#AceFinanceNews – UNITED STATES – Dec.03 – Last week, total US debt was a meager $17,963,753,617,957.26. Two days later, as updated today, on Black Friday, total outstanding US public debt just hit a new historic level which probably would be better associated with a red colour: as of the last work day of November, total US public debt just surpassed $18 trillion for the first time, or $18,005,549,328,561.45 to be precise, of which debt held by the public rose to $12,922,681,725,432.94, an increase of $32 billion in one day.

Original Post: December 2, 2014

Provided By: InvestmentWatch:

Look Who Just Turned 18

It also means that total US debt to nominal GDP as of Sept 30, which was $17.555 trillion, is now 103%. Keep in mind this GDP number was artificially increased by about half a trillion dollars a year ago thanks to the “benefit” of R&D and intangibles. Without said definitional change, debt/GDP would now be about 106%.

Ponzi: Treasury Issues $1T in New Debt in 8 Weeks—To Pay Old Debt

The Daily Treasury Statement that was released Wednesday afternoon as Americans were preparing to celebrate Thanksgiving revealed that the U.S. Treasury has been forced to issue $1,040,965,000,000 in new debt since fiscal 2015 started just eight weeks ago in order to raise themoney to pay off Treasury securities that were maturing and to cover new deficit spending by the government.

During those eight weeks, Treasury took in $341,591,000,000 in revenues. That was a record for the period between Oct. 1 and Nov. 25. But that record $341,591,000,000 in revenues was not enough to finance ongoing government spending let alone pay off old debt that matured.

The only way the Treasury could handle the $942,103,000,000 in old debt that matured during the period plus finance the new deficit spending the government engaged in was to roll over the old debt into new debt and issue enough additional new debt to cover the new deficit spending.

This mode of financing the federal government resembles what the Securities and Exchange Commission calls a Ponzi scheme. “A Ponzi scheme,” says the Securities and Exchange Commission, “is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors,” says the Securities and Exchange Commission.

“With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue,” explains the SEC. “Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.”

The other side of the coin is that US inflation has been understated by more than 3% for the last twenty years.  That means US GDP was overstated by at least 3% for each of the last twenty years.  Correcting that GDP for 3% over 20 years cuts it in half.  So real US GDP is only about $8.5 trillion instead of the assumed $17 trillion.  That makes US debt to GDP ratio approach Japan’s even if we just omit the unfunded liabilities.  Keep buying those US bonds – they are backed by the best lies of the Fed and the US BLS

$500 billion was added to the US GDP on July 1, 2013,  thanks to itunes and other intangibles.

US GDP Will Be Revised Higher By $500 Billion Following Addition Of “Intangibles” To Economy…

Federal Reserve Confirms Biggest Foreign Gold Withdrawal In Over Ten Years

#deficit-spending, #nominal-gdp, #ponzi-scheme, #treasury, #u-s-debt, #us-public-debt

‘ Expat’s Renting Their Homes in UK May be Stripped of Their Personal Allowance Under Tax Raid ‘

#AceFinanceNews – BRITAIN – September 22 – Expats who rent out their homes in Britain will be stripped of the right to use the personal allowance, under a tax raid prepared by George Osborne Telegraph finance reported back in August.


Britons could be forced to return from retirements overseas if the Chancellor presses ahead with plans to force non-residents to pay tax on all their UK income, accountants warned.

Retired people drawing a Government pension are also likely to be hit by the proposals, which could cut a couple’s income by up to £4,000 a year.

At present, EU nationals and British expats are entitled to offset income earned in the UK against the £10,000 personal allowance.

Mr Osborne first indicated his desire to curtail the allowance in the March budget.

Under Treasury proposals released for consultation, the allowance would be restricted to people with a “strong economic connection” to Britain, bringing the tax regime into line with the US, Canada and much of the EU.

The move could affect up to 400,000 people and raise the exchequer an extra £400 million a year.It would include 175,000 people who live abroad and earn an income from property in Britain.

Many of the 1.2 million British retired people living overseas will not pay extra tax on their pension because they are either UK residents for tax purposes, as they spend half the year in Britain, or because most state or private pensioners are only taxable in the country of residence.

However, UK government pensions are only taxable in Britain, meaning that unless the Treasury introduces exceptions, former civil servants, NHS workers and council officials living overseas will pay more tax.

British diplomats and missionaries who are currently entitled to the personal allowance may also be hit by the tax changes, the Treasury consultation says.

While some expats will be able to claim tax relief from their country of residence, those living in low-tax jurisdictions – such as Hong Kong and Dubai – will pay more tax overall.

Jackie Hall, a tax partner at accountants Baker Tilly, said expatriates should consider selling their UK rental properties and reinvesting the money in shares or property abroad.

Some Britons may be forced to abandon a carefully-planned retirement overseas and return to Britain if the tax changes mean they no longer have enough to live on, she warned.

Our pensioners who have gone abroad are going to suffer the biggest impact,” she said.

If you have already jumped ship and are reasonably comfortable, this could turn the tide against you.

Those people may begin to struggle because they haven’t got the income in retirement that they thought they had.”

The Treasury said no decision has yet been made.


#abroad, #britain, #expats, #taxation, #treasury

` Israel’s Foreign Ministry goes on an All-Out Strike over Workers ` Pay and Conditions’ for Indefinite Period ‘

#AceFinanceNews – ISRAEL – 24 March – Employees of Israel’s Foreign Ministry went on an all-out strike Sunday for the first time in the country’s history over a dispute surrounding workers’ salaries and conditions.

The dispute has been going on for nearly two years.

Seven months of negotiations ended on March 4, when workers rejected a proposal by the Finance Ministry.

Israeli ambassadors abroad will not go to work, no consular services will be available, and Israel will not be represented at any international gatherings during the strike.

Even the Foreign Ministry’s political leadership and management will be locked out.

The strike is indefinite and will affect everyone, including employers bringing foreign workers to Israel for work, immigrants, and anyone who wants to travel to Israel – including foreign dignitaries.

“Today, for the first time in Israel’s history, the foreign ministry will be closed and no work will be done in any sphere under the ministry’s authority,” a statement by the ministry’s workers’ committee reads.

It added that the strike would be “open ended” because of the “employment conditions for Israeli diplomats and because of the draconian decision by the Treasury to cut workers’ salaries.”

Israel News and Media Sources


#finance-ministry, #israel, #israels-foreign-ministry, #political, #treasury