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Bundesbank's Stunner To Broke Eurozone Nations: First "Bail In" Your Rich Citizens

Tyler Durden's picture


In what is sure to be met with cries of derision across the European Union, in line with what the IMF had previously recommended (and we had previously warned as inevitable), the Bundesbank said on Monday that countries about to go bankrupt should draw on the private wealth of their citizens through a one-off capital levy before asking other states for help. As Reuters reports, the Bundesbank states, "(A capital levy) corresponds to the principle of national responsibility, according to which tax payers are responsible for their government's obligations before solidarity of other states is required." However, they note that they will not support an implementation of a recurrent wealth tax in Germany, saying it would harm growth. We await the refutation (or Draghi's jawbone solution to this line in the sand.)


Via Reuters,

Germany's Bundesbank said on Monday that countries about to go bankrupt should draw on the private wealth of their citizens through a one-off capital levy before asking other states for help.


The Bundesbank's tough stance comes after years of euro zone crisis that saw five government bailouts. There have also bond market interventions by the European Central Bank in, for example, Italy where households' average net wealth is higher than in Germany.


"(A capital levy) corresponds to the principle of national responsibility, according to which tax payers are responsible for their government's obligations before solidarity of other states is required," the Bundesbank said in its monthly report.


It warned that such a levy carried significant risks and its implementation would not be easy, adding it should only be considered in absolute exceptional cases, for example to avert a looming sovereign insolvency.




The German Institute for Economic Research calculated in 2012 that in Germany a 10-percent levy on a tax base derived from a personal allowance of 250,000 euros would add up to around 230 billion euros. It did not give a figure for crisis countries due to lack of sufficient data.


Greece has been granted bailout funds of 240 billion euros from the euro area, its national central banks and IMF to protect it from a chaotic default and possible exit from the euro zone. Not all funds have been paid out yet.


In Germany, however, the Bundesbank said it would not support an implementation of a recurrent wealth tax, saying it would harm growth.




"It is not the purpose of European monetary policy to ensure solvency of national banking systems or governments and it cannot replace necessary economic adjustments or bank balance sheet clean ups," the Bundesbank said.


As BCG concluded previously:

In considering some of the potential measures likely to be required, the reader may be struck by the essential problem facing politicians: there may be only painful ways out of the crisis.




There is one thing we would like to bring to our readers' attention because we are confident, that one way or another, sooner or later, it will be implemented. Namely a one-time wealth tax: in other words, instead of stealth inflation, the government will be forced to proceed with over transfer of wealth. According to BCG, the amount of developed world debt between household, corporate and government that needs to be eliminated is just over $21 trillion. Which unfortunately means that there is an equity shortfall that will have to be funded with incremental cash which will have to come from somewhere. That somewhere is tax of the middle and upper classes, which are in possession of $74 trillion in financial assets, which in turn will have to be taxed at a blended rate of 28.7%.



The programs BCG (and the Bundesbank) described would be drastic. They would not be popular, and they would require broad political coordinate and leadership – something that politicians have replaced up til now with playing for time, in spite of a deteriorating outlook. Acknowledgment of the facts may be the biggest hurdle. Politicians and central bankers still do not agree on the full scale of the crisis and are therefore placing too much hope on easy solutions. We need to understand that balance sheet recessions are very different from normal recessions.  The longer the politicians and bankers wait, the more necessary will be the response outlined in this paper.  Unfortunately, reaching consensus on such tough action might requiring an environment last seen in the 1930s




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Mon, 01/27/2014 - 09:31 | 4370782 Cognitive Dissonance
Cognitive Dissonance's picture

I can't wait until Warren Buffett gets bailed in.

<I've got dibs on his jet. I hope Becky Quick didn't stain the upholstery.>

Mon, 01/27/2014 - 09:31 | 4370789 Arius
Arius's picture

i think all should do their part ... the only way to go up again

Mon, 01/27/2014 - 09:33 | 4370793 GetZeeGold
GetZeeGold's picture



Just so you know....."rich".....means you.

Mon, 01/27/2014 - 09:36 | 4370796 negative rates
negative rates's picture

I wouldn't one off that if I were you Yogi.

Mon, 01/27/2014 - 09:40 | 4370812 GetZeeGold
GetZeeGold's picture



I can't wait until Warren Buffett gets bailed in.


Pretty sure Warren will have an will have a complicated fancy term for it....but he'll have one just the same.

Mon, 01/27/2014 - 09:53 | 4370874 Four chan
Four chan's picture

Does this include the Rothschilds?

Mon, 01/27/2014 - 10:30 | 4370959 remain calm
remain calm's picture

Germany to the Eurozone, "GO Fuck yourself"

Mon, 01/27/2014 - 10:38 | 4370989 BuddyEffed
BuddyEffed's picture


Hey you rich fucks, take notice,

"You best start believing in ghost stories, you're in one.     

Ha Ha Ha Ha Ha Ha Ha Ha Ha    

What are you lookin at, Back to Work"  -- Captain Barbosa

Mon, 01/27/2014 - 11:41 | 4371168 Herd Redirectio...
Herd Redirection Committee's picture

" tax payers are responsible for their government's obligations"

This is where they jumped the shark.   Really?  So a politician opens his mouth, makes some promises, and then I am on the hook?  Really?

Mon, 01/27/2014 - 12:36 | 4371344 Crash Overide
Crash Overide's picture

I would have no problem sharing the load of my countries debt, but the catch is if you get to take my money, I get to call the shots for a minute along with my countrymen to put an end to the corruption for real, not some bullshit political scam being window dressed.

Mon, 01/27/2014 - 12:54 | 4371395 Arthor Bearing
Arthor Bearing's picture

Since government debt is generally used to increase the wealth of its wealthiest private citizens anyway, requiring those same citizens to give some of the money back is only fair.

Mon, 01/27/2014 - 13:03 | 4371412 DaveyJones
DaveyJones's picture

If "rich" means me then I'm just the government's dick

Mon, 01/27/2014 - 13:21 | 4371503 MsCreant
MsCreant's picture

Damn baby! You gone ta hafta fuck er'y body!

Mon, 01/27/2014 - 16:54 | 4372436 Son of Loki
Son of Loki's picture

Bail in the upper 0.001%......GASP!.....the Horror!!!!!!!!!!!!!!

Mon, 01/27/2014 - 17:32 | 4372583 Anusocracy
Anusocracy's picture

What the hell does government do that's worth 21 trillion dollars?

They aren't worth 21 cents, they are net wealth destroyers.

Mon, 01/27/2014 - 12:37 | 4371353 BuddyEffed
BuddyEffed's picture

Your good point is noted.  Things will appear to be unfair from many points of view.  But the reality of the situation is that some people are going to have to take it in the shorts.  And from the looks of world events, unrest, and hotspots, they have pretty much tapped out the middle and lower classes now.  So the rich will soon be joining the party.   Ha Ha Ha  Ha Ha Ha  Ha Ha Ha 

Mon, 01/27/2014 - 13:15 | 4371463 Turin Turambar
Turin Turambar's picture

A tall tree and some rope is the place to start.  Start hanging the sociopaths in government and start shutting down parasitic make-work bureaucracies.  The criminals who lord over us will change their tune pretty quickly after some of them disappear.  Don't believe me?  You don't see them messing around with muslims too much do ya?


Mon, 01/27/2014 - 14:39 | 4371872 Lost Word
Lost Word's picture

Except for Obama the Muslim,

who is promoting the war against Islam?

The one percent.

Mon, 01/27/2014 - 17:59 | 4372666 Renfield
Renfield's picture

<<A tall tree and some rope is the place to start.  Start hanging the sociopaths in government and start shutting down parasitic make-work bureaucracies.  The criminals who lord over us will change their tune pretty quickly after some of them disappear.>>

Nah, it's the same tune. Different words though.

They change the words, see, and everyone thinks it's different this time. But if you listen real close you know it's the same old song.

"On the fifth day of crissmiss, my bankster gave to me...

Five...fat fingers!

Fo-oreclosure writs...

Three settlements...

Two-oo sho-ort ropes...

And a strong bra-anch in a tall treeeeee..."

Mon, 01/27/2014 - 19:42 | 4372998 Drifter
Drifter's picture

Ok, so when are you gonna start hanging sociopaths in govt? 

Knowing the solution is meaningless if it's never implemented.

Mon, 01/27/2014 - 14:03 | 4371694 Overfed
Overfed's picture

That's the 'beauty' of socialism, we can all share the misery equally. Unless you're in the political class, or rich enough to have clout. Those people will be exempted.

Mon, 01/27/2014 - 17:34 | 4372594 Anusocracy
Anusocracy's picture

That's the 'beauty' of ALL forms of government.

Mon, 01/27/2014 - 18:09 | 4372707 Renfield
Renfield's picture

Wait. You're saying the answer...isn' change the government? Like, our problem might be...too much relying on government altogether?

Because if that's what you're saying, well, dude, I just don't know. You mean, like, build our own local roads, our own hospitals, police our own towns?

That might have been good enough for our ancestors and all, but we're much more enlightened today. I mean, everyone nowadays has an ivy league degree, and most of us can't tie our own shoes without govvy permission and/or help.

You must be one of those radical hippy pot-smoking libertard white commie tea partier terrists, or something.

Mon, 01/27/2014 - 19:15 | 4372912 Anusocracy
Anusocracy's picture

Yup, pretty soon those land of the free home of the brave folks are going to need a TSA agent to help them cross the street.

Mon, 01/27/2014 - 12:47 | 4371377 Motley Fool
Motley Fool's picture

Well, it is obviously incorrect, but is it more correct that tax payers of other countries should be liable for such obligations?

Mon, 01/27/2014 - 13:04 | 4371415 Herd Redirectio...
Herd Redirection Committee's picture

What is this, a lesson in the false dillema logical fallacy?

Mon, 01/27/2014 - 13:08 | 4371434 Motley Fool
Motley Fool's picture

At the end of the day those debts will be settled, and it is going to come primarily out of the pockets of the poor and middle class.

If nothing is done currency implosion will wipe out the savings of this subset of the population, leaving the wealthy intact as per usual.

Perhaps pre-empting is not too terrible, as they will then cover some of that cost at least.

Though defending such leaves a bad taste in my mouth.

Caught between the devil and the deep blue sea.

Mon, 01/27/2014 - 14:05 | 4371712 Overfed
Overfed's picture

It's too bad that the politicians who created the situation, and have been using their positions to line their pockets, aren't going to give up 30% of their ill-gotten gains.

Mon, 01/27/2014 - 18:37 | 4372801 dizzyfingers
dizzyfingers's picture

"It's too bad that the politicians who created the situation, and have been using their positions to line their pockets, aren't going to give up 30% of their ill-gotten gains."

Why not ALL of their ill-gotten gains, with interest?!

Mon, 01/27/2014 - 16:42 | 4372385 supermaxedout
supermaxedout's picture

BuBa to NSA:        Hey guys, we need your help.  We heard you have all data collected to answer our most urgent question: Who owns or controls what in this world.???  Is this correct?

NSA: Hey, ole partners in crime in Frankfort, Old City of Money. Long time passed since we had business together. How are the things going on in Frankfurt? ha, ha. That was a joke since we know it anyhow. Ha,Ha     Yeah, Could be we could help you out.  Till now we havent got an order from our masters to check on this matter, hmm.??     When we think about it,  yeah, should be not a big problem. Wait a moment. Yeah, that was an easy one. According to our data appx 70% of the multinational corporations are owned or controlled by lesser than 100 persons or entities.Here some data which are anyhow public so that you have something to read my dear Krauts in Frankfort. Wait a moment you will get it soon.

BuBa: Great, Thanks for your help. Thats good news.  You know we have a problem with the debt in Euiroland and we think you have this problem too.

NSA: Problem with debt ? Why should there be a problem with debt here. Berni the Fed Master prints all the money needed to pay for the debts of all. 

BuBa: We know, we know. But you know what: Things do not grow into the heaven! We think Berni did to much of a good thing. He can not print for ever but the debts keep growing and growing!!    you know the the interest, the interest!! the damn interest.

NSA: The interest ? Why should there be a problem with the interests here. Berni the Fed Master is also in charge for the interests. The interest rates are low here, very low, they were never lower than nowadays.

BuBA: But this is the problem, this is the problem! Money costs nothing and when something costs nothing its worthless, worthless, worthless!!!!!  Do you understand!!!

NSA: Worthless our money is worthless?? Are you crazy ? Ok, the Dollar is not anymore the Dollar it was some years ago, but it still buys all we need, everywhere.

BuBa: Yes now but not much longer if we do not stop Berni or Frau Yellen very soon. If they continue to print Dollars at the same rate then your Dollar buys nothing anymore , nowhere!      There is only one solution. And its easy. Just extract  the money from the super rich and pay down the debts asap, otherwise we are all bust.   Our and yours money becoming worthless, worthless, worthless!!!!            Hey,  we just checked the material you have sent to us  a few minutes ago. Great job guys, its all there. And its so simple just get the money from them and pay down the debt. The super rich will anyhow not feel it. They have so much money and assets they will not go hungry to bed if you take away 50% of their blunder from the past 100 years.

NSA: You think so ? But we can not revolt against our masters. We have all sworn to be their true servant, .............

BuBa: Sworn to them!!! sworn to them!!!    Ha, Ha,.Ha     Do you believe that your masters do waste a thought about what they have sworn to YOU! !!!!    Ha, Ha.   Our advice from Frankfurt both BuBa and ECB is: Take away a huge chunck of their blunder and pay down big on the debt. If you dont do it, then we aaaaalllllll !!!   become their debt slaves forever! 


Mon, 01/27/2014 - 12:59 | 4371407 Theosebes Goodfellow
Theosebes Goodfellow's picture

~"Bundesbank said on Monday that countries about to go bankrupt should draw on the private wealth of their citizens through a one-off capital levy before asking other states for help."~

Coming to a bank near you. Er..., all banks near you.

Mon, 01/27/2014 - 14:35 | 4371843 Lost Word
Lost Word's picture

A short history of how President Franklin Roosevelt promised peace,

but privately worked with Jews and the Banksters to cause World War II,

to profit from war.

Mon, 01/27/2014 - 14:52 | 4371941 TheReplacement
TheReplacement's picture

If he's elected, yep, you are on the hook.

You will sit down and take it.

What else will YOU do?

Mon, 01/27/2014 - 17:15 | 4372524 chemystical
chemystical's picture

"tax payers are responsible for their government's obligations"


In any putative democracy the taxpayers are responsible for their government period.  As are the non-taxpaying citizens*.  We put them into office, and if they then put themselves into orifice, then that's still our problem to work out. 

The old joke is that "every time we work it out they work it back in again".  The REAL joke, however, is that this has rarely been the case, as I don't recall many democracies that turned demon and were then exorcised.  Instead we tacitly accept the demon. 

* although if a workable "fair" solution could exclude those who have no skin in the game from voting, I'd be in favor of that.  "skin" is also up for debate.

Tue, 01/28/2014 - 05:21 | 4374293 limit_less
limit_less's picture

Herd - "So a politician opens his mouth, makes some promises, and then I am on the hook?  Really?" If your country has a central bank the answer is Yes. If not, then no.

Mon, 01/27/2014 - 12:46 | 4371368 Panafrican Funk...
Panafrican Funktron Robot's picture

It would be a pretty brilliant ruse to be sure.  Inflate the nominal price of the "assets" by, say, 300% (probably way higher, but for illustrative purposes), and then tax it at 30%, for a net nominal gain of 210%.  Rich guys win, and they come out looking like roses.  "We did our part!"

Mon, 01/27/2014 - 10:34 | 4370995 AL_SWEARENGEN

Bundesbank: ''Ve don't get das Gold back, you don't get our Euros."

Mon, 01/27/2014 - 11:45 | 4371187 Urban Redneck
Urban Redneck's picture

Someone just needs to call Buba's bluff... all an enterprising Greek needs to do is pick up Samaras' family and make it very clear what will happen to them if Greece does not overtly default on all external obligations within the EU, see if Buba would rather pay pennies on the dollar to continue to bail out the Greek Kleptocrats or big bucks to bail out DB.

People are not property of the State. And if the State does not respect the human rights of its citizens, then there is no reason for the citizenry to accord any human rights to any functionary of that State.

Mon, 01/27/2014 - 17:47 | 4372632 chemystical
chemystical's picture

I'll believe that they have truly turned the corner when they tell ISR to go fuck themselves and that they will no longer give away nuclear submarines or continue paying over $529 USD per month to 18,500 "holohoax" survivors. 


"The announcement of new funding comes amid controversy for the Claims Conference over revelations related to bungled investigations in 2001 that failed to detect that a broad fraud was underway at the Holocaust restitution organization. A document obtained last week by JTA showed that top Claims Conference officials were involved in the botched probes, including then-executive vice president Gideon Taylor and Berman, who in 2001 served as outside counsel to the Claims Conference.

Claims Conference employee Semen Domnitser, a director of two restitution funds who was at the center of the 2001 inquiries, was found guilty earlier this month in federal court of masterminding the fraud scheme, which ran up more than $57 million in fraudulent claims from 1993 until 2009. The cost of the fraud was borne entirely by Germany."

Calling them fraudulent claims is about as redundant as it gets.  

"The Reparations Agreement of 1951 between Israel and West Germany".  A one-time payment of $7.5 BN USD ($70BN in 2014 dollars?) + annual payments thereafter + monthly payments to "holahoax" survivors + + +

By the way, why would Germany have paid ISR a sheckel?  ISR did not exist until long after the war was over.  Did ISR have self-declared power of atty to represent all Jews?

During the reparations negotions "Menachem Begin ordered the asassination of (German Chancellor) Adenauer, which was carried out by Jewish terrorists by means of a bomb plot killing one person, but leaving Adenauer unscathed. Though Adenauer learned that it was a Jewish attempt on his life, he ordered investigations to be put on the back burner."

Assassination?  Now there's someone you can negotiate with in good faith.

As Ethyl Merman bellowed, "There's no business like Shoah Business" or something like that.

Mon, 01/27/2014 - 19:54 | 4372836 Anasteus
Anasteus's picture

"It is not the purpose of European monetary policy to ensure solvency of national banking systems or governments"

Really? And what were those former, latter and ongoing bailouts throughout Europe, most of which were directly or indirectly directed to German (and French) banks all about?

The arrogance of banksters is indeed beyond comprehension... although, on the other hand, I can understand the anger of the bank's staff when realizing its gold reserves completely wiped out.

Tue, 01/28/2014 - 05:40 | 4374302 limit_less
limit_less's picture

I dont get the Bundesbank/German polticians. Always beating around they bush.

This is what they said.


Germany's Bundesbank said on Monday that countries about to go bankrupt should draw on the private wealth of their citizens through a one-off capital levy before asking other states for help.



In Germany, however, the Bundesbank said it would not support an implementation of a recurrent wealth tax, saying it would harm growth.


The Bundesbank dont want to harm growth in Europe cause that means less money for Siemens, Bosch, Mercedes, BMW, Audi, Miele, 3M, Henkel, Porsche etc etc.


So what they really mean, and what they have been saying in a round about way since the crisis started is that governments in the Eurozone should take their medicince and default. Leave the money in the pockets of their citizens so they can send it to Germans in exchange for stuff.


I cant work out why the Bundesbank wont come out and just say "we think the Greek government should default, we do not live in a fascist system where the population is forced to bailout private companies."



Mon, 01/27/2014 - 10:32 | 4370986 zerozulu
zerozulu's picture

"Bundesbank said on Monday that countries about to go bankrupt should draw on the private wealth of their citizens through a one-off capital levy before asking other states for help"



I'm bad in history but is it not the same what Hitler asked to chossenones?

Mon, 01/27/2014 - 10:55 | 4371038 PT
PT's picture

At first they came for the peasants but I didn't care because I wasn't a lazy-ass peasant.  If the peasants think they're so poorly done-by then they should start their own business and work hard and work smart and innovate and take risks and properly manage those risks etc etc etc.

And then they came for the retailers but I didn't give a shit because I wasn't a retailer and any way all the retailers just sell cheap, foreign crap that breaks all the time so they deserve to go broke too and anyone who buys anything from them must be a moron who deserves what he gets.

And then they came for anyone that has anything because obviously if you had managed to carve a little niche for yourself in this world then you must have lied and cheated and "stealed" somewhere along the line 'cos there's no way an honest man could possible save any money in this environment.

So then I went to hunker down with my guns / gold / food stash and blow me down it wasn't there because the drones had followed me there the other week and someone must've broken in and taken all me stuff while I was busy ploughing the fields all last week.

So then I went to round up the townsfolk so we could form a posse and jump on a jumbo jet and track down TPTB who could be anywhere on the globe and no-one knew what they looked like, but blow me down, the dumb-ass town-folk had been brainwashed by the MSM and they all looked at me as if I were the problem.   I guess, why would they want to fly the world on a wild goose - chase to find the people who really stole their money and their time and their life when they could just take it out on the closest yob available - me.  Besides, none of them had any money and some of them don't like flying.

Maybe I shoulda hired a PR team.

In the end it was all a bit silly, because after stealing everything on the entire planet, whether it was nailed down or not, TPTB still only had enough money to pay down 1% of the interest on their debt.

Last I heard, the answer was a compulsory superannuation scheme for people on the dole that pays out when they're 160 years old, financed by ad-clicks on everyone's unemployment Facebook page - so if you post pornographic selfies of yourself then you'll generate enough money from ad-clicks to put into your superfund to give money to TPTB to pay off the interest on the current debts that will finance a future inflated utopia that will ...  and then my head started to hurt.


Mon, 01/27/2014 - 11:43 | 4371179 GVB
GVB's picture

Yup, everyone has been mindfucked. except ZH. ZH stands for delivery!

Mon, 01/27/2014 - 17:24 | 4372525 Things that go bump
Things that go bump's picture

Yes, we will stand and deliver, just like everybody else, and count ourselves lucky if they let us keep our lives.

Tue, 01/28/2014 - 06:26 | 4374329 limit_less
limit_less's picture

PT - Brilliant post. 

Mon, 01/27/2014 - 12:28 | 4371322 Rafferty
Rafferty's picture

Q: Does this include the Rothschilds?

A: No, only  the peons pay.

Mon, 01/27/2014 - 18:13 | 4372729 Cacete de Ouro
Cacete de Ouro's picture

Red Shields ? Taxes? Bears in woods?

Mon, 01/27/2014 - 09:55 | 4370884 chubbar
chubbar's picture

Kind of like how the GenRes investigation went away shortly after he sold his 130 Million oz of silver.

Mon, 01/27/2014 - 13:07 | 4371423 cowdiddly
cowdiddly's picture

or how the Keystone pipeline went away after good ole warren was called to the whitehouse to be convinced not to sel his Wells Fargo stock.

Well I do have this little railroad thingy and you expect me to take it in the arse their too? 


Mon, 01/27/2014 - 10:12 | 4370913 Ignatius
Ignatius's picture

The creditors must be paid.  That is the first and only 'rule' in all of this.

So, who owns the debt?

"Duh, well, I guess we all do.  I've got 10 shares."

No. No. No.  Who owns 10 million shares, 10 billion shares of the debt?  Or more?

In antiquity it was understood that periodically the debts would have to be cancelled.  This is because the normal growth of an economy is an "S" curve (innovation, mass adoption, saturation).  The normal growth of the "debt" curve is exponential via compounding interest (you owe me, you owe me more, man, you owe me way, way, way more).

Large, modern private capital holders refuse to cancel the debts and kill to protect their franchise.



Mon, 01/27/2014 - 10:23 | 4370962 LawsofPhysics
LawsofPhysics's picture

Please, the real money is hidden all over the world in plain site.  When it comes to paying "taxes" there are those who pay (middle and lower class sheep) and there are those who know the loopholes or have "special status".  Eventually the guillotines and heads roll and the world goes to war in earnest.  Same as it ever was.

Mon, 01/27/2014 - 10:34 | 4370983 Ignatius
Ignatius's picture

I used a shorthand and should have been more clear.  "Who owns the debt?" is not a straight question, but more of a statement/question: Who gets the lion's share of the benefits of the debt system?  My answer:  very few.  Unstable and unsustainable.

Mon, 01/27/2014 - 14:54 | 4371944 Lost Word
Lost Word's picture

In the Jewish Bible, a slave was set free after six years.

Land was returned to original owner Jews after fifty years.

Jews were not to charge interest on loans to Jews.

But if you were not a Jew, expect only your death by Jews.

If anyone wishes to take the time to look up and quote the Bible verses.

Of course, Islam copied some things from the Jews.

Mon, 01/27/2014 - 17:19 | 4372540 Things that go bump
Things that go bump's picture

They are all Semitic.

Mon, 01/27/2014 - 18:07 | 4372702 chemystical
chemystical's picture

Hogwash, and please don't let liars define the language used in the debate.  90% of todays "Jews" have no more semitic DNA than my goldfish. 

Might as well get a bunch of your friends together, move to South Dakota, infiltrate an indian tribe, kill them off, hijack their religion, pervert semantics, call yourselves Shaman, and then re-define the religion with a new set of some of the most racist fucking set of rules the world has ever seen.  The OT was bad enough, but the Talmud contains shit that is more vile than the KKK ever dreamed of. 


Mon, 01/27/2014 - 12:54 | 4371391 LMAOLORI
LMAOLORI's picture



It would be interesting to see an updated breakdown (since the middle class is rapidly declining) in a report from 2010 according to the CBO Data the middle class (which was defined as between $34,300 and  $141,900) did pay the majority of the taxes.


Middle Class--Not the Rich or the Poor--Pay Majority of Federal Taxes, Says CBO Data

You make a very good point about the loopholes too - Warren Buffoon is the master of tax avoidance using them ( the wealth hidden in plain site ). 

Report links Chinese elite to offshore tax havens

Mon, 01/27/2014 - 13:06 | 4371422 Herd Redirectio...
Herd Redirection Committee's picture

Tax Avoidance - only sensible, and legal

Tax Evasion - immoral and illegal

According to tax authorities, its just that simple.

Mon, 01/27/2014 - 14:03 | 4371701 LMAOLORI
LMAOLORI's picture



In Warren's case it's HYPOCRITICAL

Mon, 01/27/2014 - 10:37 | 4371004 hot sauce technician
hot sauce technician's picture

In antiquity it was understood that periodically the debts would have to be cancelled.

Too true...

I'm wondering though: If they did the math, would these idiot central bankers discover that most of their liabilities, compounded, cancel each other out?

Mon, 01/27/2014 - 11:08 | 4371025 Ignatius
Ignatius's picture

The central bankers are not "idiots", they are filthy rich sucking off the lion's share of the surplus production in interest payments.  Regardless of circumstances and regardless of the math, they demand to be paid. 

Mon, 01/27/2014 - 11:23 | 4371117 NoDebt
NoDebt's picture

THis isn't cancelling debt.  This is confiscating wealth under the guise of paying down that debt.  

Know the difference?  The state is right in the middle of the money flow.  What gets taken WILL NOT be used for the intented purpose of paying down debts.  Once they've got it, they're NEVER letting it go.  

This is a power and control scheme for outright state take-over.  It has nothing to do with wiping away debt and restarting the economy.

Mon, 01/27/2014 - 11:46 | 4371160 Ignatius
Ignatius's picture

Right.  So who controls the state?

Mon, 01/27/2014 - 12:06 | 4371255 NoDebt
NoDebt's picture

Exactly.  Why cancel debt (which would at least offer the possibility of using market forces to apprortion the burden) when you can CONTROL how it's done and pick the winners and losers approtioning it as they see fit.

Take it out of their left pocket, put it into their right pocket.  Unfortunately for you, however, you have no right pocket, so you get squat back.

Mon, 01/27/2014 - 12:51 | 4371387 hot sauce technician
hot sauce technician's picture

So if in some crazy reality, Yellen was to bump into a heap of gold worth a trillion dollars, she wouldn't use it to pay off whatever debt possible? Or she'd just say to Rothschild, "here, have this"? What would happen to that gold?

Mon, 01/27/2014 - 13:06 | 4371425 FeralSerf
FeralSerf's picture

Yellen works for, and at the pleasure of, the Rothschilds.

I suspect she would just ask them, "what do you want me to do with this?"

Mon, 01/27/2014 - 14:58 | 4371984 TheReplacement
TheReplacement's picture

It would be used to sqaush gold prices whenever they threaten to go up via leasing to banks who could then sell it.

Mon, 01/27/2014 - 10:48 | 4371023 ebworthen
ebworthen's picture

Debt jubilee.

We are way overdue; at least 49 years if not 490.

Mon, 01/27/2014 - 10:53 | 4371035 Ignatius
Ignatius's picture

You said it in two words. Yes.

Mon, 01/27/2014 - 11:42 | 4371180 Herd Redirectio...
Herd Redirection Committee's picture

I don't want to claim a lot of credit here, as it belongs to our forefathers, but I believe I was one of the first to (repeatedly) call for a Jubilee, here on ZH.  Right on!  Decentralization of power, bitchez!

Mon, 01/27/2014 - 12:50 | 4371365 BuddyEffed
BuddyEffed's picture

In simpler times, a debt jubilee could be managed from the top without much blowback with BAU hardly affected.  Day to day interdependencies were weak, and most people were mostly involved in putting food on the own small families and small communities tables.  At the local level, a DJ didn't change hardly a thing.  But with the current interconnectedness and conflicting interests of the rich, the governments, the businesses, and the militaries interests, there would be too much bitching and moaning about some perceived sleights or inequities, and a DJ would likely break down quickly as people in a position of power would likely try to wield it to preserve some status quo, or extract some revenge.

Mon, 01/27/2014 - 12:48 | 4371376 Temporalist
Temporalist's picture

I don't believe in a debt jubilee.  It sets people up in the same manner as the Fed backstopping TBTFs.  If everyone knows there are no consequences to incurring debt then they will abuse that privilege.  And if one believes they won't get reimbursed then why lend?

Mon, 01/27/2014 - 13:09 | 4371438 Herd Redirectio...
Herd Redirection Committee's picture

Jubilee traditionally occurred every 70 years.  No reason to do it less, or more often, and of course, having the power to dictate how often (or not) jubilees occur is the same power as being able to lend out of thin air

Overheard in some King's Court, 1000 years ago:

King: "Can I borrow some money" 

Nobles or Merchants:"Sure" 

King: "Debt jubilee, bitches!"

But thats why the frequency was not variable.  It was fixed at 70 years by tradition.

Mon, 01/27/2014 - 13:36 | 4371558 Temporalist
Temporalist's picture

Ok so how does this fix the problem of too many people borrowing too much debt that they can't pay back?  This does not appear as a solution to me and it actually seems to reinforce the same bad human attributes that contributed to or are the primary factors to the problems faced today.


In year 60-69 of the non-jubilee period are there 1000x more borrowers than lenders?  Why would anyone lend who cannot expect to be paid back?


In year 68 prior to the debt jubilee do all financial transactions halt because nobody wants to be holding the bag? 

Mon, 01/27/2014 - 15:04 | 4372000 Lost Word
Lost Word's picture

If the Debt Jubilee was due in ten years,

the loans would be due in nine years, etcetera.

It forced everyone to become debt free, by advance planning.

Mon, 01/27/2014 - 16:44 | 4372390 Herd Redirectio...
Herd Redirection Committee's picture

"In year 68 prior to the debt jubilee do all financial transactions halt because nobody wants to be holding the bag? "

Pretty much.  But how different is that from where we are today?  The banks aren't lending, and on top of that, everyone is up to their eyeballs in debt, w/ no jubilee in sight!  At least in year 68 you know in 2 years the economy will be booming!

Mon, 01/27/2014 - 20:51 | 4373207 malek
malek's picture

People like you always overlook that a debt jubilee has two sides:

1. Yes, all debts are wiped out.
2. The counterparties which have built up accounting lies such as off-balance sheet monstrosities, mark-to-unicorn valuations etc. are reset too!

Therefore the "prisoner's dilemma" Gordian knot of perpetual lies is cut through, something that otherwise is not likely too happen without a big war (a/k/a scapegoating.)

Mon, 01/27/2014 - 13:18 | 4371491 HardAssets
HardAssets's picture

Oh the mega-rich get a 'legal' pass - through 'corporations', 'foundations', and other lawyer-liar made up fictions that they employ.

Its not about 'the economy', but slavery for the majority of the people around the world. 'Laws' and fiat 'money' are just the illusions used to enslave people who actually believe they are real.

Mon, 01/27/2014 - 18:47 | 4372831 Chupacabra-322
Chupacabra-322's picture

@ HardAssets,

They're all involved in an elaborate scheme based on contrat law & Criminal deceit to Fraud The American People by CONSENT (Black Law's Dictionary) & being an accessory to the deceit & Criminal Fraud by contracting with the Criminal State.

We are "Governed" into a Political, Educational, Religious & Economic UNITED STATES, CORP based on contract law which is based on Criminal Fraud, deceit & illusion.

The Private Corp UNITED STATES, CORP uses the cover of being a functional Government when in reality they are not. Much like the Criminal Federal Reserve uses The "Federal" in their name & use it as cover to give the illusion that they are a branch of the US Government when they are not.

Through bankruptcies, Criminal Contract Fraud & deceit the Charlatans have incrementally incorporated the US as well as your souls (birth cert) which are securitized via the Criminal Federal Reserve through to the IMF.
They're functioning off corporate version of the THE CONSTITUTION. It's the reason why The Global Criminal Oligarch Cabal Bankster Intelligence Crime Syndicate continues to lie, cheat, deceit, rape & pillage with impunity.

The only power the have over you is with CONSENT (Black Law's Dictionary). Pay no Taxes. Peaceful Non-Participation, Non-Compliance & being an accessory into their Criminal system/s based on Criminal Fraud, Debt Bondage & Enslavement.

Mon, 01/27/2014 - 19:00 | 4372862 ThirdCoastSurfer
ThirdCoastSurfer's picture

The tried and true response to such a proposal would be to secretly take 2% of this wealth among friends and use it to hire a (let's call it a) "rebel force" that takes attention away from any thought of implementation. Nothing like a war or civil insurrection to take your mind off domestic problems.

Mon, 01/27/2014 - 09:37 | 4370803 Grande Tetons
Grande Tetons's picture

Got Galt?

Mon, 01/27/2014 - 09:51 | 4370855 Dagny Taggart
Dagny Taggart's picture

lol... as a matter of fact... yes.

Mon, 01/27/2014 - 13:00 | 4371405 Motley Fool
Motley Fool's picture


Mon, 01/27/2014 - 11:48 | 4371203 Seahorse
Seahorse's picture

cold. dead. hands.

Mon, 01/27/2014 - 09:37 | 4370799 unrulian
unrulian's picture

ok why don't you start

Mon, 01/27/2014 - 09:42 | 4370819 James-Morrison
James-Morrison's picture

If you like your assets, you can keep your assets.

Mon, 01/27/2014 - 09:49 | 4370847 negative rates
negative rates's picture

If you like your junk in the trunk, you can keep your junk in the trunk.

Mon, 01/27/2014 - 09:51 | 4370846 Gene Parmesan
Gene Parmesan's picture

Lick my bag. What gives the government or anyone else any right to what I have? Yet here you are proposing that the government take it from me under threat of violence, presumably in the interest of some bullshit, unwritten "social contract."

Mon, 01/27/2014 - 10:01 | 4370905 chubbar
chubbar's picture

This point has always been lost in the conversation but is actually the nub of the issues. Several years ago, during one of the confiscation turmoils that the gold community gets caught up in from time to time. I wrote my senator and inquired about his views on the gov't taking personal property. His response was that the gov't, in a declared emergency (and I think we've been in one since 911), can take anything and everything they want. He was pretty clear that he agreed with that policy.

Mon, 01/27/2014 - 10:18 | 4370950 Blano
Blano's picture

Which Senator?

Mon, 01/27/2014 - 12:44 | 4371364 seek
seek's picture

All of them.

Mon, 01/27/2014 - 13:30 | 4371535 chubbar
chubbar's picture

Good question. I was living in MN at the time, circa 2004 but don't remember the guys name but he was a MN senator at the time which should narrow it down to 2 possibilities. If I have time I'll look up who was senator back then and see if I can remember the name. The poster below nailed it though, they all thiink like this.

Mon, 01/27/2014 - 10:20 | 4370952 Gene Parmesan
Gene Parmesan's picture

We live in a world where anything and everything is fair game in the name of "security." Hell, we're now at the point where anything goes in the name of "stability" because people are looking a step ahead to what happens when stability is lost. Domestic unrest (i.e. people being pissed off at what's happening) is the new "security" boogeyman, unless of course we find ourselves in WWIII in the near future. Bet on it.

When a government starts abusing its citizens like this they're doing so at gunpoint. There's no walking away. There's nowhere to hide. You play by their rules or they clean you out and stuff you in a cell. And you have assholes like this clown above who are OK with all that if it means that somebody somewhere doesn't have to suffer, I assume because they can't deal with the stress of empathy and it's easier to just subject the rest of us to their socialist fantasy.

Mon, 01/27/2014 - 13:19 | 4371467 FeralSerf
FeralSerf's picture

How is that different from what a rancher does with his livestock? They exist only for the pleasure of their owners. Troublesome sheep get sent to slaughter.

This has been going on for a very long time. Modern technology has just made it easier for the owners to manage their herds.

It's not socialism when the owners get to keep their herds and continue shearing them. It's only called "socialism" to try and convince the members of the herds that their herders are just there to help the livestock. Most of the livestock will likely be convinced.

Mon, 01/27/2014 - 15:08 | 4372027 Lost Word
Lost Word's picture

Usually the Bulls and the Rams and the Billy-Goats that got slaughtered and sacrificed first.

Mon, 01/27/2014 - 10:38 | 4371005 GeezerGeek
GeezerGeek's picture

You should have followed up with another question to the senator: Would you approve of taking anything and everything if they started by taking all the family assets of every member of Congress before going on to the general population?

More generally, I have to wonder if we wouldn't be better off if those who have benefitted most from government handouts - and I'm speaking here of Wall Street and banksters, plus other crony capitalists - shouldn't be the first to have their wealth used to reduce the debt. Not that it would happen this way, of course. So how about this: we recently were told that the 85 wealthiest people have as much wealth as what, half the world's population? Let's limit confiscations to those 85 and see what happens. 

Mon, 01/27/2014 - 12:10 | 4371268 Matt
Matt's picture

I double dog dare you to try to take a single penny from Mr Putin.

Mon, 01/27/2014 - 15:48 | 4372206 FredFlintstone
FredFlintstone's picture

Triple dog dare.

Mon, 01/27/2014 - 10:15 | 4370937 CH1
CH1's picture

What gives the government or anyone else any right to what I have?

The timid, confused obedience of the masses.

It's all a scam.

Mon, 01/27/2014 - 10:26 | 4370972 LawsofPhysics
LawsofPhysics's picture

"The timid, confused obedience of the masses."  - Indeed, unfortunately their obedience is dependent upon the quantity and quality of bread and circuses.  Once the supply lines break, all bets are off.


Good thing lead, brass, and gunpowder is on sale...

Mon, 01/27/2014 - 13:12 | 4371445 Herd Redirectio...
Herd Redirection Committee's picture

On that note, hey, the Super Bowl is next weekend!  Peak Circuses!

The month of March is named after Mars, the God of War, for good reason.  Thats when war tends to break out.

Mon, 01/27/2014 - 15:14 | 4372053 Lost Word
Lost Word's picture

Not much longer before guns, bullets, lead, brass, and gunpowder are all illegal to sell or buy or own.

Next the ingredients of gunpowder and explosives will be illegal.

Ammonium Nitrate fertilizer is already restricted.

You can see it in the Totalitarian trend.

Mon, 01/27/2014 - 18:18 | 4372742 dizzyfingers
dizzyfingers's picture

Lost Word: and don't we need permits for pressure cookers, too? Or are they illegal?

Mon, 01/27/2014 - 10:35 | 4370996 Mad Mohel
Mad Mohel's picture

Just as they use the threat of violence to collect from everyone else, so it will be used on you. Welcome to the club motherfucker.

Mon, 01/27/2014 - 13:24 | 4371510 FeralSerf
FeralSerf's picture

Not EVERYONE else.

When was the last time the threat of violence was used to collect from a Rockefeller, a Rothschild or another of their ilk?

Mon, 01/27/2014 - 19:22 | 4372931 spinone
spinone's picture

There are those doing the collecting.  There are those who are collected from.  There are those that the collections go to.

Mon, 01/27/2014 - 18:52 | 4372843 Chupacabra-322
Chupacabra-322's picture

@ Gene Parmesan,

They have every right as you CONSENTED ( Black's Laws Dictionary) Contracted with the UNITED STATES, CORP & are an accessory to the Criminal Fraud.

See post above.

Mon, 01/27/2014 - 10:19 | 4370948 ejmoosa
ejmoosa's picture

You've watched governments spend money they do not have despite the wishes of their citizens, and now you want those same citizen to foot the bill for those ill spent funds?


It's better to have those governments fold, and a new beginning emerge than it is to fleece peopls of their private funds.


Unless you are saying there is no such thing as private funds and they all belong to the government.


Then you know what I say right?  Thought so.

Mon, 01/27/2014 - 13:28 | 4371516 FeralSerf
FeralSerf's picture

The government is just the goons the owners of the livestock hire to manage their herds. Under the present system, there is such a thing as "private funds", but none of it is really owned by the livestock.

Mon, 01/27/2014 - 09:39 | 4370807 Sudden Debt
Sudden Debt's picture

As he pays less taxes than his secretairy, it's clear he's not rich and he should actually receive food stamps.


RICH: morons who pay to much taxes

THE REAL RICH: don't pay taxes at all


So what's the indicator of being rich besides your taxable income?

Your cayman bank account?

Mon, 01/27/2014 - 09:51 | 4370864 Momauguin Joe
Momauguin Joe's picture

Mentally retarded inbred progeny.

Mon, 01/27/2014 - 10:40 | 4371012 GeezerGeek
GeezerGeek's picture

There is a simple solution to the situation wherein his secretary pays more taxes than he, himself, soes. Cut her salary.

Mon, 01/27/2014 - 13:30 | 4371531 FeralSerf
FeralSerf's picture

The truly rich don't need bank accounts. They have banks.

Mon, 01/27/2014 - 09:50 | 4370820 Rainman
Rainman's picture


Behold..the ZH motto since 2008 ...!!  Thanks for playing !

Mon, 01/27/2014 - 11:27 | 4371122 disabledvet
disabledvet's picture

So of course we need to know what's on the balance sheet before we bail it out, right?

Mon, 01/27/2014 - 11:51 | 4371217 medium giraffe
medium giraffe's picture

No, I think they're using the Congress voting method, you only get to find out what you've bought after you've bought it.

Mon, 01/27/2014 - 09:44 | 4370831 hankwil74
hankwil74's picture

I'm sure the guy that has been lobbying for a change in the tax code that hurts him and other uber-wealthy would be sooooooo upset by a one-off tax.

Mon, 01/27/2014 - 12:27 | 4371316 Againstthelie
Againstthelie's picture

That's exactly the idea behind it. Why should taxpayers bail out "countries" - in fact it are banks, the bondholders of the banks and the savers?

A private bank is a private company. If I deposit my money at a private company, why should other taxpayers money be used to safe my decision to deposit my money at that bank?

And why should taxpayers rescue the bondholders of these banks?

I'm fascinated how libertarians suddenly cry against a very sound plan to increase personal responsibility and decrease the taxpayer to be used as hostage.

Bail ins are natural in a market economy, are just and are good!

Mon, 01/27/2014 - 15:10 | 4372032 RebelDevil
RebelDevil's picture

No doubt, but if deposit insurance is suddenly revoked, then it's theft!
The great tragedy that awaits us is that 80-90% of the population thinks that the money they deposit is theirs, and that it's ALWAYS safe and sound, ready to spend with a check or debit card.

Mon, 01/27/2014 - 18:08 | 4372705 ZeroPoint
ZeroPoint's picture

Connected people get warned prior to the trigger being pulled.

Mon, 01/27/2014 - 09:31 | 4370784 Ancona
Ancona's picture

I see they are preparing the sheep for slaughter...

Mon, 01/27/2014 - 09:43 | 4370822 Sudden Debt
Mon, 01/27/2014 - 09:49 | 4370849 Bearwagon
Bearwagon's picture

"Out of the door, line on the left - one cross each."

Monty Python "Crucifixion"

Mon, 01/27/2014 - 09:45 | 4370834 Ghordius
Ghordius's picture

I believe the correct term is muppets. the difference is that a muppet has a lot of dough

not surprising, as such. the reactions will be interesting, yet both the IMF and the BuBa are definitely not the only ones that have a say, on this

Mon, 01/27/2014 - 09:31 | 4370786 TeamDepends
TeamDepends's picture

Would that include the Rothschild's?

Mon, 01/27/2014 - 09:55 | 4370887 i-dog
i-dog's picture

Ummm ... no ... they're not even on the "rich list". Though you might be.

Mon, 01/27/2014 - 10:09 | 4370917 Ghordius
Ghordius's picture

+1, from a certain level upwards it's easy to slip away. note that some of them are shifting their assets from France to the UK, and others from the UK to... France. the latter move might be the most puzzling one

Mon, 01/27/2014 - 10:49 | 4371024 KnightTakesKing
KnightTakesKing's picture

Of course not. Whatever liquid assets they have are parked securely in the BIS. The BIS is above the law and no nation has a "right" to audit, tax or otherwise interfere with bank business. They are one of the few in this world immune to taxes, laws, etc. 

Mon, 01/27/2014 - 13:32 | 4371541 FeralSerf
FeralSerf's picture

Like the Knights Templar.

Mon, 01/27/2014 - 15:26 | 4372100 Lost Word
Lost Word's picture

Like the Knights Templar bankers.

The King wanted the Templars wealth,

conspired with the Pope,

to outlaw the Templars, who were secretly Jewish in their beliefs. 

The Templars went underground, later became Freemasons,

again trying to create the NWO Globalist government.

Mon, 01/27/2014 - 09:31 | 4370791 doomandbloom
doomandbloom's picture

what *IS* rich?

Mon, 01/27/2014 - 09:46 | 4370838 orez65
orez65's picture

"what *IS* rich?"

Everyone who has ANY savings.

Mon, 01/27/2014 - 09:53 | 4370867 GetZeeGold
GetZeeGold's picture anyone with a 401K.

Mon, 01/27/2014 - 09:57 | 4370891 James-Morrison
James-Morrison's picture

Plus anyone with a home, condo or mobile home.

Mon, 01/27/2014 - 10:37 | 4371006 Mad Mohel
Mad Mohel's picture

Plus anyone with an EBT or SNAP card.

Mon, 01/27/2014 - 11:06 | 4371063 LawsofPhysics
LawsofPhysics's picture

"Plus anyone with a home, condo or mobile home." - Not quite.  Big difference between physical assets and paper bullshit.  When it comes to any physical asset, it's all about possession.  Specifically, when fraud is the status quo, possession is the law.  Good luck trying to confiscate anything when all hell breaks loose.

Mon, 01/27/2014 - 11:24 | 4371116 Jlasoon
Jlasoon's picture

Good luck holding on to your house when the SHTF!!!!

Mon, 01/27/2014 - 13:59 | 4371670 Meat Hammer
Meat Hammer's picture

It's just a house - wood, nails, sheetrock, wires, pipes.  Take your most valuable possessions and everything you need for survival and go hide in the woods for awhile.  I'm not going to sit here and defend a house.  Let em burn it to the ground.

Mon, 01/27/2014 - 13:07 | 4371430 seek
seek's picture

This I think is the whole issue in a nutshell -- how is this implemented.

They don't do this the "old way" fuedalism did, with physical confiscation. They didn't do it in the 1930s, and they won't today. Certainly not en masse.

Cypress is the banking blueprint -- either take everything above a certain level of deposits on a high balance, or take a percentage of it on a lower balance. They only did bank balances, though. Most of the financial assets are in other instruments, and they need to collect in such a way that there's no price collapse due to sell-offs, etc.

For homes, condos, mobile homes, real property, it's pretty easy for them to fuck people over -- a "one time" (ha) property tax w/ tax lien. They can financialize the tax lien, getting immediate money and becaues it's a tax lien, it's in first position and actually more attractive than MBS would be (though this does fuck MBS, remember that 1/3 of US real estate is held free and clear.) Taxes don't get paid, and they can physically confiscate, but it happens at a later date and police/military forces could deal with security one house at a time, rather than taking on a full scale riot. People who want to keep their property might drain accounts to pay if the money is there.

I think there is a strong preference for "instant" solutions, though, like Cypress where the damage can be done overnight -- and made irreversible quickly -- and the fallout mitgated in the time after. If you could do this leisurely, you'd combine all a person's assets at the top level (ala IRS) and trim there, but lacking time and such a database, I think it makes the most sense to probably skip housing, and just clip every bank/IRA/401K. Still, 25% is a huge amount, and the implications of liquidating are pretty massive; I halfway wonder if they'd just transfer the assets themselves to a central holding body and create some fucked up version of communism with titles to the assets.

Of course -- the scarier part of all this -- the vast majority of the assets they're trying to take here are phantoms backs by fraud themselves. Imagine them taking 25% of every financial asset -- that's 25% of mark to fantasy MBS, 25% of paper gold, 25% of shares in overvalued companies, etc. They'll have pretty balance sheets that are ghost stories.

If anyone has any other ideas of implementation, please comment. I've been war-gaming this out in my mind trying to determine the best ways to protect assets.

Mon, 01/27/2014 - 20:00 | 4373044 Poor Grogman
Poor Grogman's picture

Cypress would have printed if they could have.

Sovereigns who have their own CB will take the inflation path (UK) or controlled deflation path. (Japan)

Sovereigns who can't print, like the southern Euro Peons, will have to bow to buba.

Printing while massaging the CPI is the least painful political option.

This means investors at least can relocate themselves and choose their poison...

Mon, 01/27/2014 - 13:34 | 4371550 FeralSerf
FeralSerf's picture

If they can't confiscate it, they destroy it and the owners as well. That's why bombs were invented.

Mon, 01/27/2014 - 09:35 | 4370795 eurogold
eurogold's picture

I agree with the statement from Germany. Long overdue.

Mon, 01/27/2014 - 09:49 | 4370850 orez65
orez65's picture

"I agree with the statement from Germany. Long overdue."

It will not solve the problem, it will merely allow Governments to start a new round of reckless deficit spending.

Mon, 01/27/2014 - 10:02 | 4370908 Ghordius
Ghordius's picture

they could, but only by repudiating the current treaties on the matter, including the European Fiscal Compact

Mon, 01/27/2014 - 15:32 | 4372117 Lost Word
Lost Word's picture

Honor among thieves?

Tue, 01/28/2014 - 04:52 | 4374276 Ghordius
Ghordius's picture

the correct term is sovereigns. you need a tax base and an army to belong to this club. so technically the correct question is: "is there Honour among Sovereigns?"

my answer is: some. sometimes. it's called... peace

Mon, 01/27/2014 - 13:13 | 4371460 DaveyJones
DaveyJones's picture

governments never recklessly spend and never break contracts

Mon, 01/27/2014 - 09:58 | 4370899 Gene Parmesan
Gene Parmesan's picture

What does it fix? How much time does it realistically buy?

Mon, 01/27/2014 - 10:33 | 4370990 Greenskeeper_Carl
Greenskeeper_Carl's picture

The answer to your question is 'some'. Doesn't matter how much, but they believe it will buy them 'some ' time. I personally think it will have the exact opposite effect

Mon, 01/27/2014 - 09:35 | 4370797 Troy Ounce

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