Vultures, Theft and Malinvestment
You will own nothing and be happy
Governments around the world are losing control of their economies in real time.
Their response? Mass migration, Tax Hikes, Money Printing and Austerity - all while selling the illusion of progress.
Still think your wealth is safe?
In this article I cover:
The latest policy shifts from across the globe and what they really signal
Why diversification is no longer optional - it's survival
Regional Changes
Australia
🧾 One of the worst forms of taxes on their Tax Deferred Investment Accounts - an Unrealized Capital Gains Taxes
Europe
A study into “using” 10 Trillion Dollars of Citizens Savings for big projects:
🎯 Know the end game - Europe’s goal of heavily re-arming Europe
🧠All powerful mechanism for controlling money flow - Digital Euro
🚫Removal of any escape routes - EU Asset Register
🧱 Facilitator for confiscation - Asset Tokenization
France
📈 Increase in income tax - minimum of 20%
⚡ Re-adding the Tax on electricity
England
Increase in National Insurance
💼 Removal of non domicile tax status
Canada
USA
📉 Financial Infrastructure Under Threat - Bond Market Collapse
🏠 An Easy Target - a Huge bump to Property Taxes
🕵️ You do not own your stocks - The Great Taking
💰 Reintroduction of Tax on Gold - Washington Tax on Bullion
Corralled
The concept of people being corralled into a specific savings vehicle or platform and then being exploited is a pressing concern. Australia has solidified this fear with the conversation around unrealized Capital Gains tax on their SuperAnnuation funds.
It is hard to target large pools of resources when they are - not digitized, disparate, undocumented.
It is easy to target large pools of resources when they are - digitized, centralized, documented.
The European Union is making excellent progress at addressing these facets - investigations into an Asset Register, Tokenized Assets on a Blockchain and a CBDC all centralized.
An Environment for Malinvestment
Government interference with free market economies distorts reality and end up with people funneling money into things that don’t provide value or true growth. Hence the term malinvestments.
A long period of malinvestment will cause a country to falter.
An example of malinvest could be seen as the last decade of near zero interest rates fueling investors need for return. Enormous investments in “The Metaverse” are one of my most favorite recent examples of malinvestment.
Facebook even renamed themselves to Meta - they were “all in” so much.
A Coin Has Two Sides
With diversifying, it may feel that you are turning your back on something that is yielding more, but like all insurance - it sucks paying for it - but you can’t buy it after the fact.
Be aware of ever increasing ordained risks to your wealth as well as malinvestments trying to lure you in. Just because the crowd plows money into something - doesn’t make it valuable.
If you haven’t seen my post on Diversification and Ray Dalio’s video on Drawdown - I’d recommend you check it out
Strongly consider different regions of the world, different asset classes as well as residency and citizenship.
Be cautious about policies that initially target only the top few percent of wealthy individuals. History shows these rules tend to broaden over time. For example, the U.S. introduced federal income tax in 1913 targeting less than 1% of earners - but today, it affects millions.
The question isn’t if tax and austerity measures will expand, but when. Protecting your wealth means anticipating these shifts and acting proactively.
The world will yield both opportunities and threats, it is important to remember threats do exist and to be cognizant of them.
Here is an article I wrote that you may enjoy that is related to the ease of confiscation -
📠The Value of Complexity
About This article will talk about why complexity can be considered valuable when the alternatives open these risks:
Great article, as always!