It takes a lot of money to float an artificial economy’s boat. $80-plus billion dollars a month is what the FED is pouring into the banks and financial markets to keep the house of cards standing. Artificial suppression of the interest rate has produced a tepid increase in housing. Most of the single family homes sales are re-sales of existing homes to CASH buyers, not new buyers who need a loan to buy. Many of the new housing projects are rental properties–people who can’t buy a house need a place to live.
At the same time that government expenditures are increasing, the money-making sources that the government can tax are decreasing. Small businesses, facing higher priced regulatory fees and taxes, are closing. Once profitable companies that have lost too much business in the economic downturn are downsizing or shuttering the business. When businesses close, the inventory is depleted. Employees no longer get a paycheck because they no longer have a job. The government’s ability to raise money through permits, licenses, inventory taxes, payroll taxes, sales taxes and the like is annihilated. Income tax revenues shrink; people without jobs pay no taxes.
The government’s traditional sources for raising revenue are drying up. Yet the government would never think of right-sizing itself to match its existing income. Instead, the hunt for capital is on.
According to Catherine Austin Fitts, “When G-7 concluded their emergency meeting in London last weekend, they announced that they were going to target tax havens.”
Whew, you might say. I don’t need to worry because, as John Q. Public, I have no money in a tax haven.
Well, think again. When Cyprus bank accounts were raided, it was revealed that many of the account holders were Russians, Middle-easterners, and criminals hiding cash. Other unidentied parties also were said to be hiding money in the Cyprian tax haven. The Cyprus banks were well-known as a tax haven, and many diverse entities were pouring the money into bank accounts for safe-keeping.
Those who missed the chance to extract their money before the money was seized were pissed. Do you think for one minute that if other money they have stashed in other countries also is targeted for seizure, there will not be a retaliation? Fool me once, shame on you. Fool me twice, shame on me. Stealing the money of powerful wealthy entities will not be ignored.
Russia is a big country with lots of resources. China and other Asian nations have lots of money and technology and people to follow orders. Organized crime is cash rich and has long invisible tentacles that can reach out and touch enemies using covert mechanisms. And who knows who else is hiding money in tax havens the world over.
Remember 9/11 was an angry entity sending a message for what it considered bad behavior. And who got hurt? John Q. Public. Who is still paying the price as a consequence of 9/11? John Q. Public.
So don’t think for a minute that what the G-7 does to persons or countries who stash money in a tax haven has no effect–or consequence–for you. Consider how your own personal world has changed since 9/11? If the G-7 starts stealing the money of rich and powerful Russians, Asians, Middle-easterners and other foreign nationals, drug lords, gun runners, crime bosses and others, you haven’t seen anything yet.