Armstrong Economics Blog/The Hunt for Taxes Re-Posted Sep 13, 2021 by Martin Armstrong
Twenty years ago if you bought a house you could just put your kid’s names on it as well – no big deal. Today, if you try that, they have to declare it as income and pay taxes on it which is not even cash. This is the new world order. You may have to sell assets this year and buy them back for selling next year of an accumulated profit may be devastating.
Comment by tonytran2015: Compulsory superannuation in Australia has created rip-off, fraudulent markets for Superannuation Fund Managers. The financial illiterate, forced contributors lose heavily.
Colonial First State deceives super customers 13,000 times
A court has found that the Commonwealth Bank-owned investment firm
Colonial First State (CFS) misled and deceived superannuation customers
to keep them in a higher fee fund.
In a case brought by the corporate regulator, the Federal Court ruled the trustees of CFS’s First Choice fund were liable for encouraging members of the
fund to remain rather than move to a cheaper MySuper product, a low-fee
product required by law.
Slowly, but surely, the public began to realize: “We have been waiting for a return to the good old days and a fall of prices back to 1914. But prices have been steadily increasing. So it looks as if there will be no return to the good old days. Prices will not fall; in fact, they will probably keep going up.” As this psychology takes hold, the public’s thinking in Phase I changes into that of Phase II: “Prices will keep going up, instead of going down. Therefore, I know in my heart that prices will be higher next year.” The public’s deflationary expectations have been superseded by inflationary ones.
Recently here on Mises Wire, Sammy Cartagena wrote a brilliant article demonstrating that Two Percent Inflation Is a Lot Worse Than You Think. In it, he demonstrates that the manageable 2 percent inflation year over year we all have gotten used to is a whole lot less manageable than we tend to think. But in it, he also cited explaining that “over 23 percent of all dollars in existence were created in 2020 alone.” From that he explains that while future inflation is important, he is focused on past inflation for the sake of his article, which is where these two articles diverge because this will be questioning future inflation. Anyone paying attention has seen that there has obviously been inflation this past year whether through price increases or more subtle ways to sneak inflation into the economy. However, when we look at the massive spending bills and the aforementioned fact that over 23% of dollars have just recently been ushered into existence, it leaves many asking why has there not been proportionally drastic inflation?
The major piece that is holding back even more inflation than we’ve already seen is a public expectation of a return to normal…
And yet, the primary objective of any government is to increase its size and power as rapidly as the populace will tolerate it. The only reason that they rarely do this quickly, is that they can’t get away with it. Like boiling a frog, it takes time to lull the populace into submission, bit by bit.
And, in order to make sure that the public do not figure out what’s been done to them, the news reporting becomes Orwellian in its endless repetition of a false narrative.
It is, however, true that, “You can’t fool all of the people all of the time.” Eventually, the Band-Aid peels back to reveal an infection that’s far beyond what had been generally perceived. It then falls away in layers, as increasing numbers of people become aware that they’ve been scammed – that the media is entirely corrupt and that the media’s owners – big business – have, with the enthusiastic compliance of the government, robbed them on a wholesale basis.
by Jeff Thomas
Well, that sounds reasonable… even beneficial. But, unfortunately, that’s not really the whole story.
When QE was implemented, the purchasing power was weak and both government and personal debt had become so great that further borrowing would not solve the problem; it would only postpone it and, in the end, exacerbate it. Effectively, QE is not a solution to an economic problem, it’s a bonus of epic proportions, given to banks by governments, at the expense of the taxpayer.
But, of course, we shouldn’t be surprised that governments have passed off a massive redistribution of wealth from the taxpayer to their pals in the banking sector with such clever terms. Governments of today have become extremely adept at creating euphemisms for their misdeeds in order to pull the wool over the eyes of the populace.
At this point, we cannot turn on the daily news without being fed a full meal of carefully- worded mumbo jumbo, designed to further overwhelm whatever small voices of truth may be out there.
Let’s put this in perspective for a moment.
For millennia, political leaders have been in the practice of altering, confusing and even obliterating the truth, when possible. And it’s probably safe to say that, for as long as there have been media, there have been political leaders doing their best to control them.
Authored by Chris Macintosh via InternationalMan.com, If we look at what is taking place, what seems glaringly obvious to me is that there is a coordinated demolition of entire countries, their business sectors, and with this financial ruin a top-down approach to “fixing” the ruin is being enacted. Step no…
Comment by tonytran2015: Compulsory Superannuation in Australia benefits the financial companies managing Superannuation Funds more than the workers contributing to the funds with 9.5% of their salaries. It is an institutionalized scam targeting the financially illiterate workers.
A key area the PC [Productivity Commission of Australia] did focus on in its report, was the fact that Australians pay over $30 billion a year in fees on their super
(excluding insurance premiums).
[$30 billion a year is excessive for a national total population of 25 million, including non-working and children].
A report released by the Grattan Institute last year
noted that reducing average super fees, and increasing investment
returns, by channelling people into the better performing superannuation funds, would also boost retirement incomes by more than raising the
Super Guarantee to 12 per cent [from currently 9.5 per cent].
Authored by Charles Hugh Smith via OfTwoMinds blog, One phrase describes the Fed’s pillaging of the nation to benefit the few at the expense of the many: abuse of power. To confess that the fate of the entire global economy now rests on the mumblings of a […]
Generations of punters have learned the hard way that their unwary greed is the tool the Smart Money uses to separate them from their cash and capital. The tricks outlined in Reminiscences of a Stock Operator may have changed over time, but the game of selling at the top while stretching out the top to enable massive selling without moving markets is very much alive and well.
The Biden State Department moved in June to cancel a program overseeing the protection and evacuation of American citizens stationed overseas in the case of an emergency, just as the Taliban was taking over Afghanistan, according to an internal State Department memo obtained by the Washington Free Beacon and multiple sources familiar with the matter.…