http://www.businessinsider.com/italy-announces-higher-taxes-2011-9

http://www.guardian.co.uk/business/2011/sep/16/spain-raises-tax-on-rich

http://www.washingtonpost.com/business/economy/obama-proposes-new-taxes-on-wealthy-for-half-of-debt-plan/2011/09/19/gIQATnkNfK_story.html

http://www.guardian.co.uk/business/ireland-business-blog-with-lisa-ocarroll/2011/jul/27/property-tax-ireland-poll-tax

http://business.financialpost.com/2011/08/24/france-cuts-growth-forecasts-raises-taxes-on-rich/

Name a DM country and you will see initiatives to tax the ‘rich’. Democracies merely rely on the majority verdict. If the majority want to expropriate everything from one or other group they can and often vote it through especially if media services pump the political spin. I flagged this many years ago. Long time readers will know the history of the 70s and how private capital was ‘chased’ across the globe. Capital controls, trade wars taxes etc will all be applied to ever smaller pool of privately held capital in the west. This capital needs to be expropriated to support the huge centrally planned state apparatus that has been created. Tax heavens boomed in the 1970s for very simple reasons. It seems history does repeat. In spite of the headlines money printing environments always hollow out the middle classes in a society. The very rich will get richer and very poor will be supported by the money printing. The middle class are always and everywhere the losers in this environment. It is their capital that will ultimately be expropriated.

World wide the middle classes are expanding very quickly and not declining at all.

http://www.stockmarkettoday.cc/brazils-rapidly-increasing-middle-class-accounts-for-more-than-half-of-voters-across-the-country.html

http://www.pmc.aut.ac.nz/articles/chinas-new-middle-class-control-planets-future

But add to these two Vietnam, Thailand, Chile, Indonesia, Columbia and many many more.. The middle classes are booming hence cos like VW’s earnings are expanding not contracting.

In the west we might well ask what is happening..

The truth is from ww2 we have seen an complete erosion of the liberal western traditions. Hayek perfectly documented this process for us in the ‘Road to Serfdom’.

The ‘progressive’ centrally planned corrupt systems of the west are bleeding capital to the emerging economies. Their middle classes are expanding rapidly as the west’s middle classes decline. Its an age old process that will continue so long as the ‘progressives’ continue to believe they can more effectively direct capital than individuals. I strongly suggest taking action soon to distribute your capital across the world beyond EU and US financial zones to ensure you have some mobility of your capital if/when capital controls are applied. The clock is ticking ever more loudly now.

Rich

 

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