Taxing Unrealized Values Can Destroy Billionaires

Most people don't realize that this can actually make Warren Buffett and Jeff Bezos go broke and send their stocks crashing.

The reason is because 48 trillion dollars of stock value equals zero dollars in real money, and the IRS only takes real money. Billionaires like Mark Zuckerberg and Elon Musk don't actually have billions of dollars in real money.

The world of finance is actually made up of a lot of stupid people who don't know the difference between value and money or understand that value is fairy dust. It doesn't exist, it's never landed, it is no matter, it's not on the elemental chart, it's not real.

Right as of July 2021, the combined value of the Nasdaq and NYSE was 48 trillion dollars, but there's only six trillion dollars of real money in the entire U.S. economy. The reality is only a small handful of people can cash out their stocks at or close to the last traded price, which is typically what we see in a normal trading day.

However, stocks crash for the same reasons Ponzi schemes collapse—when just enough people want their money back at just the right time. The details of the proposal are still being worked out, but if it goes through in the way that it sounds, then Ponzi asset holders like the Google boys, Bezos, Musk, Zuckerberg, and Buffett will all be taxed on billions of imaginary value which they can't realize.

They will be forced to pay taxes with billions of dollars in real money which they do not have. The only way they can get the cash they need to pay their taxes is by selling their stocks to other investors. In a system that shuffles money between investors, depending on the timing, it can be a small pullback or a major crash.