Bandit Gang Writ Large

Could a Government Cash Grab Happen Here?

"With $6.8 trillion on deposit in U.S. banks, do you think that our current federal government, the one so adept at manufacturing repeated crises, would hesitate for one moment before dipping into the private accounts of depositors if a U.S. bankruptcy were imminent? Well, with massive amounts of federal spending on tap that cannot be supported by current tax rates, it’s not exactly a stretch to think that a solvency crisis is headed our way … with the grabbing hands of the U.S. government reaching for the assets of hard-working Americans to bail it out." Continue reading →

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Cyprus, The First Domino?

"For the investor, if he has been preparing himself carefully for the events that will unfold in the next few years, Cyprus will have been an event that did not impact him at all. This sounds like economic heresy, because the very idea that banks would systematically and intentionally steal the money of its depositors is a major, major event. Yes, it is quite definitely a major event, but one that should not have impacted the seasoned investor, as it is an event that is a mere comma in his overall outlook – it is an event that was anticipated." Continue reading →

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‘Don’t Email Me; Call Me, or I Won’t Do My Job’, Says Lawmaker

"Meet Tick Segerblom, a state senator in Nevada. Tick boldly advertises that he has no principles, no respect for the rule of law or the Constitution, and no cojones: not only is he 'blocking Nevada’s Anti-NDAA legislation,' but when 'PANDA [People against the NDAA] Nevada’s State Team Leader, Chris Corbett, met with Senator Segerblom last week,' Tick flippantly announced: 'If people really care about this bill, they’ll call me.' Tick dislikes emails and will not accept them, despite the good folk of Nevada handsomely paying this slug to communicate with them." Continue reading →

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Retroactive California tax terrifies tech

"Entrepreneurs and investors in California can expect to receive a rude shock in the mail if they sold their company in the last four years. Not only did the state's Franchise Tax Board (FTB) eliminate a tax break on capital gains for small business owners and investors, it announced the tax would be reinstated retroactively. This means those who benefitted from the break can expect a bill for unpaid taxes, plus interest, stretching all the way back to 2008. Now, not only will stockholders have to pay the full tax rate on capital gains, which has risen to about 13%, but they'll also be billed retroactively for 50% of the taxes they excluded." Continue reading →

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French Socialist budget minister charged with hiding money in UBS account

"France's former budget minister Jérôme Cahuzac confessed on Tuesday to having hidden €600,000 ($770,000) in foreign bank accounts for the last 20 years, reversing repeated denials weeks after a probe was launched into his alleged Swiss account. The minister, who faces five years in prison and a fine of up to €375,000 said he had been 'caught up in a spiral of lies and lost his way.' Cahuzac had been leading the government's charge against wealthy French citizens evading taxes through foreign accounts." Continue reading →

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Jim Rogers: ‘Run for the Hills’ Now, I’m Doing It

"The EU/IMF raiding bank accounts in Cyprus to bail out the country's financial system sets a dangerous precedent and investors should 'run for the hills' said investor Jim Rogers, chairman of Rogers Holdings. Rogers said that with Cyprus, politicians are saying that this is a special case and urging people not to worry, but that is exactly why investors should be concerned. 'If you're going to listen to government, you're going to go bankrupt very quickly,' he added. 'I, for one, am making sure I don't have too much money in any one specific bank account anywhere in the world, because now there is a precedent,' he said." Continue reading →

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So, What’s It Like To Have a Business in Cyprus Right Now?

"The most of circulating assets on our business Current Account are blocked. Over 700k of expropriated money will be used to repay country's debt. Probably we will get back about 20% of this amount in 6-7 years. I'm not Russian oligarch, but just European medium size IT business. Thousands of other companies around Cyprus have the same situation. The business is definitely ruined, all Cypriot workers to be fired. We are moving to small Caribbean country where authorities have more respect to people's assets. Also we are thinking about using Bitcoin to pay wages and for payments between our partners." Continue reading →

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Bank of Cyprus savers could lose up to 60%

"Big savers in Cyprus’s largest bank face losses of up to 60 percent, far greater than originally feared under the island’s controversial EU-led bailout plan, officials said on Saturday. Cyprus meanwhile launched an investigation into a list published in Greek newspapers of Cypriot politicians who allegedly had loans written off by two banks at the heart of the financial meltdown. Officials said Bank of Cyprus savers will see at least 37.5 percent of funds over 100,000 euros ($128,000) turned into shares, but a further 22.5 percent will be held until authorities know they can satisfy the terms of the bailout." Continue reading →

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The Laffer Curve Bites Ireland in the Butt

"All over the world, governments impose draconian taxes on tobacco, and then they wind up surprised that projected revenues don’t materialize. We’ve seen this in Bulgaria and Romania, and in Washington, DC, and Michigan. Even the Government Accountability Office has found big Laffer Curve effects from tobacco taxation. And now we’re seeing the same result in Ireland. I have to laugh at the part of the article that says, 'receipts are falling dramatically short of targets, even though taxes have increased.' This is what’s called the Fox Butterfield effect, when a leftist expresses puzzlement about something that’s actually common sense." Continue reading →

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Rahmaland Cigarette Tax Increases by $1 a Pack

"Taxes on cigarettes sold in Cook County, Illinois which includes Chicago, are going up by one dollar a pack. The price of a pack of cigarettes could be near $11 in Chicago, $6.67 of which is city, county and state taxes. Cook County Board President Toni Preckwinkle says the tax, which takes effect Friday, is expected to generate more than $25 million annually. The people of Cook County will soon learn what a black market looks like. Preckwinkle seems to already know it's coming. She says the county Revenue Department will hire more staff to help stop tobacco smuggling and tax evasion." Continue reading →

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