Posted on 04/02/2016 1:38:49 PM PDT by huldah1776
The Financial Repression Authority has consistently shown that Regulatory changes which “Ring Fence” US investors choices is a cornerstone of the Macro-Prudential Policy of “Financial Repression”. Through stealth programs like FATCA and PFIC the US government has steadily and quietly limited Americans ability to take cash out of the country and to invest abroad, other than through profitable public exchange traded products sold by the financial industry. However, it is one thing to shut the doors to American investing abroad but it is quite another to fully open the doors to foreigners! It begs the question why, why now and why the change needed to happen so urgently?
This week, as the BOJ, ECB and PBOC all continued to aggressively expand credit the Federal Reserve was “full ahead” in the process of withdrawing approximately $1 Trillion of liquidity to achieve its December FOMC decision to increase the Fed Funds rate by 0.25%. To counteract this policy initiative and the alarming collapse in the HY & IG bond market, the US government immediately opened the floodgates to easy foreign credit in a major policy reversal. A policy decision which was rushed through congress with almost no time for congressional debate. Obviously what was not lost on the White House was the fact that the now troubled $2.2 Trillion of High Yield bonds peddled to yield starved investors since the financial crisis matches 2/3’s of the $3.5 Trillion increase in the Federal Reserves balance sheet during the same period.
****not snipped****major hack******
Warning
The FRA predicts that Americans will face significant increases in US property taxes over the next five years starting in 2016. With the change in FIRPTA Americans should additionally expect property values to increase in 2016-2017.
(Excerpt) Read more at financialrepressionauthority.com ...
So in effect does this mean that Obama is going waive taxes on foreign investors’ real estate purchases? Hmmm... I can think of many reasons a Manchurian Candidate might do this to assist our enemies given his track record on betraying America.
My guess: this is so foreign countries can buy up U.S. oil and gas properties at bargain basement prices.
Well unless they are getting some kind of discount, so can we!
just read that china is growing their hay here and shipping it home.
This is at the bottom of the article:
WARNING
The FRA predicts that Americans will face significant increases in US property taxes over the next five years starting in 2016. With the change in FIRPTA Americans should additionally expect property values to increase in 2016-2017.
Clearly, foreigners, the “1%” and property owners will all gain from this, but most Americans will simply face significantly increasing property taxes on elevated asset values to fund the ever increasing government debt burden.
Americans owning a house can be expected to initially focus on their net worth being higher, and not that they once again will have even less disposable income. Some will learn painfully why the number one killer of small business is cash flow, not profits..
We need to skin him roll him in salt and hang him from the liberty tree
Low shipping costs from US to China on container ships that would otherwise return to China empty.
The Fed Govt, under both Pubs and Rats, first started trying to stop the outflow of capital (cash) from the USA with FATCA. They are now making it much easier for foreign investors to invest in the USA. What’s going on is the Fed Govt doesn’t know how to deal with a competitive global market and is desperately trying to keep investment in the USA without making the changes necessary to be attractive for investment.
Finally, a tax cut Obama can get behind - for foreigners.
I know a guy.
“just read that china is growing their hay here and shipping it home.”
So is Saudi Arabia, and another I can’t remember right now. Saudi’s just bought property in So. Calif near the Colorado River so they could grow their own alfalfa to ship home.
still scratchin my head. Property taxes are a local\state matter. How does\do the Feds get involved here ?
I think if Obama/Feds exempt foreigners, the locals must take up the slack in more taxes.
Like Saudi and Communist China are doing.
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