Sorry for not posting for the past couple of days. I've actually been travelling back to the US on short notice ... in reaction to this week's 'developments'.
As some of you already know, I had been 'hanging onto' ownership of a house in northern New York. This was partly to postpone unrealized capital gains on the property, and also as a 'hedge' which would have provided me with somewhere to return to if my 'way south of the border' relocation was no longer necessary. This week's 'developments' have convinced me that my 'way south of the border' relocation must now become permanent. As a result I am already in the process of selling my New York house. The primary reason is of course to book the capital gains at this year's 15% capital gains tax rate, as opposed to the 20% capital gains tax rate plus a new 3.8% medicare tax on 'unearned' income including capital gains, that will now certainly take effect in January. Also, I can avoid having to pay the higher property tax rates which were just authorized by local voters.
I had also 'hung onto' my partnership investment in a private enterprise which provided dividend income. I am in the process of selling my partnership share. The primary reason of course is to book the dividend income in 2012 at this year's 15% dividend tax rate, as opposed to the 33% ( depends on my total income ) effective tax rate on dividend income + a new 3.8% medicare tax on 'unearned' income including dividend income that will now certainly take effect in January.
I have also been 'reallocating' my investments. As the result of voices which had called for the labeling of China as a currency manipulator having been 'silenced', it's now pretty clear that China in particular and Asia in general will benefit disproportionately from the FED's continued 'money printing'. So I bought some 'comparative bargain' stock shares of a couple of South Korean companies which do heavy outsourcing of component parts to China and export finished products to the USA.
Also, to take advantage of the continued or accelerating FED 'money printing' that will now almost certainly take place, I increased my physical gold holdings. I considered increasing my silver holdings as well, but decided against doing so based on the fact that a large portion of the demand for silver comes from industrial production needs.
I also bought shares in the USO oil ETF, as a speculative investment based on increased probability that future US oil drilling and canadian pipeline imports will be restricted, and/or that middle east 'tensions' will increase to the point of affecting oil markets.
I would point out that, on yesterday's flight up from Mexico City, I was far from the only American ex-pat !!! Talking with a couple of other American ex-pat passengers, they were also in a hurry to transfer their remaining US assets outside the country as soon as possible in order to avoid the potential enactment of a 30% 'exit tax'. They pointed out that this has already been discussed under the umbrella of the ObamaCare law, and if enacted would impose a mandatory withholding ( = seizure ) of 30% of the amount of any US funds being transferred outside the country in anticipation of future US tax liability.



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