Bandit Gang Writ Large

How Do Ponzi Schemes End?

"Detroit promised police officers, firefighters, teachers and other public employees pension and post-retirement health care benefits, but was unwilling to set aside the money needed to fund those benefits. The city attracted workers with a total compensation package that included current wages and future benefits. Since the future benefits were substantially unfunded, they can be paid only if future taxpayers pay them. But the future taxpayers never agreed to this deal. If they do pay, they will be paying for services delivered in the past. If they don’t pay, they won’t have to sacrifice any current city services. So the future taxpayers have flown the coop." Continue reading →

Continue ReadingHow Do Ponzi Schemes End?

Bill Bonner: Why do we have this credit-based money?

"Because governments are essentially a way for the insiders (who control the police power of the state) to take power and money from the outsiders. Cicero once described the two groups as the 'Optimates' on one side and the 'Populares' on the other. You might also think of them as the elite and the hoi polloi...or the privileged classes and the riff-raff. The critical difference between the two is that the elites...the optimates...the insiders...have the government in their pocket. The others do not. Bullion-based money is a natural limitation on the ability of the elite to rob the rest of the population." Continue reading →

Continue ReadingBill Bonner: Why do we have this credit-based money?

TD Waterhouse Bank begins FATCA Hunt and embraces role as IRS deputy

"Its compliance department seized upon my Canadian Passport showing a US place of Birth…That it turn triggered them to FREEZE my accounts until I signed a 'W9' and a 'Limitations of Benefits' form. I immediately told them I had no SSN and wasn’t a US Citizen and they had no right to provide any information on my accounts to the US as this would be a breach of the client confidentiality act…(besides it would include my CANADIAN born wife’s affairs as well). They explained to me that the TD Waterhouse was required to do this as they were REGISTERED in the US and were subject to substantial US penalties under FATCA." Continue reading →

Continue ReadingTD Waterhouse Bank begins FATCA Hunt and embraces role as IRS deputy

Illinois Legislative Leaders Sue Governor Over Vetoing Lawmakers’ Pay Raise

"The Democratic heads of the Illinois House of Representatives and Senate on Tuesday filed a lawsuit challenging Governor Pat Quinn's veto of lawmakers' pay during a legislative impasse over pension reform. Illinois House Speaker Michael Madigan and state Senate President John Cullerton said in a letter to fellow lawmakers that the purpose of the litigation 'is to protect the independence of the legislature and preserve the separation of powers.' 'It is our hope that the court will remedy this constitutional violation and that future governors will not feel empowered to use such coercive tactics,' the legislative leaders wrote." Continue reading →

Continue ReadingIllinois Legislative Leaders Sue Governor Over Vetoing Lawmakers’ Pay Raise

J’ACCUSE … !

"I address you as 'president' only as a concession to popular convention. In truth, your claimed authority is a fraud, and your actual status is that of defendant in the matter of the persecution of Bradley Manning. It was clear to all who cared to notice that Manning is no criminal but rather the worthy nemesis of a crime syndicate formally headed by yourself. He was wrongfully arrested, illegally detained without charge for a period far in excess of the legally prescribed maximums, and finally and illegally put on trial not for his alleged criminal acts but for exposing your crimes and the crimes of your gang, 'the government of the United States.'" Continue reading →

Continue ReadingJ’ACCUSE … !

Massachusetts smokers try to get ahead of new cigarette tax

"The state's newest transportation bill will raise taxes on gas, services on computer software upgrades and cigarettes. Gas will go up three cents a gallon. And you'll be paying a dollar more if you buy a pack of cigarettes and $10 more if you buy a carton. State legislators estimate the new taxes will raise $800 million in the next five years. The added revenue will be used for transportation projects and to help sustain public transit." Continue reading →

Continue ReadingMassachusetts smokers try to get ahead of new cigarette tax

Paris tax hunt sends French to Switzerland

"France has made highly publicized efforts in recent months to crack down on tax evaders including French nationals who inherit from wealthy Swiss residents. However, some say the move will simply persuade French to up sticks and take their wealth with them. The change still needs to be ratified by both the Swiss and French parliaments and which is not set to take effect until 2015 at the earliest. But when it does it will dramatically increase the tax burden on French heirs of estates in Switzerland, which caps its inheritance tax at 7.0 percent, compared to 45 percent in neighbouring France." Continue reading →

Continue ReadingParis tax hunt sends French to Switzerland

Obama offers ‘grand bargain’ on corporate tax rate, infrastructure

"Obama wants to cut the corporate tax rate of 35 percent to 28 percent and give manufacturers a preferred rate of 25 percent. He also wants a minimum tax on foreign earnings as a tool against corporate tax evasion and the use of tax havens. Obama wants the money generated by a tax overhaul to be used to fund such projects as repairing roads and bridges, improving education at community colleges and promoting manufacturing, senior administration officials said. Republicans contended that by spending the revenue, it would violate Obama's previous commitment to a 'revenue-neutral' overhaul of corporate taxes." Continue reading →

Continue ReadingObama offers ‘grand bargain’ on corporate tax rate, infrastructure

Japan now reconsidering sales-tax hike

"Japan's Prime Minister Shinzo Abe may ditch a long-planned hike in the national sales tax, a senior official said Sunday, according to Kyodo News. Abe had intended to help shore up Japan's finances by raising the 5% national consumption tax to 10% in two steps, slated for April 2014 and October 2015. But Kyodo quoted Chief Cabinet Secretary Yoshihide Suga as saying in a television interview that Abe would reconsider the issue 'after revised data are released in September on preliminary figures for April-June gross domestic product, and before a fall extraordinary Diet session.'" Continue reading →

Continue ReadingJapan now reconsidering sales-tax hike

A new, dangerous job in Mogadishu: tax collector

"Militias extorted cash from civilians during much of the last two decades of chaos. Now Mogadishu has a government in place, but shopkeepers view the taxman as the latest in a long line of troublemakers. That makes tax collection one of the riskier jobs in Mogadishu: Five tax collectors have been killed so far this year, following the killings of 10 last year. The idea of paying taxes for social services seems outlandish in a nation where few have seen functioning hospitals or schools. One obstacle tax collectors face is philosophical: If it's an established fact that government leaders in Somalia steal tax money, why should citizens pay?" Continue reading →

Continue ReadingA new, dangerous job in Mogadishu: tax collector