The Cost of Being a U.S. Citizen

I’ve written before about the record number of people choosing to renounce their citizenship. Well the cost of  renouncing your citizenship just went up over 400%. This isn’t a coincidence- the government knows about the crisis that’s coming. They are on a crazed hunt for revenue that is going to prevent a quick recovery. We are on the path to a drawn-out Japanese-style lost decade at best.

For now most people have no clue what’s going on; these trends are hidden in plain sight. But looking back, everyone will connect the dots with events like #Ferguson, which was a phenomenon spread primarily by social-media much like the Arab Spring a couple years back. #Ferguson is quite simply a precursor to the type of civil unrest we will see nation-wide.

This is a different flavor of crisis than the 2008-2009 variety and far more serious. We are not seeing a vanilla bubble in a single asset class (housing), but a bubble in government, period. When this occurs, the government take on an “us vs them” mentality. It’s a cycle of madness that occurs periodically, so be prepared.

We all know the script by now. People with a very limited view of history think “it can’t happen here”, until of course, it does. This period of calm is really a gift to get your house in order. I suspect there is still way too much money in bonds, including municipals.

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