Saturday, July 10, 2010

Major Insider: It's Going to Be a Great Environment for Monoplies and Stealth Taxes

I have featured former Plunge Protection Member, Philippa Malmgren, before. She is on the payroll of just about every elite organization in the world. Thus, it always pays to keep an eye on her thoughts.

She recently discussed her current views in writing. Unless you are an insider that can buy up monopolies, her views will not make you happy. Right now, she is talking up higher costs, higher taxes and success only for monopolies and near monopolies.

The higher tax talk shouldn't come as a surprise, that's the elites new mantra.

Specifically on the tax front, she, accurately, sees not only regular taxes climbing but "stealth" taxes. She uses, as an example, the recent banning, by NYC officials, of homeowners who rent out their apartments to short-term vacationers. She points out that the ban is an effort to drive these vacationers into traditional hotels, which are easier to ta in full.

Another example of a stealth tax, she points out, is traffic regulation fines. In the future, they will be designed more and more based on the revenue they generate rather than for traffic control purposes. She reports that in her London neighborhood a 20 mile per hour speed limit was just approved.

What is most noteworthy is her warning on higher costs and her advice to OWN monopolies.

I haven't seen this from any other elites. She sees food costs rising. And most interesting she sees major increases in labor costs in China. She reports that the Chinese are allowing North Koreans to sneak over the border because China needs the cheap labor.

What's her current advice to the elite? Own monopoly businesses, she says. Also, bottlenecks, she says, will be good for businesses that can get in the middle of the mess. Her advice, which makes a lot of sense if you know what you are doing, is that this is NOT a time to be liquid, but it is the time to be locking down illiquid monopoly, near monopoly businesses and businesses that can get in the middle of bottlenecks.

Of course, if you don't have the money to buy a monopoly, you better get real creative, or get ready for peasant status.

1 comment:

  1. Do stocks count? for example, buying ATT, Verizon, Monsanto, GE? do any other monopolies stand out to you?