Shiler Email to DD: Currency Tax

[k98nights]

Shiler Email to DD: Currency Tax

August 27, 2010 ·

TIDBIT: This was emailed to me this AM. I felt it was definitely worth sharing. Thank you Shiler! – DD

DD,

Has anyone mentioned that a Democratic representative is proposing legislation that will tax currency exchanges at a rate of 0.5%. He was on Fox News a while back talking about it. He complained that currency exchanges are not currently taxable as income or capital gains. He wants to tax all currency exchanges over $600,000.00 in value at the 0.5% rate. I find the timing of this to be incredibly coincidental considering that it has happened in the last two weeks.

Also, if you search the IMF website for currency revaluation, then there will be a study come up as a hit that was done by the IMF concerning currency revaluations that took place in Southeast Asia a number of years ago. The study talks about the problems the an rv creates, specifically inflation. The gist of the study makes the following recommendations:

1. Before a nation rv’s its currency it must bring in massive amounts of goods to keep the supply in line with the inevitable increase in demand due to the people’s increased buying power. (Iraq has been bringing in huge numbers of container ships with goods that are in violation of Chap. 7 guidelines, but it makes sense that the UN would allow them to do this in order to prpare for an rv.)

2. The nation preparing to rv needs to reduce its inflation rate to as low a number as possible due to the inevitable rise that will occur post rv. (We have all seen the GOI complain about high inflation rates even though their rate of inflation is comparable to that of western nations. It makes sense that they would complain when looked at through the prism of this study’s recommendation.)

3. The nation preparing to rv needs to reduce its interest rates to as low a number as possible pre rv in order to stave off inflation post rv. (Iraq has steadily been reducing its interest rates. Economics 101 tells every undergrad that in order to reduce inflation, the first thing you do is raise interest rates to tighten up the money supply. People save more when interest is high and money can be removed from circulation during this time, raising its value, thereby reducing inflation. Iraq needs its interest rates to be as low as possible so that it can raise the rates when needed without going the Carter/Reagan 20% range. They don’t want to stifle spending to the point that it slows the inevitable boom to their economy.)

Just thought you might want to know this info. The container ships never meant much to me until I saw this study. Now all of this stuff is making sense, especially when you look at the CBI auction info, the proposed legislation in the House, Obama speaking to the nation from the White House about Iraq, the mention that the GOI will be formed soon on Fox News, etc.

[Doc31]

Thanks for the post!

[wbuse984]

Excellent post...

[dweave69]

Good information as any.

Thanks for the post.

Go RV.

[Mammaw]

Very interesting...lets see if your deductions are correct, Holmes....

[Brandon2230]

6,367 posts strong, and still going. Your a postin a$$ fool K!

[wilecoyote]

Thank-you for the post. This is interesting information.

[neuman]

AAARRRRRRR!!!!!! Land a'hoy captin!

[Jac]

Thanks a million or so this was a great post!

[her]

Thank you, good information.

[TBnhispower]

What might this be about? My guess is they will pass a big tax raise on currency, because they have probably cut a deal with Iraq to do so. This will encourage investors to cash out quickly, before the values increase greatly. Most of us won't want to gamble that it will raise enough to cover the raise in taxes. Just my thoughts.

[Bobbydee]

Thanks Woody For the post. Makes you think somethings up. God Bless Semper Fi

[ha ha]

Thanks for this post. I didn't know there were no tax on currency exhange before now. 0.5% over $600,000 is not too bad after all.

[FloridaChick]

Thanks for bringing on the info

[eileen]

Interesting, thank you.

[CaptainJack]

I'd gladly pay 0.5% as opposed to income or capital gains tax at the rates they're at.

[Captjohn]

I'd gladly pay 0.5% as opposed to income or capital gains tax at the rates they're at.

Undoubtedly, you'd end up paying both in the end IMO.

[Inside Track]

Great!!!! Keep The Flow Of Critical Information Coming!!