IMF: 'This is Our Last Wake Up Call for Your Savings'

Sprout Money's picture


Do you remember? The IMF set off the public and the media in October by stating in a report that it would be a great idea to invoke a one-time levy on the savings of the public to get governments' finances in the industrialized world back on track. That message or that 'theoretical exercise' as the IMF called it then, did not sit well with most people and it resulted in a media frenzy. A few weeks later they did try and failed at damage control, which was nothing more than public embarrassment. Meanwhile we have reached 2014 and yes, we have a new document commissioned by the IMF, from two Harvard economists, Carmen Reinhart and Kenneth Rogoff.

IMF: high time for financial repression

Both Harvard economists are not beating around the bush. The idea that the mountain of government debt in the industrialized world is controllable and can be solved over time with enough economic growth is completely unrealistic. Next to that it appears that politicians are suffering from collective memory loss. In Europe and the US, in the period between both World Wars, countries also defaulted. The current mindset that defaults are only reserved for Emerging Markets is completely incorrect, according to Reinhart and Rogoff.

Both economists state that the mountain of debt from the industrialized world is at the highest level in the last 200 years. And that is a problem, a problem which cannot be resolved by economic growth exclusively. The Eurozone's debt amounts to 95 percent of its GDP and the US is almost at 110 percent. Ultimately, the Eurozone is not that far behind at the rate at which debt is growing. You can bicker about the level at which debt is impossible to pay back, but the consensus is that this lies somewhere between 90 and 100 percent for the industrialized world, because of its low growth figures (1 - 2.5 percent).

Turnkey solution

'Fortunately', both Harvard economists have a turnkey solution. Before we get into the details we want to emphasize that this report is commissioned by the IMF. That gives the IMF at least the possibility to distance themselves from its contents, if hell breaks loose once more. For now it remains quiet, however. Most media channels, and especially the MSM, did not pick up the (at least to us) explosive report. In these financial times, nobody appreciates sleeping journalists we would think, but who are we to judge.

Back to both Harvard economists and their 'solution' for the government debt, which has increased beyond belief. The solution is very simple: financial repression. It does not sound pleasant and it isn't indeed. It is a cocktail of: (higher) inflation, capital restrictions, default and a savings tax.

Let that 'solution' settle in your stomach. It does not sit very well does it? Again we have the cursed savings tax, again the absurd capital restrictions. And according to both Harvard economists, a form of restructuring (default) of debts that have gotten out of hand should come on top. Probably you, as an investor/saver do not own government bonds, so you do not lose sleep over all of this. Well, that might not be so smart: the odds are high actually, that you are building your pension, and subsequently, the odds are high that your pension fund does own government bonds.

IMF thinks it is smart

The question is: what do we do with all of this? What do we do with an IMF, led by a highly accredited, charming lawyer, who just played the same old trick on us? First the organization starts with a 'theoretical exercise', only to deny completely that the IMF is aiming for your savings. And now this report, commissioned by the IMF and from the hand of two not undisputed Harvard economists, which features once more the savings tax and capital restrictions.

Does the IMF truly believe it gets away with this? Having a report written by two Harvard economists, that have made crucial calculation errors in an earlier report 'Growth in a Time of Debt'. And despite that the report was happily used by Olli Rehn, the financial head honcho of the European Commission.

Watch your savings!

Let us put forward that we also believe that the government debt has gotten out of hand in many countries. On top of that there is a whole array of artificial constructions with guarantees, debt displacements, etc. that naturally do not offer any solution to the mountain of debt in itself, but have to be seen for what they are: smoke screens.

That 'something' needs to happen, is clear. That we would ultimately all be better off with a financial system that survives, is also crystal clear. However, swinging capital restrictions, one-time levies on savings, to just then continue with the same people as if nothing happened on the same path: that should be out of the question right? Old top exec from De Nederlands Bank, Lex Hoogduin, came up with a creative proposal: a 1 percent norm. The government needs to spend 1 percent less every year, structurally. The proceedings of these structural budget cuts then need to be used to lower taxes. Creative, certainly. Maybe a little bit too simple, but definitely on a better track than our two Harvard economists.

The last word has definitely not been spoken here. The fact that the IMF just a few months after the last debacle comes out again with a political, explosive report, is a clear wake up call for every investor and saver. The financial need among the different governments is high, too high. And the day that politicians will recognize that is coming closer each day, with the necessary consequences to follow for your financial future. And that means most importantly: watch your savings! There will be a levy, we are sure of it. Probably in the form of a 'one-time solidarity tax'. The 'theoretically calculated percentage of 10 percent' by the IMF, is moreover not realistic in our opinion. Furthermore, we believe they will not stop when they have touched your savings: they will most likely take your entire capital into account, of which your savings are just a part.

Damage control is essential. And that is best achieved by spreading your capital. To be continued...

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messymerry's picture

Here's a link to the pdf:

One of the main attributes of dysfunction of D.C. is the prevalence of Harvard PhDs.  IMHO, the Ivy League schools have done more harm to our republic than any other group of institutions.  Just sayin,,,



Iam_Silverman's picture

Well, I do have my doubts about a confiscatory decision.  Here's why - if they do go through with this, they will effectively end commercial banking as we know it.  Who in their right mind would leave money in their accounts to be stolen again at a later date?

The best way to steal our money is by stealth - the way they have been doing it for years.  Ever hear of inflation?  When they control the means to print the fiat, they control its worth.


Devalue the currency, then pay off your debt.  Rinse and repeat. In the end, the common man will be none the wiser!

Forever18's picture

If you insist on keeping this cheap illusuionary paradigm together- then you get what you deserve. The markets and banking system are run by a estrogenic group of biological robots who make sure their viagra perscriptions are consisistently updated so as to enable them to fk whomever they please.

Debauchary, thievery, and complete disregard for humanity will in the end- be a punishable offense- The judges will be judged and their sentences will  be  carried out by the last few coherently thinking warriors. These gate keeprs will be  the true protectors of man.

I stand for no republic, but for the whole of humanity. When we finally get up off our knees, and stop cherishing crocadiles, like Bill Gates and Warren Buffet, George Soros and alike- we will then begin our trip back into the light. 

Until then, much love. PS grow a pair of cannolies, before the reaper comes knocking. You money  loving Fctards

Forever18's picture

If you insist on keeping this cheap illusuionary paradigm together- then you get what you deserve. The markets and banking system are run by a estrogenic group of biological robots who make sure their viagra perscriptions are consisistently updated so as to enable them to fk whomever they please.

Debauchary, thievery, and complete disregard for humanity will in the end- be a punishable offense- The judges will be judged and their sentences will  be  carried out by the last few coherently thinking warriors. These gate keeprs will be  the true protectors of man.

I stand for no republic, but for the whole of humanity. When we finally get up off our knees, and stop cherishing crocadiles, like Bill Gatees and Warren Buffet, George Soros and alike- we will then begin our trip back into the light. 

Until then, much love. PS grow a pair of cannolies, before the reaper comes knocking. You money  loving Fctards

buzzsaw99's picture

take all the billionaire's money and watch them cry

harry555's picture

All your bank account are belong to us.

GoldIsMoney's picture

Exactly and that IS the problem.

geewhiz's picture

Banksters, PUBLIC ENEMY NUMBER ONE, spread the word.

GoldIsMoney's picture

I think you misread that paper. They made a kind of joke out of the promises, that "your bank accounts" are save. The Abstract reads like this:

"The claim is that advanced countries do not need to resort to the standard toolkit of emerging markets,including debt restructurings and conversions, higher inflation, capital controls and other forms of financial repression. As we document, this claim is at odds with the historical trackrecord of most advanced economies, where debt restructuring or conversions, financialrepression, and a tolerance for higher inflation, or a combination of these were an integralpart of the resolution of significant past debt overhangs."

From Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten

AFAIKT they never proposed that as a soluton but the most likely outcome and with that I think they are fully right.  Or are you writing about something else?


Teknopagan's picture

Zero interest is the bail-in already

Withdrawn Sanction's picture

Rogoff and Rhinehart are wrong about mere debt restructuring.  We don't need more favorable rates or extended payment terms, we need full on repudiation...and it WILL happen.  Now, we can do this thing peacefully, or not.  Human history says "or not," but that need not be the case this time.

The entire modern tyrannical complex is built on debt.  Walk away from the debt and everything that rests upon it collapses.

The Heart's picture

Hummmm...imf...aren't they the ones that are at the tip of the babylonic money-god spear?

They have had long standing plans that are being revealed faster than ever these days. Many masons in the world fraternity are secretly trading information and understanding how the lodges have been co-opted like the govts, military, industries, and all the media have. THEY ARE ANGRY to be fired at by people who know nothing about MAsonry from the outside, and also by those who call them "useless idiots" on the inside. Yup! You betcha. Dey all is be pissed off and if the babylonians thinks they are going to cause another civil war in which brothers and sisters fought against brothers and sisters, they got a rude awakening coming. Yup! Have a king phillpe on them babylonians and then there will be NO divisions amongst the initiate class. Sez, yup!


Every Man-Jack and Soul on deck has a decision to make. You stand in the Light of God/Creation/Love the Most High, or you perish in the cockroach-darkness of ignorance, and foolish money-god games. As the Old Knight said, "Choose Well."

Now for another channel change. Here again from this awesome link is another voice of the fast awakening people. Check out the links.:


"Dave, I wanted to send this via your personal email but I’m trying to wake up a few people also.

You were right by answering a post in an earlier article identifying the Banksters as mainly Jewish. If they are the puppet masters, the question is why?

With all due respect, I don’t believe Mr. Manchurian engineers one thing, nor did his predecessors. In just the last 100 years, the Rothschild-funded Bolsheviks (Jews) never really abandoned their agenda, they’re only more deceptive & sophisticated by infiltrating & diverting attention away from themselves while creating, funding & using other revolutionary entities & government agencies (fill in the blanks – CIA, MI6, KGB, M0SSAD, etc.) to carry out their chaos & mercenary killing. America has been hijacked for a long time; we’re now going to witness the attempted hostile takeover.

The NWO will most likely be a Satanic-Masonic-Luciferian & JUDAIC (the root of Communism) counterfeit Davidic Kingdom with Noahide Laws…understand the Satanic Babylonian Talmud, a most contemptible book.


Now our government can legally kill Christians? By the way, do we really think the guillotines were distributed throughout the world by Muslims?

These diabolical psychopaths (Synagogue of Satan) think they are “chosen” to rule the world (eventually from Jerusalem – modern day Sodom & Egypt – Rev. 11:8) while everyone else is “cattle” to be killed or enslaved.

Radical Islam, Russians, Chinese & all the puppets in the White House, are very real threats but a means to this utopian false kingdom. BTW, Rothschild created the modern state of Israel & they are NOT our friend, don’t be deceived!

Pope affirms Noahide Laws: BTW, the Catholic Church has been Judaized long ago, along with Evangelical Christianity.

The newly formed Sanhedrin will attempt to finish what they started 2000 years ago…Please get the picture my fellow Christians & other non-conformists?

If we continue to chop at the octopus’ tentacles, it just grows back. When will we take aim at the head & expose the cabal (without apology) along with their “goy” accomplices? Let’s pin the tail on this donkey!"


Calling all hands on deck. It is close to the time for all to gather under the same tent of reconciliation. All colors, uniforms, merits, ranks, degrees, grades, initiatory rite holders, or any other outside expression of status quo is to be put aside because as all know, it is the color of your heart that counts the mostest. Any one can be anything outside. The truth is known well in the heart and it has no color. It is firmly established in Stone that we are ALL one fire in the Heart place, and a highly resonant energy in every breathing BEING.

Soon, time comes for all to decide for themselves. Check in with YOUR heart for the proper guidance, and then follow course. The Lightbrigaders have already won the war on darkness, so be well aware of which ship you jump onto. The underlings still want to play the monopoly money-god game all the way to the end...of us all. Strangely, it prolly will not happen as they might like to think. Too many real people are awake and aware and no fantasy distraction using Geo-engineering, or false flagology expressions in another contrived law breaking event to blame some poor country (Iran or Syria) for the next horror released to control the growing angered masses that Know they are ALL being killed off by the radiation from fukushima, will be tolerated. Or, is radiation that is never ending and growing in bio-accumulation in everything good for you?

Hummmm...go figure.

We all should be protecting ourselves and others that we care about from excess exposure to external, and internal radiation poisoning. This thing can surprise the world at any time, like a thief in the night.

bunnyswanson's picture

What if I say I will never surrender?  Listen/Watch and see why this is Banned by Facebook -

aleph0's picture

...  it's banned in Germany FYI .. GEMA CopyWrong.


gwar5's picture

Bankers and profligate politicians will never have enough. BIS and IMF are fascist organizations.


Not only confiscation of deposiits, but private pensions will also be taken and force fed into treasuries to be bagholders for the FED to let them off the hook. Cuz, you know, that will help the little guy by boosting the dollar back up after it collapses.  




no more banksters's picture

Greece: The only "public" in banks is the debt that will be loaded on future generations!

Know shit's picture

Right now, Netherlands, my master, sorry covernment, takes already more than 70% of my income by all taxes the have made up.

Still I think we are not doing bad, I'm not complaining to much....
But what i find suprising that if they propose an other tax, say the one time 10% on savings, people tend to wake up..( it will be more than 10% and definitly not a one time)
I doubt if they realy will wake up btw, I expect some complaining perhaps some people in the streets but that wil be it......
( to many arguing allready that if you have some savings you are a rich basterd...)

Something with a boiling frog comes to mind.
We are becoming fat, lazy, stupid, ignorant, selfish and then some more.

He who would trade liberty for some temporary security, deserves neither liberty nor security

( paying taxes is some way of trading liberty, now a day's I think so...)

gwar5's picture

I thought neo-Keyesianism was supposed to make taxes obsolete. Debasing the currency more than 10%+  has not done the trick so they must be desperate if they have to confiscate deposits outright and risk moar riots in the streets.


brokenspoke's picture

High Crime and misdemeanors if potus allows this to happen.Yes?

logicalman's picture

Not the first....

or the last, I'd bet.

GeezerGeek's picture

To borrow a phrase, what difference, at this point, does it make? There are plenty of other reasons POTUS should be impeached and removed from office. No way the RINOs would ever do that, even if they controlled both houses of Congress. 

Lord Koos's picture

Wait til the black guy is gone, and nothing changes (for the better).

SKY85hawk's picture

Teddy Kennedy & Bill Clinton held their money and Property in various TRUSTs.

Ask Ms. LeGarde where she puts her tax-EXEMPT earnings from her IMF job!

Who was it that said "Don't do as I say, Do as I do"?


CPL's picture

Trusts won't be worth a bag of hair in a year if they keep it in Fiat.  That's a promise .  So their options are:

  • They can either spend it now while it means something,
  • Move to bitcoins soon to be backed by PM's
  • Buy a bunch of land and use it appropriately ( best be given back in BETTER condition than it was purchased. )
  • Or they can pound sand and live the lifestyle of squalor they've pushed on most of the planet because of their lack of change management.

It's 2014 and Change management should be the buzzword over Revolution. 

One denotes constructive output that everyone can use.  The other is kicking over sand castles..which isn't constructive and makes work with resources none of you have to offer.  Leverage the systems in place to speed up the migration and chuck whatever doesn't work or reassign it somewhere else.  When you get stuck, drop what is being done and assess what broke and why.  Share the solution found because someone else might need it for another bit of work they are doing.

It's a situation that excludes the word 'mine' and uses the word 'everyone' heavily.

SKY85hawk's picture

Aren't pension funds Federally chartered, ie. Taxes are just deferred?

THEY can't grab Trust assets with the stroke of a pen, like Poland did August 2013!

Consider holding your gold in a properly structured Trust.  The definition of U.S. Person, used by Roosevelt to confiscate gold, is not what everyone assumed it meant.

logicalman's picture

Just keep a record of where your boat sank and take scuba lessons.

moneybots's picture
"IMF: high time for financial repression"


Let's start with the bankers, then go after the IMF.

HardlyZero's picture

The IMF paper published on Dec. 24 2013 on the IMF website was at the top of the column at CNBC for a whole day on January 3 2014.

The online CNBC article was discussing the article by Ambrose Evans-Pritchard on The Telegraph.

So The Telegraph article on January 2, 2014 caused the CNBC article on January 3.

It created a stir.  The 2014 markets are down to sideways.

Maybe this is a tipping point.

Get physical.

The IMF is the 4th largest holder of physical Gold after US, France, Italy and China.

If Gold is good for the IMF why not the people.

The IMF template construction is nearly complete, warnings broadcasted.  They have probably reached implementation phase.

Withdrawn Sanction's picture

"The IMF is the 4th largest holder of physical Gold after US..."

As I recall, the IMF was capitalized w/gold contributions from each member state.  So technically, that gold belongs to the contributing states...a lot like the gold coin deposited in a 1932 US bank technically belonged to your grandpa.

More to the point, like the US gold in Ft Knox, the IMF gold has probably been hypothecated so many times, it makes a New Orleans hooker look positively chaste by comparison (no offense to the hard working men and women in the N.O. sex trade).

Your question about if gold is good enough for the IMF, why not the people?  is a good one.  The flip answer is the golden rule:  thems w/the gold make the rules.  The more reasoned answer is gold in the hands of the people represents a very strict form of monetary discipline for both fiscal policy and bank lending.  That tells you why bankers/politicians and their media mockingbirds publicly decry gold, while quietly holding onto it tighter than the skin on an apple.

disabledvet's picture

Oh it's a tipping point all right. Your GOVERNMENT (and mine?) is going to lose its could care less about an ounce here or an ounce there. "They're tonning it" as they say. Forget the "petro-dollar" but petroleum itself is the key...because if the price collapses then everybody owes the IMF their gold. As they say "there is always the problem of collection"...but that's why the US set up a system of alliances after WWII..."if we work together we'll have the means to collect if necessary." Right now that looks like the USA, Great Britain, Germany and Sweden.

foxmuldar's picture

Invest in Tulib bulbs. 

el Gallinazo's picture

"That we would ultimately all be better off with a financial system that survives, is also crystal clear."

Not so clear to me, Messers. Sprout.  I would rather pay my dentist with hens the way my grandfather did than keep this Ponzi going.  Second, no mention of retail banking deposits.  The writer gives the implied impression that the hit will be against sovereign bond holders.  I see it as even more likely that the first stage of the grand theft will be against standard checking accounts and CD's in order to prop up the bankrupt TBTJ banks.  Third, "austerity" will become public policy in the USSA this year.  Why else do all the police departments now look like Star War storm troopers?  The NWO knows who the enemy is - they are you.  The Boston Marathon bombing was a false flag to check the reactive psychology of the sheeple.  You had one teenager, his older brother apparently murdered in custody, now admittedly unarmed and without any military training, who was the cause of virtual martial law and search and seizure throughout a major American metro area.  Ironically, and probably intentionally, the home of the Boston Tea Party.  Our Owners have a twisted and ironic sense of humor and they must have been quite satisfied with the results of this test.

Rafferty's picture

"Our Owners have a twisted and ironic sense of humor and they must have been quite satisfied with the results of this test."

Always  thought the same about 911.

foxmuldar's picture

Banks already considering a fee to take your money even if its just for savings. What happened to the days when the bank gave you a toaster when you opened an account. lol!

el Gallinazo's picture

Now we are their toast.


roadhazard's picture

I only had to be told this the first time. I have been all out except what I need in my checking account to pay bills. My savings and silver is now 2' deep on my property.

Dugald's picture


 savings and silver is now 2' deep on my property.


Mmmm, metal detector,yep, spade, yep, gps yep, right think we are ready...lets go do some diggin


Uncle Remus's picture

."Damage control is essential. And that is best achieved by spreading your capital."

Before they spread your asscheeks.

Quaderratic Probing's picture

1% tax on the 1% not going to happen they left Cypus just before. Having done it in Cyprus they still have capital controls or the banks would be empty. At ZIRP rates savings may as well be at home not in any bank. If they start this game they will have money lock down for extended timeframe. Anyone seen Cypus GDP for 2013?

disabledvet's picture

that's now "Forward Operating Base" Cyprus.

jo6pac's picture

Well I don't have any money to say so they'll have to settle for my old tired blood.

willwork4food's picture

Before I do that I will go long AR 47 ammo, and have a use for it.

Tall Tom's picture

Will your AR 47 have the range and destruction capability of a Military Drone?


You may want to consider having a Rocket or Guided Missile Offensive Capability.


Believe it or not Rockets with Explosive Payloads are cheaper than Guns and with much more destructive power. They are not too demanding to manufacture if you know the basics.


Again I bid that you take heed and not advertise. Videos are on Youtube. Look up Candy Rocket Engine. You will be enlightened.


Never threaten. But inform of what can happen.

rwe2late's picture

Perhaps the article means to say the financial repression is about to become even more blatant and extensive.

 When the TBTFs are given a handout, your wealth is already being taxed. When pensions and bondholders are given 'haircuts', there already is default.  When interest rates are held below cost-of-living increases, there is already an inflation 'assault' on savings and wages.

 Simple economic solutions may abound, and could be publicly debated and decided, except for one thing.

Those currently having the wealth and power will not accept or allow realistic debate or implementation of any solutions contrary to their current status.

They will not of their own volition cease the militarism and financial rackets so essential to maintaining their position.

Barring an epiphany of course,

after which they divest themselves of their wealth, level the organizations giving them power, and live with the common folk.

Withdrawn Sanction's picture

" repression is about to become even more blatant and extensive."

Indeed it is.  Cyprus was a test bed.  They're getting ready to go continent-wide in Europe.  That will then chase the dwindling base of world capital into the US, where it is easily corralled, hog-tied, and stolen. The thieves (as thieves do) have not thought beyond that last step however, and that is their great weakness.  They are clever and have lots of toys, but they are not smart.