The IMF wants you to pay 71% income tax

shutterstock 110888168 150x150 The IMF wants you to pay 71% income tax

December 12, 2013 
Sovereign Valley Farm, Chile

The IMF just dropped another bombshell.

After it recently suggested a “one-off capital levy” – a one-time tax on private wealth as an exceptional measure to restore debt sustainability across insolvent countries – it has now called for “revenue-maximizing top income tax rates”.

The IMF’s team of monkeys has been working around the clock on this one, figuring that developed nations can increase their overall tax revenue by increasing tax rates.

They’ve singled out the US, suggesting that the US government could maximize its tax revenue by increasing tax brackets to as high as 71%.

Coming from one of the grand wizards of the global financial system, this might be the clearest sign yet that the whole house of cards is dangerously close to being swept away.

Think about it– solvent governments with healthy economies don’t go looking to steal 71% of people’s wealth. They’re raising this point because these governments are desperate. And flat broke.

The ratio of public debt to GDP across advanced economies will reach a historic peak of 110% next year, compared to 75% in 2007.

That’s a staggering increase. Most of the ‘wealithest’ nations in the West now have to borrow money just to pay interest on the money they’ve already borrowed.

This is why we can only expect more financial repression from desperate governments and established institutions.

This means more onerous taxation. More regulation. More controls over credit and capital flows.

And that’s only the financial aspect; the deterioration of our freedom and liberty will continue at an accelerated pace.

Can a person still be considered “free” when 71% of what s/he earns is taken away at the point of a gun by a bankrupt, bullying government? Or are you merely a serf then, existing only to feed the system?

This is why we often stress having a global outlook and considering all options that are on the table.

Because the other side of the coin is that while some countries are tightening the screws and making life more difficult, others are taking a different approach.

Whether out of necessity or because they recognize the trend, many nations around the world are launching new programs to attract international talent and capital.

I’ve mentioned a few of these already– economic citizenship programs in places like Cyprus, Malta, and Antigua (I met a lot of these programs’ principals at a recent global citizenship conference that I spoke at in Miami).

[Note to Premium Members: you’ll receive the details and contact information for the Antigua program today.]

Then there are places like Chile and Colombia which have great programs for entrepreneurs and investors. Other places like Georgia and Panama have opened their doors to nearly all foreigners for residency.

Bottom line– there are options. Some countries are really great places to hold money. Others are great to do business. Others are great places to reside.

The era we’re living in– that of global communications and modern transport– means that you can live in one place, your money can live somewhere else, and you can generate your income in a third location.

Your savings and livelihood need not be enslaved by corrupt politicians bent on stealing your wealth… all to keep their destructive party going just a little bit longer.

The world can truly be your playground. You just need to know the rules of the game.

from SOVErEIGN MAN http://www.sovereignman.com/trends/the-imf-wants-you-to-pay-71-income-tax-13285/
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Poll: Majority of Americans Say the Government Is Burdensome and Impedes Them

The latest
Reason-Rupe poll
 finds that 54 percent of Americans think
government, while necessary for certain functions, is generally
burdensome and impedes them more than helps them. Conversely 41
percent view government as primarily a source of good and helping
people improve their lives.

A majority of Democrats (54 percent) view government as
primarily a source of helping people, while 40 percent generally
view it as an obstacle. In contrast, majorities of Republicans (69
percent) and independents (57 percent) disagree, viewing government
as primarily as burdensome making it more difficult for people to
improve their lives. Twenty-six percent of Republicans and 39
percent of independents view government as primarily helpful.

As education rises, Americans become more optimistic in
government’s ability to help people. For instance a majority (55
percent) of post-graduates agreed the government is a source of
good, compared to 37 percent among those with high school degrees
or less.

Most Caucasians (58 percent) view the government as burdensome
and 37 percent view it as primarily helpful. Latinos and
African-Americans are evenly divided, with slightly more Latinos
viewing government as burdensome (50 percent) than helpful (46
percent).

Although majorities of young Americans agree there is more
government should be doing, 53 percent view government as primarily
burdensome and 43 percent view it as helpful. These numbers are
similar to older Americans who feel government impedes people by a
margin of 55 to 40 percent.

Government employees are also slightly more likely to view
government favorably, with 51 percent who believe government is
primarily helpful. However, 56 percent of private sector employees
say government primarily impedes people from improving their
lives.

Nationwide telephone poll conducted Dec 4-8 2013 interviewed
1011 adults on both mobile (506) and landline (505) phones, with a
margin of error +/- 3.7%. Princeton Survey Research Associates
International executed the nationwide Reason-Rupe survey. Columns
may not add up to 100% due to rounding. Full poll results,
detailed tables, and methodology found here. Sign
up for notifications of new releases of the
Reason-Rupe poll here.

from Hit & Run http://reason.com/blog/2013/12/12/poll-majority-of-americans-say-the-gove2
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Maker of Physical Bitcoin Tokens Suspends Operation After Hearing from Federal Government

The government’s creeping encroachment into the world of bitcoin
and bitcoin transmission claims a cool scalp, as reported
in
Wired:

Mike Caldwell ran a business called Casascius that printed
physical tokens with a bitcoin digital key on it, key hidden behind
a tamper proof strip. He’s charge you $50 worth of bitcoin to print
a key of a bitcoin you sent him via computer on this token. Cool
stuff–a good friend of mine found one sitting unnoticed in her tip
jar from an event at which she sold her artisan lamps from 2011 and
was naturally delighted given the nearly 1000x increase in value of
a bitcoin since then.

So, you’re making something fun, useful, interesting,
harmless—naturally the federal government is very concerned and
wants to hobble you.

Just before Thanksgiving, [Caldwell] received a letter
from the Financial Crimes Enforcement Network, or FINCEN, the arm
of the Treasury Department that dictates how the nation’s
anti-money-laundering and financial crime regulations are
interpreted. According to FINCEN, Caldwell needs to rethink his
business. “They considered my activity to be money transmitting,”
Caldwell says. And if you want to transmit money, you must first
jump through a lot of state and federal regulatory hoops Caldwell
hasn’t jumped through.

Caldwell has stopped taking orders for his popular Casascius
bitcoins….[he]argues that sending the coins through the
mail is not a way of transmitting money. He thinks the coins should
be viewed as collectibles.

But, clearly, that’s not how the federal government sees things.
If he doesn’t verify or have a way of knowing whether the owner of
the bitcoins is the same person he’s sending the coins to, that’s a
problem….

Caldwell says there’s no Casascius bank account for
authorities to seize. But he adds that he has no desire to anger
the feds, whether he agrees with them or not. So he’s cranking out
his last few orders and talking to his lawyer. He says this may
spell the end of Casascius coins. “It’s possible. I haven’t come to
a final conclusion,” he says.

He’s already been forced to spend $5,000 lawyering up
since receiving that helpful letter from the feds.

I wrote back in May on
FinCEN beginning to sniff around the world of
bitcoin
.

 

from Hit & Run http://reason.com/blog/2013/12/12/maker-of-physical-bitcoin-tokens-stops-b
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All Aboard for a Sun-Filled, Intellectually Stimulating Week at Sea! You Won’t Want to Miss Fixing the World: Reason Seminar Cruise 2014!

www.reasoncruise.com

Join Reason’s own Nick Gillespie, Matt Welch, and some of most
interesting speakers around for a spectacular week in the western
Caribbean on board the brand-spanking new Celebrity Silhouette!
Beginning February 9, 2014, you’ll embark on a seven-day cruise
through five countries and enjoy thought-provoking seminars,
exclusive gourmet dinners, and private cocktail parties with other
liberty-loving friends.  Currently joining us on board
will be: 

  • Skeptical Environmentalist Bjorn
    Lomborg
    ,

  • Historian Johan Norberg,

  • Author and former Reason Editor in Chief
    Virginia Postrel

  • Reason Editor in Chief Matt
    Welch
    ,  

  • ReasonTV Editor in Chief Nick
    Gillespie

  • Reason Science Correspondent Ron
    Bailey
    , and

  • Reason Senior Editor Jacob
    Sullum

We’ll be traveling in style on the Celebrity Silhouette, and
all-inclusive accommodations start at just $1,650 per person (and
range up to deluxe cabins with incredible ocean views and private
verandas).

reason cruise 2014

Make your reservations now and start planning how free minds and
free markets will fix the world! For more information, or to
register today, visit www.reasoncruise.com.

from Hit & Run http://reason.com/blog/2013/12/12/all-aboard-for-a-sun-filled-intellectual
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Poll: Majority of Americans Disagree with President Obama on the Size and Scope of Government

The latest Reason-Rupe poll finds
that 52 percent of Americans disagree with President Obama’s views
on the proper size and power of the government, while 37 percent
generally agree with the president on these issues.

Sixty-eight percent of Democrats agree with the president, and
20 percent disagree with him on the size and power of government.
In contrast, a majority (59 percent) of independents disagree with
President Obama, while 31 percent agree. Less surprisingly, 86
percent of Republicans say they disagree with Obama on government’s
role while 9 percent agree.

Private sector workers are more likely to disagree with Obama on
government’s proper role by a margin of 54 to 35 percent, while
public sector workers are evenly divided.

While younger millennials are slightly more likely to agree with
Obama, older millennials are not. Among 25-34 year olds—the
millennials first energized by Obama’s 2008 presidential campaign—a
majority says they disagree with Obama by a margin of 53 to 35
percent. Younger millennials (18-24) are evenly divided with a
plurality (48 percent) who agree with the president, while 43
percent disagree.

Although only a third of older millennials say they agree with
President Obama’s view on government’s power and size, 47 percent
of them also approve of his general job performance. This suggests
that while young people tend to be more supportive than older age
cohorts of President Obama, millennials are willing to disagree
with him on critical issues.

Another difference emerges among young nonwhite and white
millennials. Nearly two-thirds of white millennials say they
generally disagree with Obama on the power of government and 25
percent agree with him. However, among nonwhite millennials 58
percent agree with the president and a third disagree.

Sixty-one percent of white Americans disagree with Obama and 68
percent of African-American disagree with him on government’s
proper size and power. Latinos, however, are evenly divided.

 Nationwide telephone poll conducted Dec 4-8 2013
interviewed 1011 adults on both mobile (506) and landline (505)
phones, with a margin of error +/- 3.7%. Princeton Survey Research
Associates International executed the nationwide Reason-Rupe
survey. Columns may not add up to 100% due to rounding. Full
poll results, detailed tables, and methodology found here. Sign
up for notifications of new releases of the
Reason-Rupe poll here.

from Hit & Run http://reason.com/blog/2013/12/12/poll-majority-of-americans-disagree-wit2
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Is This The Chart That Has Small Cap BTFATH-ers Nervous?

For the last year, every test below the 50DMA for the Russell 2000 has been met with a cavalcade of BTFD-ers (which then transformed into BTFATH-ers). However, we wonder, does the following longer-term chart suggest this time might just be different?

Easy…

 

…”coz if you don’t, you’re a fucking idiot”…

 

Unless… it is different this time…

 

 

Charts: Bloomberg


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/XSoZ4MpvIbg/story01.htm Tyler Durden

World’s Largest Hedge Fund Uses Twitter For Real-Time Economic Modeling

The use of Twitter and other social media to predict and trade on or, reflexively, generate interest in various assets is nothing new and has been around for years. Whether or not this strategy works is still unclear: the only “hedge fund” that traded purely on Twitter signals, Derwent Absolute Return, shut down shortly after opening (despite supposedly generating positive returns). Superficially, the thinking behind this made sense: as Venturebeat reported previously, based on research done at Indiana University, published in early 2011, there was a strong correlation between sentiments expressed on Twitter and the direction of the Dow Jones Industrial Average. According to the study, “Twitter mood predicts the stock market”, Twitter sentiment correlates with the ups and downs of the next few days on the DJIA with 87 percent accuracy. A separate study at Pace University in 2011 found that social media could predict the ups and downs of stock prices for three global brands, Starbucks, Coca-Cola, and Nike. And sentiment analysis has become an indispensible part of marketers’ toolkits, thanks to companies like Radian6 and Webtrends.

Expectedly, as more and more amateurs have piled into Twitter, the data stream has been subject to the “Yahoo Finance effect” – there is far too much noise, and not nearly enough actionable signal, especially when one tries to strip away the bias behind any given message (see “Trading Twitter: Where Noise Becomes Signal“).

Yet one entity that appears to have found significant functionality in Twitter is none other than the world’s biggest hedge fund: Bridgewater.

According to Bridgewater’s Greg Jensen, speaking during a recent client conference call, the world’s largest asset manager (except for the Fed of course) with one of the best long-term track records in history, has been using “everything that is available” online, from social media to real-time Internet prices, to model economic activity in what is effectively real-time. As Jensen said, “from Twitter and Facebook (and so on) we can capture every time somebody is saying they bought a new car. We could add those up and can compare that to the stats and be really on the pulse of what’s going on with something like auto sales or, similarly, with home sales.”

Perhaps even more interesting is Bridgewater’s search for equivalents of the famous Billion Prices Projects which tracks real-time prices of goods and services around the globe. Specifically, Bridgewater notes that it uses sites like the “Amazon of India” to track inflation “during a balance of payment crisis on a moment-to-moment basis” and thus confirm if any sharp currency moves have filtered down to end prices just by monitoring the internet.

Bridgewater’s end goal: to be “able to track the economy on a day-to-day basis.” Which in a world of high frequency trading, in which millisecond responses to stimuli is critical for alpha-generation, is paramount. It perhaps also explains why traditional periodic data releases such as inflation data, car sales and other formerly market moving macro releases, no longer pack the punch they once did when it comes to market response.

So with Bridgewater blazing the trail in real-time data monitoring, it is only a matter of time before all other macro hedge funds engage in the same strategy of near-constant monitoring of all concurrent data feeds.

At which point the next logical question is: how long until competitors begin introducing artificial and misleading noise in the data stream, and attempt to confuse Bridgewater and others’ signal translators. And how soon before data analytics firm XYZ comes out with its latest offering: one million fake twitter accounts, all of which are programmed to amplify fake economic signals and confuse Twitter algos that translate signal to trades? For a very hefty price of course…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/5iN7JKwcsaU/story01.htm Tyler Durden

World's Largest Hedge Fund Uses Twitter For Real-Time Economic Modeling

The use of Twitter and other social media to predict and trade on or, reflexively, generate interest in various assets is nothing new and has been around for years. Whether or not this strategy works is still unclear: the only “hedge fund” that traded purely on Twitter signals, Derwent Absolute Return, shut down shortly after opening (despite supposedly generating positive returns). Superficially, the thinking behind this made sense: as Venturebeat reported previously, based on research done at Indiana University, published in early 2011, there was a strong correlation between sentiments expressed on Twitter and the direction of the Dow Jones Industrial Average. According to the study, “Twitter mood predicts the stock market”, Twitter sentiment correlates with the ups and downs of the next few days on the DJIA with 87 percent accuracy. A separate study at Pace University in 2011 found that social media could predict the ups and downs of stock prices for three global brands, Starbucks, Coca-Cola, and Nike. And sentiment analysis has become an indispensible part of marketers’ toolkits, thanks to companies like Radian6 and Webtrends.

Expectedly, as more and more amateurs have piled into Twitter, the data stream has been subject to the “Yahoo Finance effect” – there is far too much noise, and not nearly enough actionable signal, especially when one tries to strip away the bias behind any given message (see “Trading Twitter: Where Noise Becomes Signal“).

Yet one entity that appears to have found significant functionality in Twitter is none other than the world’s biggest hedge fund: Bridgewater.

According to Bridgewater’s Greg Jensen, speaking during a recent client conference call, the world’s largest asset manager (except for the Fed of course) with one of the best long-term track records in history, has been using “everything that is available” online, from social media to real-time Internet prices, to model economic activity in what is effectively real-time. As Jensen said, “from Twitter and Facebook (and so on) we can capture every time somebody is saying they bought a new car. We could add those up and can compare that to the stats and be really on the pulse of what’s going on with something like auto sales or, similarly, with home sales.”

Perhaps even more interesting is Bridgewater’s search for equivalents of the famous Billion Prices Projects which tracks real-time prices of goods and services around the globe. Specifically, Bridgewater notes that it uses sites like the “Amazon of India” to track inflation “during a balance of payment crisis on a moment-to-moment basis” and thus confirm if any sharp currency moves have filtered down to end prices just by monitoring the internet.

Bridgewater’s end goal: to be “able to track the economy on a day-to-day basis.” Which in a world of high frequency trading, in which millisecond responses to stimuli is critical for alpha-generation, is paramount. It perhaps also explains why traditional periodic data releases such as inflation data, car sales and other formerly market moving macro releases, no longer pack the punch they once did when it comes to market response.

So with Bridgewater blazing the trail in real-time data monitoring, it is only a matter of time before all other macro hedge funds engage in the same strategy of near-constant monitoring of all concurrent data feeds.

At which point the next logical question is: how long until competitors begin introducing artificial and misleading noise in the data stream, and attempt to confuse Bridgewater and others’ signal translators. And how soon before data analytics firm XYZ comes out with its latest offering: one million fake twitter accounts, all of which are programmed to amplify fake economic signals and confuse Twitter algos that translate signal to trades? For a very hefty price of course…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/5iN7JKwcsaU/story01.htm Tyler Durden

Ukrainian Prime Minister: We’ll Sign Association Agreement With EU Like Protesters Want, But First the EU Has to Send Us Money

barricade protesters'Pro-European protests centered around Kiev’s
Maidan Nezalezhnosti (Independence Square),
dubbed
Euromaidan, have gripped Ukraine since November 21, when
the government
announced
it would put a planned “association agreement” with
the European Union on hold.  After three weeks of protests,
punctuated by clashes with police and failed attempts to disperse
demonstrators that have only emboldened them, the Ukrainian
government says it’s ready to sign the association agreement with
the EU, but first it wants a promise of $27.5 billion
in financial assistance
. That’s a more specific iteration of
the initial Ukrainian demand Europe compensate
it for perceived short-term economic losses that came with the
decision to scuttle the agreement in November. The Ukrainian
government considered the IMF’s loan conditions too harsh, and

blamed them
too for the collapse of the agreement with the EU.
In the crisis of weeks of protest, the Ukrainian government found
an opportunity to try to use them to get a better deal from the
EU.

Ukraine’s November decision to suspend talks with Europe, the
Washington Post
reported
then, had also been influenced by pressure from Russia
for Ukraine to join its own Customs Union (with Belarus and
Kazakhstan), and by European demands that the Ukrainian government
release former prime minister Yulia Tymoshenko. She was targeted
for prosecution after Viktor Yanukovych was elected president
in 2010, and Tymoshenko was eventually charged and convicted for
abuse of office related to a gas deal with Russia. Currently in
prison, Tymoshenko was one of the leaders of the last mass protests
in the Ukraine, the so-called “Orange Revolution” in 2004 that
contributed to Yanukovych’s eventual loss in that year’s
presidential election. Yanukovych had in fact won the original
run-off, but those results were annulled by the Supreme Court for
being fraudulent. A  Moscow
Times write up
compared the current protests and the
Orange Revolution, noting the similar West vs. East contours of
both, but also that while the Ukrainian government is in a stronger
position than it was in 2004, that the path toward integration with
Europe might already be irreversible.

For their part, EU leaders stress stronger relations with the
Ukraine don’t have to come at the expense of cooperation with
Russia. Russia’s tightening of border controls and trade
restrictions in response to the Ukraine’s work on an agreement with
the EU, unfortunately, indicate Russia is not interested in what
the EU describes as a “win-win” (as the taking down of trade
barriers
always
is!). Unfortunately with trade deals between
governments, taking down trade barriers is rarely all it is, hence
the
scramble by the EU
to find financial aid for Ukraine if it
signs a deal in part to cover for expected trade losses from
Russia.

from Hit & Run http://reason.com/blog/2013/12/12/ukrainian-prime-minister-well-sign-assoc
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What The Chinese Think Of The Shanghai Smog

Despite the government’s “adjustments” of the ‘safe’ pollution level, and reassurances that smog is good for you, the following awful clip of what real Shanghai residents think may change some perspectives… “I don’t think it’s fit for humans to live in this kind of environment… but I have no choice, I have to go to work.”

 

Remember – this is not fog – it’s pollution-dense smog…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/K4ACmZ1S4y0/story01.htm Tyler Durden