Working Around the U.S.

September 8, 2014

By: Kelly Diamond, Publisher

russia and china“If President Obama and his successors continue with their heavy-handed approach of levying sanctions against every country that does something US policymakers don’t like, it will only lead to more countries shunning the dollar and accelerating the dollar’s slide into irrelevance.” — Aug 10, 2014, Ron Paul, former Republican US Congressman

And that is exactly what is happening. Currently, Russia and China, two countries the US loves to hate, are brokering a deal to trade in their own respective currencies. I.e. no longer relying on the USD as the intermediary or the reserve currency.

Where she can, Russia is turning to the Yuan and other Asian currencies to avoid or reduce dependency on the U.S. Dollar.According to a recent article in RT, “Russia will start settling more contracts in Asian currencies, especially the yuan, in order to lessen its dependence on the dollar market, and because of Western-led sanctions that could freeze funds at any moment.”

“The Central Bank of Russia is working on creating a national payment system, which both China and Japan have already established, and is expected to be up and running within four months.”

Another notable development in the Russia-China relationship is that they are trying to create a new joint rating system that would replace that of the S&P and Moody’s. I have my doubts about China being totally transparent or forthwith considering their sketchy dealings in the metals markets. However, the mere attempt at usurping the Western based rating systems should not go unnoticed!

An interesting question came to me when I read both Congressman Paul’s quote and a few articles on the deal being brokered between Russia and China’s respective central banks: Can WE take a lesson in all of this?

If this were a choose-your-own-adventure series, and I answered that question with “no”, then that would be the end of the story. But I truly think there are implications down to the individual level that we are seeing play out here in the United States, and perhaps we would do well to consider follow Russia and China’s lead.

Never in a million years did I think I would ever herald Russia as an example of anything for Americans (insert wry chortle here), but times are a-changing!

What would happen if I switched up a few words in Congressman Paul’s quote? For example:

“If President Obama and his successors continue with their heavy-handed approach of levying taxes on every business and individual that earns a dollar, it will only lead to more of them shunning the dollar and accelerating the dollar’s slide into irrelevance.”

Obviously, Congressman Paul was correct in his assessment of US foreign policy as it pertains to those growing tired of cow-towing to the US. But look at what businesses and some individuals are doing in response to the punitive level of taxation being imposed upon them by the US government.

Individuals and businesses alike are leaving or at the very least distancing themselves from the US. Even if they can’t leave entirely, they are getting as much as they can OUT of the US.

I saw this meme the other day:

escapte to canada

It would seem that Americans have been looking to their neighbors to the north to escape American oppression in the same way Mexicans have turned to the US to escape theirs. Americans have turned to Canada to dodge the draft, dodge taxes, and in some cases even dodge the death penalty since Canada won’t extradite if the other country intends to sentence them to death.

Distancing from the United States and its policies is not news. Banks in many countries are starting to refuse American clients simply because the requirements imposed by FATCA are not worth the hassle.

I’ve been told that if you ever wanted to see anarchy in practice, look at countries: they are sovereigns. They don’t have a government to answer to, per se. (I don’t count the UN since it’s a joke.) On a global governmental scale, distancing looks different. Russia and China can’t physically go anywhere. They can’t leave the planet if they don’t like it here. They do one of two things: wage wars or use the market.

Russia and China know they cannot take on the US military. It’s the largest in the world by a LOT. It spends more than the next 14 top military spenders in the world. So brute force is not the answer. Economic tactics are the only remaining options and those options are myriad.

Should they boycott the US? Good luck. Should they scare the US and have it exhaust its economic resources? Maybe engage it in another war somewhere else with someone else? Sure. Should they prop up the US and create a little dependency only to pull the rug out when they need you most? Most definitely. Should they engage in commerce and not invite the dollar to the party? I should say so!

All of these tactics are being employed by various countries. The Middle East has its finger on the pulse of American fear. China bought up a bunch of US Treasuries and recently just decided to stop buying as much. And now Russia and China are in cahoots to cut the US out of their business deals.

The last thing remaining would be if some countries stepped up and offered a fast track to citizenship to Americans to rob her of her labor force and entrepreneurs!

The US is an interesting case, because while it wants to be involved in everyone else’s business, its policies preclude anyone from wanting to do business with her. It’s like the schoolyard bully: they are constantly pushing people around, threatening them, and often brutalizing them. Then, they wonder why no one wants to be friends and play with them during recess. Well DUH!

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11 thoughts on “Working Around the U.S.”

  1. What the globalist, and elitists fail to understand is KARMA! You can not treat people like the so called leaders of Emerica have since its inception, and expect anything to be different than it now is. We are witnessing the results(at this point in history) of abuse, and disregard for the natural rights of many races, by a government out of control(when have they not been), and people that think wages, and salaries qualify them as taxpayers, so they continue to support there own destruction…I still hear people say:..”did you hear on the news”….,and I’m thinking, do people still watch, and believe that TV?????? If you know someone still in a “coma”, don’t bother them, it is where they choose to be.

    1. Agreed LC. We are witnessing interesting times. If we read history books 100 years from now this will easily be compared to the fall of Rome or the British empire. The only way to survive and thrive (IMO) is to internationalize your life.

      1. I believe internationalizing your life is a good strategy for minimizing the Tax Grab by Governments especially with good incentives to take pensions & investments to second tier countries like Panama, Ecuador, Costa Rica & The Philippines what I still have my doubts about is whether overall you get an improved standard of living.

        1. Glen,
          The idea is not only internationalize, but diversify. Invest in several jurisdictions; land in Panama, land in Colombia, cash in offshore bank account, gold in Switzerland (still good for that), private businesses offshore, trust or foundation offshore, live in Costa Rica, citizenship in Paraguay….etc.

          I can tell you the quality of life is much higher. I am leading my example.

  2. To my American neighbours – Coming here to escape taxes? hahahaha/ L.O.L/. R.O.T.F.L.
    Good Luck with that strategy!

    1. Glen,
      From your perspective I can see how you would say that. Except the US has a much higher corporate tax rate and the personal tax rate is about the same. You have a single payer healthcare system (which I don’t condone), but at least your high tax rate pays for something. Additionally for individuals, they can relatively easily obtain Canadian citizenship, then move out of the country and escape personal taxes forever.

      1. While I agree with you that obtaining residency & citizenship may be easier & less expensive than the U.S. it has now become too onerous for most people to consider – unless they are already wealthy. While we profess to be independent & not influenced by the U.S. Policies & over the top controls of peoples lives we are non the less forced to follow in your footsteps. When the U.S. implements changes to policy whether for Business, Immigration, Security, Trading or Tax Structure our Puppets in Government always follow suit. I don’t think we have had an independent thinker since Trudeau – all the others have been corrupt & fortunately caught & at least thrown out of Office & still manage to escape persecution. Our latest Dictator El Presidente Harper just secretly sold out the country to China without following Governmental voting procedure. China can now sue Canada for any new laws implemented that will affect their profitability. So much for Democracy – it’s an illusion.

        1. Oh contrare… democracy is alive and well. Democracy is rule by majority. The problem is that the majority want more freebies from the minority. It has been the intent all along.

          1. “Oh contrare… democracy is alive and well. Democracy is rule by majority. The problem is that the majority want more freebies from the minority. It has been the intent all along.”

            Sorry, but on this I have to disagree. It has been my experience that the exact opposite is true. So many levels of Politicians grabbing Tax Dollars for Fees, Permits, Licences, Inspections, Salaries that the Private Sector would consider Lottery Winnings & then to add insult to injury a Golden Pension after 10 years of service? In no other segment of industry with the exception of Movie Stars or Sports Celebrities can they continuously demand annual increases from the majority of tax payers while returning fewer & fewer services to the public whom they are supposed to be serving. Democracy may be alive but it is no longer representing the people that put them in Power.

          2. Oh, I agree it doesn’t really represent the people it represents. But in the political game, marketing budgets win. Look back at presidential elections. When is the last time the smaller budget won the white house?

            The majority wins the vote because the majority is easiest to manipulate with media spending showing presidents kissing babies and swinging hammers at job sites. That majority just never understands what it REALLY got when they voted in the next chief executive parasite.

            And that is exactly the plan.

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