Yesterday, I told you how President Obama's massive spending plan would add up to about $80,000 in federal debt for each American family.
As I wrote, no one will want to pay the money back – ever. And it can't be financed forever. The poor will blame the rich. The rich will leave and take their wealth offshore. And absolute chaos will follow. The dollar will be completely destroyed.
Now, you're thinking, "I've heard all of this before. But the end of the world somehow doesn't happen. We find a way out."
Not this time. When I wrote last year that the dollar would cease to be the world's reserve currency much faster than anyone expects, I'm sure no one took me seriously. But since then, we've heard two of the world's leading powers – China and Russia – both openly suggesting a new world reserve currency must be created. Russian leader Vladimir Putin is even talking about using gold to settle international trade. It will happen because no one will want to be a creditor to the United States. Especially once they see a breakdown in our society with scapegoat taxation and a mass exodus of wealth from the country.
You can tax the rich to pay for current spending. You can even tax them very heavily. But when the rich look forward for decades and see nothing but increasing taxes, debts, and government control of their businesses and assets – they will leave.
The battle between the rich and the government has already begun. I'm sure you've noticed the global crackdown on private, offshore banking in places like Switzerland and Liechtenstein. But you probably don't know about the Heroes Act of 2008.
On June 17, 2008, then-President Bush signed the bill into law. The main purpose of the bill was to provide benefits and more financial flexibility for military families. However, also stuck in the bill was new legislation requiring full estate taxes to be paid on the worldwide assets of any citizen voluntarily giving up U.S. citizenship. In other words, you can leave the country if you want, but you can only take about half of your assets with you. (You can read a review of the new law here.)