Posted originally on Apr 30, 2024 By Martin Armstrong
In 2021, the Extreme Left Labour Government seized power in Norway, overthrowing the eight years of Conservative rule. Labour won 48 of the 169 parliamentary seats, one less than in 2017, but the Conservatives lost nine seats and were left with only 36. We can see that 2021 was low for the US dollar after COVID against the Norway Krone, and ever since the leftists seized power, they have been steering Norway in that direction where all Marxist regimes have died violently and inevitably.
All leftist governments impose their will to crush any individualism. They are obsessed with someone who has more than they do. Every leftist government ends in utter disaster. They reduce the standard of living and inevitably drive the most talented people out of their domain. Every Marxist government, from Russia to China, has committed suicide by suppressing innovation, and the most talented people will always seek to leave. In the case of Communism, they built the Berlin Wall in 1961 to prevent people from fleeing. These LEFTIST governments are now moving to impose an EXIT tax if you seek to leave their depressing economic domains. Human nature will ALWAYS prevail, and this is why every single government that has abused its power and then tried to prevent people from leaving with EXIT TAXES or a version of the Berlin Wall crumbled to dust and is all buried in a common grave by history.
The Bible is a very interesting historical document. Socialism violates the Ten Commandments, and I am shocked that nobody has challenged this progressiveness of taxation as a violation of their religious beliefs. This very reason this prohibition against LEFTIST political agendas is in the Ten Commandments is because human nature has never changed, and such LEFTIST experiments have been tried for thousands of years and have always failed.
Communism first appeared in historical records back in Ancient Greece. This was a classic battle, like our modern Cold War. Athens was a capitalistic system that had its own internal battle between the Oligarchy and Democracy, which we still have today. Sparta was a communist state, so much so that it NEVER adopted coinage, and these spits were maintained to PREVENT people from hoarding wealth—sound familiar with electronic money and canceling currencies? The Spartan system was based on the idea that the collective came before the individual. This is the cornerstone of all LEFTIST regimes.
Marx believed Communism would prevail because Sparta defeated Athens in 404 BC. However, Sparta was in league with its neighbors, especially Corinth, whose coinage competed with Athens in trade. So Sparta was the Communist state, but it was aided by other capitalistic cities to knock out the financial capital of the world so they could replace it.
This division eventually led to the opening of the door for the northern Macedonians to take all of Greece under Philip II (359-336BC) and his son Alexander the Great. This Cold War between effectively Spartan Communism and Athenian Capitalism weakened Greece and allowed them to be conquered by Macedonia, which was not originally part of Greece.
To be a Spartan citizen, one had to undertake the Agoge’s rigorous military education. Only those who had completed their education in the Agoge were entitled to be citizens. The criteria for a Spartan citizen were very high. While the system ensured that the Spartans were well-trained warriors, it also led to problems replacing those who died in battle. To be a citizen, the Spartan had to pay his way into the agoge, such as supply his armor. The economic burden upon the common people was its undoing. Lacking a flourishing economy because people were steered into the military for the state, it sealed its fate with a gradually declining economic base. With the rising costs over time, fewer and fewer people could afford to pay their way into agoge.
Sparta emerged victorious during the Peloponnesian War in 404 BC, and by 400 BC, it had replaced Athens as the greatest military power in the Greek world. However, it neither contributed to the economy no less art and creativity. Then, in 371 BC, in just about 31.4 years by Thebes, the Spartans were defeated in the battle for the first time. They lost that military power and Greece’s leadership. Nothing lasts forever. During that entire period, Sparta never issued any coinage because it was an anti-capitalistic state.
Whenever a LEFTIST government turns to restrict the movement of people by building Berlin Walls to keep them in or an EXIT tax to confiscate their wealth as a punishment for leaving since they are not being taxed to pay any fair share of the state when they are not there, the end is merely inevitable. The LEFT will always impose dictatorial decrees and refuse ever even once to consider that what they are doing is against human nature and the basic human right to live in peace.
In recent developments in Norway, the failure of the government’s economic policies has been taxing the “hated” rich; they are planning to introduce a more stringent exit tax to punish anyone who leaves their draconian policies. This move has attracted much criticism from many sources, but historically, the LEFT has never listened. Even in the United States, just look at those states that have extreme LEFT regimes, and you will find EXIT Taxes as well.
California in the US is an absolutely horrible place, and it is following the same path as Norway. California is no longer a place to invest, as is the case with New York and most of the New England states. New Jerseyhas an EXIT Tax applied if you sell your home and buy something in another state. Connecticut has a 2.25% EXIT Tax. New Jersey has an Exit Tax. All of the LEFTIST government sees you as just an economic slave. It has nothing to do with paying your fair share – they are only interested in economically punishing you. If you do not get the hell out of these states, it will only get worse because they NEVER have enough and will NEVER change their policies until there is a political revolution and they are voted out of power. But the brightest will always leave, and in the end, they commit economic suicide, no different than ancient Sparta.
Spearheaded by Finance Minister Trygve Slagsvold Vedum, the initiative aims to deter affluent Norwegians from relocating to countries with more favorable tax regimes, such as Switzerland, by imposing a hefty tax on unrealized gains. Here in the USA, Janet Yellen wants investors to pay a tax on the increase in the value of stock every year, even if it is not sold. So if a stock goes from $100 to $150 you must pay tax on that $50. Then there is a crash, and it drops 25%. You will get no tax credit, and then it bounces 10%; you owe on that 10% bounce.
These people are absolutely destroying capitalism and Western Society. We have only 8 years left because this entire economic system will collapse. This is unsustainable. In Australia, the LEFT wants to confiscate all your wealth upon death and you should be prohibited from leaving anything to your children. Everyone should start from ZERO – except LEFTIST politicians of course. This is what 2032 is all about. These people are destroying our future and the very foundation of a free society.
Posted originally on Apr 30, 2024 By Martin Armstrong
What brought thousands of people together to create something as simple as a pencil? Some may be familiar with the late economist Milton Friedman’s popular analogy of how a mere pencil represents the effectiveness of a free market.
No single human could create something as simple as a pencil. The phone or computer you are using to read this article took the collaboration of hundreds if not thousands of individuals to achieve from sourcing the materials, innovating the creation through design and trials, manufacturing the product, negotiating trade, shipping the final product, and selling it to you the consumer. People across the world came together, putting in countless hours of work, to provide you with commonly used products that one may not pay much attention to in their day-to-day lives.
What brought these people together? “The magic of the price system!” Friedman explains. They “cooperate so that you could have it for a trifling sum. That is why the operation of the free market is so essential–not only to promote productive efficiency, but even more, to foster harmony and peace among the people of the world.”
Friedman was criticized for promoting the idea that business operates for business purposes, and the “greed is good” doctrine. We now have those who want to implement environmental and social credit scores into business and large banks and institutions have adopted this ideology. . The Human Rights Campaign (HRC) pushes the CEI (Corporate Equality Index), a company’s social woke credit score. The Open Society Foundation, operated by the Soros family, funds the HRC. The ESG promotes a company’s green social credit score, promoted by BlackRock and the World Economic Forum. Companies are shying away from these arbitrary credit scores in droves.
BlackRock even came out and said that the concept of stakeholder capitalism, introduced in 1932 but currently promoted by the World Economic Forum and its partners, was bad for business. BlackRock has $700 billion tied up in ESG policies, and this pivot marked a change in business trends. The first bill that President Joe Biden vetoed was a bill intended to dissolve the ESG climate social credit score, which was only foreshadowing the policies that later came about, most notably the Inflation Reduction Act that Treasury Secretary Janet Yellen admitted was intended to combat climate change. Yet this push to an essentially socialistic society has been undeniably ineffective.
In one of his many writings, “The Social Responsibility of Business Is to Increase Its Profits,” Friedman explains why capitalism produces results. “The whole justification for permitting the corporate executive to be selected by the stockholders is that the executive is an agent serving the interests of his principal,” the late economist stated. Friedman was beyond his time. He used the example of what could happen if a company were required to adjust its prices and policies “to contribute to the social objective of improving the environment,” hire less qualified individuals in the name of equality, or change prices to adjust for overall inflation.
The answer is simple – the corporate executive making these decisions would be “spending someone else’s money for a general social interest,” and thus, socialism. “Insofar as his actions in accord with his “social responsibility” reduce returns to stock holders, he is spending their money. Insofar as his actions raise the price to customers, he is spending the customers’ money. Insofar as his actions lower the wages of some employes, he is spending their money”
Friedman argued that individuals could spend their personal money as they saw fit, but businesses have no such social obligation. Adjusting prices for social causes is essential imposing taxes and decided how the tax proceeds should be spent. Taxation without representation. The corporate executive and business leaders are the chosen representatives of the shareholders. “Here the businessman—self‐selected or appointed directly or indirectly by stockholders—is to be simultaneously legislator, executive and jurist. He is to decide whom to tax by how much and for what purpose, and he is to spend the proceeds—all this guided only by general exhortations from on high to restrain inflation, improve the environment, fight poverty and so on and on.” Forcing businesses to operate based on social policies degrades the elected representative to a “public employee, a civil servant, even though he remains in name an employee of private enterprise.”
Joe Biden continually states he is cracking down on corporate greed. How are we to expect business to combat such a complex topic?
As Milton Friedman explains:
“He is told that he must contribute to fighting inflation. How is he to know what action of his will contribute to that end? He is presumably an expert in running his company—in producing a product or selling it or financing it. But nothing about his selection makes him an expert on inflation. Will his holding down the price of his product reduce inflationary pressure? Or, by leaving more spending power in the hands of his customers, simply divert it elsewhere? Or, by forcing him to produce less because of the lower price, will it simply contribute to shortages? Even if he could answer these questions, how much cost is he justified in imposing on his stockholders, customers and employes for this social purpose? What is his appropriate share and what is the appropriate share of others?”
Separating the public and private sectors is necessary in a free market. “In an ideal free market resting on private property, no individual can coerce any other, all cooperation is voluntary, all parties to such cooperation benefit or they need not participate. There are no “social” values, no “social” responsibilities in any sense other than the shared values and responsibilities of individuals.” This is precisely in opposition to what we have seen with CEI and ESG policies, where businesses have been barred from operating freely due to social pressures from Washington and global organizations. The climate change zealots expect the entire energy sector to reform instantaneously without the realization that is utterly impossible to achieve any of their zero CO2 targets.
Milton Friedman speaks extensively on this topic in the book, “Capitalism and Freedom,” as well as countless articles published during his lifetime. The fact of the matter is that the private sector produces for the good of all based on “greed” or profits as that is the motivating factor. Everyone acts according to the invisible hand theory, which Adam Smith put forth years ago. Thousands of people would not have felt compelled to create a mere pencil if it were not for their own self-interest that ensured they would receive something in return for their time and work.
Socialism, climate change initiatives, DEI initiatives, CEI, and ESG scores all suppress the free market and deter business. Taxing businesses into oblivion to support big government suppresses the free market. Absolutely everyone reaps the benefits of a free market where goods flow, jobs are abundant, and talent is rewarded. We must separate the private and public sectors as we do with church and state. History has taught us time and time again that operating under the premise of “social responsibility” leads to utter failure, feminine, and deteriorating economic conditions for all.
Posted originally on Apr 30, 2024 By Martin Armstrong
People have been leaving California in droves due to Governor Gavin Newsom’s socialistic Utopia that demands everyone be taxed on every penny they earn. I’ve long warned that California was unfriendly for businesses and investors. Those who stayed behind will now need to pay to leave under Assembly Bill 2088.
California plans to implement a one-time tax for businesses and individuals fleeing the Golden State. The government will look at all of your assets and investments to determine how much you will need to pay, which is usually 0.4% of someone’s net worth. Wealth historically flees when taxes rise, and to combat this issue, California plans to tax anyone with an income for $30 million for up to a full decade after they leave the state. Someone leaving the country entirely will still be forced to pay California for the privilege of leaving.
California first implemented an exit tax in August 2020 when they saw businesses and individuals lining up to leave the state that faced some of the harshest lockdown penalties in the nation. Uhaul and other moving organizations reported shortages on shipping vehicles as the demand to flee was so high.
Per usual, this tax was first introduced as an “eat the rich” penalty for those earning over $30M. And again, as usual, the tax expanded to target everyone. Small businesses that are already struggling to survive in California’s climate may feel trapped in the state. Individuals who can no longer afford the cost of living in California are also unable to leave without forfeiting money to the state. Afterall, the majority of people who live in California rent if they actually have shelter. Why anyone would want to conduct business in or through California is beyond me as Newsom is clearly targeting everyone who merely associates with California.
Another reason the Socialists introduced this tax is to steal capital gains. They wanted to tax unrealized gains to no avail but were prohibited by the courts. Now they are worried people will move out of state and cash out elsewhere. So California wants to tax all investments to ensure they get a cut of YOUR money that they do not have a right to claim.
The state dug themselves into the deepest deficit in the nation. The decision-makers do not believe they are the problem. They believe the greedy businesses and individuals are the problem and deserve to pay for their mistakes through unending taxation. Accumulating wealth is now a punishable offense in parts of the “free world.”
Success is a punishable offense in Biden’s America. Joe Biden and his administration would like to implement a 44.6% tax on capital gains, the highest tax on capital gains in the nation’s history. Washinton says this tax is necessary to address the looming national debt, but they are simultaneously implementing measures to ensure that the nation falls deeper into debt. Perpetually issuing new debt to pay for the old is equivalent to a Ponzi scheme that WILL FAIL.
Donald Trump’s implemented tax deductions are set to expire in 2025, which is precisely when these measures could go into effect. The proposals essentially rob those who have achieved success to pay those who leech off of the government.
The proposal is over 250 pages in length but looks to target all investments. The MSM will report that they are only going after the wealthiest Americans but the truth of the matter is that they will seek to squeeze everything they can out of every American, unless they fully rely on government assistance and are therefore owned by Washington.
“A new 25- percent minimum income tax would be imposed on extremely wealthy taxpayers. For high-income taxpayers, gaps in the law that allow some pass-through business owners to avoid Medicare taxes would be eliminated, and Medicare tax rates would be increased. Additional loopholes, including the carried interest preference and the like-kind exchange real estate preference, would be eliminated for those with the highest incomes. Together these reforms would sharply curtail tax preferences that allow the wealthy to pay lower tax rates on their investment income and exacerbate income and wealth disparities, including by gender, geography, race, and ethnicity.”
We are equal in rights, not talent. This proposal clearly states that successful individuals must be punished financially. Will the government curtail its own spending or address the utter deterioration of fiscal policy that has hurt all Americans? No. There are no mirrors in Washington.
C corporations, under this proposal, would be subjected to a 28% tax rate – a 7% increase. The corporate alternative minimum tax (CAMT) would rise to 21% compared to the current 15%. How on Earth does this support American business? Does he truly believe this will aid in job growth, as we have primarily only seen the public sector grow?
Think crypto is safe? Think again because this proposal wants to permit the government to determine which assets are considered actively traded.
“The proposal would add a third category of assets that may be marked-to-market at the election of a dealer or trader in those assets. Assets in the third category would be actively traded digital assets and derivatives on, or hedges of, those digital assets, under rules similar to those that apply 230 General Explanations of the Administration’s Fiscal Year 2025 Revenue Proposals to actively traded commodities. The Secretary would have authority to determine which digital assets are treated as actively traded. The determination of whether a digital asset is actively traded would take into account relevant facts and circumstances, which may include whether the asset is regularly bought and sold for U.S. dollars or other fiat currencies, the volume of trading of the asset on exchanges that have reliable valuations, and the availability of reliable price quotations.”
Forget offshore digital investments because Washington wants a cut of that too:
“Tax compliance and enforcement with respect to digital assets is a rapidly growing problem. Since the industry is entirely digital, taxpayers can transact with offshore digital asset exchanges and wallet providers without leaving the United States. The global nature of the digital asset market offers opportunities for U.S. taxpayers to conceal assets and taxable income by using offshore digital asset exchanges and wallet providers. U.S. taxpayers also attempt to avoid U.S. tax reporting by creating entities through which they can act. Requiring individuals specifically 228 General Explanations of the Administration’s Fiscal Year 2025 Revenue Proposals to report their offshore holdings of accounts with digital assets, subject to significant penalties if they fail to do so, is critical to combat the potential for digital assets to be used for tax avoidance.”
This proposal is LOADED with extreme restrictions and penalties for investors, both domestic and foreign.
They want to reform how companies pay dividends. They want to reform international taxation and reporting. The statute of limitation for financial penalties would be expanded, including the payouts the government lavishly handed out during COVID.
The proposal would increase the top marginal tax rate to 39.6% for married individuals filing a joint return and surviving spouses. Single filers earning $400,000 for unmarried individuals will face the highest tax penalties, as will those earning $425,000 for head of household filers, and $225,000 for married individuals filing a separate return. In comparison, the current top marginal rate for married filers is currently on those earning over $731,2000 and single filers earning over $609,500. So the cost of living is rapidly rising, inflation has no change of relenting during this time of ongoing wars, but the government wants to tax those earning less more?
So, if one sells their small business, they will need to give the government about half of what they worked their entire lives to achieve. If an American’s house rose in value and they attempt to sell the estate—too bad, Uncle Sam needs half. This is a MIDDLE-CLASS TAX. The ultra-wealthy already have ways to bypass these measures. The ultra-wealthy may begin leaving America in general if they continue to demonize capitalism.
The people did not create the deficit we face today. The government continually spends with no plans to curtail spending. They have created a massive Ponzi scheme whereby they issue new debt every year to roll over the debt from the previous year. Eventually, there will be no buyers, and that is precisely how nations fail.
Posted originally on Apr 29, 2024 By Martin Armstrong
QUESTION: Hi Martin, What are you thoughts on holding cash into 2028? You said cash was king, but there would come a time to abandon cash. It seems this CBDC thing is what you are talking about. Do you have any time yet?
See you in London
Kind regards,
HF
ANSWER: Europeans are much more familiar with canceling currency. Those governments are much more Marxist and have been canceling currencies routinely since WWII. What happens is you are forced to bring your cash in to swap it for the new version. In this case, it will be digital. What they are going to do is then look to see who accumulated that cash. If it is a large chunk, you may be taxed, and the burden will be on you to PROVE you paid the cash.
You are better off swapping it out for gold, stocks, and even real estate outside of the Blue States and generally cities. As people migrate from those regions, the people left behind will have their taxes increased. California is the #1 state people are leaving. They have noticed, and as I have been warning, you should have got the hell out of that God-forsaken state. They are now imposing an EXIT tax to leave. The downside of real estate is that they impose a property tax on it annually. Some states include even your car. People I know used to have Ferraris no longer because they paid a sales tax to buy it, and then you are taxed on the price you paid for it annually as property tax. If you keep the car for 10 years and it depreciates, the taxes you pay just to have it will consume half the price of the car or more.
We are through the COVID crisis when it was wise to hold the case. Now, you do not want to hold cash into 2028. We are facing STAGFLATION, so inflation will rise faster than GDP. Thus, the purchasing power of cash will decline. Then, when they do the CBDC, which they plan to introduce as soon as January 2025, they will cancel all cash, force you to bring it to the bank, and report how much you had to the IRS.
Posted oeiginally on Apr 28, 2024 By Martin Armstrong
Under Communism, everyone made the same. That removed the incentive to even invent anything. The socialists looked at Henry Ford and despised his wealth. They ignored that Henry Ford invented the assembly line and created the auto industry; when everyone could afford a car, they expanded and began moving to the suburbs where they could commute. To the Socialists, all they look at is the money one person earns and say that is not fair. That is what destroyed Communism, and it will destroy the West as well – it’s just our turn.
I have created this site to help people have fun in the kitchen. I write about enjoying life both in and out of my kitchen. Life is short! Make the most of it and enjoy!
This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
Centinel2012 