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For Everyone Shocked By What Just Happened... And Why This Is Just The Beginning

Tyler Durden's picture





 

Today, lots of people woke up in shock and horror to what happened in Cyprus: a forced capital reallocation mandated by political elites under the guise of an "equity investment" in insolvent banks, which is really code for a "coercive, mandatory wealth tax." If less concerned about political correctness, one could say that what just happened was daylight robbery from savers to banks and the status quo. These same people may be even more shocked to learn that today's Cypriot "resolution" is merely the first of many such coercive interventions into personal wealth, first in Europe, and then everywhere else.

For the benefit of those people, we wish to point them to our article from September 2011, "The "Muddle Through" Has Failed: BCG Says "There May Be Only Painful Ways Out Of The Crisis", which predicted and explained all of this and much more. What else did the September BCG study conclude? Simply that such mandatory, coercive wealth tax is merely the beginning for a world in which there was some $21 trillion in excess debt as of 2009, a number which has since ballooned to over $30 trillion. And with inflation woefully late in appearing and "inflating away" said debt overhang, Europe first is finally moving to Plan B, and is using Cyrprus as its Guniea Pig.

For those who missed it the first time, here it is again. Somehow we think many more people will listen this time around:

Restructuring the debt overhang in the euro zone would require financing and would be a daunting task. In order to finance controlled restructuring, politicians could well conclude that it was necessary to tax the existing wealth of the private sector. Many politicians would see taxing financial assets as the fairest way of resolving the problem. Taxing existing financial assets would acknowledge one fact: these investments are not as valuable as their owners think, as the debtors (governments, households, and corporations) will be unable to meet their commitments. Exhibit 3 shows the one-time tax on financial assets required to provide the necessary funds for an orderly restructuring.

 

 

For most countries, a haircut of 11 to 30 percent would be sufficient to cover the costs of an orderly debt restructuring. Only in Greece, Spain, and Portugal would the burden for the private sector be significantly higher; in Ireland, it would be too high because the financial assets of the Irish people are smaller than the required adjustment of debt levels. This underscores the dimension of the Irish real estate and debt bubble.

 

In the overall context of the future of the euro zone, politicians would need to propose a broader sharing of the burden so that taxpayers in  such countries as Germany, France, and the Netherlands would contribute more than the share required to reduce their own debt load. This would be unpopular, but the banks and insurance companies in these countries would benefit. To ensure a socially acceptable sharing of the burden, politicians would no doubt decide to tax financial assets only above a certain threshold—€100,000, for example. Given that any such tax would be meant as a one-time correction of current debt levels, they would need to balance it by removing wealth taxes and capital-gains taxes. The drastic action of imposing a tax on assets would probably make it easier politically to lower income taxes in order to stimulate further growth. (See Exhibit 4.)

 

Curiously, not even BCG expected the initial shot across the bow to be so bad that everyone, not just those above the €100,000 threshold would be impaired. Alas, that is the sad reality in Europe, where as the chart above shows, a total of €6.1 trillion with a T in additional wealth confiscation tax is coming.

Oh, and US of A... fear not - your turn is coming too: with a price tag of €8.2 trillion in wealth tax pending as of 2009. This number is now somewhere north of €15 trillion.

 

The full BCG study which we urge everyone to read

 


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Sat, 03/16/2013 - 18:37 | Link to Comment WayBehind
WayBehind's picture

This is not "just a beginning" but THE end. Its was fun ride. Game over! Bankers won. Sad day ... and even sadder just to think what is coming. Time to buy more gold and ammo.

Sat, 03/16/2013 - 18:48 | Link to Comment DJ Happy Ending
DJ Happy Ending's picture

I blame the homosexuals.

Sat, 03/16/2013 - 19:11 | Link to Comment flacon
flacon's picture

Cypriots that I know are planning on taking every last Euro out of the banks on Tuesday. This is also confirmed by reading comments on local Cyprus newspapers. People are irate over this. 

 

I lived in Cyprus for 11 years and still have ex-pat relatives living there now. Fortunately for them all their money is either in paper (a small portion) and the rest is in those two shiny metals. 

Sat, 03/16/2013 - 19:12 | Link to Comment Joe Davola
Joe Davola's picture

Why is sum of US column 101?

Sat, 03/16/2013 - 19:15 | Link to Comment McMolotov
McMolotov's picture

We're obviously better than everyone else, and the laws of mathematics don't apply to us.

Sat, 03/16/2013 - 19:28 | Link to Comment earleflorida
earleflorida's picture

indeed, but the 'Levant Basin' holds great leverage as a floating archipelago... goes ?

Sat, 03/16/2013 - 19:57 | Link to Comment tallen
tallen's picture

Bank Run 2.0 starting. I'm looking forward to getting my Party like it's 1929 hat on.

Every dollar/pound/euro/frank/yen in a bank is leant out, then deposited, then lent out again, to such a huge degree today due to the computerisiation of the financial system. Any rush for withdrawals is going to crash the system and cause huge deflation. (Yes I'm a gold bug, tho deflation isn't always a bad thing for gold. 1929 onwards prooved to be a great time for gold mining stocks and gold.

Sat, 03/16/2013 - 21:06 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

Bullish for bitcoin.

Sat, 03/16/2013 - 22:05 | Link to Comment ATG
ATG's picture

re "Bullish for bitcoin.":

which would you rather have when push comes to shove, virtual electron money or real money?

 

Maybe Harry Dent will be right about Dow 3300 after all...

Sat, 03/16/2013 - 22:48 | Link to Comment THX 1178
THX 1178's picture

I blame the Eskimos. Or even the homosexual eskimos. AKA Homoseximos. Motherfuckin' popsicle sodomites.

Sat, 03/16/2013 - 22:53 | Link to Comment WmMcK
WmMcK's picture

Is it hard to come out of the closet when you live in an igloo?

Sat, 03/16/2013 - 22:58 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

First Corzine, Greece, and now Cyprus.   Is anybody's asshole safe?

Sun, 03/17/2013 - 01:43 | Link to Comment Icantstopthinki...
IcantstopthinkingaboutNINJAs's picture

Not to worry,

 

Seems like only the biggest assholes are safe.

 

--That's why I'm richer than you.

Sun, 03/17/2013 - 04:39 | Link to Comment Nussi34
Nussi34's picture

Bomb the FPIIGS. Problem solved.

Sun, 03/17/2013 - 06:58 | Link to Comment Popo
Popo's picture

What's this B.S. about a "ONE TIME" wealth tax?   

Why would it just be one time?   Why not a second time?   Or a third time?   Or just make it annual from now on? 

They have now firmly established that the people are serfs.  When you need capital to pay back bond holders, you raid your serfs.   They are property of the state.

Sun, 03/17/2013 - 07:41 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Remain calm....all is well.

 

Rinse and repeat...we've just got the one play but it seems to be working so far.

 

 

Sun, 03/17/2013 - 07:56 | Link to Comment duo
duo's picture

It won't be one time, but if they really need to do $15 T of debt reduction in the US to get to the proper debt/GDP level, and there are 110,000,000 households, then you need $140,000 out of each household.

But wait, only 50,000,000 households have more than $50 in the bank (or even a bank account at all), so we need $285,000 from each of them.  A 10% wealth tax isn't going to cut it.

More like 150%...

Sun, 03/17/2013 - 13:13 | Link to Comment All Risk No Reward
All Risk No Reward's picture

Debt Money Tyranny gets real...

Debt Money Tyranny

http://www.keepandshare.com/doc/4768883/debtmoneytyranny-6-1-pdf-60k?tr=77

This is no joke, people - spread the word.  This is a criminal operation engineered to bankrupt society - THAT'S THE PURPOSE PEOPLE!!!!!!!!!!!!!!!!1

How To be a Crook

https://www.youtube.com/watch?v=2oHbwdNcHbc

SPREAD THE WORD!!!!!  THIS CHIT IS REAL!

BTW, did people in Cyprus bonds take the same haircut or just the banks?

The dElites who knew this was coming had to have hid their money somewhere.

Mon, 03/18/2013 - 03:35 | Link to Comment Harlequin001
Harlequin001's picture

The problem is not only that those not involved are forced to bail out private companies they choose to have nothing to do with but that in doing this to reduce debt and so spur the economy the politicians remove wealth from others that might provide it.

The idiocy is stunning. The answer is smaller government.

Sun, 03/17/2013 - 05:38 | Link to Comment Svendblaaskaeg
Svendblaaskaeg's picture

"Is it hard to come out of the closet when you live in an igloo?"

..they had a very meaningful relationship until he broke it off

Sun, 03/17/2013 - 02:34 | Link to Comment Theosebes Goodfellow
Theosebes Goodfellow's picture

+1 for "homoseximos". Truly inspired.

Sun, 03/17/2013 - 05:47 | Link to Comment jeff montanye
jeff montanye's picture

i would have thought homoseskimos but the very idea of the popsicle sodomites appeals.

on a related topic, the economist notes that the senior bondholders of cypriot banks and holders of cypriot sovereign debt (the supposed "risk capitalists" -- what a sad joke) lost no money on this deal while the poorest of insured bank deposit holders with explicit insurance guarantees were ripped off:  http://www.economist.com/blogs/schumpeter/2013/03/cyprus-bail-out

"There is an argument to be made over the principles of bailing in uninsured depositors. And there is a case for hitting everyone in Cypriot banks before any taxpayer in another country. But there is no moral imperative for whacking Cypriot widows and leaving senior bank bondholders untouched, as appears to be the case here; or not imposing any losses on sovereign-debt investors in Cyprus; or protecting depositors in the Greek operations of Cypriot banks, as has also happened. The euro zone may cloak this bail-out in the language of fairness but it is a highly selective treatment. Indeed, the euro zone’s insistence that this is a one-off makes that perfectly plain: with enough foreigners at risk and a small enough country to push around, you get an outcome like Cyprus. (That is one reason why people are now wondering about the implications of this deal for little Latvia, also home to lots of Russian money and itself due to join the euro zone in 2014.)"

it is so clearly the powerful eating the powerless.  kind of like obama/holder going for life without parole for bradley manning.  don't know if he was inuit.

 

Sun, 03/17/2013 - 07:50 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

 

How many gay banksters could there actually be?

 

These guys don't look gay to me. Dominique Strauss-Kahn sends his regards.

http://www.intmensorg.info/images/mas12.jpg

 

 

Sun, 03/17/2013 - 09:09 | Link to Comment Ms. Erable
Ms. Erable's picture

Bankers are all bisexual; they'll fuck anyone and everyone.

Sun, 03/17/2013 - 08:45 | Link to Comment unrulian
unrulian's picture

endless winters, seal blubber and toothless women with make you do fucked up things man.....

Sun, 03/17/2013 - 12:31 | Link to Comment jwoop66
jwoop66's picture

homosexual Eskimo joos!

Sun, 03/17/2013 - 00:08 | Link to Comment The Heart
The Heart's picture

Add: After the power has been cut off for months(emp)(solar?), and there is no ability to power up your computer, "which would you rather have when push comes to shove, virtual electron money or real money?"

Sun, 03/17/2013 - 01:39 | Link to Comment hmmtellmemore
hmmtellmemore's picture

Good Lord, are you really that paranoid?  No, bitcoin will work just fine don't worry.  And don't forget bitcoin and gold are a perfect match (currency and money), not competitors.

Sun, 03/17/2013 - 01:36 | Link to Comment hmmtellmemore
hmmtellmemore's picture

bitcoin is not money, its a currency.  People are definitely going to want both gold and bitcoin.

Sun, 03/17/2013 - 02:04 | Link to Comment Long_Xau
Long_Xau's picture

You are making the error of thinking that "Bullish for bitcoin" in any way conflicts with "bullish for precious metals". What supports the bullish case for precious metals is the need for a store of value for saving and some local in-person transactions. But don't forget this partial confiscation in Cyprus also affected the checking/card accounts. Now people need alternatives for electronic transactions and this means more transactions in Bitcoin. More more transactions in Bitcoin will bring more demand for the bitcoin currency.

However, you don't need to worry too much about it until you start seeing things you can only buy with a cryptocurrency/payment system such as Bitcoin, or if, you are a seller, when high transaction costs, inconvenience, counterparty risk, etc. start putting clients off. Oh, and credit card companies' extortions for both sellers and buyers. And not wanting to have an account even if it didn't cost you anything.

Sun, 03/17/2013 - 07:33 | Link to Comment SilverIsKing
SilverIsKing's picture

Just a thought...

Are we sure that Bitcoin isn't something floated by the government to sucker people into a digital currency that they will have complete control over once they get everyone in?

It is their goal to have everyone using a digital currency and they surely want it to be fool proof, which is something many ZHers attest to.

Sun, 03/17/2013 - 09:17 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Dammit.....I knew it had to be a trick.

Sun, 03/17/2013 - 11:52 | Link to Comment PeakOil
PeakOil's picture

Doubtful dude. It's mathematics (public key crytpography) and Open Source. Scrutinize the code.

As a longtime Au/Ag bug, in addition to being a software developer, I had been cursorily dismissive of Bitcoin for some time now. Well, this weekend I decided to take a closer look...

Thoughts;

  • the current implementation is rickety. Hey - it's software WTF do you expect!? Good software, depending on complexity, like wine - takes years to mature
  • the IDEAS behind Bitcoin are nothing short of genius!
  • this is revolutionary software, and if it catches on, TPTB have reason to be very worried
  • if I were on the dev team of this project - I would watch my back very carefully 
  • gotta wonder about some on the dev team - lecturing the CIA?? the originator, Satoshi Nakamoto is the smartest of the bunch - he keeps a low profile
  • At the moment I see Bitcoin as not antithetical to PMs at all. Indeed there is commonality of intentions
  • I will continue to hold physical PMs as a monetary store of value
  • However Bitcoin as an exchange mechanism is, in theory very compelling and deserving of attention

JMVHO

 

 

 

Sun, 03/17/2013 - 13:39 | Link to Comment malek
malek's picture

I have not wasted time to read long articles on the (supposed) workings of bitcoin, but no one pimping bitcoins so far has even touched on:

- For a medium with no inherent value, there has to be an open, observable market to determine the valuation. And by that I mean a market of observable trades, not just bids (hello stock exchanges and HFT!)
Where is that in existence for bitcoin?

- An open observable market automatically becomes a SPOA (single point of attack) for government regulation.
How does bitcoin believe it can avoid such?

As long as all writers dance around those elephants, I can safely continue ignoring bitcoin...

Mon, 03/18/2013 - 10:20 | Link to Comment Long_Xau
Long_Xau's picture

Good point. At the moment MtGox is considered the standard for quoting the bitcoin price, but in reality you can buy/sell anywhere you can find a seller/buyer. Bitcoin is a currency and a payment system but not a market, so people should look elsewhere for market facilities. A peer-to-peer market, or better yet, a peer-to-peer social networking protocol that allows all kinds of interactions is the next disruptive technology thing on my wish list (I should not be just wishing that someone else did it, but acting, but I'm not sure yet how to contribute toward such a goal). This, of course, would also be very helpful with determining the real price of fiat currencies in precious metals, which is currently hard to do.

Lets see a few pros and cons for price discovery and analysis of the markets for precious metals and then the market for bitcoins:

Markets for precious metals
pros:

  • +many buyers and sellers and big amounts
  • +buyers and sellers found in many places

cons:

  • -strong pressure by people serving the fiat currencies against there being a big free exchange
  • -some fragmentation with differing prices due to tariffs, transportation costs etc.
  • -for the mostly monetary and not-very-industrial metals like gold (also high stock to flow ratio) you don't get much information about pricing looking at industrial demand
  • -hard to obtain good data about mining supply and mining costs

Market for bitcoins
pros:

  • +buyers and sellers found in many places
  • +mining supply is known and predetermined, mining costs can be estimated with relatively good precision from the hashrate (also see chart of miners' revenue minus estimated electricity and bandwidth costs: http://blockchain.info/charts/miners-operating-profit-margin)

cons:

  • -relatively few buyers and sellers and smaller amounts (amounts being themselves a function of the price)
  • -potential pressure by people serving the fiat currencies against there being a big free exchange
  • -you don't have a purely non-monetary demand like the metals have

A good solution for a free, open and observable market, such as one based on a peer-to-peer network, is desirable, but this issue is not inherent to bitcoin. Such a solution is needed not just for trading bitcoins, but for many things.

In any case, the best way for one to determine the market price is to watch fully completed trades between really trusted parties, such as oneself.

Your second point is also obviously valid for precious metals and almost everything else and asks for the same solution. Bitcoin at least allows for fully anonymous interacions without any risks related to a physical interaction. For example you can do a digital service AND get paid for it, both over an anonymized internet connection.

Mon, 03/18/2013 - 23:02 | Link to Comment malek
malek's picture

Thanks for the reply!

Read my first point again attentively:
For a medium with no inherent value, there has to be an open, observable market to determine the valuation.

That also implies that for a medium with some non-negligible inherent value, one can live somewhat without an open, observable market - you might not get a good price but will get something for it.
But for a medium with no inherent value it becomes a must.

The second point applies to everything and there is no solution that doesn't go at least somewhat contrary to point 1.
But once again with something of some inherent value you might be able to accept some trade-off on point 1.

Finally on your "anonymous interactions":
You must be joking. Anything fully anonymous by definition has nobody detectably responsible for it and is therefore worthless from a trust/reliability standpoint.

Thu, 03/21/2013 - 18:33 | Link to Comment Long_Xau
Long_Xau's picture

For a medium with no inherent value, there has to be an open, observable market to determine the valuation.

If you want to have such a market you can find it. It's up to you.
Just think what are the most basic elements that can form a market that is satisfactory for you. I suspect you'll find that just 1 or 2 connections would be sufficient for the bare minimum. Then, whether you want a trusted party that is comfortable disclosing its trades or trusted buyers and sellers that can and will fulfill the orders they've placed or anything else - really just look for it. Your social network is your market. Find appropriate trusted parties and don't buy bitcoins before you do.
No centralized structures are inherently required, so governments/gangs might find themselves having to pass "laws" that put most people outsite of the "law" and "laws" that are at the same time unenforceable. Well, so be it. That would show the true nature of things a little clearer. Sort of like legislative hyperinflation. Big, impressive claims, but little value.

BTW here are a few websites that show trade data (recent trades, order depth, etc.) from many Bitcoin currency exchanges:
http://bitcoincharts.com/markets/
http://bitcoin-analytics.com/
http://bitcoin.clarkmoody.com/
http://bitcoin.clarkmoody.com/ticker/ (lol MtGox is implying EUR/USD at 1.26566?)
I don't endorse any of these sources - you are responsible for deciding who you trust.

Finally on your "anonymous interactions"[...]

I should of said "pseudonymous", not "anonymous", my bad. Under a pseudonym one can earn a good reputation (e.g. Tyler Durden, Another, Friend of Another, Satoshi Nakamoto etc.) by doing valuable things and one can even be open and transparent about those things and still keep their real identity secret. It's worth taking small risks (e.g. reading their posts, reviewing their white papers) when they bet their good reputation (As opposed to taking substantial risks trusting a known person who is not transparent about the things that matter, e.g. Bernard Madoff, ... well the whole establishment goes here).
One can easily protect their pseudonymous identity from any abuse (like impostors) by using a digital signature (no third parties needed).

Sun, 03/17/2013 - 18:38 | Link to Comment pelerine
pelerine's picture

"Are we sure that Bitcoin isn't something floated by the government to sucker people into a digital currency that they will have complete control over once they get everyone in?"

 

And this is different from Visa and MasterCard... how, exactly?

Mon, 03/18/2013 - 01:43 | Link to Comment dark pools of soros
dark pools of soros's picture

well just think of bitcoins as anonymous paypal

Mon, 03/18/2013 - 06:26 | Link to Comment Long_Xau
Long_Xau's picture

I assume by "floating" you mean working on or cooperating from the outset. When was the last time you saw a government make an actual innovation, which is what Satoshi Nakamoto did (see: http://unenumerated.blogspot.de/2011/05/bitcoin-what-took-ye-so-long.html; this article is written in response to this: http://www.gwern.net/Bitcoin is Worse is Better)? When was the last time you saw anyone make an actual innovation specifically and solely to scam someone (note that later co-opting, debauching, attacking, etc. are still threats, which Bitcoin was designed to mitigate).

Even if there was any influence from un-free forces (government) the free guys win in the end. We, free people, now have the idea of how to make A purely peer-to-peer version of electronic cash [which] would allow online payments to be sent directly from one party to another without the burdens of going through a financial institution. and anyone can recreate his work, or make his own improved version, or use the idea in new ways.

It is their goal to have everyone using a digital currency

Their more cherished ambition would probably be to have everyone using a digital store of value. We are pretty close to that with the fiat currencies. They do try to maintain a pretense of a store of value for the fiat currencies. See E.O. 6102  - gold store of value was "fairly" replaced with dollar currency. In the short to medium term transactions in bitcoins are safe (I wouldn't promise you that for investments in bitcoins though - they are speculative).

Sun, 03/17/2013 - 04:16 | Link to Comment AE911Truth
AE911Truth's picture

ATG, "which would you rather have when push comes to shove, virtual electron money or real money"?

Which would you rather have as you try to move your wealth outbound through Greece / EU Customs, gold coins or bitcoin?

Mon, 03/18/2013 - 04:20 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

Exactly. People seem to forget that there are two aspects to bitcoin. One is a currency. The other is a transfer system. That transfer system is going to come in real handy when the shit hits the fan. It's hard to confiscate an encrypted file. 

Mon, 03/18/2013 - 04:14 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

which would you rather have when push comes to shove, virtual electron money or real money?

 

BOTH

Sat, 03/16/2013 - 22:16 | Link to Comment Borrow Owl
Sat, 03/16/2013 - 22:16 | Link to Comment Troll Magnet
Troll Magnet's picture

I'm going to be a contrarian here and predict that gold and silver will take a nosedive on Monday. Why? Well, the banksters won't allow them to explode. They will dump billions of paper PMs that they don't own to keep this bullshit going. This is all about their survival and they own the market.

Sat, 03/16/2013 - 22:48 | Link to Comment whotookmyalias
whotookmyalias's picture

Sold my paper silver and gold.  Will be happy to buy back into it once the banks hammer it down.  Not for long term, just for quick paper profits.

Sun, 03/17/2013 - 01:46 | Link to Comment prains
prains's picture

eventually you end up the suckker at the poker table and lose it all, you know that right

Sun, 03/17/2013 - 09:19 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

No worries.....he's uber quick. Weekend shenanigans don't worry him a bit.

Sat, 03/16/2013 - 22:49 | Link to Comment in4mayshun
in4mayshun's picture

Price dump will only hasten the comex default at this point

Sat, 03/16/2013 - 23:08 | Link to Comment Son of Loki
Son of Loki's picture

KY lube is going to sell out fast in the island.

Sat, 03/16/2013 - 23:22 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Ah, but China can buy up ALL the gold bullion and cause a simultaneous Gold run. THEN watch the bastards sweat!

Time to prep on everything!

Sat, 03/16/2013 - 23:52 | Link to Comment booboo
booboo's picture

Sorry G-man but I traded my gold for food and consumed the food but the septic tank is over there and you are welcome to pick the corn and peanuts out of any turds you can find. 

Sun, 03/17/2013 - 09:21 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Good to see the mass hysteria hasn't set in........yet.

Sun, 03/17/2013 - 01:50 | Link to Comment Taffy Lewis
Taffy Lewis's picture

I hope you are right, Troll Magnet.

I have lots of dry powder fiat that I wanted to buy gold at $1500. If it stays the same or goes down, I know what to do. If it goes up, then I guess I'll have to think about it.

Sun, 03/17/2013 - 02:07 | Link to Comment Long_Xau
Long_Xau's picture

Will you bet money on it though?

Sun, 03/17/2013 - 03:02 | Link to Comment Antifaschistische
Antifaschistische's picture

Which reminds me...to remind others, including Cypriots..or whatever you call them.

I've said on ZH before, the reason we buy gold, silver, palladium, whatever is only marginally as a means of "STORING" wealth.   The reason I buy the stuff is to HIDE wealth from the great confiscators!!!   And yes, physical cash meets this qualification too but doesn't offer deval protection.  

Anything you have tied to your SSN cannot be hidden.   Wealth taxes aren't new...try buying a nice car in most states and get that penalty thrown on you.  They are coming after assets.

Sun, 03/17/2013 - 03:04 | Link to Comment Antifaschistische
Antifaschistische's picture

 

...and by the way...the biggest joke in the proposal is that it's a "one time tax".   Does anyone actually believe that!!

Sun, 03/17/2013 - 03:09 | Link to Comment cpzimmon
cpzimmon's picture

I tried to download the Bitcoin Wallet and stuff and recieved a free computer virus. I'm serious! It's a warning!

Sun, 03/17/2013 - 03:09 | Link to Comment cpzimmon
cpzimmon's picture

I tried to download the Bitcoin Wallet and stuff and recieved a free computer virus. I'm serious! It's a warning!

Sat, 03/16/2013 - 21:20 | Link to Comment Thomas
Thomas's picture

Boston Consulting Group are the same guys who helped Pfizer do major restructuring (divesting) recently. These guys get around.

Sat, 03/16/2013 - 21:33 | Link to Comment Pegasus Muse
Pegasus Muse's picture

So when do they start hanging politicians and banksters?

Sat, 03/16/2013 - 21:41 | Link to Comment akak
akak's picture

When PIIGS have wings.

Sat, 03/16/2013 - 22:39 | Link to Comment mt paul
mt paul's picture

when pigs 

have pontoons ...

 

ie

pig river somewhere 

in china

Sun, 03/17/2013 - 00:10 | Link to Comment The Heart
The Heart's picture

"When PIIGS have wings."...and are flying over the skies of America.

Sat, 03/16/2013 - 21:46 | Link to Comment prains
prains's picture

"and" is not required, one rope fits all

Sat, 03/16/2013 - 21:58 | Link to Comment ATG
ATG's picture

re "1929 onwards prooved to be a great time for gold mining stocks and gold.":

We were on a government gold standard then, leading to Executive Order 6102 with ten years in prison:

http://en.wikipedia.org/wiki/Executive_Order_6102

How many people today would turn in their gold or guns?...

 


Sun, 03/17/2013 - 00:17 | Link to Comment The Heart
The Heart's picture

Machines, Solar effects, Comets, and more. Banksters playing money-changer games to the tune of falling empires. Babylon prepares in earnest for the fall.

Gold down...Cyprus...is this the beginning of it all?

Sun, 03/17/2013 - 07:41 | Link to Comment PMakoi
PMakoi's picture

Ha, I hadn't thought of that!  I'll have to get my map out and look at that.  The Leviathan!  Perhaps crashing Cyprus is an oil grab??

 earleflorida had written, "indeed, but the 'Levant Basin' holds great leverage as a floating archipelago... goes ?"

Weird, this post got placed not under the comment on the Levant basin as I had clicked. Sorry it appears out of order.

Sat, 03/16/2013 - 21:47 | Link to Comment RockyRacoon
RockyRacoon's picture

We're obviously better than everyone else, and the laws of mathematics don't apply to us.

Neither does the rule of law it appears.  This is one hellaciously deep rabbit hole.

Sat, 03/16/2013 - 21:59 | Link to Comment Rogue Trooper
Rogue Trooper's picture

Exactly, role on 2016, Btiches.... no more 'red' or 'blue' team b/s but one new team that is the colour of SHIT.

I, for one fuckin' give up, let's just go all in with a new party of BROWN and lets get this over with

CORZINE / HOLDER '16

Campaign tune (apologies to Matt Stone & Trey Parker)

 

BANKING ISN'T FREE

What would you do
If you were asked to give up your dreams for financial freedom?
What would you do
If asked to make the ultimate sacrifice?

Would you think about all them people
Who gave up everything they had?
Would you think about all them bankers?
And would you start to feel bad?

Banking isn't free
It costs folks like you and me
And if we don't all chip in
We'll never pay that bill
Banking isn't free
No, there's a hefty in' fee.
And if you don't throw in your buck 'o five
Who will?

What would you do
If someone told you to fight for Bankers?
Would you answer the call
Or run away like a little ?
'Cause the only reason that you're here
Is 'cause folks borrowed for you in the past
So maybe now it's your turn
To pay up what you owe?

Banking isn't free
It costs folks like you and me
And if we don't all chip in
We'll never pay that bill
Banking isn't free
Now there's a hefty in' fee
And if you don't throw in your buck 'o five
Who will?

You don't throw in your buck 'o five. Who will?
Oooh buck 'o five
Banking costs a buck 'o five

Sat, 03/16/2013 - 22:18 | Link to Comment SilverFish
SilverFish's picture

That was far gayer than the original.

Sat, 03/16/2013 - 23:25 | Link to Comment Rogue Trooper
Rogue Trooper's picture

And so it should be.... by 'gayer' I assume you meant 'happier'.

Amerikan's! Vote Corzine/Holder in 2016 and this time it will really be different!

Sat, 03/16/2013 - 19:17 | Link to Comment Ms. Erable
Ms. Erable's picture

Because the US is just one big Room 101. 2+2= whatever the fuck we say it does, Winston.

Sat, 03/16/2013 - 20:35 | Link to Comment Oldwood
Oldwood's picture

Exactly,and they only have the dial turned up to 40 so far. Just wait, 2+2 will equal 22 before this is over. Five is so 1984.

Sun, 03/17/2013 - 00:23 | Link to Comment The Heart
The Heart's picture

Respect Oldwood.

Even more Orwellian than that is, all those who have worked so hard all their lives for a future will lose it all when it comes to that future, and those who have nothing all their lives will gain it all. Really sad when you conceive that. Kind of like, the meek shall inherit the earth.

Sun, 03/17/2013 - 08:43 | Link to Comment Room 101
Room 101's picture

INGSOC will not rest until the whole world is made perfect.

Sat, 03/16/2013 - 20:09 | Link to Comment savagegoose
savagegoose's picture

 you aint seen the  US  high skool math scores lately have you?

Sat, 03/16/2013 - 21:44 | Link to Comment prains
prains's picture

Joe D

 

It's the benank factor, he likes to counted above and beyond everyone else

 

something to do with being special as a child

Sat, 03/16/2013 - 22:14 | Link to Comment yatikto
yatikto's picture

you sir, are a detail oriented individual...

Sat, 03/16/2013 - 21:57 | Link to Comment Peachfuzz
Peachfuzz's picture

repeat post

Sat, 03/16/2013 - 22:12 | Link to Comment Buck Johnson
Buck Johnson's picture

I know, they are going to pull all their money out because this one time tax could easily be done again and/or Cyprus makes it impossible to get your money out later.  Can you imagine that you have 50,000 dollars in the bank and 7 or 8 percent of it is taken for a "one time tax" because of something you didn't do but your bank and other banks along with the govt. did by lending loans for a song.  I would take my money out and move it all somewhere else other than Cyprus.  They are going to have a bank run there and I wouldn't be surprised if there isn't other bank runs in other EU countries come monday.

Sat, 03/16/2013 - 23:26 | Link to Comment HulkHogan
HulkHogan's picture

Just wait for the 7 or 8 percent tax on USA 401K's and IRA's.

Sat, 03/16/2013 - 22:17 | Link to Comment LostAtSea
LostAtSea's picture

I hope your relatives are the first 5% in line at the bank...otherwise they ain't getting their money.  The other 95% are truly fucked

Sun, 03/17/2013 - 00:36 | Link to Comment The Heart
The Heart's picture

Bet we see long lines start to form on Monday.

Pray for these people.

They may be the first to have their funds stolen by the globalist bankster empire of endless war mongering for profit. America has it's turn coming also. How soon after remains to be seen. Could it be...coming to a summer near you soon?

Sun, 03/17/2013 - 04:26 | Link to Comment MisterMousePotato
MisterMousePotato's picture

I can't imagine that it isn't already resembling outside Wal-Mart on the day after Thanksgiving (here in the U.S.) outside some, if not all, of the European banks. Like right now. I mean, think about this. You bank at, oh, doesn't matter. You find out that BOA just took ten percent of their depositors dough. What would you do? Oh, yeah, sure ... "Honey, think I'll drop by the bank after work on Monday." Right.

Sat, 03/16/2013 - 23:05 | Link to Comment Son of Loki
Son of Loki's picture

If they can find it they will tax it---houses, bank accounts, etc. After all, someone has to pay for those 7 couse dinners in Brussels. I think property taxes will be very high on their list of taxes since the bankers and elites drool over foreclosing and repossessing on all those McMansions when the owner cannot pay the property tax hikes.

Sat, 03/16/2013 - 23:14 | Link to Comment Go Tribe
Go Tribe's picture

Michelle's wardrobe, hussein's gay lovers, bernanke's soft hand jobs. It all cost us our hard earned money.

Sun, 03/17/2013 - 01:00 | Link to Comment CheapBastard
CheapBastard's picture

RE is a sitting duck. They will tax the heck out of it. It's basically extortion since the property owner doesn't want to lose his house so he will cough up the tax increase...what can he do? He can't pick th ehouse up and carry it away ...or lose it in a boating accident

Sun, 03/17/2013 - 04:36 | Link to Comment Rip van Wrinkle
Rip van Wrinkle's picture

They can 'plan' all they want. They ain't gonna get much.

 

 

Sun, 03/17/2013 - 05:57 | Link to Comment mt paul
mt paul's picture

check this guy out

rightous indignation ..

 

http://www.youtube.com/watch?v=YDXtHsz2q6Q

Sat, 03/16/2013 - 19:12 | Link to Comment tmosley
tmosley's picture

Yes, tranny porn is gay, SEC employees.  Sorry :(

Sat, 03/16/2013 - 21:01 | Link to Comment DonutBoy
DonutBoy's picture

Yeah, but midget tranny porn - I dunno

Sat, 03/16/2013 - 21:35 | Link to Comment francis_sawyer
francis_sawyer's picture

If any of you homos, touch me, I'll kill ya...

Sat, 03/16/2013 - 22:22 | Link to Comment Osmium
Osmium's picture

Sargeant Hulka.  "Lighten up Francis."

Sat, 03/16/2013 - 22:25 | Link to Comment SilverFish
SilverFish's picture

Lighten up, Francis.

Sat, 03/16/2013 - 22:35 | Link to Comment francis_sawyer
francis_sawyer's picture

POPE Francis!... But my friends call me 'POPE Psycho'... Any of you call me Pope Francis & I'll send a crusade after your ass...

Sun, 03/17/2013 - 09:02 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

Big toe bitches...............

Sun, 03/17/2013 - 09:03 | Link to Comment Ms. Erable
Ms. Erable's picture

See you at Hattin, crusader bitchez!

Sun, 03/17/2013 - 09:23 | Link to Comment francis_sawyer
francis_sawyer's picture

We zip in ~ We zip out... It's like goin' in to Wisconsin...

Sat, 03/16/2013 - 23:17 | Link to Comment freshfart
freshfart's picture

No, we're not homosexual, but we are *willing to learn*. 

Sun, 03/17/2013 - 01:10 | Link to Comment Dingleberry
Dingleberry's picture

"do you mean flaming"?

 

Sat, 03/16/2013 - 23:38 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Francis, Sulu tells me he'll save you and beam you up. Kirk out.

Sun, 03/17/2013 - 07:01 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

Oh no you don't. Sulu doesn't get to do the beaming. Scotty gets to do it.

Sat, 03/16/2013 - 19:35 | Link to Comment Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

markets will be interesting on monday; expect periphery euro financials to take a dive

Sat, 03/16/2013 - 19:44 | Link to Comment disabledvet
disabledvet's picture

i agree. the folks loving those 12% returns just got told "that bank is going to be made bad now." or is it "more honest"? what's the difference now anyways right? sorry but i'm not investing in Russian debt here either.

Sat, 03/16/2013 - 23:31 | Link to Comment HulkHogan
HulkHogan's picture

Half a Bill, this is bullish. Everything's fixed. Will end the day green.

Sun, 03/17/2013 - 00:57 | Link to Comment syntaxterror
syntaxterror's picture

GREEN and a NEW RECORD close on Monday fer sure.

Sat, 03/16/2013 - 19:44 | Link to Comment El Oregonian
El Oregonian's picture

You mean the freakish, fags, at the feds... (Which BTW, consists of low-life Luciferian ludites knobbing and kneeling at each other's knickers, needing to gnaw on every neanderthal's nutsackable nectar there)

"BLOW ME BENNY 'BACKCHUTE' BERNANKE"

BLOW ME, BLOW ME, BECAUSE YOU SUCK!!!

Sat, 03/16/2013 - 22:38 | Link to Comment jusman
jusman's picture

Nah...we went to Myconos and had a good time!  Not Cyprus!

 

Sun, 03/17/2013 - 01:27 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

edit:
Hi mom......!
Be home at 11:30.....
Ps ...rest up lots so we can go to the bank early on Monday to empty your/our account...

Sat, 03/16/2013 - 18:49 | Link to Comment McMolotov
McMolotov's picture

Today strikes me as a day we might look back upon and think, "that was the tipping point when it all changed." It's like they're just throwing it in our faces at this point, flaunting what they believe they can get away with.

Smells like 1914.

Sat, 03/16/2013 - 19:02 | Link to Comment Piranhanoia
Piranhanoia's picture

"Mr. Hitler, please use the white, red or black courtesy phone"

Sat, 03/16/2013 - 19:57 | Link to Comment Martial
Martial's picture

I think it's time for another one of those Hitler subtitle parodies.

Sat, 03/16/2013 - 23:30 | Link to Comment Praetor
Praetor's picture

Er.. my fuhrer...Steiner couldnt get the deposits moved out before the confiscation....

Hitler...everyone who got their money out of Cyprus please leave the room now..

Sun, 03/17/2013 - 04:33 | Link to Comment MisterMousePotato
MisterMousePotato's picture

Actually, it seems more likely that, at that particular moment, Hitler might be wanting a little tete-a-tete with everyone who DID get their money out of Cyprus.

Sat, 03/16/2013 - 21:28 | Link to Comment Sudden Debt
Sudden Debt's picture

“As it is a contribution to the financial stability of Cyprus, it seems just to ask for a contribution of all deposit-holders,” said Jeroen Dijsselbloem, the Dutch finance minister, who chaired the bail-out meeting. “We are not penalising Cyprus, we are dealing with the problems in Cyprus,” he added.

This was not a Cypriotic descission. Never forget this.
Test 1, 2, 3... Test Test....

Sun, 03/17/2013 - 04:56 | Link to Comment Vlad Tepid
Vlad Tepid's picture

Reminds me of when the Munich Pact dealt with the problems of Czechoslovakia without asking the Czechs...or the Slovaks.

Sun, 03/17/2013 - 08:25 | Link to Comment francis_sawyer
francis_sawyer's picture

or the 'Indian New Deal'

Sat, 03/16/2013 - 22:30 | Link to Comment fonzannoon
fonzannoon's picture

one thing is for sure, they knew they were risking a bank run, and they did it anyway.

Sat, 03/16/2013 - 23:18 | Link to Comment Mike in GA
Mike in GA's picture

That's what gets me...you KNOW they considered all possibilities and ramifications then still chose this one.  What does that tell you about how bad it must be behind the scenes (where the truth is at least discussed) and in those meetings?

Monday meetings are gonna be so bad our DHS is shipping over some of those neato MRAPS for your smaller, squad-size meetings.  Being as how they're all fireproof and bulletproof and all.  Heck, they'll probably throw in a little hollow point ammo to get the morning off to a rousing start.

Sat, 03/16/2013 - 23:53 | Link to Comment saulysw
saulysw's picture

Reminds me of the Lehman Brothers weekend. They thought that it was ok to let that one fail, and look what happened. Will this be the straw that breaks the EU banks backs?

Sun, 03/17/2013 - 06:25 | Link to Comment Supernova Born
Supernova Born's picture

They WANT a bank run.

Cypriots are lab rats.

They are rehearsing the big show in a relatively controlled environment.

Sun, 03/17/2013 - 03:18 | Link to Comment e-recep
e-recep's picture

"one thing is for sure, they knew they were risking a bank run, and they did it anyway."

so things must be really really bad behind the curtains.

Sun, 03/17/2013 - 01:43 | Link to Comment Henry Hub
Henry Hub's picture

***that was the tipping point when it all changed***

"Baby, Baby, Baby we're out of time." - the Rolling Stones

http://www.youtube.com/watch?v=e0Z13Z98q4c

Sun, 03/17/2013 - 11:47 | Link to Comment grid-b-gone
grid-b-gone's picture

I just watched three Sunday morning news shows and there was not a single mention of Cyprus. This was not a simple oversight, I would guess.

Funny, how as I grew up the domino theory, even for very small countries, was important enough to die for, and now the argument will be that small economies have no possible relation to future economic events in large countries, especially the ones in a solid recovery. 

Interesting times.

Sat, 03/16/2013 - 18:50 | Link to Comment Bad Attitude
Bad Attitude's picture

Don't forget food. Buy shelf-stable food you will actually eat. Buy shelf-stable food that requires minimal preparation. Make damned sure you have drinking water, too.

Sat, 03/16/2013 - 18:54 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

This could be the beginning of the end or the end of the beginning.   Either way we're phucked.

Sat, 03/16/2013 - 21:00 | Link to Comment Money Squid
Money Squid's picture

Thank you. I took your advise and just bought a shit load of eggs and milk. Enough to last me for months.

Sat, 03/16/2013 - 21:38 | Link to Comment Spastica Rex
Spastica Rex's picture

I bought a bunch of frozen turkeys. Hope my freezer keeps running.

Sat, 03/16/2013 - 21:42 | Link to Comment francis_sawyer
francis_sawyer's picture

You should wait until the day after St. Patty's Day [when all the unsold corned beef goes on sale]... Or after Easter [when you can get the unsold hams]...

Sun, 03/17/2013 - 00:53 | Link to Comment The Heart
The Heart's picture

"You should wait until the day after St. Patty's Day [when all the unsold corned beef goes on sale]... Or after Easter [when you can get the unsold hams]..."

Dog gone Francis, that is about the best financial advice ever spoken.

Thank you for being real and honest saying this most important statement.

There are these times to stock up and indeed, these two holidays are excellent buying for term storage opportunities considering everything is going to continue to skyrocket in cost. Just don't forget to get chocolates, and candies that are also after holiday sale priced. People are fast falling into places of fear and forget there are children involved in this also. They will go through hell as the transition to a totalitarian regime takes place. A little candy and reminders of normalcy will go a long ways in a country gone to war with it's own citizens. Those children that make it through these changing times will have many tales to tell like those in nazi germany did. Let some of them be of sweetness, and of times we held dear.

Bless.

Sun, 03/17/2013 - 06:02 | Link to Comment stacking12321
stacking12321's picture

scratching my head, trying to figure out if this is sarcasm.

Sun, 03/17/2013 - 08:43 | Link to Comment francis_sawyer
francis_sawyer's picture

I doubt Heart is being /sarc...

~~~

It's just solid money saving advice [take it or leave it]... The 'added' part about the chocolate is correct as well [probably the best time is post-Valentines Day or]... The 'short list' on savings [for storage] would be roughly as follows:

- New Year's Day [selected booze]

- Super Bowl Sunday [assorted snacks]

- Valentines Day [chocolate]

- St. Patty's Day [corned beef]

- Easter [hams, or other holiday roasts & chocolate]

- Cinco de Mayo [Mexican foods]

- Memorial Day [hamburger meat & buns [which you can freeze], pork ribs, chicken, & chicken parts, sauces]

- 4th of July [same as MD]

- Labor Day [same as MD & 4th of July]

- Halloween [assorted candy]

- Thanksgiving [Turkey's, certain canned goods]

- 'Festivus' [holiday roasts, also 'baking items' like flour, sugar, baking powders]

All that stuff is always discounted, sometimes deeply, after holidays...

 

Sat, 03/16/2013 - 21:48 | Link to Comment prains
prains's picture

I bought a bunch of frozen turkeys. Hope my freezer keeps running.

 

i just stick mine in the snow, it's free too

Sat, 03/16/2013 - 22:07 | Link to Comment Spastica Rex
Spastica Rex's picture

I like my salmonella medium rare - brown on the outside, gray and rubbery in the middle.

Sun, 03/17/2013 - 01:10 | Link to Comment prains
prains's picture

LOL

but really what's so funny is that you guys don't know the kind of snow I'm talking about, fuck man its two feet deep not lawn sprinkle. You die in this shit, so yes when i say its free i mean it.

Sat, 03/16/2013 - 23:27 | Link to Comment Creepy Lurker
Creepy Lurker's picture

LMAO! Ever read Lucifer's Hammer, Spaz? I just bought a bunch of Stouffer's frozen dinners, they were on sale! Now I'm off to pack a suitcase full of make-up and pantyhose in case we have to bug out.

 

I'll be chuckling over that all evening, LOL.

Sun, 03/17/2013 - 00:40 | Link to Comment fuu
fuu's picture

Don't forget to stash your books in the septic tank.

Sat, 03/16/2013 - 21:51 | Link to Comment francis_sawyer
francis_sawyer's picture

You can actually rub mineral oil on eggs and if you store them in a cool dark place, they'll last for quite a long time [even up to a year]... Or, long enough to raise some hens... & there's always powdered milk [but it's very expensive]...

~~~

Note: You can test the idea out for yourself on eggs... In the end ~ just do the float test on them... A bad egg will float... Amazing all the 'low tech' that has been forgotten in the past generation... Half the MF'ers around here are probably racking their brains wondering if they'll be able to buy an egg with a fucking bitcoin on FARMVILLE...

Sun, 03/17/2013 - 07:39 | Link to Comment tip e. canoe
tip e. canoe's picture

nice tip on the eggs Francis

Sun, 03/17/2013 - 08:47 | Link to Comment francis_sawyer
francis_sawyer's picture

If you do it ~ Try to use FRESH eggs that you get from a hen house if you've got a source... The eggs that are in the supermarkets are widely varied in terms of how fresh they are [some are up to 6 weeks old]...

Sun, 03/17/2013 - 09:59 | Link to Comment Ljoot
Ljoot's picture

Our eight chicks we got last April give us 6 to 8 eggs per day. Never thought I couild get tired of eating devilled eggs until of late!

 

The trick is not to wash the eggs when you collect them, and they stay fresh w/o refrig. Wash them and you'll have to refrigerate.

When their EOL nears, guess I'll find out how good an old hen tastes.

Sat, 03/16/2013 - 22:39 | Link to Comment WakeUpPeeeeeople
WakeUpPeeeeeople's picture

maybe a dozen laying hens and a milk cow would have been a better investment.

Sat, 03/16/2013 - 22:44 | Link to Comment francis_sawyer
francis_sawyer's picture

Maybe you live right next to 3 dairy farms...

~~~

& for that matter, if you're only looking out for yourself, a GOAT is possibly more practical than a cow depending on your layout...

Sun, 03/17/2013 - 04:30 | Link to Comment Parrotile
Parrotile's picture

Goats are far tougher than cows, a factor that might be important when vet facilities are thinner on the ground.

Also goats are really not very fussy eaters (yes, they WILL try to eat everything, which is a good reason to keep an eye on them - if only for their own welfare!)

So overall I'd go for one or more goats.

Sun, 03/17/2013 - 00:30 | Link to Comment MsCreant
MsCreant's picture

Do the chickens get stuck on there? I did not know gorillas did that...

Sat, 03/16/2013 - 23:47 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Lana, don't you have Archer and ISIS as backup? ;-)

Sat, 03/16/2013 - 19:03 | Link to Comment Isotope
Isotope's picture

Meanwhile, in Japan...

From what I can tell, their total debt/GDP is somewhere around 450-500%. I think Kyle baby told us a few days ago how well that should play out.

On the bright side, they are radioactive now.

Sat, 03/16/2013 - 19:28 | Link to Comment Not Too Important
Not Too Important's picture

They now have a whole country of human fuel rods:

http://enenews.com/military-unit-severely-contaminated-after-fukushima-u...

They can just have everyone stand next to each other and generate electricity. Until they turn to ash.

Sat, 03/16/2013 - 20:00 | Link to Comment JohnnyBriefcase
JohnnyBriefcase's picture

Maybe that was the plan all along.

 

Just tie a buch of japanese corpses together and stick em in a pool of water. wait for water to boil, stick a turbine over it and win! Infinite energy!

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