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Could The "Cyprus Fiasco" Occur In The United States?
As has been assiduously explained by members of the European statist oligarchy, the reason for the deposit tax levy, in addition to the broader unsecured debt "bail-in" bailout of Cyprus, was due to the unique funding structure of Cypriot banks, in which the bulk of funding was in the form of deposits (whether Russian or domestic), leaving a tiny €2 billion in the form of junior bonds. Since the bailout would require realigning the balance sheet to a new, sustainable "fresh start" in which assets were remarked to a realistic value, it would mean impairing liabilities all the way down the capital structure. Naturally, politics played a big part in the decision to impair what Germany primarily saw as a Russian money-laundering haven, while local depositors were merely "collateral damage."
Politics aside, the bottom line is that the Rubicon has been crossed, and deposits have now been forcefully confiscated in what Europe promises to be a standalone case. What is certain, is that nobody will wait to find out how long it takes before Europe's class of increasingly more desperate and ill-meaning despots is found to be have lied once more (as it has about everything else since the start of the European crisis). And while the mainstream media will be focused primarily on Europe in the coming days, as BCG and we have warned, the topic of "wealth taxation" is now front and center, and it stars not only Europe, but the US as well.
The question then becomes: what does the funding structure of the US private depository institutions look like, and is there any possibility of Cyprus "wealth tax" recurring on the other side of the Atlantic. To answer this question, we present the summary layout of the consolidated US depository system, which according to the Fed's December 31, 2012 Flow of Funds report had a grand total of $15 trillion in assets, and a matched number of liabilities, of which 72%, or a total of $10.9 trillion was in the form of deposits (checkable, small and large time, and savings).
Visually, this looks as follows:
So, if the US was to go the Cyprus route, and begin impairing balance sheet liabilities to remark assets, there would be precious little space (with just $4.3 trillion in total other funding liabilities), before one would need to start eating into the deposit base, should Congress decide to implement a very "fair and just" financial asset tax in the US next.
Will Congress do this? Obviously, nobody can answer that question now. However, it was "absolutely certain" as recently as 48 hours ago that Cyprus too would see no depositor "bail in" either. Then things changed rapidly. What is known, is that according to the same BCG chart we showed last night, the necessary debt-reduction needed in the US to reach a sustainable debt level, was over $8.2 trillion using debt numbers as of 2009...
... Since then consolidated US debt has risen by over $5 trillion.
Which means that if, indeed, the US proceeds with its own wealth tax, then deposits may well be one "wealth class" that gets impaired. Of course, since in the US other financial assets, namely the stock market, account for a far greater proportion of household net worth, it is quite possible that instead of impairing deposits at US banks, which already subsist solely due to the Fed's $2 trillion in excess reserves, the government may instead choose to generously tax simple 30% of all of your stock holdings, and achieve the same "wealth transfer" result.
Why?
Because it's only fair, as the second coming of the glorious global socialist revolution has made it all too clear.
And remember this: there are no longer any rules, and any assets, any "wealth" saved, stored, and hidden is now fair game in the global forced wealth reallocation "game."
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They are already stealing saver's money via QE and inflation. So hell yeah, why not just outright take it?
You have it? I want it.
Mob rule requiring 51% of the people to decide to take everything from the other 49% (through elections) is too much trouble. Just take it.
That's why the US was founded as a Republic, and not "mob-rule" (e.g., "Democracy"), because there are limits on what the 51% (mob) is allowed to do.
But, we don't have any rules anymore.
It has been done already. Remember the retroactive tax increase?
They got away with it.
http://www.businessweek.com/stories/1993-08-29/clintons-budget-isnt-just-bad-its-unconstitutional
And, Dear Leader got reelected by promising to be Santa Clause and give free stuff to his supporters. Santa's "elves" are those of us who still produce something.
Forward [over the cliff]!
It wouldn't happen in the US until all the 'Billionaire Jews' had already safely transferred their funds to Puerto Rico & the Caymans... Oh wait!
There is a lot of truth hidden in there... Yes, the well-connected and the very wealthy will get most of their dough out in time. Maybe they will leave behind a few token banksters to be judged...
Don't be a victim, get some money out of the bank and buy some gold.
and an ocean-going yacht to get it to your favorite island paradise.
Cyprus is a tax haven.
This tax heist is going after dirty money- mostly dirty Russian money.
Will be interesting to see how wealthy Russians respond to this.
Maybe so, but..
1. They are as dirty as the “reformed commies”.
2. They whacked the little guy at the same time.
3. Using a corrupt process to steal from corruption to sustain a different corruption is evil.
4. This won’t end well for anybody.
The world is about to be Corzined. Beans, bullets and bullion.
Black swan?
The European snake is broke and eating its own tail for the sake of less than $10bn. Mr Putin can sail to the rescue with $20bn and some cheap oil and all he asks in return is somewhere to park his destroyers and a little private wrestling tournament with some energetic Cypriot maidens.
Okay, that's half of the deposits. The other half belongs to the actual residents. You'd surely be jumpin for jah if <your favorite TBTF of choice> just snipped 7% of your checkings account.
someone on Bruce Kasting's article and is familiar w/Cyprus banking pointed out that Cyprus is basically a "quick stop" for Russian/European $ on its way to the Carribean banks and that all of this Russian mob shit is just the MSM trying to downplay the significance of this $ grab(like the "they had it comin" lib media bullshit). alot of European retirees on Cyprus got whacked pretty good also.
buy stuff and hide it, bitchez
It's not just Dirty money, but a lot of Gray money -- money legally earned but undeclared (untaxed) because it came from businesses that deal a lot in cash.
The demographics of gray money includes small businesses, who are fed up with sky high taxes. Sound familiar? Isn't it amazing what you can learn, when you see the world in hi-res color, rather than low-res black & white?
Looks like it.
I wonder how much of it is Putin's and his buddies?
Maybe the Russians will have a heart-to-heart "discussion" with some of these Euro Banksters and do us all a favor! After all the Bolshevics were Khazarian "Jews" that killed Czar Nicholas and his family, brought in communism and set Russia back a century- and killed how many- 50, 65, 75 MILLION? Remember Stalin was one of THEM?
Just how much more of their shit are the real Russians willing to take?
Just like in Argentina when the elite exited in the middle of the night under armed gaurd with suitcases full of cash. All the regular people could do is pound the banks with pots.The rest of the world yawned, including myself at the time I'm sad to say. I was very naive and plugged in. i look around today and i dont see people with any spirit to fight or even wield a pot. This is a perfect time for them to rape the world.
miffed:-)
That pot banging was scary. My hotel was on a road leading to parliament (Av.5 de Mayo?) , basements all boarded up and
me taking a bus back to Brasil despite having prepaid the hotelier for yet another month to get half price. Everybody very sophisticated there, laughing all the way to their dollar accounts at foreign bank branches while talking on their cellphones for a dollar a minute. Did not quite work out.
The day before I left I found a large stash of cash (no joke!) lying in the street downtown and something told me to get out of there.
Those were the 'Argentine Jews' you speak of... Thereby ~ I rest my case from above...
+1 exactly!
Commoner 1: "You have my pot."
Commoner 2: "And my pan."
Commoner 3: "And my ladle!"
The hidden truth is that francis_sawyer wishes he was a billionaire jew.
'Billionaire' [valued in WHAT? joobux?]... FAIL [but that's all jews seem to know how to value themselves by ~ so be it]...
~~~
All this shit is comical... Jew bankers rape, pillage, & use the media & politics to propaganzide [I'll be NICE here and leave 'enslave' & 'murder' out of it]... Then ~ the minute somebody points a finger at them & says 'OH WAIT'... Their brainwashed corporals come out of the woodwork & have anuerysms...
Fucking comical... SERIOUSLY ~ I don't do it for the HATE... I do it for the PATHETIC COMEDY... Gotta have some fun around this fucking gulag...
I've often wondered why we don't invade the Cayman Isles. We could payoff the national debt, and anyone who complains can be sent to gitmo as an economic terrorist.
+1 - You can't fool me, there ain't no Sanity Clause.
-- Chico Marx
For the love of God, it's not a 51% versus 49% thing, much as some people like to simplify it. This isn't fucking mob rule; it's a tiny minority of kleptocrats stealing from everyone else, using the coercive power of government to accomplish that goal.
It's statists versus the proles, plain and simple. Government has a monopoly on the use of force, and the assholes at the top of the food chain have commandeered governments around the world and turned them against us. They use the meme of "mob rule" to distract us from that fact and keep us fighting amongst ourselves instead of directing our anger at the appropriate target: them.
"when their not swapping favors their swapping spit." absolutely spot on...i must say i an felt as though i should regret my diatribes at the "elites of today"...well, i do apologize but i just can't help myself. http://www.youtube.com/watch?v=PNcDI_uBGUo
Where were you during the last election? The proles elected their candyman candidates all over the U.S.
This is all far more insidious than it seems. The goal is to eliminate the middle class so that there is a massive permanent underclass and an incredibly small upperclass with control over every aspect of our lives. The easiest way to do this is to steal from the middle class and give to the poor. The poor will be grateful, and the people of the middle class — while angry — will lose that anger within a generation as their children grow up dependent on the system. The middle class work ethic and sense of self-reliance will, in essence, be bred out of existence.
The people who pull the strings are playing the middle and lower classes against each other, and since they are able to effectively direct the economy to benefit themselves and redistribute wealth however they see fit, the middle class will probably lose. It will eventually disappear. It's easy to think the poor are just being "takers." They are, but it's because the system has brainwashed them and made them dependent. With that accomplished, the next target is the middle class, and the soulless bastards behind the scenes will succeed if they can keep us distracted from their manipulation.
The oligarchs no longer need a middle class to buffer the trends toward communism and outright socialism that they faced in the early part of the 20th century. The proletariat small businessman and the upper level white-collar worker served as that buffer. With the relief from unionism and social justice upheavals, the powerful money-wielders can drop the hammer on that buffer class. The "middleman" has become superfluous. The old ways of fiefdom organization can resume. It was only a bump in the road to further harvesting of the workingman's sweat.
The age of industrialism and the advances in technology, all the fruits of entrepreneurship, have merely served to provide the rope to hang themselves with.
When I was younger, I came across a quote that significantly changed my world outlook in many ways.
Your narrative could be true. But a much more simple solution is greedy actors motivated largely out of self interest. Government always wants more control. The rich always want to be richer.
The tradition of promising free stuff is a time honored tool in politics. Kyle Bass's recent interview where he called out Karl Rove for buying votes with Medicare Part D is a perfect example. It invariably leads to collapse because it is not sustainable.
http://0.tqn.com/d/politicalhumor/1/0/J/C/2/worry-lines.jpg
This is not the first time in human history where the rich had a plan to get richer to infinity and blew up the system in the process, nor will it be the last. In 150 years, when we are doing it all over again, no one will be interested in reading all the books we write about it so people will still be just as gullible, just as uneducated, and just as screwed.
Regards,
Cooter
CrazyCooter
Malice and incompetence are not mutally exclusive. I prefer the malice theory with loads of incompetence evident.
CC - thanks for the quote, I like it a lot too, but only in theory. In practice I'll support Kayman's assertion. Remember that incompetence is an excellent front for malice, whether the two occur in the same person or among a group of people.
also: greed != incompetence
Sometimes the middle class is just one paycheck away from
the so called underclass...
I don't always agree with McM, but he has been spot-on in his above comments. His view mirrors my blogs that feudalism is coming back: FEUDALISM 2.0
The only other thing worth noting is that technology makes Mfg. blue collar jobs obsolete, thanks to the white collar middle class.
...and robots.
You assume no corruption of any consequence in the last election. I no longer believe that.
Divide and conquer... Distract and takeover
Hope & Change. Democrats voted for this. The RINO shit is just as bad.
useful poltical idiot; and a democrat I'll bet (until just seconds ago) ...
There are never any rules. We were just able to dress up this wild whore called anarchy with some fancy clothes and called it democracy. Now she's fiending for more with the makeup all smeared. A lot of suckers still think she's pretty but some people know who she really is.
The money grab is on to avoid default at all costs. What the idiots in power don't realize is that default would be a good thing, cleanse the system, rid them of their ivory tower jerbs, and bring back a balanced market.
Shrinking package size of food items is inflationary, just as taxing capital savings is currency devaluation. It is clear that default will be avoided at all costs. Owning PM's now becomes paramount to ones financial future, not for capital gain, but to avoid government theft. SILVER AND GOLD must be bought.
Taxation on the sale of Gold or Silver is brutal. No capital gains tax just ordinary income. So, Sell your Gold and you may get a 40% haircut.
Don't sell it...
'Sell your Gold and you may get a 40% haircut.'
Coincidentally, a 41% haircut is what Frank 'Gold Grabbah' Roosevelt applied, when he devalued the dollar from 1/20.67 ounce to 1/35 ounce of Au.
Like a dog who will happily fetch a stick all day, the elites never tire of imposing the same simple play over and over, ad nauseum.
Which cannot repeat itself now. It's a global market, and Asia will dictate the price soon enough.
Uhhh. NO. That collectible rate is the ceiling not the floor. Gold and silver have a reduced tax rate. Collectible tax rates are the max you will ever pay, not the minimum. Some people just repeat the nonsense they hear on CNBC without checking facts.
Don't sell your gold and silver. Barter with it.
Ahh, back to the glory days of gold and silver salvation! + $55,000 nope! Wealth taxes are much harder to collect if, erm, if some of us have, erm, 10 oz of gold stashed away...
Governments are by nature coercive. If they feel they NEED your money via a "one time" wealth tax (LOL!), why they will do it. Think Obama is different than Cristina Kirchner (who forced Argentines into putting private pensions into long-term Argentine bonds)? Think again. Even "George Washington" (above contributor to ZH) wonders about Obama...
no they do realize it - but they also recognize that it's not convenient for them,
When this is over and I`m still alive I will just cleanse
my blood stained hands in prayer at a monastery near that
lake. Disguised as a nun of course, me no boy lover.
Heard some of my direct ancestors had to give up large swaths of land to the church only to have the family resurface on the whole diocese as providing the bishops.
It is hard to trust in god these days but after you gave
away all that money of kings back to earth best covered
with lots of water you become more humble and breathe fresh
air in humility and all that smoke around you is just incense.
Since the inception of the Federal Reserve in 1913, the purchasing power of the dollar has declined by 95%. It has been a slow motion wealth tax. As soon as money velocity reverses its multiple years decline, we will experience hyperinflation which will destroy what little confidence is left in the dollar.
I had to thumb you down, because you spread incorrect numbers.
Purchasing power of dollar versus gold (purchasing power of gold is almost constant in very long term, so it is the best measure of overall 'purchasing power') went down 98% since 1971 ( 35 usd is about 2% of 1600 usd).
Since 1913, it is more than 99%..
You forgot to mention the Healthcare Industry, which is what, the fifth branch of government........fucking thieves.
Nine more months till you have to buy costly coverage ... or pay a fine to the IRS.
That's the U.S. version of Cyprus's 9.9% stability levy.
Big Health takes it, or the IRS takes it.
Time for your colonoscopy, serfs!
Since when do they ever do anything fair
I wonder what an ounce of silver is worth in Cyprus today?
Best question of the day?
Universal Answer: what ever someone is willing to pay
Could be less than half the spot price with the ATM addicts
just keen on contemporary cash. Kind of the cash for gold guys offering 30% after various "melting" charges and taking
the silver for free because of the heavy metal content disposal costs....
Last week Jim Willie said the collapse is at our door and a small trigger in Europe will start it. Cyprus is 0.2 % of Europe GDP!
Ultra-bear Jim Willie is one of the best reads around.
My sentiment exactly - At least they have the balls to steal it right in front of everyone's eyes and not through the myriad of twisted creative BS, that Bernanke & Co use.
Direct income tax=pre savings account tax.Isn't that outright taking?(Stealing)
It's only a matter of time. Our version will be confiscation of 401K and IRA accounts. They will tell you that you'll get your money at retirement in addition to a Social Security check which they are "saving" with 401K and IRA money.
Absolutely. Look for it immediately after the next stock market crash operation, "conversion of risky assets into stable, secure US Bonds is necessary to preserve the retirement security of the American people"...
I keep telling my parents the same thing. I've opened their eyes quite a bit over the past few years, but they think I'm a little paranoid for suggesting the government would blatantly rob from people's retirement.
Hopefully the shit in Cyprus, even if it is "way over there," will make them take the threat more seriously.
Your parents also probably think that a "well regulated militia" is unnecessary.
Odd how trust of the government is touted so broadly -- it's whistling past the graveyard.
My parents have been through all kinds of shits during their long lives but as progressives they never look back lest they could be blamed for causing or at least helping the whole evil thing by their underlying attitude. On history they start to listen and they will take their late wisdom to the grave after a life cheering up to unbelievable lies.
didn't kyle bass just say love for ones country is different than love for ones government?
OUT of .gov sponsored pensions (just an IRA in my case) since 2008! It CAN happen here.
Absolutely, my wife and I cashed out our retirement accounts and paid 100 grand in tax. It hurt like hell but I am so happy to be out of the system. Our wealth is now locked down and we sleep very well.
They didn't buy 2.2 billion hollowpoints for nothing................
Which is a great reason to get your own .40 now.
I like the way you think. I got two. You have to have a plan B. "Two is one, One is NONE"- that quote is for my tacticaly minded buddies.
more is always better
you call it socialism, he calls it fascism we all call it oligarcism
Plutocracy.
Neofeudalism or bankofascism.
plutocracy disguised by meritocracy
plutocracy...but rule by bankrupt plutocrats
It's a lot easier for the FED to keep "printing" money. The effects of inflation are only noticed over a period of time. Sort of like the boiled frog syndrome. No need to frighten people by throwing them into hot water.
Who needs new taxes on the rich when you can starve the poor with Fed-flation?
Of course it "could", the question is will it happen? I almost hope it does as maybe what it takes to wake the Sheeple.
I fear that the majority of sheeples are too heavily invested in the "it's not fair" narrative to give two shits.......
you were close...could...will.....correct word....when...
Why couldn't the ECB save the Cyprus banks like they have done all the others insolvent EU banks? Why take a different path this time? Is it time for a planned collapse?
Recall this about Lehman?
This time around, they think Cyprus is "too small" to cause catastrophic ripple effects.
Perhaps the big banks are in serious trouble, and require a bailout - and the expected flux following the scramble of Cyprus will enable the politicians to hand the big banks yet another blanko cheque.
''Perhaps the big banks are in serious trouble, and require a bailout - and the expected flux following the scramble of Cyprus will enable the politicians to hand the big banks yet another blanko cheque.''
Excellent point............One has to have eyes in the back of ones head to know what these bastards are up too...........
let's make an assumption. This week spanish and Italian debt sell off bigtime.
Who owns it?
I guaranfreakingtee you ekm is going nuts trying to figure that out.
In the future will it be called a "shitty deal?"
LOL LOL LOL
Reportedly the robbers demanded 40% at blank point. Made off with promises of much less. Lot`s of German bashing and rightly so but the mindset of Schauble is that he is the heir and custodian of all German savings which he wishes
to have adjusted by 90 % because they did not earn all that
money , somebody else did it for them.
They had the play on their own savers for so long they
innocently gave it away on supposedly illicit Russian deposits and thought this was a fair deal. They ( SPD Steinbruch Chancellor candidate) dreamed aloud about sending the cavalry to recalcitrant Switzerland for recovering flight capital . Switzerland caved in and by now is falling
into her own sword. Schauble on a roll, well the wheelchair
kind. Cripple everyone else , because all I hate more than myself is my tribe. Tax cheating bastards, they survived
all my confiscatory tax measures, they must be cheating !
You know, since they have legs they are cheating on me !
By the time this disease finally reaches the US and the
same kind of self-haters is not overcome make this : Sorry, we will take the lot.
Aaand, it`s gone.
In the movie Zero Dark Thirty the CIA buys a Lambo for a Saudi for a phone number. Who pays for the car? Obomber's admin steals the coin from us in the form of taxes, meanwhile we don't have a body do we? Do we know if he is even guilty for 9/11?
Yeah it can happen in the US. When you can't trust gov or media or law inforcement anymore, what have you got left?
Nada
also the most transparent president of the US is allowing any number of government agencies to have full access to everyone's financial records, with a sql command they can take one or many peoples savings. How's that for fund raising
NDAA ,fixed it for you.
U.S. secret black budget is now in the tens of billions.
That's OUR 'hot money' -- much of it distributed in cash, right off Ben's printing press, to the worst kinds of violent thugs.
David Cohen is laughing up his sleeve as Cyprus gets blamed for 'Russian hot money':
http://en.wikipedia.org/wiki/Under_Secretary_of_the_Treasury_for_Terrori...
F Hollywood and F TV. Both of them are Operation Mockingbird propaganda fronts for the elites. If you watch their shot - you enable The Matrix.
It could never happen here. Laws of economics and the ways of thieves do not apply once you cross the Atlantic ocean.
<sarcasm off>
6.75% of that 10.2Trillion will translate to :
$ 688,500,000,000
That is how the Banks will soon pass their stress tests! By taxing your deposits
The number above is nothing ... in otherwords, to break even you need a shortcut on the deposits worth 30% +
Technically they are going to tell me I'm paying for the pleasure of them risking it for me, without my explict consent.
Who wouldn't want to pay to have that done for them?!
when you corner the beast, it becomes very violent..
I mean think about, who needs to chase yield when all you can do is tax customers deposits to generate revenue! so very soon, when real FUBAR occurs, the savers will be looking for the bank that levy less tax on their deposits...
Sir, This shit is unprecedented... god help us all in the near future.
Aaaand "BOOM" goes the dynamite.
I am truly intrigued to the see the international market reaction to this. It MUST be bullish of course!
Well, with all due respect - when *redacted* pump several trillion of liquidity into the markets on strategic days - due to BARGAINS, GREAT BUYING OPPORTUNITIES, and MODEST P/E RATIOS - then that is pretty bullish.
Lets see, doller will go up, PMs down... Because...Bizarro World is backwards dow to hit new highs..
And who wont have a hangover here in the states due to St Pats day?
yes but the Shalom et. al. will have a much more appealing name for it than "up-front one-off security levy"
Wasn't MF Global, AIG, Lehman, LTCM warning enough that anything can happen, that nothing is safe?
Also, since some of the money that went "Poof" in Cyprus was also of foreigners, the idea that your stores of value will be safe in another country does not seem so likely now....
As the late George Carlin said "And, now, they're coming for your Social Security. They want your fucking retirement money. They want it back, so they can give it to their criminal friends on Wall Street....."
GM bond holders too took a 50% hair cut.....
Fuck that! The snake bought the fucking dip for 9cents on the dollar.
UV, agree with your 1st para., disagree with your 2nd para.
The point of geographic diversification needs no elaboration. But the "lesson" TPTB want us to learn, is to NOT invest/hide our assets from them in peripheral banks (like Cyprus)... better to keep it at home or FATCA-compliant countries. Brilliant psychology (against malleable people)!
But I for one, am not gonna drink their Kool Aid, and will figure out for myself how to allocate across asset classes, currencies, PMs and geographies.
The more diverse, the better the risk mitigation. Think shades of gray, not b&w.
to generously tax simple 30% of all of your stock holdings, and achieve the same "wealth transfer" result.
Meh. 0.1% of people own 80% of the stock market. Fuck em.
How does one tax an algo?
One can tax HFT... put a 0.1 cent tax on every sell/buy order. HFT will die within a day.
..and Dimon, Blankfein will approve of such blasphemy?
I think not
Government taxes solve NOTHING.
Government fucks up whatever they touch.
Adding a tax on trades makes HFT less profitable - but it's still profitable - and now the bloodsucking government gets paid for it.
Such a hugely regressive wealth tax could never make it through our legislature, imo. The only way I could see it being politically possible is if were specifically targeted at hot money and elite tax dodgers in the Caymans, for instance, and only if it exempted smaller account holders.
http://theeconomiccollapseblog.com/archives/the-global-elite-are-hiding-...
FDR didn't need no stinkin' legislature when he confiscated everyone's gold.
What concerns me is that now gold is supposedly "only for rich people," whereas it was simply a smart way for a person to retain the value of their savings during FDR's time. I don't think gold confiscation would cause nearly the uproar many people think it would because far too few people own any today.
If the government were to attempt the "Cyprus Solution," however, that would probably result in widespread anger, so the most likely course of action will be to continue to silently steal from everyone through inflation.
The only thing to fear is fear itself.
I don't understand the reasoning behind this article. Why the fuck would the U.S. govt take deposits when the Fed will gladly print and 'buy' toxic assets anyway?
Perhaps the same logic behind why the government is hiking taxes on the "wealthy", or why there are any taxes in the US, when the Fed is already funding half of the US deficit.
In other news, three very important words: "velocity of money" - what better way to stoke inflation than to create what (according to some) will be a modest bank run?
Thanks, but maybe 'logic' isn't the right word ;-)
i think your looking for the word Logigarchism,( not to prattle on too much)
I think 'catalyst' is the right word.
Only half?
Wealth transfer through printing/inflation isn't working fast enough. They need this liquidity now and therefore need to tap the savings resource faster - and outright confiscation is the next step. The Cyprus thing is a test run for the Eurozone. If the natives don't burn down their banks, this will be done in all southern Euro countries before summer.
Taxing the 'wealthy' is propaganda newspeak - they are only taxing those not wealthy enough to be in the elite.
Btw I'd like to add the term "savings resource" to the Newspeak thesaurus.
I'll see your, "savings resouce"; and I'll raise you, "fascism".
"If the natives don't burn down their banks,"
Don`t incite unnecessary global glaring while a box of matches is still just 10 cents...
Its not going to stoke inflation but it will increase mattresses being stuffed with cash and gold, which will have the exact opposite effect.
You don't think the FedRes is going to get caught left holding those crap
UST's long term do you ?
Ben has an exit plan;unload that crap on 401kdupes er investors.
Wow.
US Gov. backstops fed. Treasury makes Fed whole. Treasury seizes retirement acconunts by nationalizing the banking system. In the take over things are "reorganized" and social security is packaged in with the other forms of retirement accounts and pensions, with a haircut, cause hey, we gotta pay off the Feds, but don't worry, you'll get yours (heh heh).
My imagination goes on to the medical system, student loan system, housing cause hey, we collectively own it all anyway... what is passively socialized now becomes overtly so...
But fuck if they will touch military or public serpent pensions.
Starve the beast. Pull your money from the system. Buy what you need from locally owned shops and restaurants.
Preserve the tradition
Can't tax assets like stocks, they would need to be sold to get the money to pay the tax, the selling would crash the market. Stocks and realestate only represent wealth if the produce income, otherwise only a few can sell and realize that wealth. They are just bid up be the rich trading between themselves.
Sure they can tax stocks by just taking a percentage of the shares. Most stocks are in electronic accounts. If they take 33 1/3%, the only shares that need to be sold are the remainders after dividing by 3.
It's coming to Ireland soon.our people are being softened up to the point that they won't even whimper when it happens.sad.sad.sad.Msm tells them all is well and recovery is on its way.if it wasn't so tragic it would be funny.I guess it's the same in America.keep the masses subdued with icrap and Facebook and you can screw them from behind.hey ! Do you want freedom fries with that?
Cash in your IRA and join the IRA............Happy St. Patricks day!
The first country to throw off the shackles will go to the top of my emigration list. I was hoping it might be Ireland.
First one out will do the best.unfortunatly my bet is Germany...on a bank holiday weekend....
That country was Iceland
Iceland wasn't a member of the euro.their exit was not from the chains of the Ecb .they can manipulate their currencey to suit their own agenda.the euro is manipulated in tandem with the dollar and sterling to suit the agenda of an entirely different set of political elites.
"Oh! what a tangled web we weave
When first we practice to deceive!"
Too bad our stellar MBA financial wizards did not pay more attention to the Liberal Arts.
This is where trickfuck becomes clusterfuck.
We created a monster called central government and NWO.
The monster is hungry and needs to eat. Anything will do.
..and allowed The FED to entangle the planet with its BS
Are well informed people in the U.S. going to keep very much money in any kind of "banks" after yesterday? I know that ZHers won't. Has'nt this already started a very unintended "bank run" all over the world?
"Could The Cyprus Fiasco Occur In The United States?"
FDIC has already issued a public service announcement on the topic:
http://www.youtube.com/watch?v=JhrCPhYk5m8