In todays so-called free world economy there is restriction on moment of Goods by way of Tariffs, restriction on moment of people by way of immigration rules but hardly any restrictions on moment of money.  Each and every country in the world freely welcomes money coming from other countries. Little do they know that it is a silent killer.

Let’s take an example of a village economy where there are 100 families most of them own a home and farm land. And the property values have increased slowly over a period of decades. Then one day a Rich family comes to live in the village. They start offering very high price for the properties and land. Few people who had investment properties and excess land start selling them to the Rich family. With every sale the villagers start feeling happy since they start imagining the value of their properties as per the last sold price and even higher as they expect the next one to sell for even more. The paper value of their properties goes up resulting in higher property tax. The young generation is unable to buy properties from their savings and have to borrow money from the banks to buy their home. Soon most of the people are in debt and the property values have gone up by 10 times. The Rich family slowly starts selling the properties they purchased, whereas the villagers who are still delusional keep buying at high prices by borrowing money. The Rich family leaves the village with the huge amount of profits they made leaving behind the villagers deep in debt.  If we just add one factor that the Rich Family paid a small amount of Tax on the profits to the Village Government then this will be the story of your City or Your country. Besides homes and land, there could be businesses and other resources. But the story will be the same. Because of the free flow of funds the Rich can exploit any country in the world and leave with huge profits for themselves and huge debts and Taxes for the citizens.

Anything built on debt is at the mercy of the lender, whether it’s with interest or free money. The logic is simple; if there is too much money chasing few goods or properties then there will be demand pull inflation.

What’s surprising is that in spite of understanding this concept, all the countries in the world want foreign capital to be invested in their country.

What the governments should really do it to attempt to restrict the inflow of funds in the initial stages if the economy is still in kind of primitive level.

But if the inflow damage has already been done then it should impose both inflow tax as well as outflow tax.

Any money coming in and going out of the country should be first taxed at a very high tax rate of 50 to 70%, and then a rebate should be provided on select inflow purposes which are for living expenses or which create employment or create new businesses or is from export of goods at a reasonable price (to avoid inflated sales amounts).

Also there should be restriction of 10 years on using those funds for purchase of properties or any non-essential investments else no rebate should be provided or if already provided then it should be cancelled and tax charged back. Outflow rebate should only be provided for funds transferred for purchase of essential goods not available in the country, which would increase competitive strength of the local industries

This is a drastic step and would cause huge reaction from public and other countries. Especially when they realise how your country will become more stable and less vulnerable from financial war.

This Tariff along with Freedom account and Venture account would make a country financially free and its citizens prosperous and happy.