Posted on January 27, 2012 by Petros Posted in Issues regarding US persons abroad 7 Comments The US Federal Debt limit now stands at $16.394 trillion. Here is a video that explains how that works. Hat tip Zerohedge. Open thread means feel free to share anything on your mind. Share this:TwitterFacebookEmailLike this:Like Loading...
In a hyperinflationary scenario, EVERYONE’s a covered expatriate.
I know that this is a VERY SERIOUS subject, but please somebody call an ambulance! I just cant’ stop laughing 🙂 Humor is a good medicine!!!!!!
Now, after watching this can anybody tell me what my incentive could possibly be to give the IRS 1$ ???????
Definitely would not be a tax dodge 🙂 (@2:20)
Eric wrote: “In a hyperinflationary scenario, EVERYONE’s a covered expatriate.”
I’ve been hedging against inflation and shorting the US dollar since 2009. But when my lawyer handed me a flyer on the HEART Act in early 2010, I decided then that the only true protection against dollar debasement was not shorting the dollar, but renunciation of citizenship.
How much longer can the US get away with this nonsense? They can’t keep building this deficit forever. I imagine that when the house of cards comes crashing down that the picture in the US will be much uglier than what we are seeing now in Greece or the EU, especially so since the US will probably just keep pushing this up and up and up until somebody stronger, like China in 30 years’ time, comes to collect..
Hilarious video by the way!
@Don How long? That’s an interesting question. Weimar Germany debased the Mark for a long time before the hyperinflation set in. According to Adam Fergusson (see his book pdf), it was only after they had actually balanced their budget–a case of too little too late.
The dollar will slip into serious hyperinflation when the world markets decide to stop using it as the world reserve currency. It could happen very quickly. It is hard to say. The Chinese, for example, will not dump their dollars overnight. They have too many to do that. So they will slowly dump their US debt notes in favor of resources like Canadian oil companies. But the more bilateral trade agreements which bypass the dollar the sooner hyperinflation will set in. See http://www.zerohedge.com/news/india-joins-asian-dollar-exclusion-zone-will-transact-iran-rupees
Excellent article, thank you for the link. I think it is scandalous that this has barely been reported in the press that I read – They have only mentioned in passing which countries are likely to keep trading with Iran and ignore the US sanctions, but these bilateral agreements are something else entirely.