German Commerzbank Suggests Wealth Tax In Italy Next

Tyler Durden's picture

While some argue that Cyprus was "one of the biggest money-washing machines for Russian criminals," and others that Cyprus ex-Pat community and energy resources brough deposits (not to say their high deposit interest rates), it seems the European Union (IMF et al.) have decided that the route to crisis stabilization, just as we outlined here over a year ago and updated here, is through a wealth tax.

However, as Handelsblatt reports, the gross distortions of wealth distribution among both core and peripheral nations (evident in the chasm between 'mean' and 'median' net assets - or wealth) makes some nations more 'capable' of 'giving' and as Commerzbank's chief economist notes, median wealth in Italy is EUR164,000 (as opposed to Austria's median of around EUR76,000 and mean of around EUR265,000) meaning that in theory Italy has no debt crisis (with net assets at 173% of GDP) - significantly more than the Germans at 124% - "so it would make sense, in Italy a one-time property tax levy," he suggested.

"A tax rate of 15% on financial assets would probably be enough to push the Italian government debt to below the critical level of 100% of gross domestic product." So there you have it, the 'new deal' in Europe, as we warned, is 'wealth taxes' and testing the "capacity of Cypriots" appears to be the strawman on what the public will take before social unrest becomes intolerable.

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Edward Fiatski's picture

Fucking idiots.

EUR$ 1.2000 THIS SUMMER - You better believe it.

THX 1178's picture

Is this all being done on purpose? It seems planned out. I mean are they TRYING to cause bank runs?

Edward Fiatski's picture

Yes. Crisis was almost "resolved", we need a new one - Don't let a crisis go to waste.

Don't forget China slowdown & a billion unemployed slaves that are soon to receive military conscription as a consequence of that, then we party for real, once the banking system of the Western world is in shambles and demand for SHIT we don't need with MONEY we don't have, collapses.

kaiserhoff's picture

It's like alimony.  It's the fucking you get, for the fucking you got.

Edward Fiatski's picture

Most will be choking in the clouds of thermonuclear radioactive fallout, so don't sweat it.

Manthong's picture

“Brisante Daten”

Um.  That may be a little prescient than they realize.

kaiserhoff's picture

A little C-4 in your horse meat, Herr Doktor?

Pinto Currency's picture

"A tax rate of 15% on financial assets would probably be enough to push the Italian government debt to below the critical level of 100% of gross domestic product."

And because governments destroyed wealth, the debt would again be above 100% GDP before you know it.

And then another "one time" wealth tax.

And so on, and so on.

Stoploss's picture

The fuckings will never stop.


Just like when you get done fucking, all you think about is the next fucking.

Don't even need to be educated to figure that out.


" The fuckings will continue until there is nothing left to fuck ".


That is all..

Lore's picture

Wait a minute... Cypriots and other Europeans are being herded into USD for "safe haven." 

But didn't Barry Saetoro likewise say something about "taxing the rich?"  JUST WAIT.

Enter the bobbleheads.

"Cyprus has put a little bit of a spin back towards safe-haven assets, purely as a result of a little bit of nervousness coming back into Europe." - Jonathan Barratt, CEO of Barratt’s Bulletin, a commodity newsletter in Sydney

nmewn's picture

"But didn't Barry Saetoro likewise say something about "taxing the rich?"

Yeah, I think he said something like that AGAIN just before jumping on OUR 747 and flying down here to Florida for some golf lesson with Tigger. If nothing else, he's consistently

And then this breath taking bit of recent sophistry to Georgie Stephanopoulos...

"And, y– you know– I think what’s important to recognize is that– we’ve already cut– $2.5– $2.7 trillion out of the deficit. If the sequester stays in, you’ve got over $3.5 trillion of deficit reduction already.

And, so, we don’t have an immediate crisis in terms of debt."

No, no crisis at all Barry. You've only ADDED 6 TRILLION IN GOVERNMENT DEBT IN FOUR YEARS for a total of approaching 17 trillion.

I don't think he has a fucking clue about the difference between deficits & debts. He's never run a business, never had to not cut himself a check in order to meet the payroll of his employees, never had to haggle over health insurance rates for his employees, always used someone elses money to make his living.


Totentänzerlied's picture

Precisely. A respectable government could spend that much in a few years, tops. "One time only" - never is. "Transitory" - isn't. "Temporary extraordinary measures" - aren't.

It's a slap in the face of the plebs. These governments have not made any credible or meaningful attempts to slow or eliminate deficit spending on a forward basis, they will be back at that "critical" 100% debt-to-GDP in fucking no time. Then - "whocouldanode?!" - another one-time confiscation.

Telemakhos's picture


There's a reason no one taxes wealth except out of sheer desperation.  From a scheming overlord's perspective, the people are like little investments: you can harvest a little off their growth (income tax or capital gains tax), but you never want to touch the principal (no wealth tax!), because you're guaranteed to get less from them in the future if you do, whether because of a newfound earnestness in evading taxes, or the rippling effects of lower consumption, or because there's suddenly less capital available for small businesses owners to do anything useful.

The jacked up sales taxes in Spain (IVA's at 21% now) were close to being this stupid, but there was at least an incentive to save with IVA; wealth taxes don't incentivize anything except for evading capital controls by refusing to deposit in any sort of pooling capital (fear of confiscation makes not only bank depositors timid, but every other kind of investor too).

transaccountin's picture

does anyone have an idea where silver will open tonight? thx

smlbizman's picture

up at first, than show you that losing 10% is a deal....

smlbizman's picture

and i just went thru apmex.....most bags are out, or very low inventory....most rolled avg circ. all values, very limited..philharmonics...mostly out...

smlbizman's picture

trans, ive never understood how asking a legit question gets a thumbs cant be a regular person...

akak's picture

It's probably just one of the mindless junkmonkeys who buttsurf through here from time to time.  Just ignore it.

Deacon Frost's picture

Thats right 'akak', government indoctrinated trolls, they slip through the ZH approval process, and are here to be 'agent provocateurs', rather than provide intelligent discussion.

Terminus C's picture

This is fight club ffs, junks, like bruises, are badges of honor.

DirkDiggler11's picture

I'm just guessing, but I would speculate your red arrow is due to APMEX.... They @ss rape you on pricing... Very high mark-ups over spot on gold and silver bullion products. On the plus side, they usually carry a lot of inventory and have many different offerings, especially for those that choose collectible coins over bullion.

SafelyGraze's picture

what we're working on is this:

negative capital gains tax

that way, if stock prices decline (which we think is very unlikely, but we need to hedge that risk), investors will pay tax on the amount of the decline.

after all, many investors abuse these declines in order to reduce their reported profits.

the negative cap gains will help close this loophole.


maybe 15%-30% of the loss. we're working with CBO on the details.


Sleepless Knight's picture

Love is blind but marriage is an eye opener. You know why divorce is sooo expensive?  It's worth it.

The Big Ching-aso's picture

All this is proof positive that The Stockholm Syndrome should now be renamed The World Syndrome.

Miffed Microbiologist's picture

For crying out loud. Every tread I go to seems to have angry divorced men pissed off with women. Aren't there any people here that are happily married or in good relationships? Shouldnt we all be out drinking green beer and enjoying st Patrick's day? For gods sake what am I saying. Today's my birthday and I have my family here to celebrate and they're all frustrated with me worrying about Cyprus and hanging out on ZH. Well, I guess I need a beer. Or maybe just bang a pot.


Totentänzerlied's picture

"Aren't there any people here that are happily married or in good relationships?"

Yeah I think I met one, once. Might've been a dream, then again.

StychoKiller's picture

I've been happily married since 1984, do the math.

Miffed Microbiologist's picture

Well, you've cheered me up. This year is my 30th anniversary and we've been together 36. I can't imagine life without my wonderful husband who just beams in joy when I come into his presence. Kinda makes the world we live in today easier to take. We have it a lot better than others here.


FreedomGuy's picture

The new Karl Marx: "From each (citizen) according to ability, to each (bank) according to need (and political influence)."

TNTARG's picture

Of course. If I get it right, since january 1, 2013 noninterest-bearing transaction accounts are no longer insured separately from depositors' other accounts at the same IDI.  Top insurance is now $250.000 per depositor.-

No safe net, people has to pay for what banks can't. Banksters bitchez!

umbertoz's picture

It is currency war. They want a weak Euro

Kirk2NCC1701's picture

THX 1178: to answer your question, ask yourself if the Euro fear hurts or helps the USD. Are Dr. Ben and Dr Paul happy or not? ;-)

franzpick's picture

I envision a secret meeting of desparate world bankers, realizing nothing else can be done, deciding to"trial balloon" a 10% seizure of deposits in a small country, to see if the public reaction can be contained so as to judge whether larger seizures of deposits could then be carried out on a multi-national basis.

So the answer is: Yes, it's planned out, and No, they're trying to determine what amounts of money they can seize WITHOUT causing bank runs.  It's that bad...

goldfish1's picture

Cyprus is in quite the geopolitical position. Certainly Russia must protect it's interests.

Wile-E-Coyote's picture

Haaa Haaaahh now we know why the Pope tried to do a runner. He must have got the nod from Merkel.

TheGardener's picture

Commerzbank suggests ! Freaking insolvent zombie bank
bailed out by the taxpayer and on government life support !

The walking dead infecting the rest with their gangrene !

NoClueSneaker's picture

ISDA Chief Joe Ackerman saved the CommerzCorpse throught his greek "non-default event ".

Shit Zombie Bank still in bussiness without any fuckin' collateral except empty bureaus all over the freakin' Europe. The shithole of the bank was a pioneer of scamming their own customers, selling them a shit and exporting the money of the über-richies to Singapoore - in the mid-90thies. German cocksucker payed 22 Bn. € for the crap, they're hedged with the Holly Ghost and still denying the gravity .

Is there some Paulson to short this shit of the bank with his hooker-budget ?

machineh's picture

Stabeeleetee, bItCHeZ.

Be thankful it's not 40% (yet).

lolmao500's picture

Italians, time to pay the mafia to off your government if they do that crap.

MsCreant's picture

Mafia: No need to pay, this one is on the house. Every few years you have to go to the matresses to clear out the bad blood.


"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. ... God forbid we should ever be twenty years without such a rebellion; what country can preserve its liberties if their rulers are not warned from time to time that their people preserve the spirit of resistance?  Let them take arms." -- Thomas Jefferson to William Stephens Smith, 1787

Lore's picture

That's also why I hate "green" Agenda 21. It's just a new flavour of mafia.  We have a systemwide problem of too many aspiring control freaks jockeying for local office in the belief that it entitles them to tell you how you ought to live.

Capital misallocation and destruction over the next couple of decades is going to be enormous. It's so UNNECESSARY.

Mitzibitzi's picture

I agree.

My take on it is;

I'm fairly environmentally conscious and go out of my way to re-use valuable raw materials in new ways (plus I'm cheap!). Leftover food goes in the dog, chickens or composter, depending on what it is. I drive a very fuel efficient diesel, these days. There's a 12v lighting system throughout the house (you don't need 200W of mains lighting to see your way to the bathroom at night!) And so on...

I'd obviously prefer it if everybody else made a similar amount of effort but, hey, it's each individual's choice at the end of the day.

I do reserve the right not to associate with or do business with anyone who clearly knows they live a wasteful existence but obviously doesn't give a shit, though. Don't feel the need to push some forceful green agenda - basic open contempt and ostracism would do the 're-education'  job perfectly well, if enough people took part.

bania's picture

Cyprus. Talk about a trial balloon.

Abraxas's picture

I really hope that Cyprus people (Cy-Prusians???) pull an Iceland on these MFs.

chubbyjjfong's picture

According to Icelanders, the real reason Iceland let the banks fail in the end is not because they were prudent, it was because they were forced too as their 'Powers That Be' fucked up their bailout procedure so bad that no institution could justify lending them money in all theiir calamity. But fucking top marks for the result, whichever way they got there.

granolageek's picture

There are fewer people in Iceland than ther.e are in Wyoming.

Thy government fell when the Reykjavik chief of police told the prime minister that his officers would not arrest their grandmother for banging pots together at midninght. And he was not stupid enough to tell them to.

McMolotov's picture

Jesus fucking Christ, pardon my French. Is this controlled demolition?

Ballin D's picture

Go to any MSM website and look for news relating to this. Most of what Ive seen puts a positive spin on it and takes up almost no front page real estate.

This could blow over in the rest of the world's eyes. Just like everything else will until people take their heads out of their asses.