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The War On Cash: Australia Leads The New Age Of Economic Totalitarianism
Submitted by Martin Armstrong via Armstrong Economics,
The reason I moved the Solution Conference forward was due to the fact that all my sources behind the curtain were screaming from the four corners of the world that the new age of Economic Totalitarianism is upon us all. Australia will be the first to introduce a compulsory tax on savings. This is the ultimate Marxist state for now anyone with spare cash is the enemy of the Conservative Tony Abbott government. What I laid out at the Solution Conference is the ONLY way out of this nightmare. It is time for people to start spreading the word and get behind changing the game plan while we still have a game in play. We have to stop this confiscation of all wealth and the continual borrowing and taxation. This will lead to the total destruction of Western culture for we are plagued by power hungry insane politicians who cannot see past their nose.
The new compulsory control is already provided for in the 2015 Australian budget. So that everyone who has any savings must pay taxes on on their savings. The measure is expected to serve as a global test balloon for Europe and North America will watch the outcome in Australia. If there will be no massive resistance of Australian savers, the rest of the world should expect this outright confiscation very rapidly.
Tony Abbot has proven to be a real Marxist. He is taking the Australian people into the economic abyss from which only war and bloodshed can emerge. This is really Atlas Shrugged in high gear. The Abbot Government will introduce its draft budget for 2015 tax on savings and it will to announce this measure before the formal decision on the budget.
Prime Minister Tony Abbott said that it was now all about to relieve families and small businesses. For this, the new tax is to be used. The problem is clear. There will be no reduction in taxes for these people, it will only be more money in the pocket of corrupt and seriously deranged politicians who are destroying the western civilization in the blink of an eye.
Abbott also said there would be some hard decisions in the new budget because this was inevitable. For the banks, the government’s plans are anything but good news. Abbott’s anti-capitalism view will put him up there with Lenin no doubt when history is allowed to be written honestly perhaps in a hundred years or some. This decision of a tax on savings would seriously harm the government and if there are any smart Australians, it should now be a race to get the hell out of the banks. The banks should see a massive withdraw. Take your money and buy tangible assets even gold, but you just cannot store it in a bank. Movable assets will be the key and buying equities in the USA may be the only real game in town to protect money.
It is hard to fathom how Australian banks will attract or hold on to deposits in this new Abbott-style of Economic Totalitarianism. The opposition is of course outraged by the decision of the Abbott Conservative government. This is not a labour government demonstrating what I have said – economically there is no difference between left and right – just hand them the money.
The introduction of this tax on money in Australia led by Tony Abbott is the trial balloon for the global economy. The IMF’s Christine Lagarde has led the battle to impose French socialism/communism upon the entire world. I have warned that she is the most dangerous woman on the planet. Do not forget that it was the French elite who sold the idea of communism to Marx – not the other way around. Now the French elite have control of the IMF and they have persuaded all other global financial institutions to also require such a compulsory levy for several years because they see it as the only way to resolve the debt crisis – just confiscate the people’s money. In the wake of the G20 discussions such measures are usually prepared and coordinated. The public knows about it only when there are hardly any ways to prevent the action and mainstream press sell the people down the river cheering it all the way.
You better wake up before the coffin is nailed shut.
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100+ Up votes if that were allowed
A can of tuna is a coin .... a can of chili con carne is a coin .... a can of bacon is a coin .... get the old fashioned cans .... no zip tops .... for the shelf life !
it's oligarchism
Guys like Cameron, Harper and Abbott make me cringe... I really don't get it how people are actually voting for such individuals... I don't know if this is a coincidence or not, but the whole Western world right now seems to be run by certified psychopaths... it's as if they've been hand-picked... Obama is not the worst offender in fact, it's the people behind him... and they say Putin is a lunatic...
QE inflation will eat that cash faster than negative rates
Global coordinated fascism. It's what's for dinner.
America .... Ponzi, Russia .... AK47. Japan .... forced marches, China .... starvation .......... I prefer Ponzi !
From the perspective that Ponzi is a board-game of sorts, and one you can win at -- if played with clarity and skill -- then, yes, it most certainly is far more preferable to the alternatives you cite: physical coercion.
Ponzi is a "Tender Trap" .... like a wet pussy !
Funny, these trends that seem to be developing...
BTC, BTChez.
They don't want anyone hiding digits in their mattresses.
They'll never kill cash or equivelant as the black market and shadow economy the thieves in power anywhere will never kill. Only for those who follow the rules and no one is capable of following all of them to the letter.
I will skip the cynical remarks - but stick to the facts.
As the article notes - how exactly will savers be encouraged to keep their money in banks, if savings deposts are taxed??? We are LITERALLY moving back to the days of the 1930's Global Depression when people DID store all their money in matresses.
For any Government to propose such a policy - is absurd.
PrimalSceam
In the US, there is FDIC insurance. Here are the costs --> https://www.fdic.gov/deposit/insurance/assessments/proposed.html
The insurance costs are essentially a tax on deposits, which you can be sure are being passed on to US account holders. Regardless of whether you agree with the concept of FDIC insurance, it sounds like the Aussie scheme already is in place in the US. The problem, or course, is that the insurance will encourage more risk-taking by banks and place losses on the insurance agency, which essentially places them on the taxpayer (in the case of a bali-out) or the account holders (in the case of a bail-in). Either way, depositors are going to get screwed. Most of the people responding to this article are reading WAY too much into it.
The extent to which Jewish/Zionist groups control things in the US, UK, Canada, Ukraine, and France ...
is largely how they control things in australia
Their power and organization is amazing, almost as amazing as the complete ban on being able to discuss what looks like an Israel using Jewish groups around the world to spy, murder, engage in hasbara, etc.
https://wideawakegentile.wordpress.com/2013/11/26/australia-gets-a-zog-z...
Oh, and Argentina -
http://www.globalresearch.ca/argentina-a-case-study-of-israels-zionist-w...
New Zealand too. Bob Key PM is a dual shit-i-zen like Chuck Schumer, Nuland, Soros and the lot.
So you are saying there exists a 'group' who specializes in this kind of thing? And that their scope is international? And that socio-economic warfare is their specialty? And that the banks and all media work for their benefit?
Sounds like a conspiracy. IDK /s
I have bullion and cash coming out of my eye balls and no debt - so you know where I am coming from.
Do nothing what the Authorities suggest. Hold everything that the Authorities attack. Most recently, I deposited $2,500 in cash from rents in Warren's bank and was charged $2.50 for the privilege.
Action taken: Changed banks.
Next action to be taken: Retain all cash and substitute a check from savings to cover it.
The newest attack is on cash. Open your wallet and read what is printed on the bill: This note is legal tender for all debts, public and private.
"They" want you to hold only electronic money, which they can tax it with negative interest and fees. Get smart. Get out of the system as best you can.
Your ability to liquidate your savings into cash or meaningful kind is going to be restricted.
Have thing to barter, like food and energy and other necessities.
Think this way: If the Internet and the Credit Card System went dark at 12:01 AM, how would you be fixed for survival when you wake up.
Living in Florida and going through several Hurricanes, having cash on hand when the machines were out of service was a life saver. BitCoin was a complete non starter for same reason. I believe people would die in natural calamities (and probably have) with out cash on hand.
These bankers and their government stooges are certifiably nutzo.
The credit card companies went from charging annual fees to offering cash rewards of up to three percent on purchases. I keep wondering, "what's up with that?"
Bud Abbot outstrips even Barry with his gross incompetence.
To vote in this retard as head of government says a lot about the current savvy of Ozzies.
I'm supposing that Uprick Murdoch played a fateful hand.
god damn it Tyler,,, STOP IT!!!!
I want to stay blissfully ignorant!
How is this new ?
In the Netherlands we are paying 1.2% for years now on our savings.
Google:
tax savings
Editors Sparen.nlLaatst changed on February 24, 2015
Every Netherlands pays in box 3 tax on his or her own ability. That is, if the power exceeds the tax-free threshold. This tax-free limit is 21,330 euros. To your own ability remit includes your savings, investments and a possible second home. How does paying tax on savings and how much tax you pay on savings, read this article.
"Now the French elite have control of the IMF"
ROFLOL!!!!!! The french elite can barely control their bowels. Too funny!
I dont see a source for this assertion.
Googled and found nothing.
http://www.smh.com.au/business/banking-and-finance/cba-says-deposit-tax-...
Need more details, what does it apply to and what does it skip, in other words how does the big money avoid it?
Where is the link to this * tax on money*?
http://www.smh.com.au/business/banking-and-finance/cba-says-deposit-tax-...
Startjoin a campaign to have him arrested.
Tony Abbot is the poster boy for the globalists. He and Stephen Harper will be the first to go down when the shtf. They are no more than puppets of the cabal, and the strange thing is, there has been no protests on the streets against either of them. There is no redemption for these two -they will face retribution very soon.
No wonder the cops sieze your cash and luxury items any chance they get.
A global test indeed, just as Cuba was a live-test study for "peak oil," at least when Hubbert made his announcements; Zimbabwe for currency manipulation (notice all the big banks represented there); then Cyprus and Greece banking; and now Australia. I know I've missed some, but I'm sure you get the idea. The British East India company subjugation of India was the first corporate takeover of a soverign state, but not the last. The Great Red Dragon is hard at work. Sometimes The Dragon Wins (because folks don't give a damn.)
How can a guy in favor of a crowned monarchy be labeled a Marxist? Somebody is playing fast and loose with labels here, as usual on ZH. In any case, this tax is not confirmed, just speculation at this point, since the budget doesn't get delivered until May 12th.
Plenty of other taxes are being talked about by the Labor party, but mostly rejected because they would target the richest. No mention of this deposit tax at all in The Australian. Only Martin Armstrong has the "facts", I guess.
http://www.theaustralian.com.au/national-affairs/treasury/budget-2015-bu...
I guess Armstrong is a big austerity guy, the old trickle down, works so well for everybody with piles of dough.
One man, one gun, one bullet... Heck, WWI started that way... Offing a douchebag of a Prime Minister is hardly going to lead to another one.
I don't understand the article. Most countries make you include interest on cash in bank accounts in your tax return. Like dividends on stock. Your "savings" are your capital, surely? Always been taxed in most countries.
This is not a tax on income produced by savings. It is a tax on the value of the principal savings itself.
http://www.smh.com.au/business/banking-and-finance/cba-says-deposit-tax-...
Think this kind of tyranny isn't noticed by the non-sheep in Australia? Alexa infowars.com: Rank - 741
Ireland's had a deposit tax for a few years. It's always been cuntish. It has done nothing to make people spend more. We're still fucked.
Another great idea from the experts! They should make drugs illegal too - to save the children.
It's over. Where is the Bank RUN???!!!
"k. Movable assets will be the key and buying equities in the USA may be the only real game in town to protect money."
You are as fucking insane as that Abbot and the fucking criminal fucking orange hooker if you believe that shit Armstrong
How do you say "GOLD BITCHEZ" in Australian?
This tax is only fair.
Since the State owns all assets, you should pay a tax for not using money and depriving other proles.
Their long sought after Utopia is almost complete. Next year the tax will be moot. You will have no savings. You may not even have shoes.
Australia returns to it's roots. A prison colony.
Before everybody starts panicking , they are talking about a .05% levy on the Banks which will be put away, hopefully to help bail the same banks out when their gambling debts come due, it won't be enough of course, the CBA alone I believe is just one of the four Big banks in Australia and is worth 40% of the entire GDP.
http://www.afr.com/news/politics/tax-on-bank-deposits-in-federal-budget-...
And that % will never go up!
We guarantee it.
Marxism? The writer needs to study history more carefully. Real Marxism leads to corporate officers being hung from the lampposts, leads to a mass exodus of the rich to...America. A tax on savings is not a tax for the poor, it is a tax for the corporate structure they are desperate to preserve.
Study the economies of fascists states, which protect the rich and the corporations. That is what we have in the West today, certainly NOT marxism.
Movable assets will be the key and buying equities in the USA may be the only real game in town to protect money.
Is this a typo? This will "protect" your money? Because the stock market can only go up? Is that it?
The opposition is of course outraged by the decision of the Abbott Conservative government.
Only because they didn't come up with it first.
Source for this info other than this article? Anyone know? --- nevermind, source linked above.
The comments here show a lack of understanding of the situation in OZ. So from someone who lives here:
It's not called the best country in the world for nothin. Bank deposits are guaranteed by the government up to $250,000 for each account. So if you had a million $ spread over the 4 major banks in your superannuation fund gettin 3.5 -4% interest you would have a reasonable income.
Financial institutions are regulated by APRA( Australian Prudential Regulatory Authority). The Government has realised that if the deposit guarantee was ever called upon they would run out of money on the first day. In the GFC 2 of the major 4 banks were at the Fed discount window to the tune of 3-4 billion $ each because of liquidity problems. Bernanke helped them out.
The proposed 0.05% tax on banks, which would be reflected in interest rates on deposits is a prudent step by the government. It is not a war on cash. Afterall we do not have the luxury of printing money out of thin air. And nor will the USSA for much longer.That's as may be.
However, you are kind of missing the deeper point. It is not about who is the good-guy in a white hat, and who wears a black one.
It is about the real, intended and unintended effects of decisions.
The bigger issue is that human nature is to attempt to store the value earned by labor. When government-issued-debt certificates don't do that, human nature will inevitably drive them elsewhere, however slowly.
Negative interest rates, wealth taxes, and income taxes drive people out of savings. From there there are three places to go: 1) the finance casino 2) deep into debt 3) physical assets. Most who try number 1 will end up in 2.
Two of the three are good for the central planners. The third is kryptonite to them.
Tellingly, the third is the only one that protects future value from wholesale discretionary confiscation.
The future is difficult to read. The living standard in Europe is certainly above the level of economic growth and can only be financed by continous debt and tax expansion. Experience tells that new taxes are introduced at low rates and the rates than climb over time in incremental steps. The IMF pondered about a one time flat wealth tax of 10% to reduce government debt. Other routes are conceivable. Such as a new class of taxation on current accounts and possibly on cash and similar assets. 0.05% could morph into 5%. The greed of the governments is unlimited.
So your bank deposits are guaranteed to 250k. That sounds like the US except the government only has 22 million in insurance against 88 trillion in cash. SO YOUR NOT GOING TO GET YOUR MONEY IDIOT.
Are you serious, mate?(And BTW I too am Australian)
So, let's clear some things up on your facts. Firstly, the government guarantee is applied to every entity, so if a depositor had money in both the CBA & Bankwest for example, that counts as one entity. Many people probably on the street probably don't know that.
And what they also don't know, which you seem to not know either, is that the guarantee has a limit of $20 billion per entity! Think about it, it ain't much.
Now, I don't know how much the big banks have in depoits, because frankly I don't care, but let's say it's a trillion each(I honestly don't know).
Whatever the numbers are, $20 billion won't stretch far.
Compounding the problem, if there ever were a bank failure in our country, depositors now actually rank second in the case of a wind up(unlikely & of course it could never happen, right?).
So, how can this be. Well, under the previous Labor government, when they passed legislation allowing the banks to issue covered bonds they also wrote into the legislation that covered bond holders rank ahead of everybody else. There is a limit though, banks can only issue covered bonds equal to 8 percent of assets.
Lastly, how do we not have the luxury of being able to print money? We have an independent central bank, they can print as much as they want, if they wanted to. Printing money as we know does nothing to solve underlying structural economic problems, but if say a bank failed here, I'm sure the RBA could print money and make everyone's deposits whole, but it would of course dilute the value of the dollar.
The 0.05 percent tax may seem to prudent to you, but the fact is the banks should be forced to look after themselves, not have the government try & do it for them. IF banks had of say set aside a small portion of their profits aside for a day of reckoning, over a very long time they could accumulate enough money to cover their customers deposits.
Let's say Westpac, our oldest bank, it was of course the Bank of Wales, or Wales Bank. They have been in business well over a hundred years. Imagine if they'd set aside a little, year after year.
But no, the banks cannot be trusted so governments have to look after them even though they are private businesses. Enough is enough, banks should be allowed to fail like any other business that is irresponsible.
What we were taught at uni, when studying economics & finance, was that if there was a bank failure in Australia the RBA could step in & take over. As far as I know that statute still applies.
It's not rocket science handling a bank failure. I reckon it would look something like this. The RBA takes over, and all deposits transferred to the RBA, who sacks most of the staff. Some staff would remain, and I suggest they have minimal branches in each capital city. Staff costs would therefore be slashed. Where it gets tricky is managing the loans outstanding, particularly the mortgages. Instead of hitting the panic button & selling everyone up, the RBA manages the book and simply allows them all to run until maturity, instead of flooding the market with houses for sale. Over time, a long time, you would probably find the losses are very minimal.
Hope everyone has learned a little here.
Cheers!
Looks like it's time to start stuffing cash in the mattress.
For the record, Australia has had taxes on bank deposits before, I know because I used to work for banks when I was very young.
Here are links:
http://en.m.wikipedia.org/wiki/Bank_account_debits_tax
http://en.m.wikipedia.org/wiki/Financial_institutions_duty
Lastly, I know ZH & other commentators talk a lot about ZIRP & NIRP around the world, the fact is we've had that in Australia for years, unless of course one is luckily enough to have money in term deposits. But, if you have money is an everyday bank account, you get no interest, and in fact you pay monthly fees to the bank for the privilege.
Who is this hysteric Armstrong?
The Australian Government guarantees bank deposits up to $250K. Do Armstrong and ZH believe depositors should receive that guarantee for free, to be paid for by taxpayers generally? What's the principled position?
Or is there no principled position, just a disposition to be outraged about everything based on virtually no information?
Is it Marxist to require that the beneficiaries of insurance pay the premium or that the taxpayer funds the premium as Armstrong apparently prefers? Who is the Marxist, Abbott or Armstrong?
Armstrong neglects to mention that the amount is 0.05% and is imposed on the banks, not on depositors. No doubt banks will try to pass it on to depositors but not always successfully.
Despite that Australia is one of the few developed countries still paying interest (currently around 2%) on funds in savings accounts. Even if I bear all the tax I'll still be far better off with my cash in bank than someone in the US.
Spot zone it and they will come.
Flavor of this generation of business/academia/politicans is a Leninist Dictatorship.
Martin Armstrong is no Bob Ellis.
Why's everybody always pickin' on Peta? Tony didn't do it, nobody saw him do it, nobody can prove anything!
Capex ratios will not reover in energy and minerals in the next decade.
Loan to value rations will not recover in the next decade for university students, young families and those negatively geared per RBA policy. That is, not without Leninist Third World lending policies. Right now there is another credit freeze as in 2007 to 2010 called the Great Financial Crisis. Stagflation is a four letter word. Just like savings, seniors and seekers of jobs.
80% of Association of Independent Retirees 15 years ago were above the maximum allowed for pensioner benefits. Today it flipped to about 80% within the below the threshhold.
Aussie banks lack capital for major projects. Capital flight borrowed short term to loan mid to long term is not good RBA policy for its mission of managing inflation and growing jobs.
Concensus of Aussie neurologists believe Tony is NOT a Marxist, but is a pugilist.
Movable assets will be the key and buying equities in the USA may be the only real game in town to protect money.
Of course all fictional "leaders" today are predators and totalitarians! But anyone who understands what is happening, and then claims "buying hyper-overvalued equities in the USSA" is a solution... has to be absolutely, completely, utterly insane.
I can't believe I read that sentence in that article.
Give us a break!
On a different note, today (May 5th 2015) the Reserve Bank of Australia lowered the official cash rate by 25 basis points to 2.0 per cent.
http://www.macrobusiness.com.au/2015/05/rba-cuts-3/
http://www.theage.com.au/business/the-economy/reserve-bank-of-australia-...
extortion is the name of the game.
the time has come to defend your property your liberty with guns and bombs and no other way exists
Complete bullcrap, Mr. Armstrong. Your BS faculty is still working fine though.
There is zero evidence of such a thing, so far, as the 2015-2016 budget won't even be delivered for another week!
Don't you think you should have some basis of fact to call on to make such a claim, before you jump the gun and make-up and sprout a pile of panicky wet crap once more? And if it remains such crap, and there is no such proposal in the budget, will you post again apologizing for making a preemptive completely false claim based on assumption and rumor and speculative knee-jerking hyperbole?
No, you won't, as that would be much to close to honesty, dignity and ingenuousness, and it's been pretty clearly established that you're not too keen on that sort of thing. Like all of the other committed criminal scum of the FIRE sector BS machinery (of which zh has become part and parcel), you exhibit the exact same shamelessness, which is characteristic of the entire pathology.
Tony Abbott leads the Liberal Party in Australia, not the Conservative Party.