Posted Aug 23, 2015 by Martin Armstrong
One reason someone like Donald Trump is so popular is because he is not a brain-dead politician with some practical market sense. The establishment based press keeps trying to sink his ship so we all suffer the pains of no change. In Britain, George Osborne’s “shock tax” is starting to sink in. In the process, hundreds of thousands of landlords and their accountants are waking up to the insanity of what Osborne really did with his taxes. Osborne’s tax is typical of someone who is detached from the economy. One has to wonder why such people think they can rule the world?
Effectively, any higher rate taxpayer who owns property in London, known as buy‑to‑let property (rentals) on which there is a large mortgage, will now pay substantially more in taxes. Furthermore, even basic rate taxpayers who let out property (rent) will be pushed into a higher rate tax bracket.
Essentially, Osborne has created a ONE WAY MARKET of sellers, with nobody in their right mind as a willing buyer unless you are actually looking for a home. Prices in London will tumble so the next four years of the downside in the ECM will warn that real estate is not looking too good for it is an immovable asset that can be taxed by desperate politicians. Lookout below.
The economy is always sent into a tailspin because we have professional politicians with ZERO experience outside of government. This is what 2016 is all about, whether it is from the outside third party or an internal REVOLUTION inside parties as we are watching right now in the U.S. Republicans. Politicians have been playing with our lives for so long that they just do not get it. The press only supports the establishment so this is the vortex we are heading into. What comes out the other side is going to be really interesting.
The British will head into a referendum on staying in the EU. With refugees pouring into Europe, EU is seeking to create a national army. The EU is constantly raising taxes and desires to outlaw short selling in Europe, which will only ensure that there will never be a bid during a panic. If the Brits do not vote to get the hell out of the EU, then they deserve to go down with the French. Osborne’s budget is a total disgrace. In such dire times, where is the common sense? Creating a one-way seller’s market in buy-to-let properties only means housing values will collapse in Britain because of the lack of a bid that will appear in the months ahead.