if any comments below made by Martin Armstrong still leave you upset then please consider directing those emotions towards him at ArmstrongEconomics.com" Blessings, Memphis