Are you feeling rich?
I hope not. Because if you are, get ready for the Australian government to snatch that wealth from you.
Actually, even if you don’t think you’re rich, chances are the government does.
The Emperor Henry Tax Review final report is imminent. And as we’ve warned during the last year, you’re not going to like it.
Almost on cue the government has started leaking some of the possible conclusions to ’sound out’ the reaction. News Ltd obliges the government with a typical lapdog headline “Simpler tax system that targets the rich.“
If you’re not worried by that headline, you should be. Remember, it was only ten years ago that ‘rich’ in Australia was anyone earning above $50,000 per year. Adjusted for inflation, that ‘rich’ wage is now the equivalent of $68,000.
So if you’re earning around or above the $70,000-$80,000 level make sure you’re holding firmly on to your wallet. Because one way or another the Government, the Treasury and the Tax Office is about to plunder your pay packet like a pack of wanton pirates.
But before I go any further, just a quick aside.
We were going to tackle the latest decision from the Bank of England (BoE) to increase its money printing programme.
That’s the programme that involves creating money out of thin air in order to buy back UK government bonds and therefore injecting cash back into the economy.
The bankers like to call it quantitative easing, or as Diggers & Drillers editor Dr. Alex Cowie prefers to call it, “theft!”
But once we saw the ‘taxing the rich’ news this morning I’ve decided to hold the Bank of England news over for another day.
Until then, just consider this. In 1976, the UK government went begging to the International Monetary Fund (IMF) for £2.3 billion. In today’s money that’s the equivalent of around £12.4 billion.
At the time it was labeled as an embarrassment for the UK, with claims it made the UK technically insolvent.
Well, in practical terms apart from the much bigger number, there is little difference between the £2.3 billion bailout in 1976 and yesterday’s announcement that the Bank of England will increase its money printing programme to £200 billion.
In other words, if the UK was technically insolvent in 1976 then it is actually insolvent today.
But we’ll have more on that next week…
Because today, well, I just couldn’t let the latest phase of the government tax grab pass by without comment.
Make no mistake, when the Treasurer and Treasury Secretary make seemingly off-the-cuff remarks about what the review “may” contain they aren’t playing a guessing game. They know exactly what’s in the report.
It’s just a case of figuring out how far they can go with the theft of your money.
As I say, this is something we’ve warned about since late last year when the stimulus spending started and when the tax review started to gain pace.
The tax and super review are nothing more or less than a scheme to increase taxes. All the talk about lowering company tax rates and taxing the rich really means everyone will be hammered for more tax.
Perhaps the most dangerous comment in Wayne Swan’s speech was this part as quoted in The Australian newspaper:
“It’s astounding that more than 70 per cent of Australian taxpayers pay someone else to complete their tax return – more than any other country… We shouldn’t be content with a system that is so complex that an average person with simple tax affairs feels unable to do their own tax return. That’s why I’ll be especially attentive to any recommendations that make lodging a tax return easier. In fact, given today’s technology, and the ability to pre-fill forms with data electronically, I’d like to hear how a person could complete their tax return with just a few clicks of a mouse.”
Guess what? We’d like to see the tax system made easier too.
Much easier.
How about just abolishing the whole damn thing? That would be easy. You get to keep every cent that you earn, rather than having half of it stolen from you by the government.
Unfortunately that’s not what Mr. Swan has in mind. He wants the tax system to be made easier in another way.
A way that means you shouldn’t have to complete a tax return at all. That the Tax Office will just take the money from you, and all you’ll need to do lay back and say “that’s fine” with a click of a mouse.
Of course, if there’s any chance you’ll need to claim a tax refund then we’re sure there will still be all manner of hoops for you to jump through.
We’ve always thought it’s amusing how easy the Tax Office makes it for you to pay tax.
When you start a new job you’re given a simple one page form – you fill out your name, address, tax file number, tick a few boxes, sign it and voila! It’s done.
Almost immediately the government is pilfering your pockets for cash.
Contrast that to the multi-page form, supplements, schedules and 60-plus page instruction booklet when it comes to trying to get some of your money back.
It’s no wonder 70% of Australians use a tax agent.
But any attempt to make the system simpler so that it will “save you time” should be resisted at all costs.
We don’t like governments. We don’t like their interference. And further more we don’t like them stealing your money.
However, when government starts talking about making things easier, their only real concern is to make it easier for them to take your money.
That’s why, when the Tax Office launches its new ’simple’ tax return system you should avoid it like the plague.
No one likes filling out forms, but in this case your response to the tax office should be, “That’s ok, I think you’ve stolen too much, I’m happy to fill out all your crazy forms. And even if it turns out you need to steal more money from me then I’m still happy to still fill out your crazy forms and make you wait.”
But of course, the tax grab is just the first phase of the ‘making it simple’ plan. The big money-spinner for government is superannuation.
Once the government is done with regulating the life out of the financial services industry, the public will realize they have nowhere to go for advice, and nowhere to invest their super money.
The only option will be for the government to save the day with a ‘Super Aged Pension’ option.
Hand over your super money to the government in return for a defined benefit pension.
It’ll be a scheme offering a better outcome than the current aged pension of course, and at least you’ll never have to worry about the performance of your super fund again.
Not only that but you’ll also have the “privilege” of investing in new school buildings, a road or two, and a bridge or three. Plus anything else the government deems to be “nation building.”
Quite how a new school gym is going to provide you with an income in your retirement we haven’t figured out yet. But we’re sure they’ll bluff their way through it.
And the spend it now, spend even more later crowd will love it…
So will the managed funds, infrastructure funds and construction companies.
As usual, the big losers on the deal will be you and every other taxpayer.
Believe me, there is worse to come with this tax and superannuation reform.
Cheers.
Kris.
60-Second Market Round Up
by Shae Smith
The S&P/ASX200 closed down yesterday by 32 points to 4,508. After a positive night in the US, the ASX200 has opened much higher.
On Wall Street the Dow Jones Industrial Average had its highest point gain since July 15, up 204 points, closing at 10,005.96. News that productivity was higher than economists expected and lower unemployment claims drove 29 of the 30 stocks that make up the Dow to finish up.
In Europe the FTSE100 finished the trading day up 17 points, to 5,125.64. The gain was mostly because of the strong start in the US. However, there has been mixed reviews regarding the quantitative easing program, which is basically just printing more money.
The Nikkei lost 1.29% yesterday, falling to 9,717.44, its lowest close in a month.
Gold remains high, but didn’t move much yesterday.
The price of gold in Australian dollars is trading at $1,198.59, while in US Dollars it is trading at $1,089.88. And the price of silver in Aussie dollars is $19.13 and in US Dollars it is $17.39.
It was the same with the currency market overnight.
The Aussie dollar versus the US dollar, remained around the 91 cent mark, trading at USD$0.9102, but did show a slight gain against the Japanese Yen JPY82.58.
Crude oil closed overnight at USD$79.70.
For the biggest movers on the market yesterday click here…
{ 50 comments… read them below or add one }
I like their definition of rich. Maybe someone should point out to them that this means only rich people can afford to buy houses in Australia. According to their definition.
How about a share link to social media sites on your articles? But boy you are depressing.. Interesting, refreshing, and honest, but a part of me hopes you are wrong on many fronts. What I do find interesting after watching Addicted to Money last night on TV, is that *everything* people were saying leading up to the GFC in the USA, is what people are all saying, in Australia, now.. Sobering?
Cosmic – we are not packaging rubbish loans as “AAA” rated investments and selling them to the unsuspecting with a bet against them via a credit default swap. Actually if you are open to receiving information you will note that there are significant differences.
Cosmic Charade… you’ve got it! Denying the inevitable, does not mean it’s not coming.
Maybe Australia did not actually package rubbish loans directly but many, many organisations here did invest in these flawed CDO schemes such as my idiotic local council (they said it was AAA rated by Moody’s! – WHICH IT WAS) which now stands to lose around $60M when it eventually ‘crystalises’ its losses. The upshot of this is that now the council wants to introduce a new ‘levy’ (isn’t it amazing that they can think up any word other than ‘tax’) on all rate payers on top of their normal annual rate rise to cover the hole in their budget. The long arm of the GFC and the reckless nature of the world of finance is definitely reaching into our pockets regardless of the ‘ but Australia is different’ camp.
BB – Yes mate I know they were sold all around the world to unsuspecting investors. I am ashamed of what my counterparts in the USA did but draw some comfort from knowing that it wasn’t us.
That is little consolation to the rate payers in your area though.
Probably a waste of time, PF. But let’s not give up, and add, instead, that quite apart from the rubbish financial products generated and sold by the Wall Street investment banks, the US also went through several years of building boom, the result of which was that many new properties could not even find a tenant. As far as we know, we have not had anything of the sort, and many credible sources insist that we have been having the opposite. So, there you have a neat one-two combination that should cause any sensible bear to step back for a minute and take stock of the differences, instead of blocking these out to focus exclusively on the similarities. But there is no convincing wishful thinking.
house prices here are 8 times the median income
historic average is 3-4
now, what happens if anyone in top 50% is considered rich and is taxed accordingly
time to negative gear
cb – yes it was a perfect storm scenario in the States. We only had a Gale.
it would perhaps be more helpful if Mr Henry could force elderly home owners who must go into residential care to use their home to pay for it, rather than the aussie tax payer. This is a real problem. Elderly transfer their assets to other family members in order to foist the costs of residential care onto the tax payer.
We have an aging society. It is only fair.
“”"”"”"”Once the government is done with regulating the life out of the financial services industry, the public will realize they have nowhere to go for advice, and nowhere to invest their super money.
The only option will be for the government to save the day with a ‘Super Aged Pension’ option.
Hand over your super money to the government in return for a defined benefit pension.
It’ll be a scheme offering a better outcome than the current aged pension of course, and at least you’ll never have to worry about the performance of your super fund again.
Not only that but you’ll also have the “privilege” of investing in new school buildings, a road or two, and a bridge or three. Plus anything else the government deems to be “nation building.””"”"”"”"”"”"”"”"
ho-hum …its all part of the p0nzi-scam
“”"its your money”"…….. they tell ya……yeah right
Perhaps the financial services industry has too much life, at others’ expense. As well as the financial industry.
All flees and ticks on the dog’s back, SV.
Nick, you may be interested in what Ellen Brown has to say about the big picture plan behind the whole fiasco in this weekend’s interview with Max Keiser. I should point out here that Ellen Brown is neither a nut, nor a conspiracy theorist. But notice her reluctance, and the sheer fear to speak the name of the ultimate movers and shakers that seek to rule the world.
http://maxkeiser.com/
N, I know you don’t believe most of this ’sh!t’, but maybe, it just maybe, that there is more to this madness, than meets the eye.
http://www.webofdebt.com/
check it ourt
http://www.liveleak.com/view?i=ca2_1234032281
check it
she seems to talk about a global currency, central bank etc… Sounds like a good idea. 20 different countries controlling the money flow may help control it, and with the world globalising it makes sense to have a global currency.
The problem with the US as a global currency is the affect it has on everything. The world is experiencing a global recession and yet oil is going sky high – probably because it is inverse related to the US dollar. I.e. when the US dollar falls, oil, gold, commodities rise so the world is held hostage the prosperity of the US. A global currency that is not affected by recession or poor governance of a country is a good idea.
Also look at the US carry trade at the moment and the bubbles it is creating in China, HK and AUS. That is too dangerous and it is what helped get us in this mess in the first place. Pre-bust it was the yen carry trade. So if we had a global currency you could stop carry trades and possibly stop bubbles forming.
As for the wall street bankers, unfortunately they will always be there making obscene amounts of money….
lol, GB. Mate, that is just fantastic. Allegedly, it is exactly what the Bilderberg Group wants the world to conclude!!! The theory is that they will have us all tortured so bad through the shenanigans of the banks that we will be begging to have a global fiat money system. That is just what they are aiming for, to have total and global control of every nation’s money supply. Your conclusion and thinking is the very first piece of evidence that their plan might just work out.
I think it has merit but it depends on what the new rules are, is it just for trade or is it going to be like the Euro
Will have to wait and see, but basically it will be just like any fiat currency, just like the USD is at the moment, essentially. They key objective of the international banking cartel is to have the exclusive licence to print money by loaning it into existence, and to have the ultimate say, essentially a global monopoly on the issueing of currency for all countries and economies. That means, a complete monopoly on issuing and creating the principal means of exchange between individuals, businesses and nations, and complete control therefore on trade. It would also mean that they could expand and contract the money supply globally as and when they chose, and through that they could created the booms and busts we are so familiar with much more easily. They could also set the interest rate, the price of money, which they would have the pleasure and privilege to pocket year in year out, just because they had the global licence to conjure it into existence out of absolutely nothing, NOTHING. Now, would you not want to have a licence like that?
I guess it depends on whether its used in a good way to stabilise the business cycle or used to line pockets
if controlled by the G20 it may succeed in a being a positive
cb…I am 100% with you. I have mentioned before that I will listen to all views with an open mind and apply it to real events to “cross check” that it all fits. To have a negative view against authority automatically brands one as a “conspiracy theory nut”. Chistopher Columbus was one. Fancy defying the powers of the time, goverment and clergy, and suggesting that the earth was not flat but spherical!!! The hide of him!!
GB… all is wonderful in theory and your suggestion are correct except for one thing you omit. “Human Nature”. Have not you heard the old saying..”Absolute power corrupts absolutely”. The G20 is just like Ben Hur’s charriot. 4 horses but one man controls them ALL. Easier than one man controling 4 separate chariots each with one horse.
Do not for one minute think that this will stop with “one paper currency” it will go to electronic digits on a card. Then we are slaves and in their control. How often have you heard the world leaders, more freely now, mentioning the term “New World order”. It was not too long ago, that anyone mentioning such a term and it’s implications was laughed at and termed a “conspiracy theory nut” now it’s a fashionable term.
nick & anyone else here
if u youtube NWO etc its all frightening stuff
they talk about a new north america (usa,canada,mexico) currency ..the AMERO
then micro0chip everyone,, if u arc up… banned from buying & selling anything,trace ur every move
then they talk about world over-population ..reduced to ideal, is 500 mill
200 bill needed gone soon, etc etc
a whole heap of crazy stuff to make sick
i tell ya wat its teribble stuff
etch…your’e getting the general drift
GB, why do you think so many people are less than hopeful, and often dowright weary?
I suggest that it is this tried and trusted principle of the ages, that “You should judge them by their works.”
And guess what? The people pushing the NWO and the new international reserve currency system are the same people who have been behind the US Federal Reserve and the Bank of England, JP Morgan and Goldman Sachs. When you look at the record of these institutions, there is little to be cheerful about the same international banking cartel being given the right to issue the world’s reserve currency, and through it, to control money supply around the globe.
But this is where we are already up to:
1. The IMF has been annointed as the new Global Reserve Bank.
2. The BIS has been annointed as the effective watchdog over the new Global Financial System.
3. The SDR has been decided upon as the new world reserve currency to replace the USD in that role.
America as a nation will lose out big time as a result, but arguably will only be losing its current, unfair, advantage. And in spite of its superpower status, it will do nothing about it because both Washington and the US military industrial complex are in the pockets of the international banking cartel, so they are not even consulting the US congress about the move, which is nothing short of unbelievable. This is one of Ellen Brown’s points, and she also agreed with Max Keiser, that the proposed, seemingly now inevitable arrangement is bad news for the world. I encourage you to listen to that interview again in light of this perspective.
Also, the rest of On the Edge has since been posted, with interesting comments on the latest developments by Stacey Herbert.
And, a brief video interview about the USD and some very interesting comments by a fund manager about the AUD, which might be of interest to many in this audience. The link is here, but you need to scroll down to the various sections.
http://maxkeiser.com/
Alas Kohler has just posted a sobering account of what the climate change scam will mean for Australia, with power bills expected to double within a few short years. And note again the change of propaganda language from ETS to CPRS (carbon pollution reduction scheme). http://www.businessspectator.com.au/bs.nsf/Article/Copenhagen-G20-global-warming-climate-change-pd20091109-XLRUC?OpenDocument&src=kgb
Unbelievable stuff, but guess what: all this extra money on carbon they propose to rip out of our economy is all part of the NWO vision by the IBC (international banking cartel), so we probably will have to have it. It will be jammed down our throats like you would not believe it, especially that now both Rudd and Turnbull want to pass such a legislation. The word has been put on both, by the looks of it, and any remaining quibbles about the exact content are for little more than show.
cb – news.com.au have an article about Goldman Sachs boss claiming he is just doing God’s work…
Now they just need a good slogan like ‘defaulters will burn in hell’ although that doesn’t work because if you default the government will cover you so maybe go for a non religious one like ‘bringing you prosperity through misery’
GB unfortunately there is a strong far right element in the US that feed on that language. My own unspoken question when I meet someone who has converations with God, is “How come he never said NO don’t do that”
i still think there is something about this global currency that is not to do with conspiracy or controlling citizens
There are two absolute truths out there
1. The US is going to decrease spending and debt and increase exports. For that it needs a cheaper currency
2. China is going to continue increasing exports and for that it needs a cheaper currency
The whole world is the same, every nation is fighting for a cheaper currency – its like a currency war and countries like the US, UK and Europe are losing the battle
Just thinking out loud, i think the Americans want a global currency to give them the flexibility they need to weaken their currency
Maybe the bankers think they are doing God’s work in the sense that Jesus turned 1 fish [1 dollar] into thousands of fish [000's dollars] and fed the masses!!!!
How true Peter….GB you have a good point, however, I believe that this is merely a “tool” that is being used and only a small part of the big picture. There is an “end game” focus.
GB – you are thinking along the right lines. This is what is commonly referred to as the race to the bottom of fiat currencies. They all want to weaken their own currencies relative to the others, as that gives them an advantage for earning that much needed export income. Our own RBA seems to be the only one wanting to swim against this tide, but the inevitable pressure seems to be building now even on Glenn Stevens. By putting our rates up, he is strengthening our dollar and gutting our export sector and the tourism industry. Alas, even if he slows down, the merciless draining of our economy of its life blood continues, and our appointment with destiny is drawing closer by the day.
GB, I have been trying to find that article about Blankfein, but no success. Would you mind pasting in a link? Thanks.
Ah, got it: here it is, and also a link to Taibbi’s famous piece on GS.
Quite different perspectives, you might say:
http://www.news.com.au/business/story/0,,26323561-462,00.html
http://www.rollingstone.com/politics/story/28816321/the_great_american_bubble_machine
Whow, are you guys watching what gold is doing? I have only just noticed. Little wonder, given what we have been discussing.
dont know blankfein – the article i talked about was from your post
http://maxkeiser.com/
post #14
cb – check out the Sp 500 chart compared to the gold chart since august – i used a 1 year time frame
since august gold and the SP500 has shot up then flattened off then shot up then flattened off
usd to euro is doing the same
seems to be a little spurt then steady for a while before another little spurt
Hmmm, GB, you have me thinking. You got me thinking about WHY I should take notice of gold’s progressive rise, and not that of the S&P indeces. I can think of two things:
1. I believe that the share markets are infested with criminal gangs, manipulators and naked short sellers, it is the playground of a pool of dangerous sharks, and having already lost an arm and a leg to them, I refuse to play and will not risk even my little toe. I do not trust the prices there, so wherever they might go, I stay well clear. I now have to focus on survival, and that is that. Hence, the movements of the S&P leave me stone cold. I regard it to be a sham, not to be trusted.
2. I also belive, on the other hand, that powerful interests have much to lose from a rising gold price, and therefore I believe that gold pushing higher at this point is in spite of their attempts at controlling it and keeping it down. Hence, the consistent and persistent push of gold upwards, is meaningful to me in a very real sense, and I use the gold price as a fear barometer, as a financial and economic risk indicater going forward. The higher gold pushes, the more unstable and riskier the underlying fundamentals are likely to be.
… the underlying fundamentals of the financial system and that of the economy, that is.
Guys, Gold is going to $1,200, $1,600 then shooting up to the thousands. this will happen in a very short timespan. It’s the crack in the wall of the dam. Slow to spread but when it does it blows bigtime. Once confidence in in the currency dies, stand back and watch.
Yes, Nick, that is the keyword: confidence. People often ask and speculate about WHEN hyperinflation is likely to hit a currency, and the thing is that there is no absolute or pre-determined way to know such a thing. It depends on when confidence is lost in that currency, and confidence can be manipulated and massaged for a long long time, but when it all of a sudden goes, it is like a dam bursting – all hell breaks loose as more and more people head for the exit, which of course is never wide enough when there are only sellers and hardly any buyers.
And, yes, gold’s steady and persistent rise indicates to me also that there is steady and persistent buying going on in the background. Since the common man in the street is not buying at the moment, not yet, my guess would be that there must be some absolutely huge pools of institutional paper money trying to find safe haven. When central bankers are prepared to buy hundreds of tons of gold at market, like we have just seen India do, something must be up.
Well said cb. When the man in the street starts rushing to buy gold, you can be very confident that it will be too late. China is slowly buying so as to not spook the market. that way they can buy it at the better price.
you must also keep an eye on the USD Index (US dollar value). It’s diving hence the gold price in USD is rising. In AUD terms it hasn’t moved much. This is not the move I am referring to. Gold will show it’s own worth very soon. Hence the “currency confidence” we are referring to.
i cant see how the US loses?
USD continues to fall then
a) they increase exports – good to pay off debt
b) Gold goes up and for every $1000 increase in price equates to an extra $250 billion dollars (they have 8000 tonnes) – good to pay off debt
Today i read an article that says Venezuela has entered the currency market and begun to support the strength of the USD – they all know (Asia, middle east, latin america) that their only advantage is their weak currency
with shares, commodities, oil, gold all going in the opposite direction to the US dollar then it may be a good time to buy USD because if the markets are spooked it could shoot up – as long as the US dont manipulate it and hold it down
All of that is true, GB. But each to his own. I, for one, do not feel like catching falling knives. Do you? Many say that the USD is due for shooting higher, and that it will surprise on the upside very soon. It may be so. But then again, it may not be. Given the treachery and the management of news cycles, I do not trust any of these predictions.
Same thing happened not very long ago with gold when last time it started bumping its head up against the millenial resistance line, and even gold bugs were advising their followers to sell out of their positions and buy back again later on a pullback. I was shaking my head, as I could not believe such folly, when the signs were clearly there of the Beijing put. This was quite clearly articulated at the time by several sources, and I even referenced Max Keiser’s discussion of it in this forum at the time. Some of you might even remember it.
Anyhow, gold never pulled back properly, but powered through 1k USD to where it sits now. And what I am suggesting here about the expected and much talked about and badly due USD surge is that it may well not happen. Those who are desperate to get out, will want you to believe that the USD is ripe for a rally, because they want idiots to start buying the USD in volume, so that they can get more of their money out into gold and whatever else they fancy. I do not know this, of course, but I am just saying that with the fundamentals of the USD, it would be like trying to catch a falling knife if you went long on the USD at this point.
But then again, some are good at juggling, and falling knives will suit them perfect.
Ah, and about the US Gold Reserve, frankly, I am not so sure that it is still there. It has certainly not been audited for decades and all attempts for a proper audit have been resisted by the powers that be tooth and nail. Many credible and serious followers of gold and the US Federal Reserve System believe that a lot of that gold has been leased, and sold, over the decades, as part of the Fed’s program to control the gold price. Alan Greenspan himself said so, so how much gold has been leased, never to be returned, because it has been sold long time ago, nobody really knows, and consequently nobody really knows how much of that supposed gold reserve is still there, and those in charge of it will not allow an audit.
Leased gold is nothing but gold long gone, that much is for sure. Plus, who knows how much of the physical gold still left there is under how many claims by the banksters or other parties through the gold swop schemes that has been operating between the various reserve banks. The answer is, that nobody who would like to know, can know, but that is only half of it. The other half, I suggest, can justifiably looked at this way: When the wolves have been guarding the sheep, would you take their word as to how many sheep there are still left in the barn?
Of course not. In fact, you would have to fear much much worse than what you are being told. And the same goes, I would suggest, where the US Federal Reserve and the Goldman Sach’s alumni lead US Treasury reports are concerned on the gold reserves left in their care.
Very true cb…what do you think will happen to the price of gold when the truth about what you have stated gains momentum, and gaining momentum it is.
cb – i am talking short term
My thoughts: leading up to the G20 meeting on the weekend the USD strengthened and stocks fell. The question investors wanted to know was ‘will the g20 governments continue to stimulate?’ and they are going to continue. Since then the USD has weakened and stocks have risen
Eventually they will stop stimulating and i believe investors will head for the exits and dump stocks, when they do they need to convert their stocks into something – it could be gold, pigs, chickens or USD. The only currency that can really supply that amount of demand is the USD. Gold shouldn’t fall but there just isn’t enough of it to make it a possible conversion medium. Short term, this could lead to a strong rise in the USD unless the gov blocks it
However, if you dont think there will be a sizeable correction in the markets then this wont happen
GB – thanks, this is how I understand and see it:
- insofar as the Wall Street banksters and hedge funds are borrowing sh!tloads of cheap as free USD from the Fed to sell it for the carry trade, they will have to buy the lot of it back if and when USD interest rates rise for whatever reason. At that point there will be likely to be a short squeeze and the USD will shoot sky high because of it. Through the carry trade they borrow USD, which they then spend to buy other currencies, shares, commodities, and whatever is promising a higher return than what they are paying in interest on those borrowings, but all of that then will have to be bought back to be repaid in USD, so when the carry trade reverses, then anything that they have inflated with the carry trade should fall in price against the USD.
As for corrections and future crises, yes, we will get more of those, for sure. It is all part of the strategy employed by the banksters. They have planted hundreds of thousands of derivative financial bombs and they will blow these up when it suits them, even threatening suicide and systematic collapse in order to frighten the politicians into handing over to them more bailout cheap and free money. It is a shell game to get more and more money out of the tax payer, and pension funds, and super savings, and wherever there is still a scent of savings left. Now they are on the verge of failing, now they are doing great. When paying themselves bonuses, they will be doing just fine. As soon a bonus season passes, they will engineer another crisis. And guess what: they are getting, and they will continue to be getting away with it at your expense and mine.
The other part of the strategy is to hit us all with a massive and relentless energy tax through the so-called CPRS – the carbon pollusion reduction scheme. Rudd and Wong should be tried for treason for the sheer bastardry they propose to perpetuate on this nation. If you want to get across the scam and bald faced lies of the climate terrorists, then you only need to watch some of these videos:
http://www.globalclimatescam.com/?page_id=10
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