What’s a “Windfall Profit?”

As far as politicians are concerned, a windfall profit is whatever they decide it to be.

Think I’m kidding?

There are no objective measures to define it.

In short, a windfall profit is simply a profit that politicians don’t like.

The whole concept is a scam—and basically a sneaky way to camouflage and sanitize legalized theft.

Example:  In 1980, Congress passed the Crude Oil Windfall Profit Tax Act, which taxed up to 70% of “windfall profits” of domestic oil producers.

Why?

They didn’t like the fact that the oil boyz were making money hand over fist.

But they never mentioned that the “windfall profits” were established by those who took the most risk by investing in oil discoveries.

Sure, there were many other late comers who capitalized on the boom in oil prices.

But you can also say the same about the early investors in Bitcoin.

Or for gold.

The big difference in Bitcoin and gold is that the banksters want people to shift to cryptocurrencies.

Why?

So, they can easily track AND tax everyone who transacts in Bitcoin, Ethereum, DogeCoin, etc.

Windfall Profits in Gold

The reality is Congress hates anyone who makes lots of money without them getting a piece of the action.

Why else do you think that over 50% of our nations Congressmen are multi-millionaires

So, when the price of gold skyrockets, don’t be surprised if Congress passes an 80-90% “Windfall Profit” tax on gold.

Why?

Because, unlike Bitcoin, smart gold owners take physical possession of their coins.

In other words, there’s no paper trail or digital inputs on a blockchain when you hold gold.

(Read: Gold, if You Don’t Hold it, You Don’t Own it HERE)

No Gold Standard = Windfall Profits

For those of you thinking we’ll return to a gold standard – formally killed by Nixon in 1971 – don’t hold your breath.

Why?

To equal the number of US Dollars in the world – of which 70% are outside of the US – the price of gold would be well in excess of $25,000 per ounce.

Before that would ever happen, Uncle Sam would confiscate gold from us like they did in 1933.

This would ensure that they benefit from Windfall Profits.

Be sure to learn how to protect yourself from confiscation AND a Windfall Profit Tax in our “Short and Sweet Tips” column in our June newsletter (HERE).

And share this with a “Goldbug” friend.

They’ll thank YOU later.

And tell them: We’re Not Just About Finance.

https://www.financialsmatter.com/about/

***********************