A professor at UCLA seems surprised that poor people in America don’t vote for more redistributive policies. Maybe they have more moral fiber than intellectuals give them credit for.
Tag Archives: sustainability
The New German Political Hawk?
Armstrong Economics Blog/Germany
Re-Posted Mar 1, 2018 by Martin Armstrong
The German Defense Minister Ursula von der Leyen was being touted as a possible successor to Merkel. She has spoken at the Munich Security Conference stating that there must be “the common will to actually use the military weight when circumstances require it.” Leyen has come out saying that Germany should no longer hide behind its history, but must accept that soldiers must fight for the security of the nation and the freedom of the people. Leyen’s French colleague, Florence Parly, has also called for closer European military cooperation.
The NATO Secretary General Jens Stoltenberg has warned against risks that confront Europe as a whole. He came out and said: “The truth is: the European Union cannot protect Europe alone.”
France has been stating that Europe must be militarily independent of the USA. Nonetheless, t defense of Europe without the help of Norway, the United Kingdom, Canada, and the United States, would actually be very hard to imagine.
The scuttlebutt is that Leyen is a hawk who would have little problem going to war against Russia. She was seen as on the short-list of successors to Merkel, but she is going to NATO instead. The Hessian Prime Minister Bouffier is surprisingly distant to Chancellor Merkel as the dissatisfaction with Merkel rises.
Annegret Kramp-Karrenbauer is also being talked about as a successor to Merkel. She is the first woman to lead the government of Saarland and only the fourth woman to govern any German state.
California in Peril
Armstrong Economics Blog/Corruption
Re-Posted Feb 28, 2018 by Martin Armstrong
California is trying to scheme to circumvent the Trump Tax Reform which limits deductions to $10,000 in state taxes from their federal returns. Of course, the California press portrays this as punishment for voting for Hillary. But they support higher taxes as long as they get to deduct them from the Feds, which has been very hypocritical, to say the least.
The average tax paid in California amounts to $18,438 for 6.1 million returns of state residents who itemized deductions in 2015. And that adds up to a mountain of money — 6.1 million multiplied by the lost $8,438 in deductions is $51.5 billion. So we will, at last, see just how generous Californians really are in their Democratic beliefs that everyone should pay higher taxes.
The dishonesty of politicians in California knows no bounds. Naturally, there is no discussion whatsoever of reducing the tax burden for residents by reducing the cost of government. OMG! How dare someone even utter those words in a state that wants to tax per mile a space launch travels above the state.
State Senate President Pro Tem Kevin de León, D-Los Angeles, proposed to set up a state charity named the California Excellence Fund which would allow taxpayers to donate to it get a 100% credit on state income taxes. Since Trump’s federal taxes doesn’t impose limits on charitable deductions, the scheme would, in theory, allow Californians to lower their federal tax obligations while paying the same amount in state taxes. Ah! Brilliant!
The problem would be that this could alter the definition of charity and result in the Feds eliminating real charities to circumvent California’s latest scheme.
The truck rental business is a leading indicator of net migration. There is a shortage of trucks for rent to get out of California. The rates can be 300% higher to rent a truck for one-way trips out of California v trips into the La La Land of endless taxes.
Seven U.S. states currently don’t have an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. And residents of New Hampshire and Tennessee are also spared from handing over an extra chunk of their paycheck on April 15, though they do pay tax on dividends and income from investments. The number one place Californians are migrating to is Nevada with the truck rental ratio at 16.4:1 leaving California.
Real estate is starting to decline in the high tax states and it is flat to rising in non-income taxed states. California has surpassed some of the most socialistic taxed countries in Europe and they get even less. So where does the money go? Into the pension for state employees. CalPERS is still underfunded, and it is a $345 billion pension fund has been collecting more money from employers. In 2016, CalPERS paid out $20.5 billion in benefits – $4 billion more than it earned, according to its annual financial report.
Sacramento Mayor Darrell Steinberg, seen here delivering the State of the City address on Jan. 18, wants to raise sales taxes to cover pension costs that are rising. The pension crisis will simply bankrupt the State and politicians refuse to address the problems.
Gov. Jerry Brown and Treasurer John Chiang have cooked up an idea to borrow $6 billion from the state’s Pooled Money Investment Account and spend it on an extra payment to the CalPERS — that is, make an advance payment to CalPERS for pensions. The idea was aired by Brown in his May 2017 budget proposal. In January 2017, Jerry Brown wanted a 42% increase in gas taxes to bailout CalPERS.
All of these schemes are only to help government employees – not the poor on the street in some magnanimous social caring effort. The question becomes, when will the sheet be pulled off the Democratic agenda laced with class warfare pretending this is for the people when it is for the government? A real Democrat is not a Donkey – it’s a Zebra, like Hillary who said you say one thing publicly and another privately.
California became a State on September 9th, 1850. When will California break away from the USA? The window opens in 2022.
Canada Taxes & Dependents
Armstrong Economics Blog/Canada
Re-Posted Feb 25, 2018 by Martin Armstrong
Categories: Canada, The Hunt for Taxes
Germany Turning to the Right
Armstrong Economics Blog/Germany
Re-Posted Feb 24, 2018 by Martin Armstrong
What is happening in Germany is very critical because it is a reflection of the global trend. Schultz is under attack because the SPD has fallen to such a state that it is barely above the AfD. Party members are deeply concerned as I wrote that Schultz wanted a coalition for personal power. Yet there was another issue at stake. There was also a growing fear that the SPD would lose even more seats in a new election.
Merkel, many remark will have to be dragged out of office by her hair. She wants to remain Chancellor until 2021. Because of that personal desire, she too wants a coalition deal. Therefore, both Schultz and Merkel are seen as a deal for personal political status.
Meanwhile, there is a rising trend of right-wing groups in Germany that the refugee crisis has inspired. Politicians have for far too long regarded the people as fools who will accept whatever the politicians tell them. Those days are passing.
Trade Union Confederation (DGB), labor unions are turning much more right-wing. The AfD and other right-extremist groups are preparing to win votes and mandates with trade unions such as IG metal and Verdi von März. They see this trend as never having so good prospects at the polls.
Politics is shifting in Germany and we have the refugee crisis and EU policies to thank. Many members of the SPD party are warning that if they fail to agree to the coalition, a new round of elections will see their party be greatly reduced.
Canada Also Adopted the BAIL-IN moving from Socialism to Tyranny
Armstrong Economics Blog/Banking Crisis
Re-Posted Feb 23, 2018 by Martin Armstrong
Yes – Canada has also adopted the BAIL-IN abandoning the socialist BAILOUT so banks can take depositors money legally. This is how we move from Capitalism to Socialism to Tyranny,
Britain’s New Law UNEXPLAINED WEALTH ORDERS Targeting the Rich
Armstrong Economics Blog/BRITAIN
Re-Posted Feb 23, 2018 by Martin Armstrong
From January 31st, 2018, the UK authorities have a new power. They can now use new and expansive investigative authority to require both individuals and corporate bodies to provide information as to how they acquired property. Known as Unexplained Wealth Orders (“UWOs”), which is another step toward tyranny all because governments are totally incapable of managing their own finances. They line their own pockets with promises of pensions for government workers and when they need to be paid their attitude is simply that the people are like an apple orchard – just go pick some more apples when you get hungry.
The new UWO imposes obligations to disclose information with respect to property anywhere in the world and can even be served on persons living outside the UK. Britain is taking a step closer toward imposing worldwide taxation for it is now requiring even non-resident to divulge information that historically was not taxable. The legal framework behind UWOs, and their interaction with other criminal and civil statutes, as well as the implications for individuals, institutions, and trustees are serious issues.
What has taken place is rather stark and we can expect that other countries will file Britain’s lead. This new law has turned the entire legal system on its head. We have always believed that we were supposed to be innocent until proven guilty. That has been completely eradicated from the law. The UWOs now presume guilty and it becomes your burden to prove you are innocent.
The Legal background
Sections 1 to 9 of the Criminal Finances Act 2017 (“CFA”) have now amended section 362 of the Proceeds of Crime Act 2002 (“POCA”), This has created a whole new regime of UWOs. As of January 31st, 2018, several of the UK authorities have new powers including the National Crime Agency, Serious Fraud Office, Financial Conduct Authority and HM Revenue & Customs. All of these agencies are now able to require both individuals and corporate bodies to explain how they obtained an interest in a specified property.
The Court may now also engage in a UWO requirement where the following four conditions are satisfied:
Condition 1: There are reasonable grounds to believe that the person holds the asset(s).
Condition 2: There are reasonable grounds to believe that the cumulative value of the asset(s) is greater than £50,000.
Condition 3: There are reasonable grounds for suspecting that the known source of the person’s lawfully obtained income would have been insufficient for the purposes of obtaining the property – for these purposes, the Court will consider any mortgage or other security that it is reasonable to assume was or may have been available and assume that the person obtained the property for market value.
Condition 4: The person falls into one of the following categories –
· The person is a “Politically Exposed Person” (“PEP”) i.e. someone entrusted with prominent public functions by an international organisation or any country other than the United Kingdom or another EEA state;
· The person is a family member, a close associate or a connected person of a PEP;
· There are reasonable grounds for suspecting that the person is, or has been, involved in serious crime (either in the UK or elsewhere) (“a suspected criminal”) – serious crime will include fraud, money laundering, tax evasion, sanctions offences, and bribery and corruption; or
· The person is connected with a suspected criminal.
UWOs must be served in accordance with the usual Civil Procedure Rules. So in other words, we are looking at a whole new type of power. You are now GUILTY and you must prove your INNOCENCE. I have explained that I was held in prison for “Civil Contempt” not CRIMINAL. The difference is one I was being “coerced” and the other is you are being “punished” so only then are you entitled to a real trial by jury.
Here we have the same pretense. The burden and standard of proof regarding UWOs fall under the civil investigative tools and as such they do not form part of the UK’s criminal law regime. Therefore, as long as it is civil, you can be stripped of all rights and any imprisonment is “coercive” so you are not being punished. Consequently, the UK authorities can engage in full-blown tyranny applying for a UWO they will only need to show “reasonable grounds” for their suspicions. This is a much lighter legal standard than the “realistic prospect of conviction” standard required in order to bring criminal prosecutions what is call in America “probable cause”.
The real danger her is there is no practical limitation on the scope. That means the UK is applying the scope to worldwide turning its citizens and corporations as well as trusts into tax slaves. Laws are normally limited to TERRITORIAL JURISDICTION meaning if you killed someone in Paris, you stand trial in Paris not in Hong Kong or wherever you are a citizen. Hence, here the scope of UWOs can be made in respect of any property, regardless of where in the world it is located converting everyone to a tax slave. This applies to any individual or corporate, whatever their place of residence, business or incorporation (there is no requirement to demonstrate a nexus to the UK). This is really tyranny for the way the code is written, they could bring this to anyone even if not British. UWOs can be made in respect of any property, including property acquired before January 31st, 2018, as well as property held by more than one person meaning partnerships and trusts. Laws have traditionally been regarded as tyranny if they are applied retroactively, known as Ex Post Facto. Here, because this is “civil” in pretense, they are circumventing all the historic safeguards against legal persecutions by writing a law after the fact to make something criminal.
The penalties of a failure to respond to the UWO within the prescribed time without reasonable excuse will give rise to a presumption that the property specified in the UWO is recoverable for the purposes of a civil recovery order (“CRO”) which means the property will be presumed to be ill-gotten gains and seized by the government. You then will have the burden to prove you are innocent and you are presumed to be guilty. If you refuse to answer, they can throw you in prison until you die as they did with me using the contempt of court powers. If you lie in any statement in response to a UWO, now this becomes criminal and punishable by a prison sentence of up to two years and/or a fine.
You will be deemed guilty unless you have “reasonable excuse” to have failed to comply with the terms of the UWO, yet what constitutes a “reasonable excuse” is not actually defined. In the States, a mother was required to pay her son’s student loan even though he had been killed and the court held that was not a “reasonable excuse” so this becomes a pure tyranny.
The UWO also allows in the legislative changes a new Interim Freezing Order (“IFO”). So, the government can freeze your assets until you comply. The High Court may grant a IFO to prohibit a respondent to a UWO (and any other person with an interest in the property) from dealing with the property specified in the UWO. If the court issues an IFO, the agency bringing the action must determine whether or not to instigate proceedings within 60 days. If it fails to do so, the IFO will expire, however, the relevant authority is still free to determine what proceedings it may take against the respondent “at any time” in the future without any statute of limitations – another tyranny under the law.
The DANGER in this legislation is simple. It is pure and unadulterated tyranny for it removes ALL protections of law and shreds the English Bill of Rights no less the Magna Carta. Then King John also derived income from fines, court fees, and the sale of charters and other privileges. Fines were called “amercements” and at the time, it was said that there was hardly an Englishman of substance who had not been amerced at least once a year. Magna Carta introduced the right to trial by jury, where the people decide if someone is guilty and what the fine should be. This drastically curtailed the king’s abuse of the legal system at that time. King John was very unpopular, for he had intensified his efforts to maximize all possible sources of income to regain Normandy. Contemporary commentators describe him as “Avaricious, miserly, extortionate and money minded.”
The entire right to trial by jury was to stop the king and his corrupt courts from fining people to raise money. This law has shredded the Magna Carta and has restored all the former tyranny of the King once again to raise money. In 2015, that marked the 800th year following the signing of Magna Carta.
The Coming Banking Crisis & The End of Bailouts
Armstrong Economics Blog/Banking Crisis
Re-Posted Feb 21, 2018 by Martin Armstrong
Behind the curtain, there is a growing concern about a serious banking crisis beginning once again in Europe. Many governments are talking about the crisis behind-the-curtain and we are now beginning to see steps that are being taken to end the TO-BIG-TO-FAIL policies that dominated the 2007-2009 Crash.
The United States is looking at a new radical bank rescue policy where the government is proposing to revise a central pillar of the idea of bailing out banks creating new financial regulation with a new Chapter 14 bankruptcy procedure. They are looking at eliminating the risk of taxpayers’ costs to bail out banks. They are investigating the means for an orderly resolution so that the taxpayers do not have to bail out the banks. This development is causing some concern among the high-flying Wall Street banks, for if that is the case, then another crisis as 2007-2009 will result in even Goldman Sachs closing. The proposal looks to shift the burden to the shareholders and creditors of that bank. This means depositors who are thus creditors.
In Australia, we see similar legislation being proposed. This is the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017. This also authorizes bail-ins bringing an end to the bailout.
Rising Interest Rates
Armstrong Economics Blog/Interest Rates
Re-Posted Feb 22, 2018 by Martin Armstrong
While the stock market crashed as the pundit looked in their bag to try to come up with an excuse, they blamed rising inflation and interest rates. Yet, nobody is really paying attention to the underlying trend. The cost of carrying debt has been rising gradually and there are noticeable measurable impacts that the pundits are of course oblivious to since they have to explain every day’s movements and not the real trend.
Already, the 10-year rate is piercing above the 2.6% area. There is an impact on the currency once people begin to comprehend the trend. The 10-year German bond rate is 0.70%, and this has been maintained by the ECB buying 40% of European government debt to no avail for nearly 10 years.
The real crisis comes when they realize that the ECB will not be there to buy government debt. The bidders will demand a higher yield so rates will rise very rapidly.
Meanwhile, the Fed will pursue higher interest rates as they need to be normalized to help pensions funds that are rapidly collapsing. This idea of a lower dollar will raise the price of imports and with tariffs, inflation in consumer products will rise.
Mueller is still not ending his investigation. Why should he? He would have to go get a real job in the private sector. Keep the investigation alive to pay the light bills. He shows no sign of embracing unemployment. His pretend indictment is dancing between raindrops, indicting people in Russia knowingly there will never be a trial. We cannot count him out yet as a factor that will undermine the economic confidence.
So we stand at the threshold of rising rates that will then feed into the market and create a bid for the dollar it appears after March.
India Enters the Sovereign Debt Crisis
Armstrong Economics Blog/India
Re-Posted Feb 22, 2018 by Martin Armstrong
I have warned continually that the Sovereign Debt Crisis will unfold not so much by people selling government debt, but by the lack of people buying new debt. The greatest peril is when there is NO BID for the new issues because all governments are operating a PONZI scheme. The sell new debt to pay off maturing debt. Currently, holders of Indian government debt have been dumping 4.7 billion rupees ($73 million) of government bonds on average every day this year, according to data from the Clearing Corp. of India. Last year, their net daily sales totaled 368 million rupees.
The Sovereign Debt Crisis emerges when the government is unable to raise enough cash to pay off the maturing debt. India has crossed that threshold so as we have warned, the Sovereign Debt Crisis will begin from outside the USA and spread to the core. This is how all Empires, nations, and city-states collapse.
Centinel2012 