Eagle1 wrote on January 13th, 2013, 4:18 pm:Greetings, Family!
I'll try to keep this fairly short (if that's possible). I've been known to get a bit windy at times! (Grin) Frank and I will discuss a lot of this tomorrow night on the CC as we explore these topics in some detail.
Nevertheless, let's see if I can put to rest some of the concerns I've seen posted here in the past few days.
As noted in a telephone conversation with Frank, while a global currency reset seems fairly well assured, the timing of it is less certain. I've been watching activities going on with many of the world's central banks. There is a tremendous amount of effort being put forth to shore things up for those nations that are hanging on by a thread financially. Greece, Italy, Spain -- just to name a few -- are less than a step away from utter collapse financially, and the ECB has been taking steps in conjunction with the IMF and England's central bank to delay that collapse.
Can it be staved off indefinitely? No. Barring austerity moves that could rock those nations financially and create such civil unrest as to cause the collapse of the governments, they are on a path to complete failure. As we all know, socialism is a failed experiment and a sure path to bankruptcy for every nation that continues to pursue it.
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Here's an example for you: In Greece and Italy, for every 1.5 persons drawing assistance from the government in one form or another, there is only one person working and paying taxes. It takes no rocket genius to figure that one out!
So, how does the global currency reset work? Some nations won't see much change. Some will see an increase in the value of their currency, and a few will experience quantum increases. The coming revaluation of the VND is a classic example, and of course that says nothing of the RV of the IQD. Some nations -- like the US -- will experience a drop in the value of their currency against the basket by which they are measured.
A few, like Canada, that use the dollar (their own) and have their currency asset-backed -- at least marginally -- will fare well in the midst of the changes. As of this moment, the Canadian dollar is actually worth a little over a penny more than the USD. That will increase. There's more than a little talk that the Euro will disappear completely and those nations that have used the Euro will revert to their original, albeit restructured, currencies.
There's been a lot of concern over the expected 40% drop in the value of the USD when this reset takes place. Let's clarify this. This is not a true 40% drop. Bear in mind that the USD has already declined by 20% against the basket of currencies. What makes this so evident is the price of oil. Because the purchase of oil is measured against the value of the USD, we see oil at $90+ because of the devalued dollar.
Now, factor in another 20% drop, and you will see oil typically priced between $110 and $120. There's your loss of 40%. Depending on the makeup of the basket of currencies when the global currency reset (GCR) take place, you could see the USD valued at .60 (or thereabouts) internationally instead of the .7955 we see today.
Will it hurt us? It will affect our costs as far as imported goods are concerned, and where imported items are used in local manufacture, it will ultimately cost us more, especially when we buy autos, household appliances, and other hard goods. For some folks it will be a shock to the system. For others, depending on lifestyle, the impact will not be as great.
Here's the rub. It isn't so much the drop in the value of the USD that should be of concern to us. It is the enormous increase in the levels of taxation we are facing under this current administration. If folks don't take precautions -- and I'm talking now about those people who will reap a large increase in finances with the coming RI/RV -- they could see the loss of a huge chunk of those monies. I'll go into more detail on this with Frank tomorrow night, but there are some extremely important moves that you need to be making NOW in preparation.
IMO- Under no circumstances try to cash in everything you've got! Don't forget that the IQD is gold-backed! It will not lose its value during the GCR. Once the reset takes place (the projected date for this is sometime between Feb 19-23, and I have an opinion on that that I'll talk about later) you can cash in without any fear of taking a loss.
Getting back to the tax question, we've had many discussions on this forum concerning asset protection and tax-deferment. I've even heard concerns over the idea that the IRS or the government can penetrate your trust (if you establish one). Most trusts can be looked into by the IRS. That rule has existed for generations, and that shouldn't be a concern to anyone. Xxxx Xxxxxx has been on a number of Frank's CC's and talked about the Complex, Non-Grantor, Irrevocable, Discretionary Trust with Spendthrift Provisions.
This is a different animal, folks! These kinds of trusts were established back in 1530 or thereabouts for the express purpose of providing protection of assets from prying eyes. They were brought to this country during colonial times and first recognized under the laws of the Massachusetts Bay Colony. Later on when Massachusetts became a state, it was codified into American Law. Today, every state in the union recognizes these spendthrift trusts as "a Massachusetts trust." They have a level of protection that has never been breached in the nearly 500 years since they were first devised.
These trusts don't protect you from taxes, they defer them, and in the process of deferment -- depending on the wisdom you use in using the trust monies or assets -- greatly lower the amount of tax you have to pay. With the Obama administration's efforts to grab as much money as they can from you through various kinds of taxation, it is important to have this asset protection in place and to use care in the way those funds are used.
One last comment and I'll save the rest for later. Frank made the comment that a person could lose 40% of their monies in taxes. My answer to him was simple: only an idiot and wastrel would pay 40% of their income to the government in taxes. I don't care how much money you make, and how much you reap from the RV.
If you cash in a million IQD and put that money in a personal checking account, and have not make preparations otherwise to take advantage of tax deductions, prepare to pay somewhere between 35-40%. That, in my personal opinion, is utter foolishness! Don't do that!
OK, 'nuff said for now.
Blessings on you.