It is pretty obvious that there is going to be increasing pressure on capital, trading/speculation, and liberty - especially in Europe, but also in the USA. As traders, this constitutes an important threat to our freedom, profitability, and in some cases livelihood. We have already seen how the transactions tax was a serious threat to all active traders, luckily that was not really feasible due to potential regulatory arbitrage and one or two holdouts (no trader should criticize Tiny Tim too harshly!). However, there are going to be other attacks on free markets and free men. Here are the main potential threats I can see: 1. Restrictions on short-selling 2. Supertax on "unearned income" 3. Restrictions on "paper" gold trading and eventually physical gold ownership 4. Capital controls 5. Forced purchases of government bonds by banks, pension funds, and eventually individual retirement accounts 6. Clampdown on tax havens and freer jurisdictions (e.g. European tax havens may get pressured to fall into line with EU capital controls, and eventually annexed by sanctions or even direct military blockade/invasion). 7. Confiscation of retirement savings, either via inflation, taxation, or plain theft. Eventually they may get bad enough that traders will either have to emigrate, break the law, or alter the political process by either democratic or violent means. It will obviously be far easier to circumvent such controls by preparing in advance and having various backup plans and escape routes for capital, and eventually one's person. Thanks to globalisation and economic incentives, there will always be some bastions of relative liberty to exploit regulatory arbitrage. I would expect Swizterland, Hong Kong, Singapore and Dubai to be the pre-eminent locations for remaining free trade, with Canada and New Zealand as higher tax versions, so establishing contacts along with brokerage and bank accounts in those jurisdictions would be wise. Ironically Hong Kong may actually be the most secure due to Chinese protection. Switzerland could easily be isolated by a determined EU effort, for example.
This one is bumming me out. Where to put a pile of cash right now? T-Bills? Is there any way to escape the devaluation of savings?
The only solution may be to leave the country and give up US citizenship (the IRS follows you everywhere as long as you're a US citizen). My wife is an Australian citizen and we've been thinking of moving there so our two kids and I can get Australian citizenship. That would take one year for the kids and two years for me. Then we would move to a low-tax country with more opportunities. (Australia doesn't tax non-resident citizens). Problem is, I don't know where that destination would be. Singapore? Malta? We've just started looking into it.
If I remember right, you still have to pay taxes to the US some 10 years after you give up citizenship.
The attorney we spoke to told us that immediately after we give up our citizenship, the US/IRS has no jourisdiction over us as long as we have paid all of our taxes up to the separation point.
Interesting article about giving up US citizenship. http://www.time.com/time/world/article/0,8599,1983238,00.html
The Canadian taxing authorities are quite reasonable compared to the draconian US/IRS. The Canadian government does not tax its non-resident citizens on income earned outside of Canada.
Is that where you're thinking of moving? Here's an idea. Renounce citizenship fly to Mexico. Walk back across the border and enjoy living in the US tax free with all the benefits courtesy of US tax payers. Frankly I'm surprised no one has thought of it before now.