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Jul 11 2018

The IRS Can Deny You A Passport?


Armstrong Economics Blog/The Hunt for Taxes

Re-Posted Jul 11, 2018 by Martin Armstrong

 

QUESTION: You said that if you owe taxes the government can deny you a passport? I never heard that one.

ANSWER: Oh yes. This has been in place for several years. The Wall Street Journal just reported that “at least 362,000” Americans will be unable to renew their passports because of back tax bills. They can take your homes, garnish your wages, and deny you the right to leave the country. Effectively, the IRS can actually starve you to death with all the rules they have and nobody on the other end will ever be there to look at the combined damage.

Judgment creditors can garnish your wages in order to collect the judgment up to a maximum of 25% of your disposable income. However, creditors of a few types of debts such as back taxes, child support, and student loans, can garnish your paycheck without a judgment. In other words, you have no right to actually contest this in a court of law. They can just garnish your wages on a whim or even on a mistake, placing the burden on you to argue with them.

The U.S. Department of Education or anyone collecting on its behalf can garnish up to 15% of your disposable income to collect on defaulted student loans. These agencies do not have to sue you first and get a judgment in order to garnish, but they must provide you with notice of the garnishment ahead of time. You can thank the Clintons for that one who eliminated the right to even go bankrupt from student loans even if a university charges you for a degree in which you cannot find employment, which today is over 60% of graduates. Universities could care less if you are getting a degree that is actually worth something. They just want the money.

Ever since 1988, child support orders include an automatic wage withholding order, even for child support that is not delinquent. The child support is withheld from your paycheck and your employer sends the money directly to the other parent. If you are required to maintain health insurance coverage for your child, the payment for that will be deducted from your paycheck as well. You can agree with the other parent to pay child support on your own, without resorting to wage withholding. The limit is up to 50% of your disposable earnings that may be garnished to pay child support if you are currently supporting a spouse or a child who isn’t the subject of the order. If you aren’t supporting a spouse or child, up to 60% of your earnings may be taken. An additional 5% may be taken if you are more than 12 weeks in arrears. Federally, child support payments and not considered taxable income. However, child support payments are also not deductible by the payer.

Taxing authorities, on the other hand, have their own limits for wage garnishment which is very subjective. The IRS bases the amount on how many dependents you have and your standard deduction amount. State taxing authorities may have their own formulas and they are all different. The IRS will send you a notice before it begins garnishing, but it does not have to get a judgment before doing so. They can take your funds BEFORE and you may not be able to afford a lawyer to help

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By Centinel2012 • Posted in Economic Subjects • Tagged Armstrong Economics, Asset confiscation, Asset diversification, Asset recycling, Assets, assets bubbles, Big Government, Cashless society, centinel2012, central bank, Central Planning, Central Planning, Common Reporting Standard, Communism, Credit, CRS, currency manipulation, Curse of Cash, David Pristash, Debt, debt bubbles, Disasters, Dodd-Frank, ECB, ECM, Economic Collapse, Economic Confidence Model, economics, Edelman Trust Barometer, eliminate cash, Eminent Domain, end of liquidity, Euro, FATCA, FED, financial ponzi schemes, Foreign Account Tax Compliance Act, Fraud, Free Market, front running, glazier’s fallacy, Gold, Gold confiscation, Gold Standard, Hedge, Helicopter money, Hoarding Cash, Homeless Tax, housing bubbles, Hunt for Taxes, Hyperinflation, Illinois credit now “Junk”, IMF, IMF Working Paper on Eliminating Cash, Inflation, Interest, Interest rate, Italy, Keynesian Economics, Marxism, Monetary collapse, Money laundering, money smuggling, negative interest, new world order, No more Stop-loss, Panics, Pension Crises, Pension Fund Insolvency, Pension funds, police asset forfeiture, policing for profit, Pre-Pay VAT, progressives, Progressivism, QE, Quantitative Easing, Reversals, SDR, Silver, Social welfare, socialism, Sovereign Debt Crisis, special drawing rights, Speculation, spoofing, Student Loans, sustainability, Tax on employees, Tax the internet, The Forecaster, the Great Depression, Too Big to Bailout, Too big to fail, Too big to Jail, Turkey, Turning Points, Understanding cycles, Unemployed, Unexplained Wealth Orders, Universal income, usury laws, UWO, VAT, Velocity of Money, Wealth tax
0
Jul 9 2018

Civil Unrest in Haiti leaves Americans Trapped


Armstrong Economics Blog/Civil Unrest

Re-Posted Jul 9, 2018 by Martin Armstrong

The American Embassy personnel in Haiti are still under an order to take shelter and remain in place. They have been instructed: “Do not attempt to travel at this time.” Riots began on Friday in Haiti and have continued for three days when the government, instructed by the IMF to reduce government subsidies for fuel, resulting in a rise in prices on gasoline, diesel, and kerosene. The prices virtually doubled. While Haitian officials said they would increase social services spending and improve infrastructure, they are also directed to enforce collecting taxes. The IMF has directed many countries to engage in the hunt for taxes because deficits are rising. There is no long-term solution here for a simple exercise of math demonstrates that as increases rise, the interest rate cost of rolling the debt will crowd out all other spending forcing taxes to rise exponentially over the next decade.

The civil unrest has turned to set up flaming roadblocks, bringing travel around the city to an absolute halt, and looters are raiding stores and supermarkets just taking everything they can carry. Others have targeted hotels and businesses to just rob whatever they can find. Haiti is not unaccustomed to such riots. They tore the capital apart just back in September 2017 over politics. There were riots over food back in 2008 and were even attacking UN personnel

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By Centinel2012 • Posted in Economic Subjects • Tagged Armstrong Economics, Asset confiscation, Asset diversification, Asset recycling, Assets, assets bubbles, Big Government, Cashless society, centinel2012, central bank, Central Planning, Central Planning, Common Reporting Standard, Communism, Credit, CRS, currency manipulation, Curse of Cash, David Pristash, Debt, debt bubbles, Disasters, Dodd-Frank, ECB, ECM, Economic Collapse, Economic Confidence Model, economics, Edelman Trust Barometer, eliminate cash, Eminent Domain, end of liquidity, Euro, FATCA, FED, financial ponzi schemes, Foreign Account Tax Compliance Act, Fraud, Free Market, front running, glazier’s fallacy, Gold, Gold confiscation, Gold Standard, Hedge, Helicopter money, Hoarding Cash, Homeless Tax, housing bubbles, Hunt for Taxes, Hyperinflation, Illinois credit now “Junk”, IMF, IMF Working Paper on Eliminating Cash, Inflation, Interest, Interest rate, Italy, Keynesian Economics, Marxism, Monetary collapse, Money laundering, money smuggling, negative interest, new world order, No more Stop-loss, Panics, Pension Crises, Pension Fund Insolvency, Pension funds, police asset forfeiture, policing for profit, Pre-Pay VAT, progressives, Progressivism, QE, Quantitative Easing, Reversals, SDR, Silver, Social welfare, socialism, Sovereign Debt Crisis, special drawing rights, Speculation, spoofing, Student Loans, sustainability, Tax on employees, Tax the internet, The Forecaster, the Great Depression, Too Big to Bailout, Too big to fail, Too big to Jail, Turkey, Turning Points, Understanding cycles, Unemployed, Unexplained Wealth Orders, Universal income, usury laws, UWO, VAT, Velocity of Money, Wealth tax
0
Jul 6 2018

Cloning License Plates to Avoid Traffic Fines


Armstrong Economics Blog/The Hunt for Taxes

Re-Posted Jul 6, 2018 by Martin Armstrong

If there is a possible scam, someone will always figure it out. In Australia, they hunt money with unbelievable audacity and hand out tickets to motorists for everything. Someone has figured out a way to beat the government at its own game. They are cloning valid license plates and then racking up the fines. A BMW owner got a ticket for speeding while his car was parked in the driveway. When he looked closely, he discovered the ticket was for speeding 1,000 miles away from his home. The scammers figured out a brilliant way to beat the cameras. Just clone a license plate and you can speed and go through all the tolls absolutely free.

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By Centinel2012 • Posted in Economic Subjects • Tagged Armstrong Economics, Asset confiscation, Asset diversification, Asset recycling, Assets, assets bubbles, Big Government, Cashless society, centinel2012, central bank, Central Planning, Central Planning, Common Reporting Standard, Communism, Credit, CRS, currency manipulation, Curse of Cash, David Pristash, Debt, debt bubbles, Disasters, Dodd-Frank, ECB, ECM, Economic Collapse, Economic Confidence Model, economics, Edelman Trust Barometer, eliminate cash, Eminent Domain, end of liquidity, Euro, FATCA, FED, financial ponzi schemes, Foreign Account Tax Compliance Act, Fraud, Free Market, front running, glazier’s fallacy, Gold, Gold confiscation, Gold Standard, Hedge, Helicopter money, Hoarding Cash, Homeless Tax, housing bubbles, Hunt for Taxes, Hyperinflation, Illinois credit now “Junk”, IMF, IMF Working Paper on Eliminating Cash, Inflation, Interest, Interest rate, Italy, Keynesian Economics, Marxism, Monetary collapse, Money laundering, money smuggling, negative interest, new world order, No more Stop-loss, Panics, Pension Crises, Pension Fund Insolvency, Pension funds, police asset forfeiture, policing for profit, Pre-Pay VAT, progressives, Progressivism, QE, Quantitative Easing, Reversals, SDR, Silver, Social welfare, socialism, Sovereign Debt Crisis, special drawing rights, Speculation, spoofing, Student Loans, sustainability, Tax on employees, Tax the internet, The Forecaster, the Great Depression, Too Big to Bailout, Too big to fail, Too big to Jail, Turkey, Turning Points, Understanding cycles, Unemployed, Unexplained Wealth Orders, Universal income, usury laws, UWO, VAT, Velocity of Money, Wealth tax
0
Jul 4 2018

Illinois to Assault the Entire Internet – They May End Up With Businesses Refusing to Deal With People in Illinois


Armstrong Economics Blog/Corruption

RE-Posted Jul 4, 2018 by Martin Armstrong

The Supreme Court’s decision to allow every state to tax the internet is complete insanity. Sources in Illinois are warning that the state is bankrupt and it now intends to wage an all-out assault upon the internet. They may, in the end, simply force many small companies to REFUSE to do business with anyone who lives in Illinois. From a business perspective, all you get are costs. They do not pay you to collect their taxes, and in the end, they subject you to huge fines, penalties, and prison for a job that amounts to indentured servitude. Where are the class action lawyers to make that argument? On top of that, if a policeman from New Jersey has NO JURISDICTION to arrest someone in another state, then how can the state impose forced employment on persons from other states? Constitutionally they cannot!!!!!!!!!!!!!!!!!!! They also violate the Commerce Clause.

Expect California to be next. We are looking at the real destruction of the economy. What if every nation then follows the same design because everyone is going broke trying to cover their own pensions? So to sell anything on the internet you suddenly have to file papers even stating you sold nothing in 50 states inside the USA. Using the same legal principles, then at the United Nations, the member states are 193 in total. Would a small business then have to file also in 193 countries and then state and provinces within each stating they DID NOT conduct business in their jurisdiction or go to prison?

If you asked how the West could collapse and everything move to China, the Supreme Court just delivered the means to accomplish that result. The problem is that Congress could overrule that, but they will not because they are NOT the representatives of the people. They represent the government. Someone MUST create a petition to Donald Trump directly. He would at least understand the problem.

Illinois should either dissolve itself or go bankrupt to end the pensions they cannot renegotiate.

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By Centinel2012 • Posted in Economic Subjects • Tagged Armstrong Economics, Asset confiscation, Asset diversification, Asset recycling, Assets, assets bubbles, Big Government, Cashless society, centinel2012, central bank, Central Planning, Central Planning, Common Reporting Standard, Communism, Credit, CRS, currency manipulation, Curse of Cash, David Pristash, Debt, debt bubbles, Disasters, Dodd-Frank, ECB, ECM, Economic Collapse, Economic Confidence Model, economics, Edelman Trust Barometer, eliminate cash, Eminent Domain, end of liquidity, Euro, FATCA, FED, financial ponzi schemes, Foreign Account Tax Compliance Act, Fraud, Free Market, front running, glazier’s fallacy, Gold, Gold confiscation, Gold Standard, Hedge, Helicopter money, Hoarding Cash, Homeless Tax, housing bubbles, Hunt for Taxes, Hyperinflation, Illinois credit now “Junk”, IMF, IMF Working Paper on Eliminating Cash, Inflation, Interest, Interest rate, Italy, Keynesian Economics, Marxism, Monetary collapse, Money laundering, money smuggling, negative interest, new world order, No more Stop-loss, Panics, Pension Crises, Pension Fund Insolvency, Pension funds, police asset forfeiture, policing for profit, Pre-Pay VAT, progressives, Progressivism, QE, Quantitative Easing, Reversals, SDR, Silver, Social welfare, socialism, Sovereign Debt Crisis, special drawing rights, Speculation, spoofing, Student Loans, sustainability, Tax on employees, Tax the internet, The Forecaster, the Great Depression, Too Big to Bailout, Too big to fail, Too big to Jail, Turkey, Turning Points, Understanding cycles, Unemployed, Unexplained Wealth Orders, Universal income, usury laws, UWO, VAT, Velocity of Money, Wealth tax
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Jul 3 2018

Uganda Taxes the Internet Deny Access Unless you Pay Your Taxes


Armstrong Economics Blog/Corruption

Re-Posted Jul 3, 2018 by Martin Armstrong

I have been warning that there are no rules when it comes to the greed of government. Throughout history, the ideas behind taxes keep popping up is slightly different ways. For example, your freedom to travel can be suspended and your passport revoked if you owe the IRS more than $50,000. In Ancient Rome, it was not uncommon for slaves to be freed after a number of years of service. To freee a slave, however, they also put a tax of the value of the slave freed. No tax = no freedom not unlike the IRS rule.

I have warned that cryptocurrencies would be subject to the whims of government and they can simply declare them illegal. Well, if you didn’t believe me, you have the crazy EU laws imposed on emails in Europe which can wipe out your company on a whim. Now, the Uganda government began on July 1st shutting down the internet blocking social media which included services like WhatsApp, Twitter, Facebook and Skype just to mention a few. These social media apps were all made inaccessible overnight. Governments can shut down cryptocurrencies in the blink of an eye if there is money to be had. The reason for taking these actions are really bogus. The President Museveni claimed that idle talk on social media was costing the country vast amounts of money because the young are communicating instead of working when they wopuld be producing more tax revenue

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By Centinel2012 • Posted in Economic Subjects • Tagged Armstrong Economics, Asset confiscation, Asset diversification, Asset recycling, Assets, assets bubbles, Big Government, Cashless society, centinel2012, central bank, Central Planning, Central Planning, Common Reporting Standard, Communism, Credit, CRS, currency manipulation, Curse of Cash, David Pristash, Debt, debt bubbles, Disasters, Dodd-Frank, ECB, ECM, Economic Collapse, Economic Confidence Model, economics, Edelman Trust Barometer, eliminate cash, Eminent Domain, end of liquidity, Euro, FATCA, FED, financial ponzi schemes, Foreign Account Tax Compliance Act, Fraud, Free Market, front running, glazier’s fallacy, Gold, Gold confiscation, Gold Standard, Hedge, Helicopter money, Hoarding Cash, Homeless Tax, housing bubbles, Hunt for Taxes, Hyperinflation, Illinois credit now “Junk”, IMF, IMF Working Paper on Eliminating Cash, Inflation, Interest, Interest rate, Italy, Keynesian Economics, Marxism, Monetary collapse, Money laundering, money smuggling, negative interest, new world order, No more Stop-loss, Panics, Pension Crises, Pension Fund Insolvency, Pension funds, police asset forfeiture, policing for profit, Pre-Pay VAT, progressives, Progressivism, QE, Quantitative Easing, Reversals, SDR, Silver, Social welfare, socialism, Sovereign Debt Crisis, special drawing rights, Speculation, spoofing, Student Loans, sustainability, Tax on employees, The Forecaster, the Great Depression, Too Big to Bailout, Too big to fail, Too big to Jail, Turkey, Turning Points, Understanding cycles, Unemployed, Unexplained Wealth Orders, Universal income, usury laws, UWO, VAT, Velocity of Money, Wealth tax
0
Jun 25 2018

How Do We Get Honest Government? Is It Possible?


Armstrong Economics Blog/Politics

Re-Posted Jun 25, 2018 by Martin Armstrong

QUESTION: You seem to be somewhere between left and right-believing in government restraint and showing that it pursues its own self-interest which leads to corruption and in the end the fall of the state. Is that a fair statement of your philosophy?

KP

ANSWER:  I am against the Marxist views and I am against the extreme right and believe that more in liaise-fair because the government is incapable of manipulating the economy (the people) and when it does, it inevitably turns on the interest of some special group. I certainly do not believe in separating children from their parents and I do not agree that someone who came here as a child and grew up here, married, and had children with a bonafide American should be deported. Family and God should come BEFORE the state. The French legal system recognizes the old Roman tradition that nobody in one household can be compelled to testify against you. In the British/American common law system, the only such privilege extends to a spouse and not even your children. So I firmly disagree with that principle and view that family should ALWAYS come before the rights of a king, state, or minister. So what does that make my personal philosophy? Left or Right or somewhere in the middle? I am not even sure.

The battle between the left and the right far too often fails to ever look at some middle ground. That is most likely about 40% of the population. When we look at the popular vote during presidential elections, the highest anyone ever received was Johnson and that was 60.8%. In reality, there is a middle ground that constitutes at least 15% of the population for they are the people who determine who is really president. You have the extreme left and the extreme right and no matter what evidence you put forth they will never change their mind so why bother.

Government is no different from any private organization or individual. It will ALWAYS pursue its own self-interest. The examples of corruption are just so pervasive and this is due to the simple fact that there are no checks and balances. It was Charles-Louis de Secondat Montesquieu, baron de La Brede et de (1689-1755) who came up with the tripartite form of government separating the power of legislative, executive and judicial. Our problem today is that there is no separation of power for the government appoints the judges and thus they are not independent. Ben Franklin’s proposal was to adopt the Scottish system and private lawyers should nominal judges not politicians. We did not follow that system and as such we are incapable of achieving honest government for judges will always rule in the government’s favor – hence our 98.5% conviction rate. When does the government ever be more than 60% right about anything?

Montesquieu’s The Spirit of Laws was profound and demonstrates that he indeed acquainted himself with all the various schools of thought before him, yet he did not identify himself with any particular school. I too have indeed sought to follow this model myself. Of the many subjects covered, it was his coverage of three main topics that were the most influential in recasting the Age of Political Enlightenment leading to the climax of monarchy and the dawn of republicanism.

The most important of these subjects was his classification of governments that abandoned the traditional divisions of monarchy, aristocracy, and democracy. Montesquieu added to this primary division the republic that he conceived as being based upon virtue. He got that one wrong. Monarchy he saw as based upon honor, and despotism that he believed was based upon fear. Montesquieu saw this critical role of government-centered in how the policy was conducted. However, it was his brilliant concept that the only way to defeat tyranny was the Separation of Powers. This is why we have all our problems because the Judiciary is not on our side.

Here, Montesquieu divided government into legislative, executive, and judicial branches. Montesquieu wrote that “there is no liberty if the power of judging be not separated from the legislative and executive powers.” Id./at 181. Showing how this idea influenced the foundation of the United States, we find this very passage quoted in the Federalist No: 78, p523 (J. Cooke ed. 1961).

Montesquieu in his Grand Tour around Europe observed governments of all forms and saw how they had manipulated the laws to benefit themselves. The objective of his brilliant idea of the “Separation of Powers” was to prevent “the same monarch or senate” from “enact[ing] tyrannical laws” and from “execut[ing] them in a tyrannical manner.”

The judges of the times were merely agents of the state as most have become again today. They lacked independent concepts and for the times, Montesquieu believed that making judges independent would eliminate tyranny. But that tyranny still engulfed the judiciary for the executive selected the judges, and the legislature ‘anointed them. Once the legislative branch became career politicians and they were selected by parties, they defeated all the safeguards that Montesquieu envisioned. Thus, the system very much devolved precisely because of Machiavelli’s observation that history repeats because of the fact that the passions of man never change. Thus, modern incarnations of so-called democracies have devolved into the same tyrannical states that pursue the self-interests of government at the expense of the governed. Thus, precisely what Montesquieu saw and tried to prevent, has merely found the cracks in the sidewalks and the weeds of tyranny have once again sprouted to bath in the warm rays of the son Both Thomas Jefferson and Montesquieu saw the danger in judges.

Montesquieu’s Separation of Powers was perhaps the most influential chapter of his entire work located in book xi, chapter 6. This was penned in 1734 and was one of his first observations. His third doctrine was the idea that climate contributes to political influence. Montesquieu took care to point out that climate was but one of many factors that contributed to secondary causes that combined into what he called a general spirit within society. This climate factor combined with religion and law. Throughout history, the weather had been a primary influence behind migrations. As national states would rise and borders became enforced, the natural flows of migrations have been curtailed greatly and forced underground.

Montesquieu has brought understanding to the new Age of Political Enlightenment and others such a David Hume, said that his work would have the admiration of all ages. He was a man of honor. He was always modest and saw in his work a sense of comradeship insofar as he had collected the knowledge of the times and brought it together by simply seeing into the past and present and envisioning a collective understanding. He was even asked to write brief accounts on democracy and despotism for an encyclopedia, but he declined to state he had already had his say on those subjects.

Yet Montesquieu must be understood from his place and time in the evolution of the political economy. Everyone is influenced by their experience. The idea of becoming “worldly” by taking the Grand Tour, exposed the mind to different points of view. Yet, to comprehend how he arrived at his ideas, we must also place him in the context of the times.

There were three French philosophers on the political economy who were influenced by the events of the French King Louis XIV. These were Sebastien Le Prestre, Marechal de Vauban. (1633-1707), Pierre Le Pesant, signeur de Boisguilbert (1646-1714), and Charles-Irenee Castel, abbe de Saint-Pierre (1658-1743). From these three men, we have the beginnings of thinking about the fiscal management of the state. Vauban had advocated the abolishment of taxes and replacing them with a tithe. “while Vauban’s calculations were greatly exaggerated, he was effectively arguing for indirect taxation. His plan was put in place in 1718 in some regions but proved to be unworkable at this point in time resulting in its abandonment in 1722-1723.

Boisguilbert rejected the ideas of Vauban, yet agreed that there should be a single tax. He viewed the current scheme of collecting taxes as too corrupt. Joseph Schumpeter (1883-1950) took the position that the Physiocrats who ultimately influenced Adam Smith to counter with his Wealth of Nations in 1776, was the precursor to this entire line of thought. Boisguilbert also insisted upon the fact that since the aristocrats to a large extent were a privileged class that did not contribute to the tail le tax in France and thus he disagreed that there could be a single tax to replace all at the rates Vauban believed. Boisguilbert concluded it was better to have one single high tax than numerous small taxes. He argued it had to be equitably distributed, and fixed from the outset since the greatest resistance was too arbitrary justice and taxation. He argued for a land tax as used in England that was one-fifth of revenues, and in Holland it was one-third. He assumed that this tax could be collected with the least amount of coercion. There was serious resistance to taxation from the 14th Century onward. There was the Great Tax Revolt in England during 1381, the Cade rebellion of 1450 from which we have Shakespeare’s most famous line, “The first thing we do is kill all the lawyers” reflected the fact that the “lawyers” were the King’s who were prosecuting the tax evasions. Then there was the Cornwall revolt of 1497 running through to the agrarian revolts between 1628 and 1632. Tax rebellions were of three general types, pure taxation, revolts under the guise of religious Reformation that was really the confiscation of the monasteries in 1536, and the anti-seigneurial revolts that rejected the French “droit du seigneur” (right of the lord) to sleep the first night with the bride of anyone of his vassals. Often the bride could be redeemed by paying a fee to the feudal lord. These revolts occurred in 1549, 1607, and 1628-1632.

The Charles-Irénée Castel, abbé de Saint-Pierre perhaps had the most criticism for the taxation policy of Louis XIV. His work was perhaps the most castigated of the three, but his concept of fiscal reform (taille tarifee) proposed in 1717 described 17 sources of wealth that he envisioned people will voluntarily reveal their wealth. This scheme of direct taxation has today dominated tax collecting, yet it was soundly rejected by the very founders of the United States.

This was the context in which we must understand Montesquieu for he was an important figure in the thought that stood between Saint-Pierre and the Physiocrats. The Seven Years’ War (1756-1763) had cost France most of its foreign trade. Thus, the ideas of the Physiocrats that it was ONLY agriculture that provided the dynamic process of income generation clearly provide a contrast to the political ideas of Montesquieu. Even Thomas Jefferson and John Adams in America believed that it was agriculture that was the pillar of the economy and real wealth.

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By Centinel2012 • Posted in Economic Subjects, U. S. DC Uni-party • Tagged Armstrong Economics, Asset confiscation, Asset diversification, Asset recycling, Assets, assets bubbles, Big Government, Cashless society, centinel2012, central bank, Central Planning, Central Planning, Common Reporting Standard, Communism, Credit, CRS, currency manipulation, Curse of Cash, David Pristash, Debt, debt bubbles, Disasters, Dodd-Frank, ECB, ECM, Economic Collapse, Economic Confidence Model, economics, Edelman Trust Barometer, eliminate cash, Eminent Domain, end of liquidity, Euro, FATCA, FED, financial ponzi schemes, Foreign Account Tax Compliance Act, Fraud, Free Market, front running, glazier’s fallacy, Gold, Gold confiscation, Gold Standard, Hedge, Helicopter money, Hoarding Cash, Homeless Tax, housing bubbles, Hunt for Taxes, Hyperinflation, Illinois credit now “Junk”, IMF, IMF Working Paper on Eliminating Cash, Inflation, Interest, Interest rate, Italy, Keynesian Economics, Marxism, Monetary collapse, Money laundering, money smuggling, negative interest, new world order, No more Stop-loss, Panics, Pension Crises, Pension Fund Insolvency, Pension funds, police asset forfeiture, policing for profit, Pre-Pay VAT, progressives, Progressivism, QE, Quantitative Easing, Reversals, SDR, Silver, Social welfare, socialism, Sovereign Debt Crisis, special drawing rights, Speculation, spoofing, Student Loans, sustainability, Tax on employees, The Forecaster, the Great Depression, Too Big to Bailout, Too big to fail, Too big to Jail, Turkey, Turning Points, Understanding cycles, Unemployed, Unexplained Wealth Orders, Universal income, usury laws, UWO, VAT, Velocity of Money, Wealth tax
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Jun 25 2018

Can Governments Actually Enhance Economic Growth?


Armstrong Economics Blog/Gov’t Incompetence

Re-Posted Jun 25, 2018 by Martin Armstrong

QUESTION: Regardless of all the hype about the euro, from my perspective, the economic growth was far better before the creation of the euro. It just seems as though any improvement is marginal at best. What does your model show for the Eurozone growth rate?

Thank you for what you do

JE

ANSWER: You are correct. There have been only four years since 1995 when the economic growth actually was above 3% annually. Whenever you add more bureaucracy, that needs to be funded and the net difference falls to the private sector. You can see that despite all the drums and clatter about how the Eurozone would be the largest economy in the world and beat the USA to a pulp, they managed to fall to third place as China has risen to take the second spot.

 

Here is the chart we included in our report supporting BREXIT. The economic growth of Britain peaked the year before they joined the EU. The greater the size of the bureaucracy, the lower the economic growth. This is why I say that socialism is dying. Government is just incompetent and cannot build and grow an economy. It is the people who make a nation – not government

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By Centinel2012 • Posted in Economic Subjects, U. S. DC Uni-party • Tagged Armstrong Economics, Asset confiscation, Asset diversification, Asset recycling, Assets, assets bubbles, Big Government, Cashless society, centinel2012, central bank, Central Planning, Central Planning, Common Reporting Standard, Communism, Credit, CRS, currency manipulation, Curse of Cash, David Pristash, Debt, debt bubbles, Disasters, Dodd-Frank, ECB, ECM, Economic Collapse, Economic Confidence Model, economics, Edelman Trust Barometer, eliminate cash, Eminent Domain, end of liquidity, Euro, FATCA, FED, financial ponzi schemes, Foreign Account Tax Compliance Act, Fraud, Free Market, front running, glazier’s fallacy, Gold, Gold confiscation, Gold Standard, Hedge, Helicopter money, Hoarding Cash, Homeless Tax, housing bubbles, Hunt for Taxes, Hyperinflation, Illinois credit now “Junk”, IMF, IMF Working Paper on Eliminating Cash, Inflation, Interest, Interest rate, Italy, Keynesian Economics, Marxism, Monetary collapse, Money laundering, money smuggling, negative interest, new world order, No more Stop-loss, Panics, Pension Crises, Pension Fund Insolvency, Pension funds, police asset forfeiture, policing for profit, Pre-Pay VAT, progressives, Progressivism, QE, Quantitative Easing, Reversals, SDR, Silver, Social welfare, socialism, Sovereign Debt Crisis, special drawing rights, Speculation, spoofing, Student Loans, sustainability, Tax on employees, The Forecaster, the Great Depression, Too Big to Bailout, Too big to fail, Too big to Jail, Turkey, Turning Points, Understanding cycles, Unemployed, Unexplained Wealth Orders, Universal income, usury laws, UWO, VAT, Velocity of Money, Wealth tax
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Jun 25 2018

The Supreme Court Just Destroyed the Economy in the Hunt for Taxes


Armstrong Economics Blog/Rule of Law

Re-Posted Jun 25, 2018 by Martin Armstrong

green-girls-lemonade

The Supreme Court in SOUTH DAKOTA v. WAYFAIR, INC, just handed down the most devastating and unconstitutional rule perhaps in American history in a 5-4 ruling that we will look back upon as the straw that broke the back of the economy. The Supreme Court has totally rejected EVERYTHING that the United States was built upon – No Taxation Without Representation. Instead of the greed of states being confined to their own citizens, the Supreme Court has ruled that if you are not a citizen of that state, the state still has jurisdiction to compel you to collect taxes as an economic slave WITHOUT ANY RIGHT TO BE REPRESENTED IN THAT STATE to oppose such legislation. This is exactly what the American Revolution was all about. The English Parliament would pass legislation that compelled Colonists to pay taxes yet they were NOT represented in the English Parliament to object. This is the most fundamentally UNCONSTITUTIONAL and ant-Democratic decision EVER handed down by the Supreme Court all because of the Hunt for Money by the States.

There will be states that now simply go nuts and I will have to decline doing business in certain states for the risks will be far too great and the cost of compliance will only make it disproportionate per state to conduct business. If you fail to collect sales taxes, they will hit you with penalties and interest rates in the 20%+ level that will far exceed the gross sales in those states. This will simply make it IMPOSSIBLE to conduct business nationwide.

The only way around this insane ruling will be for people to “DONATE” to an organization and receive access to research for “FREE” just as the two little girls selling lemonade hade to when the police said they could not sell lemonade in front of their house.

The Texas sisters Andria, 8, and Zoey Green, 7, wanted to raise about $100 to take their dad to the Splash Kingdom as a Father’s Day present, so they set up a traditional neighborhood lemonade stand. After they made about $25 profit, the nasty insane Overton police showed up and shut the lemonade stand down because the Green sisters did not have a “Peddler’s Permit,” which comes with a $150 fee. The police have simply become the destroyers of society and no longer protect the society – they have transformed into IRS agents with guns and wheels, and far too many are ignorant of what role they now play in society. Nevertheless, in the true spirit of American resistance to No Taxation Without Representation, the girls reopened, giving out free lemonade with tips being optional. That screwed the police. There is the future of society fighting back against those who are destroying all our freedoms.

South Dakota v Wayfair demonstrates the hunt for taxes that I have been warning will tear the United States apart and will destroy the economy going forward contributing to the shift in the Financial Capital of the World to China. So if you wanted a REASON for that shift, you now just received it from the Supreme Court. Should also know that Congress NEVER applied the income tax to worldwide income. It was the Supreme Court which also ruled that they never made an explicit exception, so the IRS can collect it worldwide. ONLY America and Japan impose taxation on income earned globally. Today, the Supreme Court has once again delivered a devastating blow to the US economy long-term.

The Supreme Court wrote:

“South Dakota, like many States, taxes the retail sales of goods and services in the State. Sellers are required to collect and remit the tax to the State, but if they do not then in-state consumers are responsible for paying a use tax at the same rate. Under National Bellas Hess, Inc. v. Department of Revenue of Ill., 386 U. S. 753, and Quill Corp. v. North Dakota, 504 U. S. 298, South Dakota may not require a business that has no physical presence in the State to collect its sales tax.  Consumer compliance rates are notoriously low, however, and it is estimated that Bellas Hess and Quill cause South Dakota to lose between $48 and $58 million annually. Concerned about the erosion of its sales tax base and corresponding loss of critical funding for state
and local services, the South Dakota Legislature enacted a law requiring out-of-state sellers to collect and remit sales tax “as if the seller had a physical presence in the State.” The Act covers only sellers that, on an annual basis, deliver more than $100,000 of goods or services into the State or engage in 200 or more separate transactions for the delivery of goods or services into the State. Respondents, top online retailers with no employees or real estate in South Dakota, each meet the Act’s minimum sales or transactions requirement, but do not collect the State’s sales tax. South Dakota filed suit in state court, seeking a declaration that the Act’s requirements are valid and applicable to respondents and an injunction requiring respondents to register for licenses to collect and remit the sales tax. Respondents sought summary judgment, arguing that the Act is unconstitutional. The trial court granted their motion. The State Supreme Court affirmed on the ground that Quill is controlling precedent.”

The Supreme Court, therefore, OVERRULED two previous decisions in order to help state hunt down taxes. “Because the physical presence rule of Quill is unsound and incorrect,
Quill Corp. v. North Dakota, 504 U. S. 298, and National Bellas Hess, Inc. v. Department of Revenue of Ill., 386 U. S. 753, are overruled.” The decision was written by Justice Kennedy was joined by Justices Ginsburg and Alito. A concurring opinion was delivered by Justice Thomas joined by Justice Gorsuch. The dissenting opinion was written by Chief Justice Roberts, which was joined by Justices Breyer, Sotomayor, and Kagan. Clearly, this was not a decision that was simply down political party lines. President Reagan nominated Kennedy to the Supreme Court and he has ruled in favor of government most of the time when it comes to taxes. President George W. Bush (Junior) appointed Chief Justice Roberts in 2005 after the death of Chief Justice William Rehnquist.

The Chief Justice Roberts in writing the dissent to which four justices agreed to wholeheartedly, explained the core of the decision and why I find this as the straw that will indeed break the bank of the economy. He wrote:

“The Court argues in favor of overturning that decision because the “Internet’s prevalence and power have changed the dynamics of the national economy.” Ante, at 18. But that is the very
reason I oppose discarding the physical-presence rule. Ecommerce has grown into a significant and vibrant part of our national economy against the backdrop of established rules, including the physical-presence rule. Any alteration to those rules with the potential to disrupt the development of such a critical segment of the economy should be undertaken by Congress. The Court should not act on this important question of current economic policy, solely to expiate a mistake it made over 50 years ago.”

If Congress FAILS to overrule this with clear legislation, this will indeed be the last nail in the coffin of ECommerce going forward. The cost of compliance for small business will be disproportionate to the business conducted. EVERY small business will now have to go to lawyers and accounts and they will have to review the laws of each and every state. Such costs are fine for Amazon, but every state will now write its own legislation which is NEVER tested before being enforced placing the burden ALWAYS upon the citizen. If they cannot afford to defend themselve4s, they are forced out of business. The greed of the states knows no rational sense or conscience. There is no negotiation with a government. They are simply ruthless and could care less who they destroy and how many people will be thrown out and lose their jobs.

If states now tax downloads, which Florida does not, then just to let everyone know, we may simply be forced based upon this decision to leave the United States in order to even do business. You cannot treat everyone the same. Looks like getting a PO Box in Delaware may come in handy. Businesses now have to hire a company to keep track of every state and there go more overhead costs so the consumer will have to pay more plus the taxes. When Congress passed FATCA the cost of compliance to say you are not dealing with Americans by foreign companies has exceeded $1 billion annually.  This can be the worse decision of all time! It will seriously reduce ECommerce and slow economic growth entirely because 50 st6ates are greedy, broke, and all act in their own way.

(download the decision below while it is still tax-free for now)

South Dakota v Wayfair

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By Centinel2012 • Posted in U. S. DC Uni-party • Tagged Armstrong Economics, Asset confiscation, Asset diversification, Asset recycling, Assets, assets bubbles, Big Government, Cashless society, centinel2012, central bank, Central Planning, Central Planning, Common Reporting Standard, Communism, Credit, CRS, currency manipulation, Curse of Cash, David Pristash, Debt, debt bubbles, Disasters, Dodd-Frank, ECB, ECM, Economic Collapse, Economic Confidence Model, economics, Edelman Trust Barometer, eliminate cash, Eminent Domain, end of liquidity, Euro, FATCA, FED, financial ponzi schemes, Foreign Account Tax Compliance Act, Fraud, Free Market, front running, glazier’s fallacy, Gold, Gold confiscation, Gold Standard, Hedge, Helicopter money, Hoarding Cash, Homeless Tax, housing bubbles, Hunt for Taxes, Hyperinflation, Illinois credit now “Junk”, IMF, IMF Working Paper on Eliminating Cash, Inflation, Interest, Interest rate, Italy, Keynesian Economics, Marxism, Monetary collapse, Money laundering, money smuggling, negative interest, new world order, No more Stop-loss, Panics, Pension Crises, Pension Fund Insolvency, Pension funds, police asset forfeiture, policing for profit, Pre-Pay VAT, progressives, Progressivism, QE, Quantitative Easing, Reversals, SDR, Silver, Social welfare, socialism, Sovereign Debt Crisis, special drawing rights, Speculation, spoofing, Student Loans, sustainability, Tax on employees, The Forecaster, the Great Depression, Too Big to Bailout, Too big to fail, Too big to Jail, Turkey, Turning Points, Understanding cycles, Unemployed, Unexplained Wealth Orders, Universal income, usury laws, UWO, VAT, Velocity of Money, Wealth tax
0
Jun 15 2018

Does California Have the Right to Watch You Shower?


Armstrong Economics Blog/Rule of Law

Re-Posted Jun 15, 2018 by Martin Armstrong

 

Governor Gerry Brown made it a violation of law to shower and do laundry on the same day. The purpose of this law is to  “help California be better prepared for future droughts and the effects of climate change.” The limit will be 55 gallons of water per day. If you exceed that, there will be a fine of $1,000 per day. If this takes place during a declared drought, the fine jumps to $10,000. A 5-minute shower consumes about 15 gallons of water and to do a load of laundry takes 30 to 40 gallons depending upon the machine. If you live alone, then perhaps you may be OK. If you have a family with two kids, you may have to avoid daily showers.

The entire right to privacy was determined by the Supreme Court in a case where Connecticut outlawed using condoms because God said go forth and multiply. The case concerned a Connecticut law that criminalized the encouragement or use of birth control. That case was Griswold v Connecticut, 381 US 479 (1965). The question becomes: How can you enforce such a law? Does the state then have the RIGHT to come into your home and inspect before you engage in sex to ensure you were not using a condom? Do they remain there observing until you are finished to make sure you did not put one on after they left?

In this case, they will track your meter. But what if you live in an apartment building where they do not monitor water usage per unit? Do they then have the right to stand there to investigate who in the building is doing laundry and taking showers on the same day? They will no doubt turn this into a money-making marathon. If you have a leak or your pipe bursts and you lose hundreds of gallons until they can shut off the water, would you then get a bill for $10,000?

The village of Reconvilier, Switzerland, has discovered a law from 1904 that allows the village to kill dogs if their owners don’t pay a 50 Swiss francs annual pet tax. They use it as extortion of pet owners. You pay the 50 Swiss francs or they kill your dog. Very simple. In Zurich, a woman dropped off her recycling on the wrong day. She was given the choice of two nights in jail or paying a fine. Men cannot stand and urinate after 10 PM because it makes too much noise.

The Swiss banned nuke hiking. It went all the way to the Supreme Court. One must wonder why people would want to even hike in the nude in the mountains. I suppose they are preparing for the coming Ice Age.

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By Centinel2012 • Posted in Uncategorized • Tagged Armstrong Economics, Asset confiscation, Asset diversification, Asset recycling, Assets, assets bubbles, Big Government, Cashless society, centinel2012, central bank, Central Planning, Central Planning, Common Reporting Standard, Communism, Credit, CRS, currency manipulation, Curse of Cash, David Pristash, Debt, debt bubbles, Disasters, Dodd-Frank, ECB, ECM, Economic Collapse, Economic Confidence Model, economics, Edelman Trust Barometer, eliminate cash, Eminent Domain, end of liquidity, Euro, FATCA, FED, financial ponzi schemes, Foreign Account Tax Compliance Act, Fraud, Free Market, front running, glazier’s fallacy, Gold, Gold confiscation, Gold Standard, Hedge, Helicopter money, Hoarding Cash, Homeless Tax, housing bubbles, Hunt for Taxes, Hyperinflation, Illinois credit now “Junk”, IMF, IMF Working Paper on Eliminating Cash, Inflation, Interest, Interest rate, Italy, Keynesian Economics, Marxism, Monetary collapse, Money laundering, money smuggling, negative interest, new world order, No more Stop-loss, Panics, Pension Crises, Pension Fund Insolvency, Pension funds, police asset forfeiture, policing for profit, Pre-Pay VAT, progressives, Progressivism, QE, Quantitative Easing, Reversals, SDR, Silver, Social welfare, socialism, Sovereign Debt Crisis, special drawing rights, Speculation, spoofing, Student Loans, sustainability, Tax on employees, The Forecaster, the Great Depression, Too Big to Bailout, Too big to fail, Too big to Jail, Turkey, Turning Points, Understanding cycles, Unemployed, Unexplained Wealth Orders, Universal income, usury laws, UWO, VAT, Velocity of Money, Wealth tax
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Jun 12 2018

TSA Robs American of his Life Savings of $58,100 who was Taking Cash Back to Albania


Armstrong Economics Blog/Corruption

Re-Posted Jun 12, 2018 by Martin Armstrong

 

The latest in Civil Asset Forfeiture has once again demonstrated how corrupt the government has become. Rustem Kazazi, who is an American citizen, was simply flying to Albania where he was from to repair a home he still owned there.  He had $58,100 in cash in his carry on luggage. When he ran it through the x-ray machine TSA saw the cash and pulled him off to a private room. After strip searching him, they simply stole all his money which was his life savings.

The banking system is not very reliable in Albania so he was trying to take cash instead. What he failed to realize is that the TSA is far more reliable. They will keep CASH for themselves which goes to their budget and pensions if it is more than $10,000. They do not tell you in advance that you cannot take cash when you leave. They always ask how much cash you have when you return. The TSA has become the new highway robbers of all time.

DO NOT get on a plane with cash even for domestic flights. They will take it all!!!!!!!!!!!!!!

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By Centinel2012 • Posted in Economic Subjects • Tagged Armstrong Economics, Asset confiscation, Asset diversification, Asset recycling, Assets, assets bubbles, Big Government, Cashless society, centinel2012, central bank, Central Planning, Central Planning, Common Reporting Standard, Communism, Credit, CRS, currency manipulation, Curse of Cash, David Pristash, Debt, debt bubbles, Disasters, Dodd-Frank, ECB, ECM, Economic Collapse, Economic Confidence Model, economics, Edelman Trust Barometer, eliminate cash, Eminent Domain, end of liquidity, Euro, FATCA, FED, financial ponzi schemes, Foreign Account Tax Compliance Act, Fraud, Free Market, front running, glazier’s fallacy, Gold, Gold confiscation, Gold Standard, Hedge, Helicopter money, Hoarding Cash, Homeless Tax, housing bubbles, Hunt for Taxes, Hyperinflation, Illinois credit now “Junk”, IMF, IMF Working Paper on Eliminating Cash, Inflation, Interest, Interest rate, Italy, Keynesian Economics, Marxism, Monetary collapse, Money laundering, money smuggling, negative interest, new world order, No more Stop-loss, Panics, Pension Crises, Pension Fund Insolvency, Pension funds, police asset forfeiture, policing for profit, Pre-Pay VAT, progressives, Progressivism, QE, Quantitative Easing, Reversals, SDR, Silver, Social welfare, socialism, Sovereign Debt Crisis, special drawing rights, Speculation, spoofing, Student Loans, sustainability, Tax on employees, The Forecaster, the Great Depression, Too Big to Bailout, Too big to fail, Too big to Jail, Turkey, Turning Points, Understanding cycles, Unemployed, Unexplained Wealth Orders, Universal income, usury laws, UWO, VAT, Velocity of Money, Wealth tax
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Centinel2012

Centinel2012

Semi-retired ex-military, ex-businessman, ex-inventor, ex-engineer and now full time member of the Tea Party. My current goal in life is to make sure that the truth is known to all with an open mind.

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Stella's Place

Politics | Talk | Opinion - Contact Info: stellasplace@wowway.com

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livingbyathread

Exposition and Encouragement

Disrupted Physician

The Physician Wellness Movement and Illegitimate Authority: The Need for Revolt and Reconstruction

Easy Money Martin

Real Estate Lending

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