Saturday, March 16, 2013

For Everyone Shocked By What Just Happened... And Why This Is Just The Beginning

Europe Does It Again: Cyprus Depositor Haircut "Bailout" Turns Into Saver "Panic", Frozen Assets, Bank Runs, Broken ATMs

Today, lots of people woke up in shock and horror to what happened in Cyprus: a forced capital reallocation mandated by political elites under the guise of an "equity investment" in insolvent banks, which is really code for a "coercive, mandatory wealth tax." If less concerned about political correctness, one could say that what just happened was daylight robbery from savers to banks and the status quo. These same people may be even more shocked to learn that today's Cypriot "resolution" is merely the first of many such coercive interventions into personal wealth, first in Europe, and then everywhere else.

For the benefit of those people, we wish to point them to our article from September 2011, "The "Muddle Through" Has Failed: BCG Says "There May Be Only Painful Ways Out Of The Crisis", which predicted and explained all of this and much more. What else did the September BCG study conclude? Simply that such mandatory, coercive wealth tax is merely the beginning for a world in which there was some $21 trillion in excess debt as of 2009, a number which has since ballooned to over $30 trillion. And with inflation woefully late in appearing and "inflating away" said debt overhang, Europe first is finally moving to Plan B, and is using Cyrprus as its Guniea Pig.
For those who missed it the first time, here it is again. Somehow we think many more people will listen this time around:
Restructuring the debt overhang in the euro zone would require financing and would be a daunting task. In order to finance controlled restructuring, politicians could well conclude that it was necessary to tax the existing wealth of the private sector. Many politicians would see taxing financial assets as the fairest way of resolving the problem. Taxing existing financial assets would acknowledge one fact: these investments are not as valuable as their owners think, as the debtors (governments, households, and corporations) will be unable to meet their commitments. Exhibit 3 shows the one-time tax on financial assets required to provide the necessary funds for an orderly restructuring.

 


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8 comments:

  1. Brock, that's 2009 data so it is over 14 Trillion dollars for the USA as of 2013 and the only place I see the gov and the bankster stealing that kind of money is 401ks (19 trillion)in assests but that would crush all the markets. It's a bloody mess

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    1. 401ks

      & we have sure heard plenty about that.
      ========
      that would crush all the markets. It's a bloody mess

      Damned if they do and damned if they don't. They could cut government in half and get rid of welfare, then the population would be culled dramatically in the following war.

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  2. I heard Limbaugh say a couple week`s ago that there are about 17 trillion Fed.Reserve notes laid back in retirement accounts in the U.S.S.A. . Care to hazard a guess who is looking at it , and talking about stepping in to " help " the owners " manage " it ? . Uh huh . When Alex Jones starts ranting and raving about chemicals in the food and water lowering I.Q.s and making the Sheeple docile , he may have a point. I have seen it right here, 19 % average unemployment, 36% ! in manufacturing Ind.Over about the last 20yrs. I have seen millions of people in this country loose everything they had as a direct result of the policies of this government , jobs, homes ....everything.......Nothing , no massive protest`s, no tar and feathering`s ......nothing. W. Russell

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    1. I have seen millions of people in this country loose everything they had as a direct result of the policies of this government , jobs, homes ....everything.......Nothing , no massive protest`s, no tar and feathering`s ......nothing.

      Eventually, it will get to "if you ain't got nothing, you've got nothing to lose." Reminds me of the NVA soldier stating in so many words "if I attack as ordered I may not get killed, but if I refuse I definitely will be."

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  3. Didn't illegal soetoro-obama just get an okey-doke to start "reviewing" citizen's bank accounts ?

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  4. I ask ONE simple question:
    Who in their right mind would even want the government to overlook the well being of people?

    The first consideration is; It's not the place of the government to EVER look after people. That is a PRIVATE affair between the people themselves and to ever do so ONLY serves the purpose of letting the government begin dictating how you are to be looked after!

    Michael-- Deo Vindicabamur

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