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Greek Cash Ban Escalates: 'Permanent' Stricter "Capital Controls" On 3 Million Pensioners, Civil Servants Imposed
In a stunning move towards the elites' endgame of 'banning cash', Greek authorities unveiled stricter capital controls for civil servants and pensioners this weekend. By drastically limiting cash withdrawals and forcing the more 'controllable' compulsory use of plastic money, Greek authorities hope to stop tax evasion through the use of 'fake cash registers'.
As KeepTakingGreece.com reports,
A shock-measure: civil servants and pensioners will be subject to stricter capital controls than the rest of the Greeks. They will be able to withdraw only €150 per week – with the cash withdrawal cap being €420 per week – that is a total of €600 per month. The rest of their wage or pension they will have to spend by using debit or credit card.
The news fell like a bombshell on Saturday evening and spoiled the weekend of millions of Greeks. It will probably spoil the rest of their lives too.
Greek media revealed, that the Finance Ministry plans to impose such a measure in order to combat tax evasion, but of course, not the tax evasion committed by the civil servants and pensioners as this is not possible as the state deducts their share on tax before they receive wages and pensions but the tax evasion committed by business owners.
According to the Finance Ministry plan, civil servants and pensioners will be able to withdraw in cash only part of their wages and pensions and the rest will have to remain in their bank deposit account. This remaining amount they will have to spend only through the compulsory use of debit or credit card.
“The measure will affect 2.65 million pensioners and 600,000 civil servants,” notes newspaper To Vima that revealed the shocking plan.
The newspaper adds that with this measure, the compulsory use of plastic money, the business owner , whether a shop or a professional like doctor, plumber etc will not be able to evade taxes since all transactions will be recorded in the banking system.
The Finance Ministry reasoning behind this plan is first of all the assumption that the money – or large party of the money – it pays in wages and pensions is been used in real economy without receipt thus without Value Added Tax and tax revenues for the state.
“Every month the State and the pension funds pay for salaries and pensions of approximately €2.6 billion, that is €30 billion per year. The salary or the pension comes into the bank account of the beneficiary, who can withdraw 420 euro per week due to the capital controls.
This cash money is being used for the purchase of goods or services “and a large percentage of these transactions does not bring revenues to the state as the transactions are being done without the issue of receipt or receipt are issued by so-called fake cash registers which are manipulated to show less revenues.
In this way, the state suffers revenue losses of approximately 15-20 billion euro per year due to not collection of Value Added Tax and income tax,” from businesses and self-employed.
With this measure the state calculates that it will receive in no time revenues from V.A.T. and will not miss a cent from income tax. The state expects to rapidly increase its revenues and “proceeds to future reduction of the tax rates of 8.500,000 taxpayers.”
The Finance Ministry apparently considers to exempt pensioners of over 75 years old from the measure as well as those living in remote areas where the use of plastic money is limited.
If the measure successfully increases the state revenues and does not puts obstacles in the operation of households, “it can be extended also to salaries of the private sector.”
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The plan revelation triggered an outcry and anger not only among the civil servants and pensioners but also among those not affected by it. But there is more...
Plastic money compulsory for new companies
Another measure is apparently under way in the fight of tax evasion.
“Companies that are founded from next year onward plus a range of sectors of the Greek economy will only be able to accept payment via debit or credit card, according to a plan being drawn up by the government.
The plan, which has yet to receive the final approval from the country’s lenders, foresees all new companies having to be equipped with point of sale (POS) terminals that can accept credit and debit cards. The same will apply to numerous professions like will include doctors, lawyers, electricians and plumbers, which are all professions where tax evasion is thought to be rife.”
(full article ekathimerini)
Also in this case, the ambitious legislator will create 2 businesses categories and exclude form competition the new companies as they will not be able to accept cash.
Who wins?
One has also to ask who wins from these measures except the state and the revenues it calculates to receive.
For sure the biggest winner are the banks: first of all, they will keep longer the amounts of pensions and civil servants salaries. It could be 1-1.5 billion euro per month. Secondly, because they charge 2 euro per transaction via debit or credit card.
* * *
And the biggest loser is The average joe Greek citizen... again.
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The tighter the IMF and ECB squeezes, the more it will cost them.
Roll the damn guillotines already and end this charade.
666
The Greeks were one of the first countries to bring order out of chaos; it will be one of the first to bring chaos out of order...
it is a little New World Order-ish, but true.
Funny how this sounds hopeful to my ears.
As long as we vote for them, no matter how many heads roll, nothing will change.
The majority of people no longer vote. They see it as pointless, and they're right.
The game is rigged. No matter for whom you cast your vote, you get fucked in the ass.
Your quip should read, "As long as we don't pull them out of their offices and hang them, nothing will change."
Well, I was implying the same... Cheers brother
Damn Greeks don't deserve no cash ... Damn them for their insolence!
According to the New World Order followers like Obama, both cash and guns should be outlawed. The end result would be that the only people having cash will be criminal bankers and the druglords who use banks to launder their drug money and the 0.01%. And, of course, crooked cops.
Glad i'm not Greek.
This is coming to a bank near you.. no matter where you are. The Greeks are the guinea pigs.
This is probably in preparation for making sure that only those who have the mark of the beast can trade.
Indeed people should take notes here. This road show is coming to a theatre near you in the not so distatnt future. Think i will add to my stash today.
Greeks are merely further along the same timeline as the rest of the world.
Vous etes Greeks.
pods
Nous sommes fucked.
pas de merde ....
Not to worry... you're next.
wait 5-10 years
Can't pay your bills?
"Fuck you, pay me!"
Kid need an operation?
"Fuck you, pay me!"
This is the modern and entirely legal money system in which we live.
Granted the pensions are a ponzi, but they are no different in principle than the rest of the world's.
Betcha the Greeks are telling their kids at night that if they listen carefully they might hear the sounds of the helicopters coming to drop money to save them.
And just like here in the US, the helicopters aren't coming.
pods
The actual numbers of citizen's overdue payments to the state are painting a "Fuck you, I'm not paying you" picture. Growing at 1 billion EUR per month, currently just over 80 billion (about 45% of GDP). Granted, about 50% of that is non recoverable, related to bankrupt companies, but I think you get the point.
This only points to one thing. There will be a one off wealth tax in Greece and it will be a heavy one. The worse it gets and the more the troika is convinced they will not get their money back, the more likely it becomes to tr one big last grab.
How many blow jobs do you want for that set of wrenches?
Be hilarious if a ban on cash rockets Gold to $10,000 and beyond, ie the last thing the Elite's want.
America invented a phrase for just such a thing - unintended consequences...
another gold wet dreamer
Another dumb ass troll. Enjoy your Visa and MasterCard when those of us protecting our wealth actually have stuff. (And it doesn't just have to be gold. Some of us have farmland and tools...and, most importantly, knowledge!)
Merton and Lorenz (butterfly effect) were popularizing principles expounded by Locke and later Adam Smith.
/damn you Wikipedia
Greeks deserve every bit of the poverty and misery that is their future.
"The limits of tyrants are prescribed by the endurance of those whom they oppress." - Frederick Douglass
+1000
Excellent quote.
Sorry Greeks but you had YEARS to realise things like this were going to happen in your country. So did the majority of people buy Gold, nope they didn't.
Same will happen to other countries and most won't buy Gold because they will have fallen into the Elite's trap, ie smash Gold so people are scared of buying it and continually trash it in the media and call it things like a 'pet rock'.
PS. The WSJ jackass that called Gold a 'pet rock' is going to have his career trashed and tarnished by the slur, and rightly so.
Gold wet dreamer
Some of us live hand to mouth and cannot afford gold. Trapped we are, yess.
I'll invest more in lead with a little powder behind it. That works too, sometimes much better than gold.
Short Greek stripper and drug dealer incomes.
I will take the other side of that bet. Long drachma and local currencies. Black markets have existed as long as taxes. They will continue to exist long after the NWO is relegated to the dustbin of history.
Good Luck trying to get small business to comply.Cash is King and always will be.In God We Trust-All Others Pay Cash.Most of these laws by government can't be enforced.
I'm pretty sure this new policy is to force small business to comply.
If people can't pay you in cash any more, you need to take digital payment form. Then the transaction is registered, and then you cant evade your taxes.
It's not like people don't have full access to their money. They just can't withdraw it all to get under the table "cash" deals on stuff as easily any more.
You know things are fucked when the government has to implement policies like this. Kinda hilarious people go to this length to avoid paying tax.
The Greek people made their choice to keep the Euro, so now the hard medicine is here to stay.
So when are Visa and Mastercard going to be taken over by the US Government
More of a merger.
http://www.bbc.com/news/world-africa-28970411
you're gonna like austerity " greek style "
If this is true, expect the Greek government to extend the capital controls to everybody as those who are not pensioners or civil servants rush to take their cash from the bank.
Any Greek w/ $$$ in the bank still deserves the ass rape they are going to get. (are getting) I think that's the role this move is taking:Those that could remove all/any of their money already have done so... it's those pesky reoccuring deposits, which is all the banks have left to control, are subect to this treatment. My only question is: Why are the Greek banks not engulfed in flames yet?
At this stage it's still a trial balloon. As reaction seems muted (by the TV-watching public) it could get implemented. There are cetain problems in restricting this to civil servants. For instance what is to stop one form transfering his cash to a friend who is not in civil service who in turn withdraws and gives the cash to the original owner?
What will stop him is that said friend will need every single euro of physical cash as well. Physical cash is lifeblood of the real economy and the black and grey markets when financial oppression is rampant. You need the cash to evade not just the taxes and tracking of transactions, but to trade goods and services with friends, neighbors, and small businesses who do not have merchant accounts.
You are right that such trades will happen, but it won't be at a 1 for 1 exchange rate. It will be a multiple. In effect digital and physical euros in Greece will become two distinct currencies with physical euros being more valueable.
"as the state deducts their share on tax before they receive wages"
So now just as the rest of the civilized world the Greeks go to quadruple taxation.
so the government is going to force an even more underground and black market...brilliant plan...
Greece is out of the headlines now so TPTB can do there whatever they want.
More news on KTG: they will also tax you when you have no or low income. They will consider you a 'free lancer' then and will tax you 26%.
http://www.keeptalkinggreece.com/2015/10/09/are-you-alive-in-greece-lend...
Tsipras is a traitor. But after all, he was 'advised' by the US in the run up to the 3rd bailout. http://www.keeptalkinggreece.com/2015/09/27/washington-closely-advised-g...
The article fails to mention checks. I would be interested to know where they fit in the equation, as shelter is a major monthly expense.
Checks in Europe have been abandoned a long time ago, it's a relic in our eyes, we use a lot more cash than you guys and anything else will be wired. Checks are expensive and not convenient.
Je suis Krugerrand.
If you like your socialism - you can keep your socialism. Dumb fucks.
Meanwhile the oligarchs take their holidays in Switzerland where they can check just how much tax they managed to evade last year.
If you have socialized medicine why would you need to pay the doctor by electronic, or any other, means?
Because in most of those systems, what's covered is limited. It's not the panacea that outsiders imagine it to be. So extras, extras and long lines. Want an MRI and it's the Spring? How about early Fall? Oh and the best part is, Akmed who isn't even a citizen gets to go before you.
Way to go Greeks!! I'm PROUD of the Greek because they are the ones that do NOT Collect tax for the State!
Every country in the world should Do Exactly the SAME!
Taxation Denial should be the way of the future!
Way to Go Greece!!
Which survives better after an EMP attack: credit card computers or physical gold or silver or fiat cash?
seems like if everything turns to cashless credit that is a golden opportunity for an EMP-reset worldwide. ZAP! Oh so sorry electronics don't work any more and since you foolishly went-all-green-paperless you have no proof you own anything there serf!
Which survives better after an EMP attack: credit card computers or physical gold or silver or fiat cash?
Cash. To say "fiat" cash is redundant. All maney is fiat. It is "a promise to comlete a trade". It allows simple barter exchange over time and space. It is created by traders certifying their delivery promises. It is destroyed on delivery. If they default, the default is recovered with like interest collections.
Properly managed an MOE process will guarantee zero inflation, all the time ... everywhere. Responsible traders enjoy zero interest load.
Sociaism is an intellectual infection that eventually kills the host.
The idiots overwhelmingly voted for a known douche bag so... what did they expect was going to happen? Yes, Greeks do like to take it up the arse. National pastime. But you blame zee Germans now or something.
Syriza promised to reject austerity. They do this instead.
The only thing Syriza is doing different is to let in all the migrants.
Wonder if Merkel arranged this to happen long ago.
These measures will be effective at curtailing said tax evasion. The consequence of effective capital controls is devestating. Eventually the Greeks will have to either have a revolution, flee, die, or live in 3rd world poverty and become a sex tourist and cheap resort hotspot.
Software products to manage Barter transactions will be the next IPO fetish.
Funny that theyw ill not be IPO'ed in the US..... Wonder why?
And since CC and debit transactions require a working internet (of sorts, depends on the definition of 'working') the Greeks are ensuring the viability of eCurrencies like bitcoin. The smart people will convert those measly weekly cash withdrawals to bitcoin and the money will be forever gone from the system. More unintended consequences. Well Done!
Recently shopped at the LIDL in Rafina, a port town close to Athens. Had to abandon the cart at the register as the card payment system was down.
So you fly to Andorra, Liechtenstein, whatever, set up a shell company that is your company's "supplier" or "licensor of intellectual property".
Valid, legitimate payments are sent to that company's account. You deduct it from your Greek taxes and show the payments on your Greek tax return, surely?
Greece is an excellent testing lab for the extermination of cash:
It's relatively small and out of the way. It's government is pliable, it's people in crisis.
Greeks are notorious tax cheats so the reason to implement prevention of cash transactions is justifiable.
Perfect. Just Perfect.
they're trying to do the same here in Italy: forcing businesses to have a POS terminal. What they cannot do is forcing the client to actually use it. That would mean abolishing cash as a store of value, which by the way would increase economic risks enormously; and since people can be dumb only up to a point, that would probably cause both a rush on banks and on gold. So, one of the other Great Disaster Economy, Italy, is openly debating of raising the limit on cash transactions, to 3.000 Eur from 1.000 Eur.
Anyway, limiting transactions is a moot point: ownership and custody of money is the relevant issue, and limiting that is really, really difficult. the Euro bank notes, in a confident and optimistic Europe, had a transition period of three years, and it was perceived as a progress by all: trasitioning Cash to plastic in a society that would (correctly) think the worst about it would be well nigh impossible without enormous risks and repercussions.
The End of a great historic country take good care more fellow Greeks..I DO NOT KNOW WHY ANY GREEK ESPECIALLY YOU OLD FARTS DON"T TAKE A SHOT AT THE Criminals over there.. Example burn down Tsipras house for starters? The ZH commentators who are big in Gold I am a Forex trader, currencies/fiat money will still be around for a LOOOONG time.. Food is more important when a crisis hits your country Gold is useless and so is silver.. Unless the big Zionist Banks go out of business Gold will always be suppressed and NOT edible for which your survival depends on it.. GOLD and OIL will have what traders call a dead cat bounce..
Time to move to the "remote areas" and start a little garden.
The Greeks and Italians are so intelligent.
Thank God it is left to them to establish THE NEW BLACK MARKET.
Tax evasion isn't the problem. Government is the problem. The government is larger than the populace is willing to pay for.
Obvious solution?
Smaller government ... much much smaller government.
Might want to have smaller banks also. Start putting bankers in jail and things just might get better.
Cashless, what a joke. Wait untill a bunch of hackers make millionairs out of all the bank customers by changing their balances by small random amounts over a long period of time. See what they think about electronic banking after that. Remember the EBT card foulup of a few years ago? This time in spades and worldwide.