High US spending + Higher Taxes = Capital Flight

I am predicting that with the Obama plan for higher spending we will end up with a depressed dollar value and higher taxes. That can in the end only mean one thing. I very large capital flight from the US and an economic implosion of epic proportions.

In light of Microsoft corp saying they will move jobs off shore as a result of Obama administration policy I see the start of such a flight already.

See this article: Microsoft to Move Jobs Offshore

This administration should have moved in the direction that Ron Paul outlined. It would have been the only thing to save this nation and our economy from total destruction and implosion.

Instead we are entering an age of hyper inflation or stag inflation at the very least.

When will they ever learn.

The Austrian school of economics has warned of this for years but has been treated like Casandra.

Another point worth a mention is that the capital flight will take not only American jobs with it but American corporations which will become foreign corporations and not end up paying any taxes at all. There will be no more US corporations of any kind of net worth in the end.

Well, if I were in that position, I would too. Sorry America, this ridiculous government spending and taxation is not helping the economy. You should give large corporations incentives to bring jobs back into the United States, not force them away. Maybe it is time to leave the good ole' USA.

reply to post by UFOTECH


S & F. I would go as far to say that we should eliminate the corporate tax or lower it to 10%. If we did that business would flock to the USA, and people would stop taking advantage of tax loopholes. You cant fault someone for avoiding taxes legally. That is just good business.

reply to post by USamf


I agree. The incentive of low taxes, low government spending, a stable currency is just lost on this administration and to be fair several of the previous ones as well.

We live in a global economy. You would think that these globalist that are running things would understand things like the cause of capital flight but they just do not seem to grasp this.

A US centric policy that assumes that we are the indispensable economy will only take us to economic oblivion.

Wow, sounds like two birds with one stone! Hellish mega corps leave the country, and the government starves from little cash flow. If old bloated super companys leave, then new ones can form and start new job sectors.

Oh I believe you friend. Check out the latest from the Fed.

You won't believe this! Bernanke wants to raise Taxes to cover his Butt.

You know it does not take a mathematician to figure out that if you spend more money than you have and keep interest rates artificially low and try and not raise taxes that you choke the life out of the financial system.

Inflation rises, you have to raise tax revenue from some quarter and then the result is capital flight. There was one and only one way out of this mess and that was to slash the federal budget to painful levels, reduce the size of government and cut the personal income tax out and return to some kind of commodity based money system.

Any other course of action was going to result in a complete implosion of support for the dollar and a huge decline.