No One's Capital Is Safe in Obama's America

Subject: txt econ sclm mny intl russia -
Obama's poorly coded message to investors is to take your money out of America and keep it out. Whether through excessive taxation, suffocating over-regulation, or thuggish confiscation, the lesson to be drawn by anyone with excess capital is to look for friendlier places to put it to work...

... Russia's president spent several days in Silicon Valley recently looking for adventurous investors and came away with a $1B commitment from Cisco Systems. For Cisco, sitting on a cash hoard of $30B, the decision was probably not a very tortured one. And what a perfect opportunity for Cisco's CEO John Chambers to keep his cash as far from Obama's collection agencies as possible.

President Medvedev promises Cisco a capital gains tax rate of zero; President Obama promises to increase the capital gains rate from 15% to 20% in 2011.

While Russia is portraying itself as a stable bastion for capitalists, America is increasingly seen as the land that mauled Chrysler and GM bondholders. While erstwhile command economies are liberalizing, America under Obama is nationalizing.

The lesson is clear: Don't leave cash within the American financial system, earning minimal returns, with the fear that at any moment your assets can be confiscated or redistributed by a lawless and capricious federal government...

... In contrast to Jefferson's goal of preserving "a model of government, securing to man his rights and the fruits of his labor, by an organization constantly subject to his own will," our current administration is brutally determined to transform government into an organ that redistributes those fruits to its cronies.

The reaction of sane, rational Americans to these perverse incentives is not to create or hire or produce. Instead, existing businesses and potential founders of new ones are hunkering down, hoping to wake up from this national nightmare in 2010 and 2012 with some of their wealth still intact...

[And why there's now an estimated 1 TRILLION dollars of liquidity being sat on by businesses rather than investing it - another Obama 'historic' high not being reported by the MSM...]

[Highly Recommended > ]

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