This page has been archived and commenting is disabled.

Is Portugal Next In Line For Wealth Confiscation?

Tyler Durden's picture




 

Submitted by Nick Giambruno via Doug Casey's International Man blog,

The pattern should be seared in your memory by now. If you fail to recognize it, you could be struck with a huge financial blow.

It’s a pattern that has played out over and over throughout history: a government gets into financial trouble, then denies there’s a problem, which is followed by a surprise wealth grab.

That’s exactly what happened when bank deposits in Spain and Cyprus were raided. We’ve also seen retirement savings confiscated in some form in Poland, Portugal, and Hungary. Capital controls have been imposed in Cyprus and Iceland.

Of course these aren’t the only examples of blatant government thievery. These examples are just within Europe and just within recent years. They can and will happen anywhere.

These events highlight the need to use international diversification to mitigate your political risk—the risk that comes from governments.

I think they also give us some clues as to what country is next on the chopping block.

A Roadmap to Confiscation

It starts out with government officials telling you everything is all right—when clearly everything is not all right.

Like when the president of Cyprus promised that bank deposits would be safe. A promise that we all know turned out to be worthless. Another example of why you’re almost always better off believing the opposite of whatever the government says, especially in a crisis.

Deceptions like this don’t happen by accident. The politicians and media deliberately lull the people into complacency so that they can optimize their forthcoming theft.

The next thing that happens needs to come as a surprise, otherwise it loses its effectiveness. It starts with a bank holiday or capital controls. It’s usually optimal—from the government’s view—to impose these measures on weekends or during a holiday to catch people off guard. They need the element of surprise or else people would take protective measures, like moving their money abroad and safely out of reach.

Once the banks are closed and capital is trapped, the government is free to confiscate as much wealth as it can get away with. It doesn’t matter what they call it or how they do it, the bottom line is they are making an unscrupulous grab. Capital controls are usually kept in place after the grab to prevent the remaining money from fleeing further slaughter.

So don’t forget the pattern:

  1. Country gets into serious financial trouble;
  2. Official government denials;
  3. Surprise bank holiday/capital controls; and
  4. Confiscation.

I think Portugal is a ripe candidate for being the next country to fall into this pattern.

Portugal Is Blinking Red

In late July 2014, Banco Espírito Santo (BES)—Portugal’s second-largest bank—went bust amid allegations of accounting problems and fraud.

BES is no ordinary bank. The Espírito Santo family, which owned the bank and a large empire of companies in Portugal and abroad, has been described as Portugal’s Rockefellers.

BES was quickly bailed out by the Portuguese government, the EU, and the IMF.

When I read about the incident in the mainstream financial media, most outlets refused to use the word “bailout.” Instead, it seemed that someone handed down the order to describe the event as a “rescue.” Such a concerted effort to coordinate talking points seems to me to be an Orwellian attempt to make this incident seem less objectionable, and perhaps to help conceal the real nature of Europe’s continued economic problems.

The fact that such a huge fraud at such a significant bank for so long escaped the notice of regulators—which supposedly had kept a close watch on Portugal due to a prior crisis in 2011—has reinforced fears that the banks and banking systems of the PIIGS countries (Portugal, Italy, Ireland, Greece, and Spain) are not as good as they seem.

So looking at our roadmap to confiscation, Portugal is clearly at the first stage in the pattern—serious financial trouble.

We also have government officials telling us everything is OK when it is probably too early to declare victory. Mario Draghi, the head of the ECB, recently stated that the collapse of BES “affected neither the banking sector in Portugal, nor Portugal at large, nor other markets.” It’s reminiscent of how, prior to the crisis in Cyprus, government officials were assuring everyone that there was nothing to worry about. Portugal also seems to be at stage two of our confiscation roadmap.

So in short we have another serious financial mess in Portugal. It occurred right under the noses of the regulators who were supposedly keeping a close watch on the country from a prior bailout and crisis in 2011. We have the media sugarcoating the incident, and government officials telling us everything is fine.

To me, it smells like a wealth confiscation in Portugal is just around the corner.

Get Out Before They Close the Window

If you have any money in a Portuguese bank, I think it’s clear that now is the time to head for the exits while you still can.

When it comes to protecting yourself from confiscations, capital controls, bank holidays, and other desperate measures of an out-of-control government, it’s absolutely essential to take action before it’s too late.

Unless you’re part of the political elite, you won’t know exactly when the window of opportunity will slam shut. In Cyprus, that moment came on an ordinary Saturday morning—to surprise as many people as possible before they could take defensive action.

While the window is still open for those in the US to protect themselves, the warning signs are clearly there. And the writing is on the wall.

It’s only logical to find ways to protect yourself. Moving some of your savings outside of the immediate reach of your home government and into a competently run jurisdiction with relatively sound banks makes sense no matter what happens.

Fortunately you can do this from the comfort of your own living room, by opening offshore bank and brokerage accounts remotely.

Naturally, things can change quickly. New options emerge, while others disappear. This is why it’s so important to have the most up-to-date and accurate information possible. That’s where International Man comes in. Be sure to get the free IM Communiqué to keep up with the latest on the best international diversification strategies.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 08/22/2014 - 11:58 | 5129944 Newsboy
Newsboy's picture

Thanks, transferring to London NOW!

Fri, 08/22/2014 - 11:58 | 5129955 whotookmyalias
whotookmyalias's picture

Anyone with money in the bank or other financial institution is next in line.  Once this succeeded with no hangings, it will continue. Welcome to the new world order.

Fri, 08/22/2014 - 12:00 | 5129965 LawsofPhysics
LawsofPhysics's picture

please, it's been a "mark to fantasy" world for quite a while now.  People do not know what real assets are or what real collateral is.  You expect them to understand counterparty risk?  LMFAO!

Fri, 08/22/2014 - 12:40 | 5130136 knukles
knukles's picture

Waaaaait?  There's still wealth in Portugal? 
aw shucks, just gotta rinse and turn the condom inside out from now on

Fri, 08/22/2014 - 13:11 | 5130302 Oldwood
Oldwood's picture

It can't happen here..this is AMERICA!

Fri, 08/22/2014 - 14:50 | 5130887 Living The Dream
Living The Dream's picture

It can't happen here..this is AMERIKA!

(There, fixed it!)

Fri, 08/22/2014 - 16:18 | 5131369 inhibi
inhibi's picture

It can't happen here..this is AMURIKA!

(There, fixed it!)

Fri, 08/22/2014 - 12:45 | 5130144 Kirk2NCC1701
Kirk2NCC1701's picture

The AA (Anglo-American) global hegemony must be maintained.  As must the GRC of the USD.

Else all Prime Beneficiaries of QE are affected:  the Rich, and the Chosen.  It's a small club, and you, Portugal and Greece ain't in it.  There "Can only be One" country along the Mediterranean that has everything shoved up its ass, and those two ain't it.

Fri, 08/22/2014 - 18:19 | 5131889 crazytechnician
crazytechnician's picture

No mention of bitcoin ?

Fri, 08/22/2014 - 11:59 | 5129949 Cognitive Dissonance
Cognitive Dissonance's picture

"But...but...but they would never do that over here. Congress would never allow it for the simple reason Congressmen and women want to be re-elected." - The drowning cries of the average middle class American in deep denial.

Fri, 08/22/2014 - 12:17 | 5130027 Harbanger
Harbanger's picture

If it did happen here it would be Ok because,

You didn't build That!  send your donations early.

Elisabeth Warren 2016

Fri, 08/22/2014 - 13:18 | 5130333 Oldwood
Oldwood's picture

Exactly! We are constantly reminded that none of this is really ours anyway. Our property "rights" are as fungible as all of the rest of our newly acquired ones (here for as long as the money lasts). I used to think of our government as a silent partner skimming the profits but it seems more like a bad marriage (I have had both), in that there is what is considered ours and then there is hers. When the shit hits the fan, she immediately takes "hers" and then proceed to take at least half of mine, plus any small bodily appendages that may still remain unclaimed.

Fri, 08/22/2014 - 11:58 | 5129950 JenkinsLane
JenkinsLane's picture

Sell Mortimer, sell!

Fri, 08/22/2014 - 11:59 | 5129952 whotookmyalias
whotookmyalias's picture

Turn those machines back on.

Fri, 08/22/2014 - 12:07 | 5129991 RattNRoll
RattNRoll's picture

Those men tried to have sex with me! Sorry lol

Fri, 08/22/2014 - 13:18 | 5130336 detached.amusement
detached.amusement's picture

why was I picturing sir smoke a lot going "he had sex with my MOMMA!"

Fri, 08/22/2014 - 11:58 | 5129956 LawsofPhysics
LawsofPhysics's picture

Are they armed?  No?  Well then, yes, I believe they could be subjected to this "plan".

Fri, 08/22/2014 - 12:10 | 5130003 Winston Churchill
Winston Churchill's picture

You know its coming here LoP. Guns or no guns.

2 billion hollow points agree with me.

Fri, 08/22/2014 - 12:18 | 5130030 LawsofPhysics
LawsofPhysics's picture

So does the link below.  Apparently, the U.S government does not want people to have access to non-lethal protection either.

 

https://beta.congress.gov/bill/113th-congress/house-bill/5344/text

 

Fri, 08/22/2014 - 12:22 | 5130042 Harbanger
Harbanger's picture

Correction, apparently Democrats. Like it makes a difference.

Fri, 08/22/2014 - 13:20 | 5130345 detached.amusement
detached.amusement's picture

dont worry, the whips will tally it all out ahead of time so that those who wish to keep up appearances can smugly say they voted against it

Fri, 08/22/2014 - 13:19 | 5130347 Oldwood
Oldwood's picture

Only till the republicans can figure how to make hay with it and still blame it on the libs. We are genuinely fucked as long as we rely on republicans to actually represent anything resembling conservative values. There will never be a meaningful libertarian government because they would be voting to eliminate their own jobs.

Fri, 08/22/2014 - 13:28 | 5130390 Harbanger
Harbanger's picture

Well I'm sure people were wondering why George Washington didn't want to be King and stay in Office for life. 

Fri, 08/22/2014 - 13:40 | 5130468 Oldwood
Oldwood's picture

In the beginning, all creatures were free, but eventually they were gathered and "harvested". Our founders were free men who obviously believed in a pretty basic concept of freedom, but there were those and increasingly more since who saw great advantage in minimizing that freedom. But of course they can never tell us that so they simply tax our freedoms away, like social security, "investing" our freedoms to be used for our own security. AS usual, we have been manipulated into ceding our rights and freedoms for magic beans that will grow, carrying us to the heavens, only to find evil giants there hoping to grind our bones to make their bread.

Fri, 08/22/2014 - 12:14 | 5129972 Itchy and Scratchy
Itchy and Scratchy's picture

'They didn't build that!' - The Kenyan

Fri, 08/22/2014 - 13:21 | 5130355 Oldwood
Oldwood's picture

Its really pretty easy to tell when you have officially been enslaved, when your labor is actually building their assets and wealth rather than your own.

Fri, 08/22/2014 - 13:31 | 5130417 Itchy and Scratchy
Itchy and Scratchy's picture

Think : Progressive Tax Rates!

Fri, 08/22/2014 - 12:07 | 5129988 Winston Churchill
Winston Churchill's picture

Easier for some of us to do than others.Not sure its safe overseas either.

Most here on ZH can't though. Your only real defence is to semi get out of the matrix,

by having nothing in your name they can come after.They will before this is over.

They were only letting you play with their money after all.Now they want it back.

All of it.

Thinkabout it.

Fri, 08/22/2014 - 12:06 | 5129992 Itchy and Scratchy
Itchy and Scratchy's picture

The might want to keep this in mind:

https://www.youtube.com/watch?v=jagvYIMJyzU

Fri, 08/22/2014 - 12:08 | 5129999 Dr. Engali
Dr. Engali's picture

Sorry for the repost, but we were for Assad before we were against Assad and now it looks like we are for Assad again:

 

 

US and UK should back Assad to defeat ISIS - senior UK MP

 

http://rt.com/uk/182108-uk-assad-alliance-isis/

Fri, 08/22/2014 - 12:15 | 5130023 LawsofPhysics
LawsofPhysics's picture

Doc,  take a look at the "ISIS fighters".  What are the genetic odds of a person in this region having a red beard?

Fri, 08/22/2014 - 12:30 | 5130029 Dr. Engali
Dr. Engali's picture

That was my first thought when I saw that picture. A ginger in the Middle East?..... Yeah right

Fri, 08/22/2014 - 12:36 | 5130094 Harbanger
Harbanger's picture

Sorry but that's just being ignorant Doc.  Take a minute to google blonde and red haired Arabs in images.  Yes, even blue eyes.

Fri, 08/22/2014 - 12:23 | 5130051 Winston Churchill
Winston Churchill's picture

Lots of stray genes floating around there .

From the greeks, traders, crusaders, you name it. But that one looks Irish with that skin,

and beard.

Fri, 08/22/2014 - 12:29 | 5130073 Harbanger
Harbanger's picture

"Red-hair is still honoured amongst Moslems as the Prophet Mohammed himself was reported to have red hair." [von Schwerin (1960)

Fri, 08/22/2014 - 12:48 | 5130168 Itchy and Scratchy
Itchy and Scratchy's picture

Especially red-hair punnana!

Fri, 08/22/2014 - 13:01 | 5130243 smacker
smacker's picture

Philip Hammond (new UK Foreign Secetary) has ruled it out within the last hour or two.

Fri, 08/22/2014 - 13:31 | 5130409 Oldwood
Oldwood's picture

Regardless of ideology we must accept we have no allies, other than those we can force or bribe to temporarily "behave" in a complementary or allied fashion. Alliances could change three times a day and still be "normal" at this point. When you have fucked everyone in the room, friends are likely anyone who is not trying to kill you at any one moment. This IS the definition of CHAOS. No rules, no allies, no way of knowing who is friend or foe so assumptions are that everyone is a potential enemy.....and just because I think everyone is out to get me DOES NOT mean I'm paranoid, damnit.

Fri, 08/22/2014 - 13:42 | 5130481 tjeffersonsghost
tjeffersonsghost's picture

Why did they feel the need to blur one of the guys image out?

Fri, 08/22/2014 - 14:42 | 5130796 Creepy Lurker
Creepy Lurker's picture

Doc, I looked at the article and then at the comments and you know what ran through my mind?

"We have always been at war with Eastasia..."

Fri, 08/22/2014 - 12:19 | 5130034 Joe Tierney
Joe Tierney's picture

If they try that confiscation game here in the U.S. they're really going to have to use those 2 billion hollow-point rounds.

 

I think they know that already. Man, this is really going to get ugly.

 

I wish I could escape to a small tropical island somewhere.

Fri, 08/22/2014 - 12:44 | 5130153 dearth vader
dearth vader's picture

If you're that desperate I've an island to sell to you, a bridge is optional.

Fri, 08/22/2014 - 12:20 | 5130037 Yen Cross
Yen Cross's picture

    You know a country is bankrupt when their bond yields have fallen so much over a years time and they still can't service their debt. I wonder how much U.S. treasury buying through Belgium is being done by European banks who in turn use the treasuries as collateral to borrow against to buy European bonds.

  Todays closings. 
    Italy 2.58% -2bp
    Spain 2.38% -2bp
    Portugal 3.24% +2bp
    Germany 0.983% -1bp

Fri, 08/22/2014 - 12:20 | 5130038 Dubaibanker
Dubaibanker's picture

Since 2006, the Debt to GDP ratio of Portugal has only doubled, from 62.6% to 129% today.

This is also happening at a time when their GDP has been shrinking:

2006: 192bn

2009, peak: 252bn

2014: 220bn

This is happening when their population has started declining and has dropped by 80,000 people in the past 2 years.

At the same time, Moody's has upgraded the ratings to BB level when Espirito Santo bank issues had just begun late last month. Talk about perfect timing to look like an ass! Surreal takes a new meaning with these chaps.

We all know how much we need to trust the ratings. If we pay enough fees to any rating agencies, they will do whatever you tell them, because all agencies are controlled by the same people. 

Moody's upgrades Portugal's debt rating

 

Let the bank runs begin in Portugal!

 

Fri, 08/22/2014 - 12:26 | 5130062 orangegeek
orangegeek's picture

smart money has probably

 

the only ones to take from are the ones without much cash

 

socialists love using OPM (other people's money) until there's nothing left, then they get moody

Fri, 08/22/2014 - 12:36 | 5130115 Farmer Joe in B...
Farmer Joe in Brooklyn's picture

That's a tad elitist....

Whether people have $50,000 or $5,000,000 in the bank, if it's a lot to THEM, then they would be wise to protect those assets any way they can.

Fri, 08/22/2014 - 12:33 | 5130100 Itchy and Scratchy
Itchy and Scratchy's picture

Socialism is a senational idea .... until the other dude runs out of cheese!

Fri, 08/22/2014 - 12:39 | 5130131 Bangin7GramRocks
Bangin7GramRocks's picture

Enough with the socialism shit. This will happen in every country in the world. Even the fucking exceptional U S of A. Roll your capitalism flag up, slide it in your ass and run one out. It will make you feel better, but it won't change the fact that all of the worlds financial systems are bullshit and fake.

Fri, 08/22/2014 - 12:50 | 5130160 Itchy and Scratchy
Itchy and Scratchy's picture

WORLD Socialism is sensational ....until the other comrade runs out of feta!

Fri, 08/22/2014 - 13:10 | 5130294 Bangin7GramRocks
Bangin7GramRocks's picture

Have we all so conveniently forgotten TARP? If I told you all 10 years ago that the bankers will blow up the financial system, then demand $700 billion or they would destroy it completely. They also demand complete immunity from prosecution, larger bonuses and unlimited free money from the FED. You would swear that the country would revolt and there would be blood in the streets. Didn't happen then, and it won't happen next time when they say sacrifice 30% of your money or you will lose it all. We will all take it once again and watch the cocksuckers buy yachts, $300 million homes and private islands with our money.

Fri, 08/22/2014 - 13:58 | 5130546 Oldwood
Oldwood's picture

I revolted but no one noticed...but my wife, and she says I have always been revolting.

Fri, 08/22/2014 - 13:57 | 5130540 Oldwood
Oldwood's picture

Why are we so sensitive to the term socialism being tossed about? Ultimately this is all about redistribution. Leftists thought it meant to steal from the rich to give the poor, now finally discovering that it is what it always was, just simple theft done through the power of the state and used against anyone they deem necessary. Ultimately economic justice is like every other kind of justice in that it is used to justify the taking. Those with the power to survive...will. Terminology is for those who see some system as being able to dispense justice in THEIR interests. why do you think so many have been attracted to religion? because they realize there is no justice in this life other than what you take for yourself, and that can just get damned ugly.

Fri, 08/22/2014 - 12:46 | 5130157 Mercantilist
Mercantilist's picture

"Moving some of your savings outside of the immediate reach of your home government and into a competently run jurisdiction with relatively sound banks makes sense no matter what happens."

 

Great idea - Can you tell me where there is a "competently run juridiction" or should I just move it around as each crisis develops!  :) What happens when they all decide to stop the runs and just close all the exits?

Fri, 08/22/2014 - 15:31 | 5131121 StandardDeviant
StandardDeviant's picture

He's writing for Doug Casey's newsletters, so I'm betting he'd say Singapore.  They've written previously about how foreigners can open bank accounts in SG, how to buy and store gold bullion there, and so on.  Can't say I disagree: the Monetary Authority of Singapore runs a tight ship, and the country's swimming in reserves (not to mention armed to the teeth).

HK's another possibility, I guess, and one that's even more likely to resist pressure from the US, EU, etc.  Comes with its own set of China-related risks, though.

Fri, 08/22/2014 - 12:47 | 5130163 VWAndy
VWAndy's picture

Looters should be shot.

Fri, 08/22/2014 - 12:54 | 5130195 Itchy and Scratchy
Itchy and Scratchy's picture

The inflationary money printer looters are the ones who should be shot!

Fri, 08/22/2014 - 12:57 | 5130216 VWAndy
VWAndy's picture

Those would be the ones.

Fri, 08/22/2014 - 12:50 | 5130177 The Most Intere...
The Most Interesting Frog in the World's picture
Is Portugal Next In Line For Wealth Confiscation?

 

Hopefully!  Nothing but socialist scum in Portugual.  They deserve what they get!

Fri, 08/22/2014 - 14:02 | 5130557 Oldwood
Oldwood's picture

Thats so harsh! But on a positive note I think they are finally about to reach income parity with each other. No one ever said equality would be pretty.

Thinking of converting my cabinet shop into an insulated wooden crate business, as winter will be coming on fairly soon. Bullish!

Sat, 08/23/2014 - 10:14 | 5133968 The Most Intere...
The Most Interesting Frog in the World's picture

Capitalism at work!   I Love it!

Fri, 08/22/2014 - 12:54 | 5130197 The Most Intere...
The Most Interesting Frog in the World's picture

PULL YOUR CURRENCY FROM THE BANKING SYSTEM NOW!!!

Fri, 08/22/2014 - 12:53 | 5130198 SantaClaws
SantaClaws's picture

Can the U.S. seize assets as this article suggests?  Are there constitutional provisions that would prevent it?

 

How about an intelligent, detailed discussion about tools (e.g., legal strategies) we might apply, perhaps in advance, to prevent or delay such seizures domestically.

Fri, 08/22/2014 - 12:55 | 5130209 JRobby
JRobby's picture

Legal strategies?

Fri, 08/22/2014 - 14:04 | 5130571 Oldwood
Oldwood's picture

Did we not just read of the administrations illegal actions regarding the released murders. You are seriously expecting constitutional action?

Fri, 08/22/2014 - 12:55 | 5130202 JRobby
JRobby's picture

Yes

They may also "jump the line" (special "total incompetence clause")

 

Fri, 08/22/2014 - 13:01 | 5130239 Itchy and Scratchy
Itchy and Scratchy's picture

The EU has 'worked itself' in-line for a multi-trillion euro 'bank saving' U.S. style QE program. That is where the prime-time looting happens! Granny's bank balance will be worthless before long!  Don't forget to thank your central planners on the way out the door!

Fri, 08/22/2014 - 13:05 | 5130269 Joebloinvestor
Joebloinvestor's picture

The Portuguese will be as stupid as the others then bitch to whoever will listen to no avail.

Repeat as often as you can get away with.

I thought Argentina would do confiscation soon.

Fri, 08/22/2014 - 13:15 | 5130316 VWAndy
VWAndy's picture

The thing thats really messed up about it is it wipes out the local economies. They do it on saturdays to get the paychecks causing a controled economic stall. Big players are not effected because like GM they operate on never ending credit. jmo

Fri, 08/22/2014 - 13:18 | 5130339 Karlus
Karlus's picture

The most likely scenario is all of these confiscation actions will drive the herd to the USD. People (rightly or not) perceive that this currency is the dog with the least fleas.

Inb4 Chinese gold back currency
Inb4 Deflation

Fri, 08/22/2014 - 13:25 | 5130382 Itchy and Scratchy
Itchy and Scratchy's picture

'It is the pursuit of many to live off government while not realizing it is government who lives off them!'

Fri, 08/22/2014 - 13:47 | 5130506 lasvegaspersona
lasvegaspersona's picture

If the USA tried this it would be lights out for reserve status.

The EZ can do this because they are not trying to make the Euro a reserve currecny. The messgae of the ECB seems to be (after NIRP) go away, we don't want your savings...buy gold.

That is against almost every ZH meme but look at the facts....confiscation in Cyprus (and other semi confiscatory actions mentioned here) NIRP which is clearly telling folks not to hold wealth in banks...and then there is leading by example...the ECB has 10,800 tons of gold on it's balance sheet marked to market.

The ECB is not like the Fed and the Euro is not like the dollar...believe it or don't. Understanding these facts and putting them in perspective is what fofoa has been doing for 6 years (tomorrow, Happy Anniversay fofoa). While other gold writer all spout the same 'the markets are manipulated, buy gold' theme only fofoa gives a clear reason why gold might increase in value manipulated or not. 

Buy gold but if you are curious as to why it is a good idea and to get the information that will allow you to hold it as the price goes down ....without losing sleep...I suggest following fofoa.

Fri, 08/22/2014 - 13:51 | 5130521 VWAndy
VWAndy's picture

Its a smart bomb for the real productive side of the economy. Like a controled demo. They can also game the hit. Targeting specific groups and indevidguals. Skipping others like cops and other team players.

Fri, 08/22/2014 - 13:56 | 5130531 Mark_BC
Mark_BC's picture

This isn't a wealth grab, it is a poverty tax. A wealth tax would target the billionaire and trillionaire elites who are stealing from you via less obvious means. What we need is a real wealth tax.

Fri, 08/22/2014 - 14:07 | 5130554 Itchy and Scratchy
Itchy and Scratchy's picture

You want a low as possible flat income/capital gains/estate tax for ALL - corporations included! You can play around with consumption taxes all you want!

Progressive taxation has been the root of much of this evil by financing bloated, ineffecient & menacing bureaucracies. Shrinking government = shrinking problems!

Fri, 08/22/2014 - 16:45 | 5131477 Mark_BC
Mark_BC's picture

Except, when you adjust government spending for real inflation as per Shadowstats it becomes apparent that government spending has been going down sincce 1971 -- the year the US defaulted on its gold cenvertability, and also happens to be the year it hit Peak Oil.

Fri, 08/22/2014 - 14:07 | 5130584 thethirdcoast
thethirdcoast's picture

A sad fate for a lovely country full of excellent food, terrific wine, and friendly people.

Fri, 08/22/2014 - 14:09 | 5130599 Itchy and Scratchy
Itchy and Scratchy's picture

U 4got hot babes!

Fri, 08/22/2014 - 14:13 | 5130618 VWAndy
VWAndy's picture

 Think about a global stall.

Fri, 08/22/2014 - 14:19 | 5130647 Itchy and Scratchy
Itchy and Scratchy's picture

The truth is all these countries are filled with great people & great cultures. Unfortunately most have them have been systematically demoralized, frustrated and bankrupted by scores of self-serving, feckless and corrupt forms of twisted leadership (sic). The damage done has been considerable - but all energy now must be used by the people to rise above these entrenched paracitical governments replacing them with a much reduced, FAIR and effective form of leadership that is truly subserviant & responsive to the needs of the people! It sure won't be easy but it sure can be done! Let these fine countries rise again full of pride & confidence! Failure to do so is lethal!  

Fri, 08/22/2014 - 16:12 | 5131326 StandardDeviant
StandardDeviant's picture

You're right, of course -- but that "much reduced" part is going to be a tough sell in Europe. 

A century of ever bigger governments, with all of the cronyism, corruption, and general "rorts" (one of my favourite Aussie words!) that follow, have warped people's thinking; made them, and their companies, dependent on handouts, civil service jobs, loopholes, monopolies, and on and on.

Maybe I'm overly pessimistic: maybe a quick reset is possible, much as in, say, Poland or Estonia or the Czech Republic after the collapse of the Soviet Union and the Warsaw Pact.  I suspect, however, that it'll be the work of a generation or more.

Fri, 08/22/2014 - 16:26 | 5131402 Itchy and Scratchy
Itchy and Scratchy's picture

China went from crushing Communism to almost unbridled Capitalism is what seemed like a few short years.

Fri, 08/22/2014 - 14:29 | 5130716 VWAndy
VWAndy's picture

We would need to pull it off more than once. Im thinking three or four times should do it.

 Accountability changes everything.

Fri, 08/22/2014 - 15:00 | 5130928 Itchy and Scratchy
Itchy and Scratchy's picture

Zero DEFICIT financing solves everything! i.e  Nil Annual Deficits & Nil debt to GDP!

Fri, 08/22/2014 - 15:01 | 5130944 VWAndy
VWAndy's picture

Yes that would be some accountablity. A good start for sure.

Fri, 08/22/2014 - 16:43 | 5131470 Mark_BC
Mark_BC's picture

Impossible in a debt based monetary system. There would be no money if there wasn't any debt. Or are you instead sugesting that the private sector should be burdened with all debt / money creation? Are you in favour of an asset based monetary system like a gold standard? Sure, when we get there we can talk about zero deficit. Until then the government has to run a deficit o function.

Fri, 08/22/2014 - 18:44 | 5132003 Boris D Blade
Boris D Blade's picture

Exactly. Go back to the mathematics, people!

Fri, 08/22/2014 - 14:41 | 5130799 VWAndy
VWAndy's picture

If we just talked about a stall enough we could effect real change without even having to go thru with it.

Fri, 08/22/2014 - 14:54 | 5130913 VWAndy
VWAndy's picture

The differance between asking for a raise and demanding one is the willingness to walk. Are you done asking yet?

Fri, 08/22/2014 - 14:54 | 5130914 VWAndy
VWAndy's picture

dbl post

Fri, 08/22/2014 - 15:18 | 5131046 hairball48
hairball48's picture

Fuck the banks, the banksters, and their lackey pols. Everything I have is in "real stuff". Cash, gold, silver, ammo, food, etc. Call me whatever you like.

Fri, 08/22/2014 - 15:32 | 5131126 Itchy and Scratchy
Itchy and Scratchy's picture

I'll call u prepared!

Fri, 08/22/2014 - 15:44 | 5131187 Youri Carma
Youri Carma's picture

G20 edging towards deal on 'bail-in' bond cushion for banks
21 August 2014, by Huw Jones - London (Reuters)
http://www.reuters.com/article/2014/08/21/us-g20-banks-idUSKBN0GL0NN20140821

Fri, 08/22/2014 - 15:46 | 5131199 Itchy and Scratchy
Itchy and Scratchy's picture

Print baby print!

Fri, 08/22/2014 - 17:59 | 5131798 Cryogenic
Cryogenic's picture

Heard that average citizen, that has certain investment is also on the hook for a 0.03% once off account adjustment,

by none other than.......Barclays/ABSA.

 

Apparently they had sizeable stake in the African bank, but have burnt their fingers by the fiasco.

Guess bankers do not want to forfeit their bonuses.

Fri, 08/22/2014 - 19:01 | 5132087 zipit
zipit's picture

Bitcoin, Pitchez!

Sat, 08/23/2014 - 17:56 | 5135205 Navymugsy
Navymugsy's picture

If you live in Portugal then here's some advice from someone who lived through the Cyprus banking debacle:

 

1. Get every Euro you have out of the Portugese banking system.

 

2. Do it NOW!

 

3. Keep 2,000-4,000 Euros in cash in your house in a safe place. They close the banks AND the atm's. Unless you are rich and well connected, you will not be able to touch a penny of it until they've peeled off 40-50% of it (for the good of the banking system of course).

 

I am not a psychic just a survivor.

Sat, 08/23/2014 - 19:21 | 5135411 VWAndy
VWAndy's picture

No Pay No work.

Sat, 08/23/2014 - 21:31 | 5135730 Johnny_is_alrea...
Johnny_is_already_taken's picture

I live in Portugal and its been YEARS I dont have a cent in bank accounts here.

The day I receive my salary (unfortunatly we are forced to be payed by bank transfer) I MOP IT UP CLEAN IMEDIATLY !

 

Hopefully the bank holliday will not be on my pay day... :)

Sat, 08/23/2014 - 21:48 | 5135762 VWAndy
VWAndy's picture

If they swipe your paycheck why work? No.

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