[Homestead] More on Gold
cayadopi at yahoo.com
Wed Dec 31 17:03:48 EST 2008
Bev wrote to Bob: "I think we are all talking, as James says, at cross purposes with you.
You talk of maintaining wealth, we talk of maintaining life and lifestyle."
There is one caveat in homesteader's being able to "maintain life and lifestyle" - and that is real estate tax, and the potential need from time to time to buy things "in the market".
Real estate taxes will rise, and likely rise faster proportionately than wages. It is so important to understand that what the Fed is doing by expanding the money supply - is a hidden tax - is is the cause of inflation. As local, state & federal governments pay more money as prices and wages inflate - they tax more. Although, we may be entering a new era where instead of taxing more the Fed just prints more and more money and gives it to the states to make up the budget deficits if real estate taxes aren't increased.
While the laws are a tad different from State to State - state's do put tax liens on property for unpaid real estate tax - and in some states (maybe all - I'd have to brush up on that) - after X number of years of non-payment - the property winds up on the auction steps of the courthouse.
This is where the threat of higher inflation than we've ever experienced before, which may become a hyperinflation, is going to be a real problem for homesteaders if their fiat currency wealth isn't keeping up with inflation at a rate to satisfy the tax man.
Your true enemies are the Federal Reserve and out of control government spending - not someone who wants to saves excess production in whatever form they choose.
The honest person who produces excessive wealth isn't coming to take your homestead away - the honest person has already produced more than his immediate and near term survival needs and has even saved for a rainy day or two or three.
It is the dishonest persons (this includes dishonest businesses and individuals) who don't want to produce what they need to survive, who stick their hand out for more and more government subsidies. The trickle down winds up in higher taxes (on wages and real estate).
It is the dishonest persons and businesses who have forced government budgets far far above the government's ability to tax individuals directly. It has gotten to the point where the government is now forced to create money out of thin air --- devalue the currency, inflate the money supply and in time make your real estate taxes go thru the roof.
Homesteaders can not operate in a vacuum away from the government tax man - including all the various hidden forms of taxation. Obviously the more and more independent one is from the rest of society, the less impact from the tax man and inflation. If the only "cash" one needs to raise is to pay real estate tax - fantastic.
But that presumes, no fuel, no health insurance, no store bought christmas shopping, no need to purchase tools or seeds from stores, no newspapers, no toilet paper, etc. Only the need to pay the tax man. Raising that much by doing something to exchange for fiat currency might be possible if it is just for real estate tax.... it depends on what rate of inflation is underway and about to be unleashed.
(If James has reached the point where he can live "money free" except for the taxman - I congratulate him.)
The only way to stop the threat to all of us is to stop giving the government money. If you can stop the cause of inflation - you stop a real threat to the homestead.
It is odd to watch humans at times of stress. Preparations for hurricanes like Andrew can be quite stressful. You can't imagine the panic level people go thru in hurricane devastated areas to get food. I always kept, and still keep many months to one year's worth of non-perishable food on hand, and never had to push and shove for anything. During and after storms, I didn't have to loot either. But those who hadn't saved enough to be prepared did loot.... It actually was scary, and my ex and I took turns manning the shotgun each and every day and night until the looters moved on (they got as close as 2 blocks away). They weren't only stealing "things" but also food and liquids. From where I was, it seemed to slow/stop when military tents were set up with food and water. But it took me a long time to leave the immediate area (way too many trees down over roads). But I did see the helicopters flying in container after container of
Then again, maybe that is something to look up in history - do governments resort to raising real estate tax during escalating inflationary times. I know my property taxes in 30 years NEVER once went lower, and NEVER once was even held at the same rate as the prior year.
All these bail-outs will have an effect on us..... and IMO homesteaders need to think about the potential impact on real estate tax in particular and any supplies they continue to buy off their homestead).
If the taxman cometh and taketh the land for non-payment or under payment of real estate tax - there's no way to homestead.
--- On Wed, 12/31/08, EarthNSky <erthnsky at bellsouth.net> wrote:
I think we are all talking, as James says, at cross purposes with you.
You talk of maintaining wealth, we talk of maintaining life and lifestyle.
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