Slow Burn Capital Controls

[Rajiv]

From Catherine Austin Fitts -
Slow Burn Capital Controls

A broker reported to me today that their clearing agent is requiring them to mark purchases of AAA sovereign bonds denominated in foreign currencies as “speculative” investments. Pressure to do this apparently is coming form the U.S. Securities and Exchange Commission (SEC). This means if Congress and the administration request that the SEC take action to “stop speculation” a mechanism will be in place to insure that U.S. investors cannot protect themselves from a falling dollar.

[Rajiv]

Re: Slow Burn Capital Controls

Catherine adds -

Lest capital controls domestically inspire you to leave the country, you may want to educate yourself about the exit tax that was passed by Congress in the Heroes Act of 2008.

From the linked website -

But Richard Kohan of Price WaterhouseCoopers drew my attention to one section of the act, which states that anyone voluntarily giving up his or her citizenship will be taxed on all of his assets as if he or she had sold them -- paying capital gains on assets that have increased in value, even though they have not been sold.


That's right. While everyone in the media is focused on keeping aliens out of America, Congress has voted to lock its citizens - or at least a good portion of their assets -- into America! Maybe they're thinking that patriotism won't be enough to keep the smart money from recognizing the coming increases in the tax burden.

[c1ue]

Re: Slow Burn Capital Controls

Rajiv,

GRG and myself had a nice interchange on this subject.

He pointed out - correctly - that capital gains taxes on foreigners leaving a foreign country in which they are resident is not unusual.

The extension of this principle to citizens leaving their own country has precedent.

However, I pointed out the strange timing of the passage of this act.

[jtabeb]

Re: Slow Burn Capital Controls

Rajiv,


However, I pointed out the strange timing of the passage of this act.

Yes, and I also wonder why the "boarder fence" was sch a rush job. Keeping US in, vs. THEM out as portrayed would be my guess.