This page has been archived and commenting is disabled.

Beware of the Monetary Mobsters!

Sprout Money's picture


Last month the IMF came up with a 'brilliant plan' to solve the crisis in Europe. As the old continent suffers from record unemployment and a debt pile that has gotten out of control in several (mostly) Southern European countries, the idea is to target savings with a wealth tax.

The IMF came up with the idea, or 'theoretical exersize' as the officials like to call it, to introduce a one time off tax levy, or wealth tax, on all savings accounts. Calculations by the IMF had shown that a modest 10% would get European governments out of the woods.

Now of course this 'theoretical exersize' got people in Europe furious. And with good reason. At least, so it appears to be. After all: life savings is money that has been taxed,pretty severily already in most parts of Europe. Savings are no more or less the Holy Grail to most and suggesting these life savings aren't save is like swearing in the church.

The 'theoretical exersize' is by no means just what governments and the IMF like us to believe.The plans are out there, leaking this through to the media is no more than a matter of testing the water tempeture.

Let's not forget: this legal robbery by a government has already been taking place in Cyprus. Consumers on this tiny island were confronted, on a friday night of course, by bank accounts being unaccessable, ATM's without euro's, restrictions on making payments abroad and a one off tax levy on all bank accounts.

And although people got angry, and scared, no big riots broke out!

Cyprus was the first test, a blue print or template for what's coming for the rest of the Eurozone. Not today or tomorrow, consumers are on the edge for now as the IMF report was publiced fairly recently, but at one point in the near future savings will be the target for a wealth tax. That's only a matter of time.

Now one could argue about the fairness of this wealth tax. After all, people that were smart enough to put some money aside get punished for doing so. People that spent all their money would dodge the bullet.

This is of course a complet dossier.Governments in Europe strongly prefer Europeans to put their savings to work. Either by investing their money, or by spending it to give the economy a boost. At this point in time, people who are saving money, are part of the problem. It maybe a shocker, but for the first time we would like to say: listen to your government, invest your worthless cash in real assets... before they come and collect.

Europe is in some ways different from the USA. Perhaps one of the most important differences is the Fed. Europe has of course it's own central bank: the ECB. But contrairy to the way the Fed acts with printing dollars like at high speed and ballooning it's balance sheet, the ECB has a very different appraoch. The balance sheet has been shrinking for quite some time and the desire to print euro's to fix the fragile economy just isn't there. Germany, effectively the Eurozone's 'paymaster', will never agree on quantitative easing, Fed-style.

This all leaves Europe with very few options. The debt level within the Eurozone has risen to a level which is unsustainable. Debt rises with €100 million... per hour. The debt-to-GDP ratio has already surpassed the 90% level and will inevitibly reach the 100% plus in a few years.

debt to gpd US versus Europe

Now debt by government is of course not just the government's problem, but a problem for all consumers living within the Eurozone. As the most health way to get out of the woods, a strong economic recovery, is far out of site, something else and drastic has to happen to get out of the woods.

One of the few ways out of this economic mess, will be a wealth tax. Will this be a one time thing? We highly doubt it, as it won't stop European governments from over spending. Lessons learned? Again, highly unlikely. The people responsible for (over)spending in the last couple of decades will still be in charge, after all Europeans take a hit on their savings.

Will the wealth tax do the trick? That is also higly unlikely. It will help bring the debt levels back to a more sustainable level, creating some room for the battered European economies to grow, but it won't be enough. So this means after taking a chunk out of people's savings, the next step for European governments will be confiscate a big part, or even all?! At this point, Europe looks like a dying continent and a sitting duck for the monetary mobsters...  

Prepare yourself for the next phase of the Global Debt Crisis!

Want to know more? Download Sprout Money’s Free Guide to Gold


Sprout Money offers a fresh look at investing. We analyze long lasting cycles, coupled with a collection of strategic investments and concrete tips for different types of assets. The methods and strategies from Sprout Money are transformed into the Gold & Silver Report and the Technology Report.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 12/01/2013 - 23:08 | Link to Comment steveo77
steveo77's picture

As the Pacific Ecosystem is ravaged by Fukushima, shark attacks in Hawaii are going parabolic, almost 1 per month for the last 2 years.   

Check it out here, original work

And other evidence that the bulk contaminated water from Fukushima is now in Hawaii

Mon, 12/02/2013 - 06:57 | Link to Comment samcontrol
samcontrol's picture

guys .. stupid question do you think owning shares in miners is a real asset.

What would be the next best thing to owning Phys metals ? and i own a farm or two just in case you want to mention that one,. Thanks .

Mon, 12/02/2013 - 04:58 | Link to Comment Setarcos
Setarcos's picture

YES Fukushima is VERY serious and probably is a global extinction event, as life in the Pacific Ocean dies en masse.

Ironic, eh, that the Pacific (peace) Ocean is being turned into the worst nightmare envisioned by global nuclear war. see:


Sun, 12/01/2013 - 20:05 | Link to Comment no more banksters
Sun, 12/01/2013 - 17:23 | Link to Comment NoTTD
NoTTD's picture

Calling for an editor.


And make it a native English speaker.


Sun, 12/01/2013 - 16:11 | Link to Comment The Reich
The Reich's picture

*2011 *2012 as outlook ? Thanks for providing us with the latest available data

Sun, 12/01/2013 - 16:03 | Link to Comment steveo77
steveo77's picture

I did an article on How to Buy Precious Metals

Based on decades of experience.   Its a good one.  Check it out

Sun, 12/01/2013 - 13:25 | Link to Comment Wyatt Junker
Wyatt Junker's picture

There's small reports already here in the States of anonymous crack teams doing small raids, home invasions, on pot farms.  They are not the DEA.  They are not public agencies.  They are private militias.  They are ex-military.  They are masked.  They are armed and they are good.  They are quick.  They have been through training.  They know how to do room clearing.  

They show up in teams of 6 to 8 in the middle of the night.  They move fast, get everyone on the ground fast and face down while two more clear the rooms.  Then, they take all the money, ammo, pot, whatever else.  Its like a real A Team.  

The media isn't reporting on it too much.  I think people are scared, local police wouldn't know how to handle it.  They wouldn't win the fight anyway if they could.  These para-military types are too pro.  They are similar to what's going on in Mexico now with the backlash against the local cartels by private police forces rising up.

The shift will be when these white horse gangs, or modern day Robin Hoods, decide that the drug dealer down the street isn't enough, or... righteous enough.  Then, they will move on anyone who has taken from someone else through 'lawful' means in the past(ie, public 'workers').  Then the 'new war' will break out between the private versus public.  At least that's where the natural evolution will go.  It isn't the private middle class that is gaining anything.  They are the ones being robbed.  It is ayone levered to a public agency, a plutocrat, that are today's wealthy, corrupt who are living in the McMansions, and they have gotten there by theft through taxation.  

What does this mean?  It means that once the crash comes, no one will want to pay property taxes anymore because it just goes to engender more corruption.  So, they will sit in their homes and wait to be evicted and, they will not comply.  And not just property taxes either.  This was how the last revolution started.  It will also be, I can only assume, how the next one will start.  

What is taxation?  Today, it is what anyone in power says it is.  Taxation without representation.

Sun, 12/01/2013 - 21:35 | Link to Comment vato poco
vato poco's picture

"...local police wouldn't know how to handle [them]".

LOL. That's because 5 will get ya 10 they ARE the local police. You think those guys haven't read about the Zetas and gone, "Hmmmm.....y'know, WE could do something like that..."

Sun, 12/01/2013 - 17:27 | Link to Comment Ocean22
Ocean22's picture

Who hires these guys ? Or are they acting in their interests ?

Sun, 12/01/2013 - 13:45 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

"Then the 'new war' will break out between the private versus public. "


There is more of a possibility of US against the Banksters.  And also more a more valid fight. 

Sun, 12/01/2013 - 16:20 | Link to Comment Wyatt Junker
Wyatt Junker's picture

The problem is that Jamie Dimon isn't taxing me.  The problem is that Kelly King from BB&T didn't want TARP unti Hank Paulson threatened him personally.  The problem is Washington.  Always has been.  Always will be.  It is the coercive nature itself that is the problem.  Washington created the banks.  Washington needs the banks.  Without debt creation, there is no need for government itself since government itself is a lie, a manipulation.  

And Washington is thrilled that you've taken the bait.  It helps to keep your eye off the ball.  They are also thrilled that they can keep using the banks via financial repression(ie, buying govt. debt) so that they can continue to buy your vote(bribery) so that you'll continue to be compliant and soft.  Meanwhile, the govt. will continue raping Jamie Dimon to the tune of $15 billion here, $20 billion there, in order to show the banks who's boss.  You won't complain because 1) you're not a shareholder and 2) you're one of the free shit army recipients in one form or another or 3) you will keep braying 'its the banks'.  

The problem is Washington.  The Distric of Columbia, the suburbs of Washington and now Virginia has the highest, most expensive real estate in the nation and yet, the people are some of the poorest.  The corruption is due to debt.  What is debt but government lies?  In order for the government to keep lying, it will need her Yellins forever.  Bernanke was Obama's condom.  Not the other way around.  Understand the direction of flow.  As long as Washington can keep you mad at 'the banks' they will keep you their slave.

Saying 'banksters' is a spit bucket term.  It needs to be defined.  The biggest TARP whores were Fannie and Freddie.   At least compared to everyeone else.  The biggest two who have yet to pay back TARP, again, are Fannie and Freddie, who owe more than all the other 'banks' combined, even moreso if we include GM and Chrysler, the other two co-opted SOEs.  In fact, most of the majors and regionals have paid not only TARP back but the full interest taken on it.  Even when most of them did not need TARP nor want TARP, but rather had it FORCED on them by Paulson.  

The problem is as it always was and as history has shown.  Public versus private.  Tyrranical governments versus the people.  Washington is the mob.  State and local agencies are their mafia.  Taxation without representation.  This is the province of governments, the banks are just the arm they use to achieve their means, and right now they are using it to float their government debt to QE forever.  We went from a 'chicken in every pot' to a McMansion on every lot.  A lot of people wanted to be a part of that super hyper leverage dream.  And governments were and are the architects of such fairy tales.

Mon, 12/02/2013 - 04:44 | Link to Comment Setarcos
Setarcos's picture

Am I to assume that you have never heard of the Rothschilds (banksters supreme) who have owned governments and monarchs for centuries?

Wall Str owns Washington DC.

If you imagine that largely stupid politicians, e.g. Raygun, Dubya and Obomber, run the show; then you have not been paying attention and you have everything upside down.

As a dyed-in-the-wool Libertarian you of course see GOVERNMENT as your/the problem, but even Ron Paul identified the Fed - a cartel of private banks - as the fundamental problem.


Sun, 12/01/2013 - 21:30 | Link to Comment donsluck
donsluck's picture

My problem with your analysis is your fundamental assessment of government as coersive and manipulative. My personal experience is that humans instinctively seek a leader and there is social unrest until one is found. This is the strength of a democracy as it allows a peaceful transition. The real problem is the loss of our democracy. There is no turning back, once lost it is exceedingly difficult to retrieve.

Sun, 12/01/2013 - 12:41 | Link to Comment logicalman
logicalman's picture

This legal (as opposed to lawful) theft will be in addition to the other 'legal' robbery that has been happening for a long time - called taxation AKA government theft/extortion.

It's one of the very few thingsl that government is good at.

Sun, 12/01/2013 - 12:36 | Link to Comment 0b1knob
0b1knob's picture

"people who are saving money, are part of the problem"

Monetary policy has gone full retard.

Sun, 12/01/2013 - 12:27 | Link to Comment bwh1214
bwh1214's picture

The shift that must be made is from those that don’t produce to those that produce.  If that change is not made the producers will stop producing and society will wither on the vine. 

It comes down to “what is power?”.  Power is the ability to give something to someone that they desire or take away that something.  This is not always a bad thing, such as a father/breadwinner in a family having the power because he/she has the power of the purse strings, as long as he/she has the families best interest at heart..  Currently the government has the power to give people who don’t produce things such as retirement, social security and healthcare.  Unfortunately the people providing the goods, farmers, home builders, doctors nurses, miners ect. are dis-incentivized because they are taxed to give to the people receiving.  This disincentive causes them to produce less and less, and even go on the receiving side.  Eventually this will cause the dollar to lose value when people give up on producing.  Inflation can be caused by not just an increase in money supply but a decrease in production.  That is when the government loses its power to give and take things away and the power is returned to its rightful owner…the producers here in America but also the producers in China and anywhere else we run a trade deficit with. When the government loses this power they cannot gain votes by taking from one group and promising to give it to the majority, the tyranny of the majority dissolves and hopefully the world will be fair again.  The governments will not give up this power freely and will try every trick in the book to prevent it, but the process is inevitable, fair, but also very painful.  This article highlights one of those tricks.


Sun, 12/01/2013 - 12:12 | Link to Comment Quaderratic Probing
Quaderratic Probing's picture

Most people have no savings so when they put in capital controls like 100 euros a day they just dont pay their bills and point to the govt as the riots

Has anyone put new money into Cyprus

So not a workable model

Sun, 12/01/2013 - 12:09 | Link to Comment Colonel Klink
Colonel Klink's picture

Can't take what they can't find!  Get your money out of the banks.

He who panics first, gets their money!

Sun, 12/01/2013 - 17:36 | Link to Comment Not Goldman Sachs
Not Goldman Sachs's picture

Col. Klink....I need financial advise.  Where do I put it? Bury it? Under my mattress? Seriously.

Sun, 12/01/2013 - 23:55 | Link to Comment Colonel Klink
Colonel Klink's picture

First step is to get it out of someone elses possession.  Next step is up to you where you put it physically.  I did a reverse skittle transplat up a unicorn's ass.   Or go with Warren Buffet's suggestion and sew it in your clothes.

Sun, 12/01/2013 - 21:26 | Link to Comment donsluck
donsluck's picture

May I suggest you hide it in your ass?

Sun, 12/01/2013 - 11:54 | Link to Comment Clueless1
Clueless1's picture

Maybe I'm missing something, but wouldn't this cause a bank run, as the more savvy members of the populace move to convert savings to assets?

Sun, 12/01/2013 - 12:24 | Link to Comment Quaderratic Probing
Quaderratic Probing's picture

Someone is picking GBP over EUR ( England is not in th EU )

Sun, 12/01/2013 - 13:40 | Link to Comment aleph0
aleph0's picture

Sorry, but the UK is in on the deal it seems.

PDF Document from 12th. Dec. 2012 - FDIC and BoE


Check page 10/11 IIRC

Sun, 12/01/2013 - 13:14 | Link to Comment Clueless1
Clueless1's picture

Thanks for the link.  I can only assume that the UK remains attractive as a tax haven.  So much for Lithuania...

Sun, 12/01/2013 - 11:13 | Link to Comment whatthecurtains
whatthecurtains's picture

IMF's idea??  How about taxing the old bitch that runs the IMF?    She fucking sits on her french ass telling greeks who could rub two euros together to go pay their fucking taxes.    


Does anyone know the fucking difference between the old Soviet party elite and the new European Elite?   Bilderberg cocksuckers

Sun, 12/01/2013 - 11:07 | Link to Comment MoneyThimbles
MoneyThimbles's picture

My god man, learn to spell!


Sun, 12/01/2013 - 12:33 | Link to Comment Emergency Ward
Emergency Ward's picture

the concept of good spelling " far out of site..."

Sun, 12/01/2013 - 11:48 | Link to Comment holgerdanske
holgerdanske's picture

"suggesting these life savings aren't save is like swearing in the church."


Sun, 12/01/2013 - 11:39 | Link to Comment max2205
max2205's picture

Problem....if you buy up assets and have no cash then they tax you 10% and you can't pay then they get it all because you didn't pay taxes...


I'll take the other side of that trade

Sun, 12/01/2013 - 21:23 | Link to Comment donsluck
donsluck's picture

If you don't pay property taxes the agency does not "get" your property, it seizes it for sale and only keeps the taxes due. The rest (if any) is yours. In some cases this amounts to a favor if you are under-water and are struggling to make payments. 

Tue, 12/03/2013 - 21:35 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

Yeah right dude....

There are 2 realities and 2 sets of rules. One for the wealthy and one for everyone else.

Any law that says they can steal my property because I owe a single dollar of taxes on it is not a proper law.

The law is a thief that steals from the least to feed the fattest.

Sun, 12/01/2013 - 10:32 | Link to Comment Oldwood
Oldwood's picture

The important thing is that people can find ways to profit from the continuing corruption.

Gee, I wonder how we got here anyway?

Sun, 12/01/2013 - 10:25 | Link to Comment ghostzapper
ghostzapper's picture

EuroZone and the U.S. will confiscate assets to include physical gold/silver.  If you have enough physical gold/silver to the point where it is stored and registered somewhere they are gonna get it eventually.  It's essentially a mathematical certainty at this point.

not that it is without flaws and/or risks, but isn't this just more firepower for bitcoin to become the biggest bubble the world has ever seen? 

in a perverse way people could also hide in inflated, fat piggy real estate as well.  it's more cumbersome and politically unacceptable for them to confiscate real estate. 

Sun, 12/01/2013 - 10:34 | Link to Comment Oldwood
Oldwood's picture

But they can certainly tax the living daylights out of real estate. The big advantage to "money" was the ability to transport and hide it. No More.

Sun, 12/01/2013 - 10:50 | Link to Comment ghostzapper
ghostzapper's picture

True.  but since ownership extends well beyond the 1%ers this option is further down the list in my humble view. 

I also see a massive, gargantuan subtle effort to allow immigrants to more or less buy their way in.  "Hey, Uncle Sam wants YOU . . . . . . . . just need to buy this empty mcmansion on the way through the gates." 

Sun, 12/01/2013 - 14:22 | Link to Comment boogerbently
boogerbently's picture

My property taxes went up 10% this year. Over 75% of that is for schools, who AREN'T performing, OR teaching the ideals I believe in. So, WTF ?

Sun, 12/01/2013 - 21:21 | Link to Comment donsluck
donsluck's picture

I don't believe schools should teach ideals. Schools should teach verifiable facts and procedures. Faith as such should not be taught in schools, only comparitive analysis.

Sun, 12/01/2013 - 11:54 | Link to Comment Lordflin
Lordflin's picture

Perhaps I missed something... I thought they had already confiscated real estate...

I have a 10 acre farm... lovely home... paid for except for the rent the locals charge me to live here... the above mentioned property taxes. Sheep, chickens, ducks, pond stocked with bass and bluegil... two orchards, greenhouse... barn, shop... I am under no delusion as to what wiu happen when the muppets run low on bread and they are told that I am hoarding their food.

The thing of it is, there are comparatively few of us left... so if we fight, who and what do we fight and who stands along side of us?

I have a great aversion to violence and a tremendous willingness and capacity to defend my home and my family... I was born a free man. I
know no other way.

I was reading an article the other day that suggested, from the authors perspective, there were large numbers of teens who had gone undiagnosed for ADHD and ODD... The former, as I am certain most of you know, is what they call Attention Deficit Hyperactivity Syndrome... but as to the second. This latter is Oppositional Defiance Disorder, and refers to a propensity for defying authority. This use to go by another name... such people were called Americans.

The point of the article... there were still young people with imagination and energy (ADHD) and who yet had free will (ODD) that remained unsubdued. There was still work to be done.

I am not sanguine of the possibility for a future. There is a line that has been drawn. It runs down the center of every human society. So far as I can see there is no place to run, and each of us will find ourselves on one side of that line or the other... either by design or capitulation.

I know where I stand. I am who I am and there is no changing me now. I am not eager for this fight, whatever course it may take...and in fact, the fight has already begun.

I did not begin this fight. I may not be there at the finish. But I am uncowed and unsubdued.

Sun, 12/01/2013 - 21:22 | Link to Comment ClassicalLib17
ClassicalLib17's picture

@Lordflin,  You hit on something here that pertains to an article I just read on Taki's Magazine

Mon, 12/02/2013 - 01:04 | Link to Comment Lordflin
Lordflin's picture

I read the article you reference to my wife, who attended schools where genders were separated and taught by instructors od like sex. She says that she far preferred it.

I myself taught for a semester in a school where the genders were separated. I taught both all male and all female classes, though the bulk of my teaching over the course of my career was in a mixed environment. I would rate all male and mixed classes equally enjoyable from my perspective as a teacher. I would rather be skinned than forced back into an all female classroom.

Even in my day as a student schools were overly feminised. My son, a brilliant lad, had a terrible adjusting to the classroom in its current iteration... and I personally prefer receiving instruction in an all male environment regardless of what is to be learned. I can only imagine what it might have been like to have trained along side females in the military. I would have been hard pressed to have accepted that such training was
intended for combat... That we have a political class that now appears to believe this is healthy, or even normal, is a clear indication of the rise of girly-men to the ranks of leadership.

A long way of saying that I agree with the thrust of the article.

Sun, 12/01/2013 - 12:56 | Link to Comment bwh1214
bwh1214's picture

One other point, we that have the means of production can't be stingy.  If our fellow citizens are willing to help us produce more we should try and be generous with that production, and in the begining they may not beable to pull their own weight, but as they build skills in real trades, farming, ranching, mining, fishing/farming fish, building they will start to.

Sun, 12/01/2013 - 15:08 | Link to Comment Lordflin
Lordflin's picture

I couldn't agree more... I have not forgotten my commitment to my fellow man...

Sun, 12/01/2013 - 12:53 | Link to Comment bwh1214
bwh1214's picture

I'll fight for your rights to private property, and I'm well armed.  Don't give up hope, large chunks of the police forces and military that know what is right.  Not to say that some in our position could not be overrun by those that can't produce.  We may lose battles but not the war, because again they can't produce to support themselves.  You are not alone. 

Sun, 12/01/2013 - 12:52 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

Maybe you bought real estate in the wrong place. Try small places in south America and baptize the mayor's and the chief politicians children. You good to go.  

There is still time to make the switch

Mon, 12/02/2013 - 01:11 | Link to Comment Lordflin
Lordflin's picture

From the standpoint of folks willing to defend themselves I live in one of the best prepared areas of the country... Northern Idaho... As to any ideas of expatriation... I have found no other nation with satisfactory gun laws. New Zealand has come closest... But even they are restrictive when it comes to certain classes of semi-automatic weapons. They also require registration.

Mon, 12/02/2013 - 02:42 | Link to Comment Freddie
Freddie's picture

You are in about the best place possible to defend yourself with a good setup.  It will be hard for zombies to get to where you are. The biggest risk might be less prepared locals.

As far as being born a free man.  I used to think that too.

Sun, 12/01/2013 - 11:10 | Link to Comment Oldwood
Oldwood's picture

The reason why there were no massive riots in Cyprus is that they made it about the rich, taking only those accounts over 100000 €. Ultimately the rich cannot and will not cover the costs of government as they are the principle beneficiaries. Everyone pays property taxes, even the lowly renters, especially the lowly renters. Governments set grass fires which drive us in many directions. They want capital movement, regardless of where it goes because it creates the transactions that allow profit taking for the 1% and additional taxing opportunities. Real estate is just another transaction like a stock purchase that seldom is a long term hold, but is a documented, traceable, taxable event, plus creates a stationary target for wealth taxation. As with inflation and ZIRP it is a win win for government. Extract value while in place an flush it out of the underbrush for another clear shot at it.

Sun, 12/01/2013 - 12:47 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

Savers and hoarders are enemis of the state. Everyone should bury their gold and go on welfare. Obama's wet dream to break the purse of the state and either do a Chavez or bring back Communism with a twist.

Do NOT follow this link or you will be banned from the site!