The International Monetary Fund (IMF) quietly dropped a bomb in its October Fiscal Monitor Report. Titled “Taxing Times,” the report paints a dire picture for advanced economies with high debts that fail to aggressively “mobilize domestic revenue.” It goes on to build a case for drastic measures and recommends a series of escalating income and consumption tax increases culminating in the direct confiscation of assets.
“The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability. The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair). … The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away. … The tax rates needed to bring down public debt to precrisis levels, moreover, are sizable: reducing debt ratios to end-2007 levels would require (for a sample of 15 euro area countries) a tax rate of about 10 percent on households with positive net wealth. "
First, IMF economists know there are not enough rich people to fund today’s governments even if 100 percent of the assets of the 1 percent were expropriated. That means that all households with positive net wealth—everyone with retirement savings or home equity—would have their assets plundered under the IMF’s formulation.
Second, such a repudiation of private property will not pay off Western governments’ debts or fund budgets going forward. It will merely “restore debt sustainability,” allowing free-spending sovereigns to keep tapping the bond markets until the next crisis comes along—for which stronger measures will be required, of course.
Third, should politicians fail to muster the courage to engage in this kind of wholesale robbery, the only alternative scenario the IMF posits is public debt repudiation and hyperinflation. Structural reform proposals for the Ponzi-scheme entitlement programs that are bankrupting us are nowhere to be seen.
They set up Bretton Woods knowing full well this eventuality would come. Every country will end up like Cyprus and asset confiscation will proceed on a massive scale. Your savings, retirement funds, assets - all will be fair game to "balance" government debt and allow them to borrow further.
Oh but we just couldn't survive with big government watching over us, could we? This must be that thousand points of light Bush was talking about, the flash of seeing your hard-earned wealth stolen by international bankers.
The thousand points of light you mention bear a distinct resemblance to a bad night on the Mekong Delta.
The Annual Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) each year bring together central bankers, ministers of finance and development, private sector executives, and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness. Also featured are seminars, regional briefings, press conferences, and many other events focused on the global economy, international development, and the world's financial system. This year's Annual Meetings events will take place in Washington, D.C., October 11-13, 2013.
reply to post by xuenchen
So does this tie in with the capital controls that JP Morgan Chase has just put into play? The timing on all this with the distraction of the shutdown just reeks to me.
If all this wasn't prior planned I'd be amazed.
Release Date: September 24, 2013
For immediate release
The Federal Reserve Board on Tuesday issued two interim final rules that clarify how companies should incorporate the Basel III regulatory capital reforms into their capital and business projections during the next cycle of capital plan submissions and stress tests.
Rules to implement the Basel III capital reforms in the United States were finalized in July, and will be phased-in beginning in 2014 or 2015, depending on the size of the banking organization. The planning horizon for the next capital planning and stress testing cycle runs from the fourth quarter of 2013 through the fourth quarter of 2015.
Thus, the next capital planning and stress testing cycle, which begins October 1, overlaps with the implementation of the Basel III capital reforms.
Hang on to that granny of yours ..sounds like she would fit right into the ATS crowd .My grandad would have thought the same way come to think about it ....peace
Your criminal government will have the shirts off your backs and even though you can all see it coming, you will just sit there and let it happen.
I don't know what else to say.