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Hyperinflation, dollar collapse and property taxes..??

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  • Hyperinflation, dollar collapse and property taxes..??

    Question for those who have more experience contemplating SHTF scenarios;

    The biggest threat to our security right now is, without a doubt, the future stability of the dollar. Without getting too partisan, this administration has ramped up the inflationary fiscal policy that was already leading the dollar to disaster. So...,

    Many of us have made big changes in our lifestyles, some of us have purchased homesteads with the hope of having a 'leg up'. We've learned to grow food (more or less), learned to hunt, we season our firewood, keep chickens and etc. But what happens when our property taxes go from 3000 to 30,000 because the dollar isn't worth squat and your town/county/state must pay police and etc enough to keep them on the job?

    Police are paid through property tax, as are schools, road crews and etc.. So my question is, do you think the local government would raise taxes to such an extent as to force people off their properties? What good is all this prep that I am doing if the government will confiscate my land when the going gets tough??

    On the one hand, if they force me off they get NOTHING unless they can find someone willing to pay the hyperinflated rate, and if the dollar crashes there won't be too many of those guys to go around. On the other hand, the government always throws the burden back on the little guy, in the end we always take the hit. What say you?

  • #2
    Honestly this is the only scenario I think it would be worthwhile to have PM's specifically for.

    I first read it via a post "7th fleet" made over at Frugals and for a guy that has some PM's but could never see a real use for them, this was the first thing that made sense.

    The $1,300 ounce of gold IN THEORY might follow the inflation up and help you able to CYA in regards to your property taxes. Now I'm not suggesting that the prop tax assessor is going to take your Kruggerands for your tax bill. But you could sell them at the then inflated price to pay your tax bill.

    The only problems there as I see it is the wholesale to retail variable. A gold buyer is not probably going to give you full value for your coins.

    What's more possible IMO, is what we are already seeing- laying off of public workers, police saying "we won't investigate crimes that aren't violent", firefighters sitting there watching while people who didn't pay the special fire tax monies houses burn down, etc.

    It's a gradual thing and we are gradually getting used to it.

    If I had to guess, the water is just about lukewarm and we (the frogs) are happily swimming around still. Few have noticed the 10 degree temperature rise since it's come pretty gradually.

    Lowdown3
    www.homesteadingandsurvival.com

    www.survivalreportpodcast.com

    "Don't be too proud of this technological terror you've constructed..."

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    • #3
      One of the things playing into me losing my house right now is the tax raises. My payments between tax increases from the local gov and the insurance company raising payments even though I never filed a claim (I asked why and they said because Kongress passed the raise so of course it's ok) and my wifes job going away and her making 1/2 of what she was now.
      Going to happen, heck i'm already a victim, look no farther. I'm paying 300 more per month than 6 yrs ago and it was going to go up after the 1st of the yr. I dont know who is gonna get it and I dont care all I know is it has happened and if you dont reduce your debt it can happen to you too and quick. Our illustrious town manager after they annexed 16 sq miles we didnt want to be a part of tried to tax our wells. Yep pay for the water you had to find and build to get, crazy huh. It got shot down but thats not gonna be the last we hear of it but it dont matter to me no more cause i aint gonna be living here I guess.
      Knowledge is Power, Practiced Knowledge is Strength, Tested Knowledge is Confidence

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      • #4
        Some states have rate increase LIMITS for those in "Homestead Exemptions." I remember Florida having this, where taxes increases were limited... But if you sold the house, then the NEW BUYER would have to pay the full value tax every year, not the reduced one the old owner was paying...

        Virginia does not have that from what I have seen so far...

        But if the rate increases get so high that almost everyone cannot afford the taxes, then you would see widespread rebellion and anger from the homeowners... You would see a lot of "You can take my house over my dead body" type of stands...

        Rmpl
        -=> Rmplstlskn <=-

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        • #5
          Florida indeed has the "Save Our Home" legislation which prevent the raising of property taxes more than 3% or the CPI which ever is less. Wonderful law. 2 Years ago the Florida State Legislature passed a new law which allows homeowners who sell their home to buy another home in Florida, to bring their old tax rate to the new purchase. This was to help stop the bleeding of the home sales in Florida. It also is an excellent law.

          However, the poor people in various New York counties which already have high property taxes, are getting hugh property tax increases for 2010.

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          • #6
            If Florida wasn't so darn hot, humid, flat, crowded, congested, and prone to hurricanes, I might even move back... lol!
            -=> Rmplstlskn <=-

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            • #7
              Originally posted by monkeybird View Post
              Florida indeed has the "Save Our Home" legislation which prevent the raising of property taxes more than 3% or the CPI which ever is less. Wonderful law. 2 Years ago the Florida State Legislature passed a new law which allows homeowners who sell their home to buy another home in Florida, to bring their old tax rate to the new purchase. This was to help stop the bleeding of the home sales in Florida. It also is an excellent law.

              However, the poor people in various New York counties which already have high property taxes, are getting hugh property tax increases for 2010.
              Actually my NY property tax is very low now, that's one of the reasons I moved way up here. Having come from an area where the taxes were an enormous burden (12,000+ per year for a regular suburban house), I was seeking a reprieve.

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              • #8
                Humm, I read these posts and sometimes wonder about you guys. Let's just say that the property taxes on our house are really low, no ones house is being let burn down and the police are still doing their jobs.
                However the state patrol office did move to another town because we would not give them a new building. The schools have dropped 10 days a year, one school was closed down completely so we could cram the children into the others. Almost all of the parapros have been fired, and all of the teachers" free " days (they had 10) taken away because they don't want to pay substitues. I guess in our town our children are the ones losing right now.

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                • #9
                  Originally posted by becky3086 View Post
                  Humm, I read these posts and sometimes wonder about you guys. Let's just say that the property taxes on our house are really low, no ones house is being let burn down and the police are still doing their jobs.
                  However the state patrol office did move to another town because we would not give them a new building. The schools have dropped 10 days a year, one school was closed down completely so we could cram the children into the others. Almost all of the parapros have been fired, and all of the teachers" free " days (they had 10) taken away because they don't want to pay substitues. I guess in our town our children are the ones losing right now.
                  Becky, I don't have children. I am trying to get by in the world, just like you. I have a limited amount of resources, if my taxes go up beyond a certain point I will not be able to afford to live. At what point do you stop burdening ME and take responsibility for your children?

                  I don't mean to be rude, but your post strikes a cord in me. The answer to your problems is to increase my burden?

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                  • #10
                    Taxes, the bane of living in today's world. I'm in FL and have no kids either. However, I do realize that a viable school system, along with adequate fire/police, helps hold the remaining value of my house against other localities that would be considered by someone buying a house. There are still a few of them out there and many wannabes that still have their rose colored glasses on and are planning on moving up. That said, I can't see taxes going thru the roof to cover budget shortfalls, cause the effect would be to create a wasteland of empty housing worse than what we have now. HyperInflation is another story, then the tax structure would follow the bogus inflated values. If you look at the reality of that situation, the services that are supported by taxes would soon stop and local gov't would cease to function at it's current level as everything started to unravel. At that point does the tax rate really matter? People are going to be in survival mode and panicking, including the office personnel that process all that paperwork. The whole thing comes apart. Just my .02 on the subject and leaving a lot of room for argument on it.
                    Last edited by LizardKing; 10-22-2010, 09:33 PM.
                    What a long, strange trip it's been.....

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                    • #11
                      Originally posted by becky3086 View Post
                      Humm, I read these posts and sometimes wonder about you guys. Let's just say that the property taxes on our house are really low, no ones house is being let burn down and the police are still doing their jobs.
                      However the state patrol office did move to another town because we would not give them a new building. The schools have dropped 10 days a year, one school was closed down completely so we could cram the children into the others. Almost all of the parapros have been fired, and all of the teachers" free " days (they had 10) taken away because they don't want to pay substitues. I guess in our town our children are the ones losing right now.
                      Becky I have to agree with Kirk here. One your comment about firefighters NOT letting a house burn is 100% incorrect. A house did burn down while firefighters refused to put out the fire because the family did not pay the special "firefighter tax/fee". Second, the Supreme Court HAS ruled that the police do not have ANY constitutional requirement to protect you as an individual, but rather to protect society. I refer you to the recent case where two men raped and sodomized a 11 y/o, then dumped gas on the family (mother and 2 children) and burned them alive, while the police set OUTSIDE for almost 30 minutes because they were not sure if they should go INTO the house or not.

                      Finally, your complaint about the teachers, well, if they DEMAND so much money and benefits it is their own fault.
                      I refer you to an episode of "international house hunter" where a NY high school teacher (single with no kids) makes enough money to BUY a $250,000 house in Italy for a VACATION HOUSE!! So please don't get me going with teacher unions.

                      I homeschool my children because I do not want them to be brainwashed by the current extreme liberals that call themselves teachers, yet I do not get ONE RED PENNY for my time or expenses. As a matter of fact I get HARASSED about once every three years to PROVE I am providing my kids an adequate education. Which I always get the social worker to say how much smarter my children are than their peers of the same age/class level.

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                      • #12
                        In economics, hyperinflation is inflation that is very high or "out of control", a condition in which prices increase rapidly as a currency loses its value.[1] Definitions used by the media vary from a ***ulative inflation rate over three years approaching 100% to "inflation exceeding 50% a month." [2] In informal usage the term is often applied to much lower rates. As a rule of thumb, normal inflation is reported per year, but hyperinflation is often reported for much shorter intervals, often per month.
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