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War Coming to the Heart of Europe?
Switzerland is becoming politically isolated in Europe. The country got a big slap in the face from Germany this week. The German Upper House refused to accept a settlement offer from the Swiss government over the very messy matter of German tax cheats, and their accounts with Swiss Banks. A bit of history:
- The US Justice Department took on the Swiss over banking secrecy four-years ago. The DOJ used a very big club. The deal was that the Swiss would give up the “Names” of account holders, if they did not, they would have to close up all business in the USA. So the Swiss government, on behalf of their banks, folded like a cheap suit in the rain.
- Then all of the countries in the EU wanted a similar deal as the US. They wanted Names, so they could prosecute them at home. The Swiss balked, knowing that if they caved, the domestic private bankers would get crushed, and a good number of high profile folks would get exposed as cheaters.
- The Swiss came up with an ingenious “fix” with the following pieces:
1) A flat tax would be applied to the principal of the Black Accounts. The tax runs as high as 41%, depending on the age of the account.
2) A withholding tax of 10% would be charged on income the Black Accounts earn.
3) In exchange for #s 1 and 2, the account holder would remain anonymous, and therefore avoid public disclosure/prosecution.
This is an incredible deal. Let’s call it what it actually is, State sponsored Money Laundering!
For a “fee”, that averages less than 20% of the account balance, and an additional ½% a year, money can be successfully laundered. In the end, the money will be as clean as a whistle. Your average drug kingpin would gladly pay that price.
- Incredibly (to me), both England and Italy jumped on the Swiss offer. They inked deals that start on January 1. The public argument for accepting the deal(s) has been that it raises significant amounts of money. But actually, there are no promises how much will get paid, so the money side is not really the argument for acceptance. I think the reason is that influential folks pushed for this deal because they did not want their Names in the local paper.
-The German Upper House said "Nein!" this week. It was a tremendous defeat for Eveline Widmer-Schlumpf (Swiss President and Finance Minister - great name). It was also a defeat for Frau Merkel who pushed for it. The worst possible outcome is that now, under German pressure, both Italy and England may be forced to reverse their positions; and chuck out the Swiss tax treaty.
What happens next? It might be that another Swiss bank employee steals a tape with more names and account information, and sells it for E5m to the German tax collectors (they are willing buyers, they have already bought two tapes). This is highly illegal activity in Switzerland. The country is up in arms over the trouncing of their laws by neighboring France and Germany.
I wonder if there are any currency implications to this story. The Swiss National Bank has pegged the CHF to the Euro for over a year now. The SNB has been able to do this as they have the tacit approval of the ECB. But the ECB is a slave to French and German politics, and the politicians have their own war with the Swiss. There are very big players squeezing balls right now, I would not be surprised if this ends up blowing back in the face of the SNB.
In passing, I note that EURCHF hit a low (from early September) of 1.2027 today, just a few pips away from where the SNB steps in. This is happening with the backdrop of a stable to firm EURUSD, so a bit of a surprise. Separately, Tomas Jordon, the boss at the SNB had some interesting words today (Link):
To ensure that the SNB can fulfill its mandate in the long term, without any restriction, in the interests of the country as a whole, particular attention is given to its capital base through a prudent provisioning policy.
Read this to mean: We're gonna take some lumpy losses.
There is going to be another chapter in this story, soon.
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I'm a oligarch and I'm gonna get more of your money and there is nothing you can do about it. Fuck u............
I believe the official governmental definition of 'anarchist' is someone who dislikes being stolen from.
I think Janet Neopolitan said it in a Wal-Mart kiosk or something.
your head is so far up the dark place that you need to drink more of your own after shave!
You're right on both points...see something, say something...report all suspected infractions to your friendly IRS agent ;-)
I stole a pack of Big League Chew bubble gum (I played little league, and liked to pretend it was chewing tobacco during games) from the store when I was 7. My dad watched me the whole time, but didn't say anything until we got to the car, and then grabbed me by the back of my neck and marched me back in to return it and apologize to the clerk, and promise to never steal again.
Today, my father would have been required to report me as a terrorist to DHS, and then be forced to watch as they send in the drones to light my ass up with hellfire missiles raining down from on high.
Such is the high price of the dangerous world we now live in.
-- Big 'Sis
Serves u right, u bubble gum crook!
Stealing bubble gum is the gateway to becoming a Central Banker
Bar none the single best post on ZH in a while.
Authority; "I see that you have worked hard and turned this unproductive soil into a fine crop"
Individual; "Why yes, but it certainly wasn't easy."
Authority; "I am here to collect the tax, or perhaps, you would simply like to share some of your harve..."
BOOM.
Individual; "dumb motherfucker, someone bring the fertilizer cart quick."
Authority; "I see that you have worked hard and turned this unproductive soil into a fine crop"
Individual; "Why yes, but it certainly wasn't easy."
Authority; "I am here to collect the tax, or perhaps, you would simply like to share some of your harve..."
___________________________________
An 'american' individual, that is a group since individuality in 'americanism' does not exist, only group.
Authority coming up with this unproductive soil would have ringed BS sense of individuals. Especially as it comes to 'americans' since they have been far to steal unproductive soil.
'Americans': stealing productive soil and pushing legitimate owners on unproductive soil.
And they have been stealing in groups, it is quite normal that the State comes to claim a tax.
After all, 'americanism' is a success of the State.
AnAnonymous, excreting a backlog of non-sequiturds, said:
Ah, ah, the relevance of horsefeathers. Your crustaceous bivalvularity has become calcified.
LawsOfPhysics has me laughing so hard that I've pissed myself. Sonuvabitch.
"Authority; "I see that you have worked hard and turned this unproductive soil into a fine crop" Individual; "Why yes, but it certainly wasn't easy." Authority; "I am here to collect the tax, or perhaps, you would simply like to share some of your harve..." BOOM. Individual; "dumb motherfucker, someone bring the fertilizer cart quick.""
But that's not the way it works, is it? The BOOM goes from the government to the farmer if he does not acquiesce to the demands of "Authority."
Pussy. "It has to start somewhere, is has to start somehow..."
Monsanto sends them out in teams. You won't be facing just one enforcement guy when push comes to shove.
Coming to a rural field near all y'all.
Are the fields still considered organic if the fertilizer is contaminated by lead?
Yes, lead in some forms is actually considered to be the highest form of organic life.
What if they are contaminated by high sulfur petroleum, seeping naturally from the side of a mountain?
Europe couldn't stage a war Bruce, they have had the male DNA neutured. I would suggest something more like a big rave dance contest.
Billy, it is truly surprising how quickly those addadictome operations take effect.
- Ned
Maybe, but if Angelina Jolie decided to get a noodle stitched on and pop some androgens that wouldn't make her Bruce Willis. See, there's something else required.
There are plenty of "men" around with plumbing and a male endocrine system who still can't bring themselves to pick up the gauntlet when it lies in front of them:
Abraham: Do you bite your thumb at us, sir?
Sampson: I do bite my thumb, sir.
Abraham: Do you bite your thumb at us, sir?
Sampson (to Gregory): Is the law of our side if I say ay?
Gregory: No.
Sampson: No, sir, I do not bite my thumb at you sir; but I bite my thumb, sir.
Romeo & Juliet, Act 1
Who are they kidding? Money laundering is never getting shut down. Much of the European and American economies depend on it. Just ask the Russians and Chinese. LOL. This is a smoke screen designed to satisfy the plebs. Politicians need to show some success that they're doing something in their efforts to collect taxes. Wake me up when they threaten to invade Switzerland and confiscate the safety deposit boxes plus all that electronically stored wealth. That's the final stage of communism before the collapse.
Money laundering is a 'crime' that was created at the stroke of a pen just 26 years ago, to help enforce the War on Drugs:
http://en.wikipedia.org/wiki/Money_Laundering_Control_Act
Sad that the talented Bruce Krasting has been brainwashed into supporting government's wars on financial privacy and tax competition.
Those extra tax revenues are only going to be used to electrify the razor wire surrounding your gerbil cage.
"European Exchequers blame the Swiss for not allowing them to Print................"
Come on !!!!- the question is not about tax as you cannot tax much if there is little money supply. (its much easier taxing income rather then perceived wealth)
Its about each country being a slave to their local & ECB banking system.
The claims on european debt , much of it external is not sustainable under the current monetary system.
But as a physical economy the Swiss are tiny........
They may have the power to move the Gold market
But they cannot do much about the oil market.
There is a debate over on the Irish economy blog that Irish people have deposits but won't fund the goverment.
Simply turn the deposits into post office fiscal stuff and give mortgage holders the keys.
These assets are only dead concrete - consumption sinks
We need to seperate these free banking artifacts from more equity like claims on the remaining rump physical economy.
Then and only then can we move on.
Think about the oil market (again)... Vitol, Trafigura, Gunvor, Mercuria, Glencore, Gazprom, Lukoil/Litasco, Rosneft Trading SA, and the list goes on, and on, and on...
paper oil is to physical oil as paper gold is to physical gold
and just think of what Barry could have accomplished in Libya, if only he was sucking Andrew Hall's dick, instead of Jamie Dimon's...
http://www.reuters.com/article/2011/10/28/us-commodities-houses-idUSTRE7...
You should be on Christine LaGarde's staff with statements like this. I think the crisis in Europe is about to take a nasty turn. I also happen to believe it will involve elements of the US military. Keep your awesome comments coming.
It seems that elite fraud schemes are under pressure worldwide these days. Sympathize with the hapless Swiss, as if their money laundering business is shut down, they will have no edge, ie, they will be forced to compete on an equal basis, which as we all know (here on ZH) is ananthema to the privileged class. OTOH, this is an interesting facet of the financial cannabilism now running loose across the world's central banks: efforts to centralize political power run counter to several major fraud programs now widely used by the financial elite. They are being caught up in their own machinations. This always happens when you start telling lies (ask Juncker about this). But you are entirely correct, Bruce, the elite would rather have a war than have their tax evasions uncovered. However, the EZ will not survive even minor hints of war; thus Germany says nein. They are preparing for their own exit.
Fishhawk
All the exits are smaller than the number that need to pass through them even for the Olicorptocracy. The first sign of collapse will be when the Oligarchs fight openly amongst themselves, Bruce smells blood.
You must be smoking dope
Well, give me some of that shit Bruce is smoking then. He damn sure doesn't have a glaucoma problem.
Slight over egging of this story methinks. Not exactly war that's coming to Europe............not yet anyway, and not over this.
Well not a war with bullets and bayonets. This is a currency war that is brewing. Much more polite and all that. Still, there will casualties.
Please, look at history, currency wars lead to trade wars which lead to...
Eyes Wide Shut style group sex?
one year ago,Polish Finance Minister Jacek Rostowski warned in the European Parliament of war in Europe “in ten years”
The Poles know a liittle bit about wars!
http://www.presseurop.eu/en/content/news-brief/951991-war-10-years-says-...
Bingo!
"the real thing." those aren't parties being thrown at the authorities when the protesters have these "work actions." Those are real petrol bombs. In Europe "you name it they got it." with unemployment so high it's all too easy to see where the fuel for the fire can come from.
Wake me when even one perputrator of the banking fraud is executed.
I agree, massive ethnic and religious clashes are more likely to happen in europe than war.
The only thing happening in Europe is the exact same thing happening in the U.S.
Slavery by trickery.
Hey, I'll give you a hundred bucks today if you pay me back two hundred tomorrow...
Now expand that globally...
See how easy it is?