Murmurs of 10% savings tax (a la Cyprus)

[vacuum]

www.imf.org/external/pubs/ft/fm/2013/02/pdf/fm1302.pdf#page=58

[Neuro]

So Cyprus was just a test run? This will highlight the hazard of holding your wealth in banks, so I am all for it in a pragmatic way at least!

[mamboni]

www.imf.org/external/pubs/ft/fm/2013/02/pdf/fm1302.pdf#page=58 (http://www.imf.org/external/pubs/ft/fm/2013/02/pdf/fm1302.pdf#page=58)

I scanned this very detailed and incredibly boring report and found nothing about bail-ins and the Cyprus banking situation. Please point us in the right direction here.

[Spectrism]

When wealth can be stored in assets or transferred in cash, government controls cannot reach into those assets as easily. We have been moving into a globalization by centralization of all powers. This is true in the economic/ business world as well as governments. The end goal for the devil is to require all to worship the beast if they want to buy or sell.

There will be increased strangleholds on assets- property will be taxed heavily so that to hold property you must deal in the money system. This is a complete elimination of the private property concept. It must be fought vigorously.

As assets are tracked and taxed, money flow will also need to be tracked. Cash will be eliminated to make all transactions accountable through a digital network. Everyone will be required to have portable exchange record transmitters (PERTs) and by law may not make any property transfers except by logging the property item and cost (with tax) into the PERT. These will be auditted randomly for fair pricing. Heavy fines will be assessed for cheaters.

[Neuro]

I scanned this very detailed and incredibly boring report and found nothing about bail-ins and the Cyprus banking situation. Please point us in the right direction here.
At page 58 of 106 in the PDF I found this


Box 6. a One-Off Capital Levy? The sharp deterioration of the public finances inmany countries has revived interest in a “capital levy”—a one-off tax on private wealth—as an exceptionalmeasure to restore debt sustainability.1 The appeal isthat such a tax, if it is implemented before avoidance
is possible and there is a belief that it will never berepeated, does not distort behavior (and may be seenby some as fair). There have been illustrious supporters,including Pigou, Ricardo, Schumpeter, and—until hechanged his mind—Keynes. The conditions for successare strong, but also need to be weighed against the risksof the alternatives, which include repudiating publicdebt or inflating it away (these, in turn, are a particularform of wealth tax—on bondholders—that also falls onnonresidents).
1 As for instance in Bach (2012).

There is a surprisingly large amount of experience todraw on, as such levies were widely adopted in Europeafter World War I and in Germany and Japan afterWorld War II. Reviewed in Eichengreen (1990), thisexperience suggests that more notable than any loss ofcredibility was a simple failure to achieve debt reduc-tion, largely because the delay in introduction gavespace for extensive avoidance and capital flight—in turnspurring inflation.




The tax rates needed to bring down public debt toprecrisis levels, moreover, are sizable: reducing debtratios to end-2007 levels would require (for a sample of15 euro area countries) a tax rate of about 10 percenton households with positive net wealth.2

I agree that it was an exceedingly boring report...

[vacuum]

I scanned this very detailed and incredibly boring report and found nothing about bail-ins and the Cyprus banking situation. Please point us in the right direction here.

Neuro's quoted the page that I linked about a one-off capital levy, which is what happened in Cyprus though they don't mention it by name.

The key thing here is this: "if it is implemented before avoidanceis possible", which means that if they were to do it there would be little 'discussion' about it and one day it would just happen. So you have to keep an eye out if they're putting something like that in their report.

[Spectrism]

If they tried to touch one nickel in my savings account, it would be war.

[Uncle Salty]

If they tried to touch one nickel in my savings account, it would be war.

How exactly does that play out?

You wake up one day and 10% of your savings is gone from your bank account. Do you take tellers hostage? The bank manager? Your congressman?

There really is no remedy. Marching in the street in protest? ha ha ha.

Get out of the system before the system outs you.

[Neuro]

Get out of the system before the system outs you.
That is quoteworthy!

[Sparky]

If they tried to touch one nickel in my savings account, it would be war.

Keep in mind that they tax the interest on your savings account, which I'm assuming amounts to more than a nickel, even at these preposterously low rates. Though I suppose they don't actually "take" it from the account. They either take it out of your paycheck in advance, or they allow you to mail them a check after the fact.

[Spectrism]

I don't have money in that account for interest earnings. It is there temporarily to buy things... and pay them off.

How does the war play out? Read about it or watch the news.