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The Next Domino: Australia Doubles Tax On Retirement Savings

Tyler Durden's picture




 

Submitted by Simon Black of Sovereign Man blog,

Though Australia’s national balance sheet is comparatively quite strong, the government has been running at a net deficit for years... and they’re under intense pressure to balance the budget.

The good news is that Australia now has a goodly number of investor-friendly immigration programs designed to bring productive foreigners into the country, similar to the trend we’re seeing across Europe.

On the flip side, though, the Australian government has just announced new rules which penalize citizens who have responsibly set aside savings for their own retirement.

Any income over A$100,000 drawn from a superannuation fund (the equivalent of an IRA in the United States) will now be taxed at 15%. Previously, all such income was tax-free.

The really offensive part about this is that the government is going to tax people’s savings ‘on both ends,’ meaning that people are taxed on money they move INTO the retirement fund, and now they can be taxed again when they pull money out.

The Cyprus debacle drew a line in the sand– fleecing people with assets, or income, in excess of 100,000 dollars, euros, etc. is now acceptable. This is the definition of ‘rich’ in the sole discretion of governments.

And make no mistake– if it can happen in Australia, which still has reasonable debt levels despite years of deficit spending, it can happen in bankrupt, insolvent nations like the US.

As you may know, US tax code allows for several different types of retirement accounts… and there has been a lot of talk lately about a ‘Roth conversion’.

This is to say that a US taxpayer can convert his/her traditional IRA to a Roth IRA. And the implications are enormous.

A traditional IRA is not taxed on the way in, but it’s taxed on the way out. So if you contribute $3,000 annually to your IRA, you won’t pay income tax on that $3,000. But the accumulated retirement savings is taxed in the future when you withdraw the funds at retirement.

Conversely, contributions to a Roth IRA are taxed each year with the rest of your income. But the accumulated savings are NOT taxed when you withdraw the funds at retirement.

A few years ago, Congress inked a deal to allow US taxpayers to CONVERT their traditional IRA to a Roth IRA. In doing so, Americans were allowed to pay tax on the accumulated gains in their traditional IRA up through that point, then switch to a Roth.

Congress was essentially saying, “We promise that we will only tax you now in exchange for not taxing you later.”

It certainly begs the question: How much do you trust your government?

Can we really expect the country that has racked up more debt than any other in the history of the world to keep its word? Can we really expect that 5 or 10 years from now, they won’t make another grab for cash?

If the Australian government can unilaterally change the rules and start double-taxing retirement accounts, so can the US. And the trillions of dollars in retirement savings in the Land of the Free is far too irresistible for them to ignore.

 

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Mon, 04/08/2013 - 15:02 | 3423074 HelluvaEngineer
HelluvaEngineer's picture

Good thing they didn't confiscate all the guns in Australia.  Maybe the people can...

Oh, wait, nevermind.

Mon, 04/08/2013 - 15:05 | 3423083 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

come on now,  we all know that the good queen would not sleep well if her former prison colony was armed....  these things are not good for the empire

Mon, 04/08/2013 - 15:08 | 3423095 kliguy38
kliguy38's picture

Just don't buy Gold you fochin' blokes.......

Mon, 04/08/2013 - 15:27 | 3423199 Pladizow
Pladizow's picture

 

 

COVER: "GET READY FOR A WORLD CURRENCY"

Title of article: Get Ready for the Phoenix

Source: The Economist; 01/9/1988, Vol. 306, pp 9-10

THIRTY years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same currency. Prices will be quoted not in dollars, yen or D-marks but in, let's say, the phoenix. The phoenix will be favoured by companies and shoppers because it will be more convenient than today's national currencies, which by then will seem a quaint cause of much disruption to economic life in the last twentieth century.

At the beginning of 1988 this appears an outlandish prediction. Proposals for eventual monetary union proliferated five and ten years ago, but they hardly envisaged the setbacks of 1987. The governments of the big economies tried to move an inch or two towards a more managed system of exchange rates - a logical preliminary, it might seem, to radical monetary reform. For lack of co-operation in their underlying economic policies they bungled it horribly, and provoked the rise in interest rates that brought on the stock market crash of October. These events have chastened exchange-rate reformers. The market crash taught them that the pretence of policy co-operation can be worse than nothing, and that until real co-operation is feasible (i.e., until governments surrender some economic sovereignty) further attempts to peg currencies will flounder.

But in spite of all the trouble governments have in reaching and (harder still) sticking to international agreements about macroeconomic policy, the conviction is growing that exchange rates cannot be left to themselves. Remember that the Louvre accord and its predecessor, the Plaza agreement of September 1985, were emergency measures to deal with a crisis of currency instability. Between 1983 and 1985 the dollar rose by 34% against the currencies of America's trading partners; since then it has fallen by 42%. Such changes have skewed the pattern of international comparative advantage more drastically in four years than underlying economic forces might do in a whole generation.

In the past few days the world's main central banks, fearing another dollar collapse, have again jointly intervened in the currency markets (see page 62). Market-loving ministers such as Britain's Mr. Nigel Lawson have been converted to the cause of exchange-rate stability. Japanese officials take seriously the idea of EMS-like schemes for the main industrial economies. Regardless of the Louvre's embarrassing failure, the conviction remains that something must be done about exchange rates.

Something will be, almost certainly in the course of 1988. And not long after the next currency agreement is signed it will go the same way as the last one. It will collapse. Governments are far from ready to subordinate their domestic objectives to the goal of international stability. Several more big exchange-rate upsets, a few more stockmarket crashes and probably a slump or two will be needed before politicians are willing to face squarely up to that choice.

This points to a muddled sequence of emergency, followed by a patch-up, followed by emergency, stretching out far beyond 2018

- except for two things. As time passes, the damage caused by currency instability is gradually going to mount; and the very trends that will make it mount are making the utopia of monetary union feasible.

The new world economy

The biggest change in the world economy since the early 1970's is that flows of money have replaced trade in goods as the force that drives exchange rates. As a result of the relentless integration of the world's financial markets, differences in national economic policies can disturb interest rates (or expectations of future interest rates) only slightly, yet still call forth huge transfers of financial assets from one country to another. These transfers swamp the flow of trade revenues in their effect on the demand and supply for different currencies, and hence in their effect on exchange rates. As telecommunications technology continues to advance, these transactions will be cheaper and faster still. With unco-ordinated economic policies, currencies can get only more volatile.

Alongside that trend is another - of ever-expanding opportunities for international trade. This too is the gift of advancing technology. Falling transport costs will make it easier for countries thousands of miles apart to compete in each others' markets. The law of one price (that a good should cost the same everywhere, once prices are converted into a single currency) will increasingly assert itself. Politicians permitting, national economies will follow their financial markets - becoming ever more open to the outside world. This will apply to labour as much as to goods, partly thorough migration but also through technology's ability to separate the worker form the point at which he delivers his labour. Indian computer operators will be processing New Yorkers' paychecks.

In all these ways national economic boundaries are slowly dissolving. As the trend continues, the appeal of a currency union across at least the main industrial countries will seem irresistible to everybody except foreign-exchange traders and governments. In the phoenix zone, economic adjustment to shifts in relative prices would happen smoothly and automatically, rather as it does today between different regions within large economies (a brief on pages 74-75 explains how.) The absence of all currency risk would spur trade, investment and employment.

The phoenix zone would impose tight constraints on national governments. There would be no such thing, for instance, as a national monetary policy. The world phoenix supply would be fixed by a new central bank, descended perhaps from the IMF. The world inflation rate - and hence, within narrow margins, each national inflation rate- would be in its charge. Each country could use taxes and public spending to offset temporary falls in demand, but it would have to borrow rather than print money to finance its budget deficit. With no recourse to the inflation tax, governments and their creditors would be

forced to judge their borrowing and lending plans more carefully than they do today. This means a big loss of economic sovereignty, but the trends that make the phoenix so appealing are taking that sovereignty away in any case. Even in a world of more-or-less floating exchange rates, individual governments have seen their policy independence checked by an unfriendly outside world.

As the next century approaches, the natural forces that are pushing the world towards economic integration will offer governments a broad choice. They can go with the flow, or they can build barricades. Preparing the way for the phoenix will mean fewer pretended agreements on policy and more real ones. It will mean allowing and then actively promoting the private-sector use of an international money alongside existing national monies. That would let people vote with their wallets for the eventual move to full currency union. The phoenix would probably start as a cocktail of national currencies, just as the Special Drawing Right is today. In time, though, its value against national currencies would cease to matter, because people would choose it for its convenience and the stability of its purchasing power.

The alternative - to preserve policymaking autonomy- would involve a new proliferation of truly draconian controls on trade and capital flows. This course offers governments a splendid time. They could manage exchange-rate movements, deploy monetary and fiscal policy without inhibition, and tackle the resulting bursts of inflation with prices and incomes polices. It is a growth-crippling prospect.

 

Pencil in the phoenix for around 2018, and welcome it when it comes.

Copyright of The Economist is the property of Economist Newspaper Limited and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.

Mon, 04/08/2013 - 15:47 | 3423312 aerojet
aerojet's picture

Welcome it or rebel, I guess.  WTF?  Once the globalists have total economic control like this, do you really think individual liberty will be sustained?

Mon, 04/08/2013 - 16:13 | 3423439 MachoMan
MachoMan's picture

You can either fund them with the withdrawal penalties now...  or all of it later...  your choice (and I'm not sure they care...  which is why all the fearmongering to w/d).

Tue, 04/09/2013 - 00:34 | 3424924 TwoShortPlanks
TwoShortPlanks's picture

Australia's Gen-Y will save them!

As far as NWOs go, you people who point toward a not too distant horizon are kidding yourselves; not only is the NWO already here, the next cycle is going-down here and now.

Like I wrote earlier; "People talk about a coming New World Order...it’s not coming at all, it’s already here, and has been here for perhaps 300 years. What they are talking about is merely the next cycle within the existing NWO…nothing more!"...

..."If you believe this, then for you the truth is revealed; that the threat of a coming NWO is a False Flag event. It is a deliberate misdirection to distract you from the truth hidden in plain view. If you believe that a NWO may be coming, then by definition, you believe that a NWO cannot currently exist. This is precisely what they want you to believe. They do not want you to realize that the NWO has already been implemented incrementally over the past 300 years and especially since the propagation of the Global Central Banking Cartel "

They own the Central Banks already, they own most of the Gold already, they own all the currencies already, they have the world's governments in their back pockets already, they own the Intelligence Services, what they want, what they need, is for the world's population to be enslaved and reduced by 5.5 Billion.

All that is required is to smear the wealth across West to East, install World Policing Powers, remove gun rights, flip to a Global Backing SDR (ready to go already), and go 'Hard Treaty' on Agenda21.

They are now free to confiscate wealth in the form of currency (savings, super, whatever!), collapse wealth in the form of equity where only debt remains, and bleed off any value left in assets. If you don't believe this, get out from under that rock.

All this wealth will transfer into Physical Gold, not by a run of the public, but by BIS decree! Silver will benefit by proxy. 10oz is all you will ever need. The next generation will work their entire lives for just 1oz of Gold. If you don't believe this then do some math on annual mining rates divided by population, knowing all the above ground stock is already spoken for.

Logic: Mining rate is 1.5-2% of AGS/pa (Gold increases by 100% every 50-70yrs). Divide that by global population. All existing above ground stocks will be vaulted. Gold will not be traded, ergo, no Spot Price. Gold as SDR backing will need to be 100% so value must be above $134k/oz, initially. Later, once Bonds are supported, Derivative and Trade Account support will require SDR backing (Gold's Proxy) and all Gold will be centrally located to the BIS or CBs. At this time Gold price becomes completely meaningless as there is no free trade to assign a currency rate (every oz in the system will support over $1M today), Gold will have 'Good Will' value only and be assigned a value associated with a 'Commodity Basket'. There will be no $ sign attached to Gold, there will be an SDR to Commodity rate. This will lock-out ALL Private, Public and Commercial interests! Gold will be like air; invisible, priceless but 100% essential.

NOTE: The value of Gold is NOT in its' Spot Price when currencies die, it lies in the decades to follow when it is not traded, but sought to support the 'essential financial system' which remains as well as future expansion. Assuming home prices remain static (LOL), then 1/oz Gold will be equal to around 2 x average homes (related to Commodity Basket), therefore, an average wage saver would take 50-70 years to pay off 1/oz Gold, or, 1 Commodity Basket, or, 1Gld-SDR (number of oz's mined each year / currency expansion = 1Gld-SDR).

Here is your enemy:

The Custodial Framework
United Nations - Global Police
World Bank - Global Lender
International Monetary Fund - Global Debt Collector
Intelligence - Custodial Eyes & Ears (Mi6, Mi5, CIA, MSS, Mossad, FSB {KGB}, SIS, CSIS, ASIS, DCRI, BND etc)
Power & Control Centres - US Council on Foreign Relations, European Council on Foreign Relations, Club of Rome, Bilderberg Group, Royal Institute for International Affairs, Trilateral Commission etc.
Main Stream Media - Global Propaganda
Hollywood - Global Propaganda and epicentre for Alternative/Pagan/Kabbalic/Ancient Mystery Religious interests.
Agenda21 - ICLEI, UN, Club of Rome

The Custodial Network
Bank for International Settlements - Global Banking Computer Network for the movement and transfer of Global Currencies (the Back Bone)
London Bullion Market Association - Physical distribution and controlling agency of Gold (real wealth)
Central banking Network - Physical distribution and controlling agency of Global Currencies (medium of exchange for services, goods and labour)
Organization of the Petroleum Exporting Countries – Global distributor and controlling agency of Global Oil (consumable real wealth)

Tue, 04/09/2013 - 00:47 | 3425168 BigDuke6
BigDuke6's picture

Nice. if it a little paranoid for my tastes

As a fellow aussie all i can say is remember the stuff on ZH is USA centric.

it doesn't apply here in certain areas.. eg i fixed the interest rates on a couple of loans 2years ago after the hyperinflation chat here and have lost a stack.

things will take longer to hit oz

but this

"The good news is that Australia now has a goodly number of investor-friendly immigration programs designed to bring productive foreigners into the country, similar to the trend we’re seeing across Europe.''

Lefty socialists are always keen to invite the new elites into their country and fuck poor old Gen Y - dont u think?

Tue, 04/09/2013 - 01:50 | 3425189 TwoShortPlanks
TwoShortPlanks's picture

ZH is just one channel.

To get outside the system BRICS must scramble for physical Gold to back a Yuan SDR. China, Russia, India, Brazil are doing what exactly...hedging?

Ranga has been on all fours in China last week scrambling to establish a Yuan-AUD exchange, thus a AUD-to-Yuan/SDR.. The year before last year she was on all fours in the US offering Darwin access for US Military....Game changer or Light Bulb moment for the Office of National Assessments/ASIS?

Defence Signals Directorate states that Chinese entities have been hacking Aust RBA to gather Intel on "RBA's position on cash rates for next quarter" (LOL!). Let's get this one right, how about, Chinese military and University hacking Pools have been actively hacking the RBA to attain the RBA's position on Aust Gold Reserves as well as Cash Rate projections BEFORE Ranga flies over to China to get down and dirty. They are merely using Cyber-Intel to ascertain Aust Govs legitimacy for upcoming talks, and ongoing strategic alliance.

Allowing " investor-friendly immigration programs " is simply a PRE-TALKS BRIBE on China's new administration, and a crutch for Oz real estate, yes, at the expense of Gen-Y.

IMF is fighting to morph a Monetary Union into a Eurozone Fiscal-Politico Union. This is critical for the SDR!

The signs are everywhere.

Big Duke 6 says, "welcome out-a the Stone Age, son"

Tue, 04/09/2013 - 02:12 | 3425236 BigDuke6
BigDuke6's picture

Its clear RE will be protected at all costs here - reassuring? ... hmm.  Labour will scorch the earth with promises to the plebs between now and august

Gold is interesting to buy here as its more how the price changes in relation the the USD.

I'm gonna stack some more at US 1.05...  god help me. You a goldbug in these hard times?

Tue, 04/09/2013 - 05:51 | 3425362 TwoShortPlanks
TwoShortPlanks's picture

Fear-not, Australia is the Link Pin between the Empire and the East....and they aim to keep it that way.

Australia WILL eventually join BRICS.

I've not had much success in hoarding PMs...I keep loosing them.

Mon, 04/08/2013 - 15:55 | 3423353 McMolotov
McMolotov's picture

Engaging in a bit of tin foil hattery, isn't The Economist considered (by some) to be a mouthpiece for the Rothschilds? So the question then becomes whether this article was a prediction or a plan?

Mon, 04/08/2013 - 16:28 | 3423509 NotApplicable
NotApplicable's picture

"Directed history," as labeled by the fine folks over at the Daily Bell.

http://www.thedailybell.com/28952/Real-Evil-Attributing-the-Creation-of-...

Too bad Tyler doesn't have their site on the blogroll.

Mon, 04/08/2013 - 17:20 | 3423786 Buckaroo Banzai
Buckaroo Banzai's picture

“We shall have World Government, whether or not we like it. The only question is whether World Government will be achieved by conquest or consent.”. --James Paul Warburg, Feb 17, 1950, before the US Senate

Mon, 04/08/2013 - 15:54 | 3423354 vulcanraven
vulcanraven's picture

Isn't the Economist a Rothschild owned publication?

 

Connect the dots...

Mon, 04/08/2013 - 16:23 | 3423485 NotApplicable
NotApplicable's picture

As always, Maggie Thatcher's TINA rules.

They paint us all into a corner which they painted previously.

Mon, 04/08/2013 - 16:33 | 3423548 Dr.Engineer
Dr.Engineer's picture

Hell no!

Mon, 04/08/2013 - 17:45 | 3423892 Kirk2NCC1701
Kirk2NCC1701's picture

By "World Currency", they mean the SDR -- the ultimate fiat currency, par excellence!

Remember I've been saying for some time now that TPTB will eventually tank the fiat currencies together, to make way for the OneCoin?  Whereby YOU become the walking, talking Bitcoin?  Well, yesterday I saw a bunch of HSBC posters in an airport about The Future.  One of them really caught my eye and attention.

It showed your finger tip, with a Bitcoin-like stamp on it, and the caption: "Your DNA will be your data".

I rest my case.  Bitchez.

Mon, 04/08/2013 - 20:08 | 3424347 DosZap
DosZap's picture

By "World Currency", they mean the SDR -- the ultimate fiat currency, par excellence!

Remember I've been saying for some time now that TPTB will eventually tank the fiat currencies together, to make way for the OneCoin? Whereby YOU become the walking, talking Bitcoin? Well, yesterday I saw a bunch of HSBC posters in an airport about The Future. One of them really caught my eye and attention.

It showed your finger tip, with a Bitcoin-like stamp on it, and the caption: "Your DNA will be your data".

I rest my case. Bitchez.

WHEN this time comes, and only one form of (so called money is worth anything), it will not matter, as the END of the world as humans have known it will shortly be totally over.Take the mark, and your eternally screwed,refuse and die from starvation( a far superior way to go,than the other route).

 

Mon, 04/08/2013 - 17:48 | 3423901 twh99
twh99's picture

It may not be by 2018, but I assume eventually there will be one world currency.

 

Probably in Nicks though not Phoenix.

Mon, 04/08/2013 - 20:37 | 3424460 ATM
ATM's picture

There is already a world accepted money - gold.

Mon, 04/08/2013 - 15:28 | 3423231 knukles
knukles's picture

YoMommas budget due out this week is gonna have a proposal to tax any IRA withdrawals (in the aggregate) in excess of $205,000 at a higher tax rate than normal.

Get fucked for doing what you're supposed to... take care of yourself

Mon, 04/08/2013 - 15:47 | 3423315 johnQpublic
johnQpublic's picture

on a long enough timeline the survival rate for every retirement account drops to zero

Mon, 04/08/2013 - 22:19 | 3424748 CheapBastard
CheapBastard's picture

knuckles, maybe they are trying to push people into the Roth IRAs which are super-flexible and non-taxable over a certain age when you wothdraw I read. I notice that's where most Congress people have their loot stashed. Of ocurse, when you transfer your IRA to the Roth, you are immediately taxed on that amount.

I don't know...just guessing.

Mon, 04/08/2013 - 15:08 | 3423103 redpill
redpill's picture

Not far enough, these fucking savers need to be thrown in jail!  We can't stand idly by and let them horde precious resources that Chinese manufacturers need!

Mon, 04/08/2013 - 15:10 | 3423116 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

just makes sure the cost of the jail is cheaper than what they are fleeced of.

Mon, 04/08/2013 - 15:28 | 3423229 Thomas
Thomas's picture

There is another problem with the Roth IRA: You pay the very high "marginal tax rate" going in to avoid paying a much lower "effective tax rate" coming out. Nobody does this math but it obliterates the case for a Roth IRA, and now it is about to get worse.

Mon, 04/08/2013 - 16:17 | 3423453 redpill
redpill's picture

It also makes the flawed assumption that just because the government today promises that it won't tax you when you finally take it back out that they will stick to their word.  You think they would be above "making the tax code more fair" by double-taxing ROTH IRA money over a certain account size?  I can almost hear Obamafucker saying it.

If you're going to put it in a retirement account, take the tax refund while you can get it! 

Tue, 04/09/2013 - 11:54 | 3426753 phalfa5
phalfa5's picture

nice point(s) Thomas 

 

Mon, 04/08/2013 - 16:31 | 3423539 SmittyinLA
SmittyinLA's picture

The cost of jail is irrelevant if you can finance it and take a cut too

Tue, 04/09/2013 - 00:58 | 3425188 RafterManFMJ
RafterManFMJ's picture

Jail them?! That's going to cost money RP.  I say part them out...kidneys, eyes, hearts - all those parts add up to some very serious cashflow.

Mon, 04/08/2013 - 15:05 | 3423086 wee-weed up
wee-weed up's picture

The First Mattress Savings & Trust is looking better every day.

Mon, 04/08/2013 - 15:08 | 3423097 Winston Churchill
Winston Churchill's picture

I tend to the Bank of Posturepedic NA myself.

Mon, 04/08/2013 - 15:09 | 3423111 darteaus
darteaus's picture

"Golden Matress company; how may I direct your call?"

Tue, 04/09/2013 - 00:33 | 3425136 Plata con Carne
Plata con Carne's picture

California King Credit Union!

Mon, 04/08/2013 - 15:40 | 3423287 johnQpublic
johnQpublic's picture

theres a counting sheep while mattress stuffed with gold joke in here somewhere

Mon, 04/08/2013 - 15:09 | 3423105 Banksters
Banksters's picture

Why?

Oh, criminal politicians lie about their intent, spend money on nonsense, and then rape unwitting savers and retirees.  Where does a cut of it all go: TO THE PARASITIC BANKERS>

 

 

 

Mon, 04/08/2013 - 15:13 | 3423134 Inthemix96
Inthemix96's picture

Helluva,

What you lot doing with yours then?

Sweet fuck all mate.  Same as us plebs eh?

Mon, 04/08/2013 - 17:53 | 3423286 TheGardener
TheGardener's picture

My heart bleeds for Australia. Back in the eighties they
called off the introduction of a national ID card with the threat of a general strike. Now they `re most advanced
fascist corporate nation state with no more attacks on their commodity dollar. What a coincidence. Could be a colony on Mars, bad science fiction movie stuff.

What happened to the robber barons ? Some dead, some still rule the world , having left the prisoners colony behind them for New World Order. My name is Bond, well I`m gone.
But me they call me the murder-dog, well I`m an American citizen now and watch out your very word, I bought all
wording on the planet.

Agreed, mateship is volksheim is national socialism.

New world incoherence even in frontier states worth shit,
there is no place to run, nowhere to hide.

ANP being the last hope and killed by death squadrons (TRG),
what a hopeless outpost Australia has become.

Mon, 04/08/2013 - 16:43 | 3423592 hannah
hannah's picture

"Good thing they didn't confiscate all the guns in Australia."...confiscate..they didnt confiscate anything. those pussies turned their guns in willingly...ha! i didnt see any shoot outs or protestors. talk to an aussie and they will say that they are safe and dont want gun ownership....LOL.

Wed, 04/10/2013 - 05:41 | 3430012 awakening
awakening's picture

"talk to an aussie and they will say that they are safe and dont want gun ownership....LOL"

I am an Aussie, I don't feel safe and let alone just one gun would have loved to have my own private armory (I would have made a fortune on the prices of ammo today). While I don't have any firearms in my possession; I do know how not to shoot my own mouth off and make an ass out of myself (assume - make an ASS out of U and ME ) so would certainly handle them with far more respect then you seem to based off that little post of yours.

Mon, 04/08/2013 - 20:29 | 3424407 DosZap
DosZap's picture

Seems like the "ONE OFF", scheme has ENLIGHTENED some heretofore trustworthy gubs.I think WE all know where this headed.GET OUT ASAP.

Mon, 04/08/2013 - 15:03 | 3423079 duo
duo's picture

And my accountant wonders why I paid the 10% penalty...

Mon, 04/08/2013 - 15:05 | 3423087 Winston Churchill
Winston Churchill's picture

Before it becomes a 100% penalty.

Mon, 04/08/2013 - 15:07 | 3423089 LawsofPhysics
LawsofPhysics's picture

Indeed.  Shit, pay the 50% penalty or take the 150% haircut (after inflation).  Seems like a no-brainer.

Mon, 04/08/2013 - 15:11 | 3423123 Smegley Wanxalot
Smegley Wanxalot's picture

Your accountant may be right.  Because you paid a tax and a penalty, and now they are going to cyprus what you have left over. 

Had you left it there they'd just cyprus what you had and saved you the penalty, which would leave to more to spend as they say, and when they say it.

 

Unless you have one of those fancy spanish safe-mattresses.

Mon, 04/08/2013 - 15:27 | 3423216 yrbmegr
yrbmegr's picture

I wonder how much difference there really is between cyprus-now and cyprus-later.

Mon, 04/08/2013 - 16:16 | 3423454 Smegley Wanxalot
Smegley Wanxalot's picture

Assume 100k, 35% tax, 10% penalty, 40% haircaut.

 

Take out 100k now = pay tax & penalty of 45k (reminder 55k), and your haircut later of 40% (22k) of the remainder when the bank wants your money leaving you with 33k out of your 100k.

 

Take out 100k later = pay haircut of 40k, leaving you with 60k.  This may move you into a lower tax bracket, but assuming 35% holds on the remaining 60k they fuck another 21k out of the remainder, so you net 39k.

 

Now, if you have a matressafe, you can hide the 55k by taking out the cash now and avoid the coming haircut, which beats holding it in an IRA to avoid the penalty, but if you trust the banks and they demand the haircut, you are fucked.  Only civil thing to do is hide what you have from the govt and corp thieves and keep your mouth shut because your friends will fuck you over.  And dont say jack to your wife.

Mon, 04/08/2013 - 16:44 | 3423600 hannah
hannah's picture

smeg my old boy, i can simplify your calculations......

 

leave your money in and i promise you a 100% loss. anything you get NOW by cashing out will be more than $00.00 later.....

Sat, 04/13/2013 - 11:03 | 3444446 ImReady
ImReady's picture

...or take out $100k now = pay 40-45% tax now = buy physical PM's now = and tell the Govt to FUCK OFF forever = WIN  

Mon, 04/08/2013 - 15:08 | 3423108 scatterbrains
scatterbrains's picture

It's all good as long as stocks keep rising.  Double tax my retirement savings but give me 40% gains on my stawks and like I said it's all good..   why don't yaw niggas learn to enjoy the taste of Ipads it's really not bad with a little gravy.

 

Mon, 04/08/2013 - 15:08 | 3423110 Global Hunter
Global Hunter's picture

I have a friend and when I met him over 10 years ago he told me he'd never have a retirement savings account because the government will one day go after retirement accounts.  Ohhh I thought he was crazy at the time...

Mon, 04/08/2013 - 15:10 | 3423120 darteaus
darteaus's picture

So, pray tell, what is he doing with his money now?

Mon, 04/08/2013 - 15:20 | 3423173 Global Hunter
Global Hunter's picture

darteaus, if I knew I'd tell, seriously I haven't spoken about money matters for a couple of years.  I got the sense that he was worried and I didn't want to add to that worry by bringing the subject up the past few years.  I probably couldn't handle the truth anyway :)

Mon, 04/08/2013 - 15:48 | 3423323 aerojet
aerojet's picture

He started a company called The Facebook.

Mon, 04/08/2013 - 15:10 | 3423121 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

crazy like a fox

Mon, 04/08/2013 - 15:12 | 3423125 sharky2003
sharky2003's picture

It's bullshit like this that makes me wonder to myself, WHY WORK, WHY BE RESPONSIBLE, WHY BOTHER!!?!?!??!!?

Mon, 04/08/2013 - 15:27 | 3423225 Gert_B_Frobe
Gert_B_Frobe's picture

Because you don't fit the ethnic profile?

 

 

 

I gots my Obama phone.

Mon, 04/08/2013 - 15:50 | 3423325 kaiserhoff
kaiserhoff's picture

I'ze gots mines;)

Mon, 04/08/2013 - 15:57 | 3423363 vulcanraven
vulcanraven's picture

And it 'sho ams' good

Mon, 04/08/2013 - 16:52 | 3423644 ncdirtdigger
ncdirtdigger's picture

dat bees a miff bra

Tue, 04/09/2013 - 01:04 | 3425191 RafterManFMJ
RafterManFMJ's picture

Nicely played, Gert. But here's the thing...at some point people must learn the only think keeping them chained is their blinkered, bull-headed insistence on being productive.  Only a fool expends his only real asset, his life, for a swarming cascade of ticks.

Kick back, and float. Be free.

Mon, 04/08/2013 - 15:37 | 3423272 ebworthen
ebworthen's picture

And some wonder why EBT/SNAP and S.S. disability claims are skyrocketing.

TPTB sent a clear signal with the bailouts and failure to prosecute fraud and theft on Wall Street; join the top or join the bottom because if you are in the middle working, saving, paying bills YOU WILL BE PUNISHED.

Mon, 04/08/2013 - 20:43 | 3424488 dolph9
dolph9's picture

Because you are Amerikan and were born a slave to bankers.  And if you don't like it, you can try cheating the system and risk getting yourself thrown into federal "pound me in the ass by a big buck" prison.

Sorry, but you asked for the red pill.

Mon, 04/08/2013 - 15:12 | 3423128 JailBank
JailBank's picture

If you are saving it you aren't spending it. Be a good consumer and spend, in fact take out a loan to buy shit. The system needs to be fed and these "savers" aren't doing their part.

Mon, 04/08/2013 - 15:31 | 3423245 Chaos_Theory
Chaos_Theory's picture

I for one am trying to spend my fiat.  However, it's becomming as hard to find a Holy Grail as it is to find and buy a new .308 rifle and associated pallets of ammunition.  I might have to go 30-06! 

Mon, 04/08/2013 - 15:12 | 3423132 seek
seek's picture

It seems pretty obvious to me that you shouldn't put your money anywhere your government is trying to get you to.

 

Mon, 04/08/2013 - 15:14 | 3423149 Mad Max
Mad Max's picture

Yeah, any sovereign can change the rules whenever they want to make sure they win, you lose.  And so why should I move my money or myself to some little and/or third-world country that has no tradition of law, due process or respect for private property?

There is no winning move in hopping between countries, unless you are a $Billionaire who can effectively influence the politics of those countries.  Oh sure, you'll probably get fucked in the US, but no more so than almost anywhere else.

Mon, 04/08/2013 - 15:24 | 3423196 Duke Dog
Duke Dog's picture

Could not agree more.

Mon, 04/08/2013 - 16:48 | 3423619 TheGardener
TheGardener's picture

"And so why should I move my money or myself to some little and/or third-world country that has no tradition of law, due process or respect for private property?"

Well that`s the catch with those offshore places : they
claim to to have the best of common English law and all the due process and traditions the money changers could come up with and respect for private property as long as they get their cut.

"Oh sure, you'll probably get fucked in the US, but no more so than almost anywhere else."

You might get fucked back and forth but legally so back home but you are right in respect of being "offshored".

No difference weather you pay privates, pirates ,.gov agents. All of them will come for more, be aware.

Mon, 04/08/2013 - 19:59 | 3424320 Poor Grogman
Poor Grogman's picture

prime minister juliar gillard is a contemptible liar that betrayed the Australian people.

Never Ever Ever trust .gov (especially with your money)

Julia Gillard no carbon tax promise - YouTube

www.youtube.com/watch?v=ApCwoj35d3M

Mon, 04/08/2013 - 15:15 | 3423151 Winston Churchill
Winston Churchill's picture

Well at least they are consistent.

Spend their national scheme into bankruptcy, and follow up with the private pensions.

Reminds me of somewhere.

I can hear Obozo now when he announces;'its only fair because you didn't create that'.

I am so glad I cashed out everything I could back in 2007.

Tick tock for anyone who hasn't.

Mon, 04/08/2013 - 15:16 | 3423153 glock19
glock19's picture

I truly believe the vast amount of retirement savings is just too big a pile of cash not to leave as is, however, part of me also believes there is a world-wide coordinated effort to scare people into pulling their money out of 401K type funds...so as to not only collect taxes now rather than later, but to also try to extract the bonus 10% pentalty taxes.

Mon, 04/08/2013 - 15:23 | 3423190 Duke Dog
Duke Dog's picture

Well, if that's the case - they accomplished their goal with me over the last five years.

Mon, 04/08/2013 - 15:24 | 3423208 oddjob
oddjob's picture

Consider the 10% penalty a gift. what happens when that penalty moves to 50%?

Mon, 04/08/2013 - 20:26 | 3424398 DosZap
DosZap's picture

oddjob

Consider the 10% penalty a gift. what happens when that penalty moves to 50%?

If you wait that long, you DESERVE to pay it.

Mon, 04/08/2013 - 15:42 | 3423220 Winston Churchill
Winston Churchill's picture

Most other countries have very different rules to cash out.Like;

Been in scheme less than two years,return of your PREMIUMS.

After that you are  locked in until retirement.At that point you can take a small tax free sum,

and the balance is applied to a compulsiroy puchase life annuity.Those CPL's

are about half the income of their open market purchase annuities siblings..

I expect Obozo will do these steps first to lock everybody in,and then  steal at leisure.

This is the FedRes exit  plan,always was,suckers on tap to buy those worthless UST's they

have been monetizing.Might even get those MBS in your fund.

Whoppee

Mon, 04/08/2013 - 20:01 | 3424319 DosZap
DosZap's picture

glock 19,

 but to also try to extract the bonus 10% pentalty taxes.

You only pay that if your under 59.5yrs old.Look at it for what is is,the PTB, are going to raise taxes on your future withdrawals(if your allowed to even do so).I would rather pay taxes NOW at my current rate, than wait to lose it all, or get rates tripled in 2-3 yrs.(Committees, have been openly talking about seizures of ALL retirement vehicles for over 3yrs now.(think it is no going to happen?.)

Good Ruck

Mon, 04/08/2013 - 15:22 | 3423176 ebworthen
ebworthen's picture

Not a doubt in my mind that CONgress will change the law and tax Roth I.R.A.'s at 15% or more, as well as any other savings, 401K's, Pensions, etc.

The hard won saving and responsibility of the middle class will be punished, as it has been for the past 20 years at least.

Classic "bait and switch" scheme, just on a longer timeline.

Mon, 04/08/2013 - 20:40 | 3424473 ATM
ATM's picture

Damn right they will. I expect somehting like a tax on total retirement and all other income. They will make it sound so nice at first - something like if you have total retirement income of over 500k then your non-Roth income is taxed at a much higher percentage so that the dumbshits beleive that Roth withdrawals are still tax free.

Eventually they will simply drop the charade and tax it all, and probably just confiscate it - you know, for the greater good.

Mon, 04/08/2013 - 15:22 | 3423185 ShrNfr
ShrNfr's picture

Good, maybe they can tax SEIU pensions at 110%.

Mon, 04/08/2013 - 20:40 | 3424477 ATM
ATM's picture

Nope, unions will be exempt because those are for the workers.

Mon, 04/08/2013 - 15:22 | 3423195 Quinvarius
Quinvarius's picture

The writing is on the wall.  Your savings needs to be gold coin outside of the system.  They are coming for everything you can't hide from them.  The West is done.  Too many kleptocrats taking liberties with the law and other people's property.

Mon, 04/08/2013 - 15:53 | 3423337 aerojet
aerojet's picture

There's no escape--if you gold physical in your pocket and you need to buy something to live, like food, then you have to convert it and unless you are converting it on the black market, they can add a tax to that conversion.  And that tax will be onerous.  You're fucked.  Don't you get it?  It's time to rebel now.

Mon, 04/08/2013 - 17:06 | 3423672 TheGardener
TheGardener's picture

Have gold to buy guns if need be. Have guns to be confiscated just before you might need them. Practice
with both, most people can`t handle either of them.

Nor the truth.

Legal guns ? Taken before you could need them.

Real currency ? Outlawed and made highly in-convertible
for a very long long time. Bury deep and save.

Mon, 04/08/2013 - 17:01 | 3423685 NotApplicable
NotApplicable's picture

Ummm... if rebellions actually worked as advertised we wouldn't be in the current mess. Instead they serve TPTB by creating the space where their greatest crimes are committed.

Simply put, social orders which rely upon violence will all die from it.

The true answer is for the masses to "walk away" from the siren song of Uncle Sugar (or any other songs they sing to motivate).

It's all as simple as dependence vs. independence.

Mon, 04/08/2013 - 15:38 | 3423278 nomorebuyins
nomorebuyins's picture

Big ramp today, must be preparing for a big gap down.

Mon, 04/08/2013 - 15:41 | 3423295 MeelionDollerBogus
MeelionDollerBogus's picture

gold, bitchez! can't tax what can't be seen.

Mon, 04/08/2013 - 15:47 | 3423316 Bicycle Repairman
Bicycle Repairman's picture

Throw another grandmother on the Bar-B, mate.

So how is your Roth IRA doing about now?

Mon, 04/08/2013 - 15:48 | 3423320 Sudden Debt
Sudden Debt's picture

ONE LESS CHRIMP ON THE BAAARBIE MATE!!

Mon, 04/08/2013 - 15:49 | 3423329 WTF_247
WTF_247's picture

Man, this has got to be massively bullish for global markets.  The more we tax and take from the people the better the economies do.  The less money people have the less they can buy but that guaratees more QE^10 = higher stock prices.  We are almost at a new era where we do not actually need consumers anymore.  Govt's take 100% of the money and then allow them to have back a pre-determined portion to live on.

 

 When that happens we should see Dow 36000.

Mon, 04/08/2013 - 15:55 | 3423348 NoWayJose
NoWayJose's picture

It's pretty obvious that governments are going after bank deposits and retirement accounts - that's where the money is!  Be prepared not for more taxes on those accounts, and since the government is always sneaky with tax policy, be prepared for means (and wealth) testing before you get ANY government benefits.  You got $250,000 in that retirement account, then the government will charge you 25% more for your Medicare benefits.  You want your Social Security?  Sure, but we'll knock 10% off if you have $250,000 in 'wealth'.  It's coming, because -- it's ONLY FAIR!  

Mon, 04/08/2013 - 15:57 | 3423367 Bicycle Repairman
Bicycle Repairman's picture

The assumption is that you will gladly hand over whatever wealth you have to save the current system.  OK?

Mon, 04/08/2013 - 16:03 | 3423395 FIAT
FIAT's picture

bill griffeth on cnbs is screaming about the "resilience" of the great ponzi

Mon, 04/08/2013 - 16:06 | 3423412 JR
JR's picture

How much of a citizen’s personal wealth will the banker-state take if it needs it? They will take it all.

The world is in chaos because of debt and usury – nations that have borrowed dollars in absurd amounts at a high enough interest rate they could never pay the debts off.

John Perkins wrote in his book, Confessions of an Economic Hit Man: First, I was to justify huge international loans. Second, I would work to bankrupt the countries that received those loans.

The world banking cartel thought it was clicking along, getting ready for its new IMF world currency, the SDR, when along came the global recession triggered in August 7, 2007 by the worse banker-created crises since the Great Depression, bringing nation after nation to its knees.

Now, the fate of many nations parallel that of Ireland’s, described from Kildare, Ireland, less than a year ago by Ian Johnston on msnbc.com World News: “Families ripped apart, pay cuts, hundreds of thousands without work, homes lying empty, teenagers with little hope for the future…brought to the brink of despair by a dramatic economic collapse and the harsh remedy prescribed by the European Union.”

This financial dictatorship of central financial power is falling. The world is a financial catastrophe. The economic numbers are indicating collapse. An explosion. There are so many financial fires the world banking cartel can’t even begin to put them out.

Instead of stepping aside, the bankers and their political enablers have become incredibly criminally aggressive, determined to hold on as they see the pieces falling and with it their world political power.

The nations of the world are clamoring for an alternative international currency, says Anthony Santelli in “Money, Oil, Blood, Death,” to replace the US dollar backed by the US military, “accepted internationally by the force of arms.”

The bottom line is to ensure that the dollar isn’t replaced by the IMF’s SDR as the world reserve currency. If anyone wants to find out what the dangers of this worldwide problem are, Zero Hedge has all the aspects, the metals, the energy, all the financial architecture…

Fortunately, it’s likely nations will view the SDR as the new reserve currency as much the same kind of trap as the dollar, reacting: “We’ve been there; we’ve done that; it’s just a Fed-created dollar with a new name.”

Jim Willie of Golden Jackass tells us that the central bankers and sovereign wealth fund managers have accepted that the present international monetary system is collapsing and have turned to the IMF and its SDR basket as the solution.

However, he says, those “who turn to the despised corrupt savage callous Intl Monetary Fund, and its broken currency vehicle, the discredited discarded SDR basket…will be swept aside despite eyes partly open.”

Instead, he says, “the crux of the non-US$ trade vehicle devised as a USDollar alternative will be the Gold Trade Note.”

Mon, 04/08/2013 - 16:18 | 3423467 pashley1411
pashley1411's picture

Indebted sovereigns the world over are going to go into a feeding frenzy on anything that resembles an asset, and having a retirement account (mine included) puts a big fat bullseye on us.  

Wonder if Iceland wants to go into the off shore fund management business.   Only country so far that hasn't surrendered to the banker panzers. 

Mon, 04/08/2013 - 16:33 | 3423552 SmittyinLA
SmittyinLA's picture

RE: Tax exempt IRA withdraws? 

It was a 100% lose suckers bet

Mon, 04/08/2013 - 16:34 | 3423561 Yen Cross
Yen Cross's picture

      How long before the RBA jumps into the global devaluation game? The A$ look like the yens little brother getting ready to graduate from college. Holden to axe 500 jobs, citing market conditions and a fall in demand for its Cruze model | The Australian

Mon, 04/08/2013 - 22:49 | 3424861 Poor Grogman
Poor Grogman's picture

ZIRP first then housing meltdown.

Remember they will wait till they see the whites of the eyes.

Then print baby print.

It may well happen on the next governments watch, just to add a bit of cover.

The central bankers from the RBA that have run Australia for many years, know exactly what's good for everyone, this won't hurt a bit...

Mon, 04/08/2013 - 16:39 | 3423566 chirobliss
chirobliss's picture

Don't get too excited about this as a precedent for anything at all.

Aus governments of both the left and the right continually plunder retirement savings as and when they see fit. They are the worst of the worst. Some time ago they decided that superannuation was a "rort" (one of many Aus made-up words the dimwitted press seem fond of) and that they would reduce the maximum contributions allowable and offer this great retirement benefit compulsorily to all Aussie battlers. Enforced contributions by employers and enforced contributions by employeees were to be rewarded with, as prior rates of low or negligible taxation.

The argument made was that this would enable future generations to retire without the need for a national pension and so ease the burden as Australia's population aged. Shortly thereafter, both parties agreed that superannuation taxation rates were being "rorted" ( yeah, bloody ugly language Strine!) and in the interest of fairness they would start taxing the hell out of all those forced savings, and little Aussie battlers be buggered.

Of course, people still believed that what earlier treasurers had said, superannuation was virtuous, would benefit all Aussies blah blah blah, so they all screamed out that they wanted to maximise their contributions at a faster rate. The government said yes, true we did say that, so go ahead and maximise away coz that will be wonderful for our future... But of course Julia buggered up the budget, as did little Johnny before her and daft Kevin for a little while so they decided that little Aussie battlers were outrageous "rorters" because they were all descendants of pommy convicts and from henceforth would be stripped of their ill-gotten "rorted" gains.

Yes, Aus governments are as schizoid as that, the little Aussie battler as daft and long-suffering as to accept it all, and the press as fond of screwing everyone else, devoid of ethics, and sufficiently inarticulate as to use a non word like "rort" at least three times a week in a headline as any imbecilic, anarchic press corp spanwed by Murdoch. What a tragedy, what a totally f^&%ed up country!!

 

Wed, 04/10/2013 - 08:57 | 3430227 awakening
awakening's picture

<slow clap> Bravo.

Rort - to be shafted, "Corzined" in ZH terminology.

Mon, 04/08/2013 - 17:08 | 3423722 Mediocritas
Mediocritas's picture

Like I said yesterday, they're trying to balance the flows. Mandatory inflows increased, outflows taxed. Every single Ponzi scheme is the same. Once inflows fail to keep pace with payouts, the game is up.

Mon, 04/08/2013 - 17:08 | 3423725 Dr_Lucid
Dr_Lucid's picture

The real game over the next decade will be to steal as much as you can from the upper middle class.  Those poor muppets and lemmings have 3.5 Trillion up for grabs in retirement accounts.  The BIG million dollar question is who will get to it first? Obama or Carlyle?

1.

Carlyle Group LP (CG), Blackstone Group LP (BX) and KKR & Co. (KKR), which usually open their doors only to clients willing to commit at least $5 million, are lowering that threshold or offering investments [ private equity pools | LBOs]  directly to individuals, an effort to attract fresh cash amid lackluster fundraising. [ just $50,000 now gets you in ] Their ultimate goal: a slice of the $3.57 trillion Americans have accumulated in their 401(k) retirement plans.

http://www.bloomberg.com/news/2013-04-04/kkr-to-carlyle-target-3-6-trill...

2. The budget President Barack Obama will submit on April 10 will contain a proposal that would prohibit individuals from accumulating more than $3 million in Individual Retirement Accounts (IRAs) and tax-preferred retirement accounts. 

According to a White House statement, the Obama administration believes the current rules allow some wealthy individuals "to accumulate many millions of dollars in these accounts, substantially more than is needed to fund reasonable levels of retirement saving."

Read more: http://nation.foxnews.com/obama/2013/04/05/report-obama-budget-cap-retirement-accounts-3-million#ixzz2PuI9Hu9p
Mon, 04/08/2013 - 18:29 | 3424016 Kirk2NCC1701
Kirk2NCC1701's picture

A:  NEITHER.  If properly motivated, and with enough backbone and brains, you'll become an Expat.  The opinion, feelings and biases of the wife & kids notwithstanding.  

But at some point you gotta decide:  Financial Auschwitz or Freedom?

Mon, 04/08/2013 - 19:55 | 3424300 Marco
Marco's picture

Where would you suggest going?

Mon, 04/08/2013 - 20:48 | 3424502 ATM
ATM's picture

Chile

Tue, 04/09/2013 - 00:52 | 3425176 Tompooz
Tompooz's picture

1. English widely spoken 2. Growing 3. young demographics 4. all western amenities. 5.democracy. 6.under-resourced government,  7. welcoming foreign retirees  8. warm climate and plenty of beaches = the Philippines

 

Susceptible to US pressure.

Tue, 04/09/2013 - 01:07 | 3425196 Clashfan
Clashfan's picture

Uruguay?

 

Mon, 04/08/2013 - 18:24 | 3423991 Kirk2NCC1701
Kirk2NCC1701's picture

Simon, as I recall, you mentioned one time that your dad lives in Australia.  I take it you got him and/or his ass(ets) out of Australia?  ;-)

I'm glad I attended your Offshore Workshop.  It opened my eyes.  And that of the other 500 people, I imagine.

Before the Simon-haters/Gov_trolls chime in, I must say that I also enjoyed the speeches and presentations by the VIP speakers you associate with:  Jim Rogers, Nigel Farage, Peter Schiff, Jim Rickards and... The Dr. Ron Paul.  Enjoyed talking with each of them.  Could not spot any of the Tylers though, as some people remarked in jest.

Comparing notes with others over meals and tours, and swapping emails since then, I must admit that "we kindred spirits with some means" (over-taxed and over-regulated professionals, businessmen, entrepreneurs and retirees) are more serious and intent than ever to lawfully protect our hard-earned and taxed assets from the increasingly desperate and insolvent Western governments and their aging demographics.  / As if we weren't serious enough before we spent the time and thousands of dollars to attend! /sarc

As a result of this 3-day event and day-tours during the week, I know first-hand that many alliances and friendships have formed.  One of life's twists is that several Fed Trolls present, will also make personal benefit of the things learned, since their 401k and IRAs are not exempt from "re-allocation".  How ironic.

I'd like to say that I was blown away by Chile and Santiago, but then we'd risk having all the riff-Raff wanting to come and Californicate the place, and others like it that expats-with-means enjoy.  Call a place paradise and you can kiss it good-bye.

Hope that other attendees can chime in, given that a mere 1-2% of ZH readers post blogs.  Kirk out.

Mon, 04/08/2013 - 19:18 | 3424164 Mototard at Large
Mototard at Large's picture

Let me see if I can recall the situation to date:

 

Australia is not Cyprus

Spain is not Greece

Greece is not Cyprus

Greece is not Ireland

Uganda is not Spain

Italy is not Spain

Spain is neither Ireland or Portugal

Ireland is not Greek territory

Portugal is not Greece

Neither Spain or Portugal is Ireland

Cyprus is not Cyprus – it got Troiked!

 

And Iceland is not the EU.  It bailed the country and busted the bankers!

Mon, 04/08/2013 - 19:56 | 3424306 Winston Churchill
Winston Churchill's picture

What happened to Uganda ?

Mon, 04/08/2013 - 20:37 | 3424454 dolph9
dolph9's picture

Get out of retirement accounts.  NOW.

If you haven't, what are you waiting for?  For your mommy to give you permission?

Mon, 04/08/2013 - 22:34 | 3424802 PrintemDano
PrintemDano's picture

I quit putting money in to my 401K about 8 years ago when I woke up to the CNBC Stock Market scam.  I can't take my 401K until I retire, I am not old enough to retire.  Some of us really have no choice at the moment.  :(

Mon, 04/08/2013 - 22:05 | 3424711 brettd
brettd's picture

I remember when it was fun to be an American.

Mon, 04/08/2013 - 22:16 | 3424735 Paracelsus
Paracelsus's picture

   I lived in Oz for twenty years and think you've missed a few points:

1. They sold off a third of the gold stockpile some years back at $220/ Oz  Dumb....

2. They brought in a goods and services tax like the UK and New Zealand. This starts off small and then creeps upwards at an alarming rate. See GST rates on google.

3. If anyone tells you that 9/11 didn't add to the costs of everything worldwide,just ask what he has been smoking.Insurance for small businesses went towards the moon. Bin Laden must be laughing his tits off in the hereafter.

4.The 2008 crash,mortgage meltdown,and Lehman collapse hit Australia hard.Therefore it is normal to assume that the large Superannuation funds would've shared in this screwup of monumental proportions.You would assume correctly. Individual retirement accounts lost bigtime and people haven't forgot how Wall Street "vaporized" their retirement money.

5. The Port Arthur massacre in Tasmania was a crisis not to be wasted and,yes,sadly the public did not fully debate this subject of gun control.  Outside of the big cities,without a firearm,you are on your own. You have a family.What are YOU going to do?   Also,the Port Arthur weapon (an AR-15 carbine) was seized in a raid on a biker clubhouse on the mainland,was listed as destroyed by the cops and then walked by itself all the way across Bass Straight to a gunshop down in Tasmania,before being sold to a nutcase. Were the cops ever held accountable for this lapse?

6. The amount of natural gas sold/given away to the Chinese is phenomenal. Were this gas put in clean vehicles in Australia the effect on the environment would be substantial. Also this could be used for heating and power generation.This is a criminal waste.

7.There is a fraudulent accounting practice exploited widely by corporations in Oz and elsewhere. Corporations will declare there losses in Australia,and declare their profits overseas thru commingled subsidiaries accounts in some tax exile. Funny that it is only now with the worlds'economies imploding that Gov'ts are seeing this as a last gasp resource. 

Mon, 04/08/2013 - 22:22 | 3424757 CheapBastard
CheapBastard's picture

Ozland shot itself in the foot when it rammed higher taxes down their miners' throats. Their miners are the MOST productive sector of that country.

"Biting the hand that feeds you," is seldom good policy.

Mon, 04/08/2013 - 22:32 | 3424798 Die Weiße Rose
Die Weiße Rose's picture

In Australia 9% of your Income is taken out of your Wages and "invested"

in superannuation funds.

This number will be 12% from the new financial year 2013-14 and is compulsory.

Julia Gillard is on a salary of 500,000 AUD while Barack Obama is on 380,000 USD.

Australia is a Banana - colony ( still serving under the British Empire Monarchy of Elizabeth II )

that lets multinationals like Rio and BHP drill holes in the Ground to ship out the wealth

of the Land to the US and the UK, with little compensation to its 20 million Australians

and a very intrusive and "apartheit" racist ruling for the indigenous original owners of  Australia,

the Australian Aboriginals, who are filling the prisons here and are treated worse than second-class citizens.

Julia Gillard was born in Barry, Wales, and migrated with her family to Adelaide, South Australia, in 1966

and she hangs onto her "Leadership" by the skin of her teeth, because everyone hates the lying bitch.

She is a lap-dog for the US and the brits, she is a neo-con and is totally out of touch with most Australians.

Julia  said, there will be no Carbon Tax, what she does is introduce a Carbon Tax.

Her "Labour" Party has managed to turn a 20 billion AUD surplus left by the Howard Government into a total government debt of $190 billion or 20 per cent of GDP in 2010. 

Australia has among the highest house prices and some of the highest household-debt levels in the world.

An emphasis on exporting commodities rather than manufactured goods has underpinned a significant increase in Australia's terms of trade since the start of the 21st century, due to rising commodity prices.

Australia has a balance of payments that is more than 7 per cent of GDP negative, and has had persistently large current account deficits for more than 50 years.

 

The economies of six of Australia's major trading partners have been in recession, which in turn has affected Australia, significantly hampering its economic growth in recent years.

From 2012 to early 2013, Australia's national economy grew, but some non-mining states and Australia's non-mining economy experienced a recession.

Meanwhile the real CPI and real cost of Living have gone through the roof, with bills for electricity, natural Gas going up by as much as 150% in the last 3 years

and the price of a liter of Petrol hovering at around 6AUD a Gallon (1.50 AUD a liter)

Julia Gillard wants to roll out a NBN fibre-optic cable roll-out to "move the country forward" original cost-estimates were at 24 billion AUD,

that has now ballooned to 100 billion AUD (cost-blowouts) with rollout stalling.

The Mining Tax was supposed to bring in 2 billion minimum, but so far BHP and RIO and the like have only paid in 130 million,

with the mining boom going into a lethargic bust on China slow-down.

But Julia Gillard, being a great fan of the US and UK and Ben Bernanke, is a great optimist in the face of adversity,

and although there is no money and revenue coming in, she wants to spend and spend more, to "stimulate " the economy,

because that's what everyone else does,  except those bloody Germans of course.

So Julia Gillard plans to "move forward" until the 14th of September 2013 when the elections will be.

Right now Australia has a hung Parliament who takes its cue from the US and the UK.

Gillards popularity is at an all time low and most Australians can hardly wait for September the 14

to get rid of the bitch. She has been a powerhungry and a self-serving lying bitch who has

done everything to run the country into the ground.

Good riddance.

wr;)

Mon, 04/08/2013 - 22:36 | 3424807 MonkeyMan
MonkeyMan's picture

Poorly researched article. The tax would be levied on superannuation income over $100,000. In order to make this sort of yearly gain in a super account, it would have to have about $2 million in it.

Mon, 04/08/2013 - 23:36 | 3425016 Die Weiße Rose
Die Weiße Rose's picture

But this is only the start.

The retirement age has been pushed back already to 65 and so People will work longer before they can get to their money.

And of course, the retirement savings are double taxed, on the way in and then on the way out.

The Tax is still being designed, and introduced after the election of 14 September .

Now why do you think that is ?

Because Taxes on Super Retirement funds will be hitting hard.

The Government can't wait to steal that hard earned cash from you either through inflation,

or otherwise through indirect double and tripple taxes of a 10% Goods and Services Tax, Carbon Tax, Mining Tax

sky high Interest rates if you borrow money, and lowest when you deposit funds,

the high Australian Dollar takes the rest, because it makes everything you buy

much more expensive.

And the stupp you export you get nothing for, because the AUD is so totally overvalued

due to the high Interest Rates.

So you get a double whammy:

Sky-High Loan Repayments and sky-high cost of living

in one of the most expensive and isolated places on earth.

to get to Europe you fly 24 Hours, to get anywhere you pay through the nose,

to buy a computer or Adobe Photoshop you pay twice the price of what Americans pay.

Australia is being ripped off left right and centre, and unless you work for a multi-national miner,

you are fucked.

The Government Pays the US Car-industry to stay and keep their Factories open,

230 million a year to Holden, this week they announced another closure with 400 more Jobs lost.

They say that Australia got through the GFC without a recession, which is another Lie.

Australia has a 2 tier economy.

Mining and then a big nothing and then the rest.

When you try to run your own business hear, you are doing it hard.

23 million people, and those not in mining are all doing it hard,

no matter how they try to flip the truth.

CPI readings (ex Food and Oil and Gas etc) are just as ficticious and rigged

as those GST (ex Food and Oil and Gas etc) and GDP and Unemployment numbers (ex longterm UE) 

out of the US.

It's all a fucking world-wide conspiracy by those in Power.

We are left with 2 choices,

Anarchy or Monarchy...

and right now we got multinational totalitarian Monarchies

ripping off the world.

We are the serfs, they are taxing the life out of us.

Is it a conspiracy, am I am exaggerating ?

you decide....

wr;)

 

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