A little while back I told you how what EstateOfDenial.Com calls IRA, Involuntary Redistribution of Assets, and which I call confiscation is taking place, as they were a little less subtle with me when they mailed me the confiscation letter which reminded me of Castro's Cuba in 1960 when my families assets were confiscated the first time.
For those of you not familiar with the 'Confiscation Letter' here is a link to it for your cultural enlightenment=>>Confiscation Letter
For those of you who think that when your parents assets were confiscated was due to an anomaly and because of a few bad apples within the system, and that some new legislature in the works will solve your problem so that it will not happen to you, I hate to be the bearer of bad news, but your assets are being confiscated right now as we speak.
Allow me to explain: last summer in June 2010 you could buy an ounce of silver for under $18 dollars today it would take $29.00 of your devalued dollars to buy that same ounce of silver, likewise it would take $8.63 to buy a bushel of wheat, roughly twice what it cost last summer, when I get letters like these from my highly regarded Capital Research Companies, it triggers alarms bells and I feel compelled to pass the warning on to those of you who will listen:
I've said before that the US Dollar was in BIG trouble... but as of
tonight, it's on DEFCON 1 RED ALERT TROUBLE.As the below chart shows, the greenback needs to rally and rally hard if we're not going to head into a SERIOUS collapse shortly.
What you're looking at is the US Dollar right on its multi-year trendline. If we take this out now, then we are heading into an inflationary death spiral in very short order.
Indeed, once we take out this line, we're just a few ticks away from triggering the MASSIVE Head and Shoulders pattern the greenback has formed over the last 20 years.
In case you're wondering, this pattern has an ultimate target of 40...
a full 50% lower than where the US Dollar is today.
We're talking about hyper-inflation on an order that would make
Weimar Germany proud. And if we break the green line above, we're THAT much closer to this becoming a reality.
As you can see, we're literally on the ledge of a cliff. Do not, I repeat DO NOT put off preparing for this now. I've long thought the US Dollar had one last rally in it, but looking at the charts
tonight I could very likely be wrong.
Indeed, inflation is already exploding worldwide, which means paper
money in general is going to be worth less and less on its way to worthless.
If you think the US is immune to this situation, you're in for a very RUDE
surprise in the coming months. Indeed, the Fed just announced it might even implement QE 3!!! And this came from one of its supposedly ANTI-QE members!?!?
Let's be blunt... the end game is fast approaching if not already here.Smart folks are already preparing their families and portfolios for what's to come, which is why I've recently published four reports designed to help folks cover all the bases in terms of protecting their loved ones,
savings, and portfolios for what's coming.
To find out more about Capital Research's work click here=>>Capital Research
Point being that even under normal circumstances "Inflation has now been institutionalized at a fairly constant 5 percent per year. This has been determined to be the optimum level for generating the most revenue without causing public alarm. A 5 percent devaluation applies, not only to the money earned this year, but to all that is left over from previous years. At the end of the first year, a dollar is worth 95 cents. At the end of the second year, the 95 cents is reduced again by 5 percent, leaving its worth at 90 cents, and so on. By the time a person has worked 20 years, the government will have confiscated 64 percent of every dollar he saved over those years. By the time he has worked 45 years, the hidden tax will be 90 percent. The government will take virtually everything a person saves over a lifetime."
Let me put it to you another way, Janet Phelan's mother had meant for the fruits of her sweat,blood and tears, a lifetime of savings, to be passed on to Janet as her lawful legacy before it was confiscated! Likewise Dr.A.J and Clara Fernandez also had a legacy to pass on to their heirs before it was confiscated, only myself having lived through prior confiscations (Communist Cuba 1959)I was able to wise up a lot quicker than a lot of you will and left the country before the totality of the Estate could be confiscated, others like Bonnie Reiter and too many to mention all here weren't so lucky.
However I have no doubt had I NOT stayed one step ahead of the guardians and dissolved my mother's trust and transferred the 'Trust' overseas where is now earning 40% annual interest , in order to be sure that my mother Clara now 94 is well taken care of! that there would be nothing left as the guardians was openly gunning for the 'Trust' after he exhausted all others liquid assets and allowed others like Real Estate to be lost by being auctioned off on their courthouse steps by the "Guardian" of my mother's assets, yeah what a joke, right! to be sold off by their failure to maintain and pay Real Estate Taxes on a timely basis... Real Estate Auction happens after three years of nonpayment of real estate taxes, my mother Guardianship battle lasted 5 years.
Ok, my point is this, had Janet Phelan's mother moved her assets overseas on a timely basis, (Before, she became incapacitated) do you have any doubt that Janet would be in complete control of her legacy, as it should be, out of reach from the greedy Guardianship Cartel that knows no bounds and knows of no decency and is inhumane to human suffering?Even going to the point of prematurely ending the elder's life after the money is gone? As documented here,here and here :
For those who have already experienced asset confiscation , either subtly or not so subtly , those like Tom Fields whose legacy was subverted and opportunists struck while his father lay in bed on a morphine drip , See his Facebook Page=>>here
To those who have eyes to see and those who have ears to listen here is a letter from Simon Black that you will all do well to heed, if you wish to say NO Thanks and leave the lemmings pack before they jump off the cliff..........
Date: February 10, 2011
Reporting From: Santiago, Chile
In the late 1920s, the economy of the Weimar Republic was beset by numerous fiscal troubles. The global depression spread quickly to Germany, undermining the government's ability to make its reparation payments from the Great War.
Fearing a return to hyperinflation, many Germans who had spent the last decade building up a small fortune during the Weimar Republic's own 'Roaring 20s' decided to pack up and leave; they remembered the days when banknotes were used as wallpaper and had no desire to repeat the experience.
In 1931, Chancellor Heinrich Bruning imposed a 'flight tax', which levied a 25% tax on the value of all property and capital for Germans leaving the country.
Total revenue collected from this tax amounted to roughly 1 million Reichsmarks (RM) in its earliest days ($56 million today). By the late 1930s under Hitler's rule, flight tax revenue soared to RM 342 million ($21.5 billion today) as more people headed toward the exits.
This flight tax constitutes one of the earliest modern examples of capital controls. They've evolved substantially since the days of Hitler, but the end goal is the same-- governments controlling the flow of capital across borders.
Governments impose these for a variety of reasons-- rapidly developing nations may want to restrict the flow of capital into their country, preventing 'hot money' from pumping up prices and affecting local markets. We see this today in places like Brazil and Thailand.
In other instances, bankrupt governments seek to trap capital within their borders, maximizing the amount available for subsequent taxation or other forms of confiscation. This tactic is usually employed when lost confidence has impaired the government's capability to borrow.
We're seeing strong indications of both examples today, though the latter is the most alarming. As I scan the headlines and hear from colleagues in the US and Europe, it's clear to me that the march towards stricter capital controls is quickening its pace.
The British government, for example, just announced an increase to its bank levy that taxes UK-domiciled banks on their worldwide balance sheets. In response, HSBC has indicated that it may move its headquarters elsewhere.
I suspect the British government will enact legislation to discourage or prevent this from happening, likely with a modern day corporate flight tax (albeit with a more patriotic sounding name).
Capital controls can take a variety of other forms-- including taxation on outward remittances, restrictions on the movement of financial instruments, bureaucratic approval processes for foreign transactions, reporting requirements for foreign assets, and government control over banks.
This last is important-- when politicians and bankers are in bed with each other, banks can be compelled to loan a portion of their deposits to the treasury at unrealistic terms, sticking bank customers with sub-optimal yields below the rate of inflation.
In the US, I think retirement accounts will be the first to go. They're the easiest to grab because most people hold their retirement accounts domestically with a large financial institution that will happily sell every customer down the river when the government comes calling.
The way they'll do this is simple-- the next time there's a market meltdown (bear in mind that insiders are selling like crazy right now...), the government will step in with new legislation that requires these institutions to invest a portion of their accounts in the 'safety' of government securities.
Insider politiconomists like Teresa Ghilarducci have already strongly advocated for government managed retirement accounts in the US, and we've seen numerous examples of other bankrupt nations from Argentina to Hungary moving to seize their citizens' pensions.
The next step would be against retail bank accounts, specifically setting up provisions that discourage moving money overseas... and eventually restrict it altogether.
This would happen through new approval processes at the banking level, additional reporting requirements for foreign accounts, and disincentives for foreign banks to accept US customers.
Curiously, all of these have started to happen.
For example, while there are still a multitude of banks around the world who happily accept US customers, Americans are unwelcome at most foreign financial institutions thanks to continuous threats and pressure from the IRS. As one banker in Hong Kong told me recently, 'they are very scaaaaary'...
Also, the new HIRE Act legislation imposes additional reporting requirements and restrictions for foreign accounts that gradually phase in over the next two years.
This certainly jives with the timeline of the US government's ticking debt bomb; at a minimum, the market will require higher yields, and politicians will need cheap sources of capital to continue financing their waste.
I've said before-- it's imperative that everyone establish a foreign bank account, even with a small deposit. There are several banks like Caye Bank in Belize where you can open an account through the mail with just a nominal deposit.
This way, if you ever need to move the bulk of your funds in a hurry, you'll at least have the established infrastructure to do it.
For US taxpayers, I think the more immediate threat is to your retirement account. If you have an IRA, you can set up an Open Opportunity structure, take back control over your own savings, and be free to move your funds overseas.
(I think this is a no-brainer; you can read more about how to protect yourself with an Open Opportunity structure from my friend Terry Coxon's book Unleash your IRA, which he's now offering at a steep discount for Sovereign Man readers.)
Government playbooks are limited-- when confidence falters, new taxes fail to produce substantial revenue, and inflation causes a loss of popular support, capital controls are the answer. Problem is, we live in a world where legislation passed late at night can take immediate effect while we all sleep.
I know it's easy to kick the can down the road, but as the political and economic support for capital controls is spreading around the globe, I would urge you to take action immediately.
Senior Editor, SovereignMan.com
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