by Craig Masters -
Peter Stansberry, investment advisor and economy researcher, has weighed in on the impact of the latest Obama solution to the U.S. debt. His advice regarding the “Buffet Tax” is much the same as most major investors; get out of dollars before they become worthless on the world market.
In a lengthy report available online, Stansberry reveals a fact that sinks the latest Obama exclamationis about the super rich being able to bail America out of debt by simply paying the same rate as everyone else who pays payroll taxes. The Buffet Tax, as it has been labeled, would supposedly reduce the deficit.
But the facts are quite different. Using Obama’s own budget, Stansberry has calculated that if every single American now employed, paid 100% of their income (not just taxes, but all of their income) to the federal government, the U.S. would still have to borrow more money just to maintain the status quo. That means that the states, 46 out of 50, already more than $160 billion in debt, would have no revenue at all since no one would have any money left.
Even in Greeley, businesses are quitting and new office space is abundant. Local real-estate investor Brett Reese, who owns several single-family dwellings and “flips” (remodelling, then selling) houses expects a double-dip recession. “Since Obama took power I have personally seen, as an investor, probably six or more brand-new regulations only concerning the “flipping” of houses. And insurance companies are not binding if they can find any excuse, including a single shingle missing! I’ve never seen this in 15 years.” Reese said because of new federal regulations most don’t even know about, and the tightening of insurance standards across the board, there is simply no way the housing market, the foundation of the American economy, can bounce any way but down.
As the dollar continues to weaken around the world, not even the so-called super rich are exempt from credit problems. According to Moody’s credit reporting agency, as recently as 1979 there were 61 U.S. corporations with AAA credit ratings. Today there are only 4: ADP, Exxon, Johnson & Johnson, and Microsoft.
Raising taxes on big business is not the answer, according to Intel CEO, Paul Otellini. In interviews about overseas investment by Intel, Otellini explains that 90% of the excess cost of building a U.S. factory is in taxes and regulation fees that other nations simply do not charge. His opinion is echoed by Cypress Semi-conductor CEO, T.J.Rodgers, who described California as a government, “hostile in a thousand ways.”
If the Obama-led march to end capitalism in America succeeds in this latest round of business-killing tax hikes, the current “recession” will look like the good old days. The Wall Street Journal addressed the weakening dollar in a March 2 article predicting the end of the U.S. dollar’s reign as the world’s currency reserve. If the “Buffet Tax” is even given positive press coverage, it would seem the Journal’s predictions will be realized sooner rather than later.