Housing Bubble Bursting?

[Randolph Kinney]

Is It Time To Renounce U.S. Citizenship While You Still Can?

The U.S. government recently reported that 1,426 people renounced their U.S. citizenship in the third quarter. That’s a record quarterly high. Many observers think the actual number is much higher.

I recently spoke with a consultant who gave up his U.S. citizenship. He’s now a citizen of Dominica, a small Caribbean country, and splits his time between Asia and South America.

He said he was leaving a sinking ship for a better life elsewhere. On top of that, the U.S. government is placing an increasing number of hurdles on Americans who want to renounce their citizenship. So he thought it was time to do just that.

This isn’t how the average person sees things. Unthinking Americans are puzzled when they read about the increasing number of people renouncing their citizenship.

As you can see in the chart below, this trend is exploding. And it has important implications for your personal freedom and financial prosperity.

The U.S. is the only country in the world that successfully taxes its citizens no matter where they are in the world…even if they leave and never step foot in the country again. It’s called citizenship-based taxation.

The U.S., on the other hand, does have the ability to enforce its Byzantine tax system literally anywhere in the world. When you consider the reach of the U.S. government and the penalties for not paying (which can only be described as cruel and unusual), it’s no surprise Americans are terrified. And they should be… or they aren’t paying attention.

The U.S. government threatens Americans with years in prison and outrageous fines if they don’t file a litany of complex forms correctly… even if they don’t owe taxes in the first place. U.S. citizens are in the uniquely unfavorable position of having the world’s worst tax policies and a government that relentlessly enforces them everywhere on the planet.

http://www.internationalman.com/articles/is-it-time-to-renounce-us-citizenship-while-you-still-can

When the ObamaCare individual mandate applies to you, moving to another country without renouncing your citizenship ...

 

[Randolph Kinney]

I bet these oil big wigs want us to cry for them.

When they succeed, they make enormous profits. When they fail, the cry for publicly-funded bailouts.

Based on my analysis of historic trends, gasoline should now be about $1.50 per gallon. I see that it is now on an uptick. I don't know of any economic support for this.

Sure, $0.50 per gallon may not "seem" like a lot, but it represents an overpricing of 33%.

Where is the price break for us little people?

The big concern is that once defaults start, they cascade. It could be a triggering event of another giant banking crisis since banks are heavily involved with financing.

 

[Meandering]

I bet these oil big wigs want us to cry for them.

When they succeed, they make enormous profits. When they fail, the cry for publicly-funded bailouts.

Based on my analysis of historic trends, gasoline should now be about $1.50 per gallon. I see that it is now on an uptick. I don't know of any economic support for this.

Sure, $0.50 per gallon may not "seem" like a lot, but it represents an overpricing of 33%.

Where is the price break for us little people?

Some of that is not a rise in price, as much as it's a raise in taxes the state is leveling on gas prices. That is what we got, lower gas prices with higher gas prices, leaves the price of gas stuck in one place. But when the price goes up, those additional taxes are going to really hurt.

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[TD Morgan]

Good point. I did not consider the hidden increases in taxes. I am not certain that this information is well-publicized.

It would be a good time to increase taxes, since people would be unaware of the timing.

I wonder if Oregon is increasing gas taxes at the same time it wants to move to include a separate mile-tax on autos as well...

Some of that is not a rise in price, as much as it's a raise in taxes the state is leveling on gas prices. That is what we got, lower gas prices with higher gas prices, leaves the price of gas stuck in one place. But when the price goes up, those additional taxes are going to really hurt.

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[Randolph Kinney]

Some of that is not a rise in price, as much as it's a raise in taxes the state is leveling on gas prices. That is what we got, lower gas prices with higher gas prices, leaves the price of gas stuck in one place. But when the price goes up, those additional taxes are going to really hurt.

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For sure, that is what they do in California. It is based in law to increase the sales tax when the excise tax revenue falls due electric and hybrid cars.

 

[Randolph Kinney]

Global Banks Rewrite Contracts in Bid to Avert Lehman Repeat

• ISDA announces extension of resolution stay protocol
• New agreement applies to securities financing transactions

The world’s biggest banks agreed to rewrite trillions of dollars of financial contracts as the industry responds to pressure from regulators to help make sure lenders can fail without bringing down the global economy.

The contracts help lubricate the workings of the global financial system, governing securities financing transactions and derivatives trades. The new protocol, drawn up by the International Swaps and Derivatives Association and three other industry groups, will allow agreements between the signatory banks to remain intact for a period after a bank fails, ISDA said in a statement today.

The goal is to prevent a recurrence of the messy bankruptcy of Lehman Brothers Holdings Inc. in 2008, which helped trigger a global economic slump. The protocol will complement regulators’ efforts to solve the problem of too-big-to-fail banks, including the total loss-absorbing capacity rules announced by the Financial Stability Board this week. Group of 20 leaders are set to endorse the TLAC rules at a summit next week.

The new protocol “captures a wider universe of financial contracts, further reducing the risk that a bank resolution triggers a chaotic unwind of financial contracts,” ISDA Chief Executive Officer Scott O’Malia said in a statement. “ISDA has worked hand in hand with other trade associations and market participants to meet the regulatory objective of broadening contractual stays to support cross-border resolution and strengthen systemic stability.”

http://www.bloomberg.com/news/artic...-contract-updates-to-stave-off-another-lehman

It is not going to work. Once a default occurs, or a third party cannot make good on delivering the capital, all h*ll will break lose and there will be a run for the exit.

 

[Head Surfer]

This one has gone WAAAY off topic!

I am thinking about closing it, give me a reason why I shouldn't.

I think if there is a NEW housing bubble we can start a new one.

 

[Head Surfer]

In looking back at the past few pages all the discussions do not belong in this thread at all, but instead in the General Economic Discussionsforum.

I don't have time to split this thread up and move everything to the proper place so instead I am closing this one.

Please start threads about the economy in the General Economic Discussion forum