<Given that there is a 17 odd% capital gains tax for buildings traded within 7 years of purchase, the club is arranging a convoluted deal whereby we sell the building now, as in locking in the price, and still retain title, until 5 years passes. We can then presumably take the paperwork to the friendly bankers for maxi-refinancing round>
That doesn't make sense Jay. The buyer is thereby incurring the tax unless they also can pass it on with a 10 year delay added [assuming they also want to sell in a couple of years].
So somebody is getting the short end of the stick in the negotiation.
If I was the buyer, I'd think the purchase price should be reduced to allow for my increased tax risk. I'd suspect the transaction would be found by court to be a rort [in NZ].
On 1.800.GET.ME.OUT, if there is a pile-on repricing to the downside of the USD as all the holders panic at once and sell sell sell, there could be a LOT of fun and it could happen really fast. Financial systems move at the speed of light [after adjusting for human reaction time of 0.25 seconds, on a slow day] and the sudden hyper-drive after decades of powering up the USD using perpetual printing to fuel the acceleration could be spectacular.
You might yet see your gold go to infinite or 10:1 repudiated USD currency adjustment, I have to agree. USD$3000 for gold would not be beyond the realms of possibility.
Or, on the other hand, the Twin Towers of US deficit could stand solid against co-ordinated attacks from around the world as people panic and sell their USD received in payment for umpteen Toyotas, electronic and other gadgetry over the decades of hard sararyman work late into the night.
China particularly, which has, I note, put the Year of the Feather Duster manoeuvres on hold 'for technical reasons' would have an interest in using said overhang of USD to threaten or even precipitate a panic to show the USA bosses that things will not all go their way in the event of a confrontation over Taiwan.
On the other hand, it would be a joke if China lost on the exchange of both currency AND military technology.
All to achieve nothing anyway. Taiwan isn't going anywhere - it is tied down by gravity right where it is. The language is common [more or less] with China. Families are spread across the region. Trade will continue with China and LOTS of it. So what's the panic if Taiwan votes to be "independent". Taiwanese independence is as meaningless as NZ independence from Oz and USA. We are stuck with them whether we like it or not.
Richard Prebble, act.org.nz previous leader [political party] recently suggested the USD be used as NZ's currency as it would save a lot of money. Which it would.
Running our own little currency empire is expensive and problematic. Exchange rates constantly cost us. Every time I move money, the damn gremlins take a bite out of it, delay it, and generally annoy me. Disintermediate the bastards. They can get a real job.
Taiwan is in much the same position. New Zealand used to be part of New South Wales [a state of Australia] and was part of Great Britain under Queen Victoria. Independence didn't change much and didn't hasn't upset much and nobody is threatening to shoot anybody.
On the contrary, Britain even pushed us away as they didn't want swarms of colonials and newly-minted British subjects showing up in London to live [remember Enoch Powell's rivers of blood comments - Google can help].
China needs to get over itself, get a life and something useful to do. Maybe Hu Jintao figures that having some external enemies will be good for keeping his local serfs quiet, nationalistic and jingoistic, distracted from what HE is getting away with. That's a traditional idea to prevent young males causing trouble at home.
Meanwhile, onward!
Mqurice |
