Home

Public Archives

Chris and I finally had the chance today to record the next installment of our Q&A podcast series in which he addresses questions submitted by CM.com readers. As with the first one, we received so many good questions that we didn’t have enough time to cover them all. But we made a pretty sizable dent….

Gretchen Morgenson

by Chris Martenson

A Primer for Those Considering Expatriation

by Mark Nestmann

A growing number of Americans are frustrated with the way in which their economy has been managed and are becoming increasingly concerned about future measures the governement may take to keep its coffers full.

A question that is arising with increasing frequency is: does expatraition offer a viable protection to those concerned about a more financially-intrusive US system?

The answer is 'yes', it does offer a completely legal solution for ending your obligation to pay US income, captial gains, and gift taxes on your worldwide income. But it is certainly not for everyone and should only be pursued after lengthy and diligent consideration.

And before you begin dreaming of a tax-free future, you should realize that the United States imposes taxes on a broader basis than any other country. The United States is one of two countries, and is the only major country, that imposes significant income, capital gains, gift, and estate taxes on its non-resident citizens.

In virtually all other countries, individuals end their liability to pay income tax after a sustained period of non-residence, generally one year or longer. But to legally and permanently end U.S. tax liability on their worldwide income, U.S. citizens must also give up their U.S. citizenship and passport. This process is called "expatriation."

A Primer for Those Considering Expatriation

by Mark Nestmann

A question that is arising with increasing frequency is: does expatraition offer a viable protection to those concerned about a more financially-intrusive US system?

Chris Answers Your Questions (Part 2)

by Chris Martenson

Chris and I finally had the chance today to record the next installment of our Q&A podcast series in which he addresses questions submitted by CM.com readers.

As with the first one, we received so many good questions that we didn't have enough time to cover them all. But we made a pretty sizable dent.

This week's questions covered topics ranging from an update on where Chris thinks we are on the (hyper)inflation timeline, to the risks of gold ownership, to the importance of developing a grounding sense of 'purpose' as we enter a new era certain to be unlike the past several decades.

Chris Answers Your Questions (Part 2)

by Chris Martenson

Chris and I finally had the chance today to record the next installment of our Q&A podcast series in which he addresses questions submitted by CM.com readers.

As with the first one, we received so many good questions that we didn't have enough time to cover them all. But we made a pretty sizable dent.

Marc Faber: The Perils of Money Printing’s Unintended Consequences

by Chris Martenson

Marc Faber does not mince words. He believes that the money printing policies of the Federal Reserve and its sister central banks around the globe have put the world's currencies on an inexorable, accelerating, inflationary down slope.

The dangers of money printing are many, in his eyes. But in particular, he worries about the unintended consequences it subjects the populace to. Beyond currency devaluation, it creates malinvestment that leads to asset bubbles that wreak havoc when they burst. And even more nefarious, money printing disproportionately punishes the lower classes, resulting in volatile social and political tensions.

It's no surprise, then, that he's feeling particularly defensive these days. While he generally advises those looking to protect their purchasing power to invest capital in precious metals and the equity markets (the rationale being that inflation should hurt equity prices less than bond prices), he warns that equities appear overbought at this time.

Marc Faber: The Perils of Money Printing’s Unintended Consequences

by Chris Martenson

Understanding the New Price of Oil

by Gregor Macdonald

In the spring of 2011, when Libyan oil production — over 1 million barrels a day (mpd) — was suddenly taken offline, the world received its first real-time test of the global pricing system for oil since the crash lows of 2009.

Oil prices, already at the $85 level for WTIC, bolted above $100, and eventually hit a high near $115 over the following two months.

More importantly, however, is that — save for a brief eight week period in the autumn — oil prices have stubbornly remained over the $85 pre-Libya level ever since. Even as the debt crisis in Europe has flared.

As usual, the mainstream view on the world’s ability to make up for the loss has been wrong. How could the removal of “only” 1.3% of total global production affect the oil price in any prolonged way? was the universal view of “experts.”

Answering that question requires that we modernize, effectively, our understanding of how oil's numerous price discovery mechanisms now operate. The past decade has seen a number of enormous shifts, not only in supply and demand, but in market perceptions about spare capacity. All these were very much at play last year.

And, they are at play right now as oil prices rise once again as the global economy tries to strengthen.

Understanding the New Price of Oil

by Gregor Macdonald

Oil prices, already at the $85 level for WTIC, bolted above $100, and eventually hit a high near $115 over the following two months.

And, they are at play right now as oil prices rise once again as the global economy tries to strengthen.

Robert Mish: Front-Line Evidence That We Are Nowhere Near a Gold Bubble

by Chris Martenson

Robert Mish has been a precious metals dealer for nearly 50 years and knows what gold bubble mania looks like. We are nowhere near that stage, in his opinion.

Instead, he sees a US populace largely unappreciative of holding precious metal as a store of wealth, and engaged in a slow process of dis-hording their gold and silver to eager foreign buyers, who are more than happy to take the bullion back to their shores.

In terms of where we are on the gold mania spectrum, he sees us at a "2" out of 10.

But he foresees a very rude awakening ahead, as the populace eventually wakes up to the increasing damage that our over-debted global economy is doing to the purchasing power of world currencies. Because when the general investor finally realizes the protection the precious metals offer against currency debasement, much of the retail supply will already be out of the system, in very tight hands and largely overseas.

Moreover, when supply gets tight, there will be more challenges to obtaining physical bullion during a buying mania than there were during the last mania in 1980. There are many fewer local sources to exchange bullion these days, as much of that business is now transacted by online vendors dependent mail delivery to ship product, and they are more vulnerable to supply chain disruptions.

Be sure you're aware of how the form in which you hold your bullion will affect the price you get during a buying frenzy, when refining capacity is overwhelmed. You may find that your gold or silver sells at a hefty discount because it's not in a preferred format for trade.

Robert Mish: Front-Line Evidence That We Are Nowhere Near a Gold Bubble

by Chris Martenson

Robert Mish has been a precious metals dealer for nearly 50 years and knows what gold bubble mania looks like. We are nowhere near that stage, in his opinion.

In terms of where we are on the gold mania spectrum, he sees us at a "2" out of 10.

Japan Is Now Another Spinning Plate in the Global Economy Circus

by Chris Martenson

At the circus, you are sometimes treated to the spinning plate act where a performer tries to keep an improbable number of plates spinning at once, racing from one plate to the next as their wobbles indicate the need for another dose of momentum. Considering the number of spinning and wobbling plates that our central planners…

Japan Is Now Another Spinning Plate in the Global Economy Circus

by Chris Martenson

Erik Townsend: Expect a U.S. Price Shock as Black Swans Come Home to Roost

by Chris Martenson

American investor (and longtime CM.com member) Erik Townsend has spent the past several years living internationally, with an eye to which countries may be good alternatives if economic crisis and/or Peak Oil start to materially impact life in the US.

His main observation as an expat? Through its misguided policies, the US has been exporting inflation to the rest of the world, raising prices all over the globe (as an example, Erik cites a $57 chicken pot pie from the menu at a 'working class' restaurant in Australia).

This inflation is affecting the rest of the world harshly, but is not yet being felt in the US due to our ability to export it as the issuer of the world's reserve currency. Our immunity will not last forever though, and when it ends, a massive upwards spike in prices is going to hit US markets.

Erik Townsend: Expect a U.S. Price Shock as Black Swans Come Home to Roost

by Chris Martenson

Erik Townsend: Expect a US Price Shock as Black Swans Come Home to Roost

by Chris Martenson

This inflation is affecting the rest of the world harshly, but is not yet being felt in the US due to our ability to export it as the issuer of the world’s reserve currency. Our immunity will not last forever though, and when it ends, a massive upwards spike in prices is going to hit US markets.