Thursday, April 19, 2012

Gold Taxation and Epiphany of the way it is

The following linked Word Doc is from a semi-free site called

Turning Inflation Into Wealth --they have a lot of good food for thought and then something to sell also....I have not bought yet.    Stacking knowledge.

But let's return to "the way it is".   And it is really this simple with a few overlying conspiracies.

During a period of easy money, there was also an emphasis on financial gimmickry and a nearly tit for tat of transference of jobs from productive activities to "Government".    Government (and unions through acting through government) voted themselves some incredible long term promises in terms of pensions.   They also voted themselves incredible benefits, and in the last decades, ever increasing salaries while "working people" salaries stagnated.

Now  "they" want to keep their Power, Privilege, and Pensions PPP.    And they will do anything to do so, they will go to the wall so to speak.    This process might play out over a decade or more, with significant intermediary dramas.   Like a person who lost their job, they will keep returning to the same place looking for "the cheese".   It will be a wave thing.

Besides the financial shenanigan thievery, which is just another sign of governmental corruption (they insist on the bribes that they have become used to), ALL THIS is really about a Government trying to save itself in it's death throes.   Death Throe O'Bronto.   And it is a big and  powerful government, with big weapons, and a militarized police force primed to "reign in the corruption and deceit that has been ongoing" and they will take it out on the little and medium guys.  

It is not a good scenario.   The issue is survival of a Government that has destroyed the base underneath itself by growing too large.  No one wants to take their medicine until they are forced to by a serious reality.  

Add link here - to Word Document

Inflation & Hidden Gold Taxation:  3 Historical Case Studies
By Daniel R. Amerman, CFA
The number one reason investors buy gold is to protect against the government policies that create inflation.  However, the government has "rigged the game" in such a way that the higher the rate of inflation, the more of a gold investor's net worth ends up with the government instead of the investor.
An examination of three historical case studies of long-term gold investment during a time of substantial inflation shows how under existing law and tax rates, the US federal government used the 1-2 combination of inflation and taxes to not only take all gold investor profits, but to confiscate part of the investors' starting net worth as well.  These three real world analyses explore gold acting as a perfect inflation hedge, gold experiencing asset inflation, and gold experiencing asset deflation. 
This isn't theory, nor is it speculation.  This is actual history, and it is likely to be the future as well in the United States and other nations.  The government's "game" is more sophisticated than most investors realize, and it is deeply ironic that many unsuspecting precious metals investors trying to protect themselves from government-created inflation are playing right into the government's hands when it comes to wealth confiscation under existing law.

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Insightful and Useful Comment!