Bandit Gang Writ Large

Fractional Reserve Banking: It’s Not Your Money…You Only Think It Is!

"In the aftermath of the forced confiscation of bank accounts in Cyprus, the question that clients ask me most is, 'could it happen here?' 'Here' is wherever the client lives or invests, and could be the United States, Canada, Australia, New Zealand, Switzerland, or any other country. The answer is yes. This result stems from the nature of our modern financial system, built as it is on the flawed foundation of a poorly-understood concept called 'fractional reserve banking.' This new reality is harsh, but as I said before, it’s healthy. People need to be reminded that money deposited in a bank converts their wealth into a debt-claim." Continue reading →

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Florida Increases Red Light Camera Fines To $408 Instead Of Banning Right-On-Red Tickets

"The Florida Legislature on Thursday gave final approval to legislation limiting the due process available to recipients of red light camera tickets and increasing the potential penalty for those challenging a fine to $408. The changes were included in a 220-page omnibus transportation bill which saw more than sixty amendments considered. The final package was adopted unanimously in the state Senate. Earlier in the day, the House had approved language that would have entirely banned right turn on red tickets, which remain a major source of revenue for municipalities. This was stripped out and replaced with a less significant provision." Continue reading →

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Doug Casey on Internationalizing Your Cash

"I'm quite serious about what I said about 'the grim reality of impending currency controls.' As the global economy continues to deteriorate, governments will have to appear to be 'doing something.' It's going to become very fashionable to institute some sort of foreign exchange control. Why might that be? Because obviously, people who are taking their money out of the country are unpatriotic…" Continue reading →

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Bill Bonner: American grifters

"Here on the pampas, on the other hand, the Argentinians know better. Their brains have been sharpened by adversity and enlarged by necessity. They know they’re getting ripped off by the government. They find ways to protect themselves. 'There are invoices, and there are invoices. You can get an invoice at the official rate, or one at the unofficial rate. Or one that is not at any rate at all. A, B, or C. The government rigs the system to cheat us; we rig it right back. You just have to make sure you have the right invoice for the right transaction. At the end of the year, people buy and sell invoices. Everybody’s got a trick or two. You have to. Otherwise, you’re a sap.'" Continue reading →

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Authors, composers want 3.4% of every Belgian’s Internet bill

"Content owners in nearly every country have tried various strategies to get compensation for losses due to piracy. But copyright owners in Belgium have a bold new tactic: go after Internet service providers in court, demanding 3.4 percent of the fees their customers pay for Internet service. The lawsuit has been brought by the Belgian Society of Authors, Composers, and Publishers, known as Sabam. The group's claim is similar to the blank-media levy that exists in Canada. It seems to be based on the assumption that a particular medium is used to break copyright law, and therefore all the users of that media should rightly be required to pay a tax." Continue reading →

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IRS Data Web Snares Mostly Low- and Middle-Income Taxpayers

"The IRS's next phase in high-tech tax collection will be to create a 'real-time' check of tax returns to 'match them to third party information.' Starting this year, the IRS tools will be able to track all credit card transactions. The agency has also instructed agents on using social media and e-commerce sites including eBay, as well as the rich data generated by mobile devices. Its computers are capable of scanning multiple networks at the same time to collect 'matching' comprehensive profiles for every taxpayer in America. Such profiles include shopping records, travel, social interactions, health records and files from other government investigators." Continue reading →

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NYC To Hike Cigarette Age To 21 in Apparent Effort To Boost Black Market

"Let's say you're an official in a jurisdiction that has raised cigarette taxes so high that the majority of smokes consumed in the state come from the black market — either smuggled in from lower-tax jurisdictions or else outright counterfeits sold as the real deal to consumers trying to avoid being mugged as they enjoy their chosen vice. Assuming that your goal is to get everybody to go to the black market, what else can you do to nudge retailers and smokers to deal with the guys selling off the back of trucks? Well, how about raising the smoking age — effectively imposing prohibition on some existing smokers so that they have to go underground to get their smokes?" Continue reading →

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Jay Leno’s Gitmo Solution

“President Obama held a press conference earlier today, and he said he still wants to close the Guantanamo Bay prison facility, but he doesn’t know how to do it. He should do what he always does: declare it a small business and tax it out of existence. It will be gone in a minute. Be gone in a minute! One month! Be out of there!” Continue reading →

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IRS Takes A Bite Out Of Bitcoin

"Bitcoin is virtual currency much in the news these days. It’s peer-to-peer so there’s no central bank or government. But if you think that means the IRS won’t get a piece, think again. The IRS already gets a piece where you swap one product or service for another, as the IRS explains at its Bartering Tax Center. Soon the IRS may have a Bitcoin Center too. The Treasury unit called FinCEN, the Financial Crimes Enforcement Network, already has rules about Bitcoin and the IRS is likely to follow. In the meantime, the tax rules seem pretty clear. If you provide services or sell goods for Bitcoin, you have income." Continue reading →

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Banking Crisis Awakens Hopes for Cyprus Reconciliation Between Turks and Greeks

"In 2008, when the Greek part of the island adopted the euro, the Turkish inhabitants of the northern part of the island felt duped. And, of course, this makes their schadenfreude regarding the southern part's current economic woes all the greater. 'With the referendum, the Greeks left us out in the cold. They wanted to profit from the euro by themselves,' says Efem Okiran, who runs a flower store in Gemikonagi. But now his neighbors can see what good that's done for them -- and where they've ended up. 'For 10 years, they made money thanks to the EU,' Okiran adds. 'And now they're supposed to bleed for 10 years.'" Continue reading →

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