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.
Yes, you read that right. But don’t take it from me. The report itself says:
“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. (page 49)”
Note three takeaways. 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.
If ever there were a roadmap for prompting massive capital flight and emigration of productive citizens toward capitalism’s nascent frontiers in Asia, this is it.
The IMF justifies its tax increases by highlighting trends in income inequality along with a claimed decline in the progressivity of most income tax regimes. Using “perceived equity” (otherwise known as “envy”) as the key metric motivating tax policy, the report intentionally conflates tax rates with tax revenue, lamenting a decline in the top marginal income tax rates paid by the highest earners. Never mind that these high earners have been forking over more money, a higher percentage of their gross income, and a larger share of aggregate national tax revenue in recent years. It also ignores the Laffer Curve effects that are clearly visible in the data. As for incentive, the report pays no heed to the idea that wealth and income can only be taxed if someone is motivated to create it.
The report’s most chilling aspect is the clinical manner in which it discusses how to restrict the mobility of the rich, along with the inconvenience of factoring in their “well being.” Again, to quote the report:
“Financial wealth is mobile, and so, ultimately, are people. … There may be a case for taxing different forms of wealth differently according to their mobility … Substantial progress likely requires enhanced international cooperation to make it harder for the very well-off to evade taxation by placing funds elsewhere.
“A revenue-maximizing approach to taxing the rich effectively puts a weight of zero on their well-being—contentious, to say the least. What then if some weight is indeed attached to the well-being of the richest? Figure 19 provides a way to think about the trade-off between equity and efficiency considerations in setting the top marginal rate in that case. … If one attaches less weight to those with the highest incomes, the vote would be to increase the top marginal rate.”
Yes, this is where the bankruptcy of the modern entitlement state is taking us—capital controls and exit restrictions so the proverbial four wolves and a lamb can vote on what’s for dinner. That’s the only way to keep citizens worried about ending up on the menu from voting with their feet. Again, straight from the report:
“There is a surprisingly large amount of experience to draw on, as such levies were widely adopted in Europe after World War I.”
And we all know how well that worked out.
http://www.forbes.com/sites/billfrezza/2013/10/15/the-international-monetary-fund-lays-the-groundwork-for-global-wealth-confiscation/
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9 comments:
This was in 2007 - six years ago and things have changed radically since then! China, Russia, England, Japan, India and Australia have signed compacts to de-Americanize by replacing USD currency with their individual currencies and the expectation that the Yuan will become the new International Currency. The Congress just handed Obama a blank check to print more money and with the loss of confidence by the European Bric Nations, the Federal Reserve is soon to collapse. Christine LaGarde was quoted as saying that America is attempting to pay her international debts with more debt and surely this will result in a complete bankruptcy! The IMF doesn't need to become involved in Americas problems. Our rogue President and traitorous Congress is doing bad enough all by themselves!
TOTAL FEAR MONGERING !!
Being that the USA 'government is a private corporation run by Illuminati mobsters, the 'debt' belongs to THEM and NOT to the people of these united States. This mob continues to outright lie to the people of the world their claims that the people owe payment of their debts. This is NOT so. Add to this the fact that these shysters have been making trillions off trade platforms for years - PURE PROFIT FOR THESE BASTARDS with which THEY CAN PAY FOR THEIR OWN DEBTS. People, you DO NOT OWE ANYTHING to these criminals! GET IT? NOTHING!!! WHEN are Americans going to make a stand - pull out of the banks owned and operated by these criminals - get out from under their manipulation and control - do whatever you have to do to break freee - barter - buy and sell without their criminal banking system - and those with the money and smarts to do so - WHY AREN'T YOU ESTABLISHING HONEST BANKS for the people???? You can't take your money with you to the grave where it will do nothing there for you but rot with your body - so get off your asses and DO SOMETHING TO HELP YOUR NATION WHILE YOU STILL CAN. Look at what the state of North Dakota is doing - establishing their own separate state bank. TEXAS - YOU HAVE THE WEALTH TO DO THIS AND THEN SOME. DO IT! BETTER YET - SECEDE FROM THIS TYRANICAL FALSE 'GOV' - WE DON'T NEET IT - WE DON'T WANT IT - WE CAN DO FAR BETTER STANDING ALONE GOV PERRY. To whom do you owe your loyalties? May I suggest that if it is NOT to Texas, then it must be to those paying huge sums of money and telling you tons of their lies about what they can do for you if you sell out to them??
THEN WHAT - WHEN YOU FIND OUT HOW MUCH IT COSTS TO BECOME A TRAITOR?
This is the same IMF that SUPPOSEDLY is green lighting the Currency Global Reset. Every interview Cristine Lagarde ever does, she reinstates the agenda of the IMF which is More TAXATION, MORE CONTROL, MORE SLAVERY. Having proof of that leaves you with the question "Do you really think the IQD is going to RV now?Make no mistake, TPTB do not want a bunch of millionaires fighting for freedom and equality your best interest freedom and prosperity is not something they will ever allow to happen, don't believe me? Let's wait for next week excuses, this criminal will never allow the V to happen, why are the gurus saying otherwise? because they get paid to do that.
I cannot disagree with you but consider this: Wouldn't it be more decisive of the Cabal to allow an RV and then close the banks and steal everyones assets? Imagine how that could be used to strike at the hearts and minds of the American people! I believe that is what they have in mind, just like before the 1929 Great Depression. Suddenly everyone was feeling and enjoying great prosperity and then suddenly the bottom dropped out; the banks closed and which created even more despair than not building the public up first. We are dealing with psychopaths who like to pull the wings off of flies before killing them!
i agree with anon 4.53. i have a sneaky feeling they might just RV, insist you all change currency to dollars quickly, then crash the dollar... i have had this theory for a little while.
I agree with 4:53 - I believe this is EXACTLY WHAT THEY ARE PLANNING. SHOULD THE RV OCCUR. we will find out shortly.
A B61-11 is a variable yield device....0.3 to 340 Kiloton yield. Dial-a-yield. It possibly could have been a B61-12 which is much heavier, has a depleted uranium casing and a much higher yield. So check with Wikipedia. The Mk.12 is still developing and not used, much. These bastards are just looking to start a false flag event. A true Cheney trademark, cowardly and ball less in every way. Must be everyone is closing in on these treasonous assholes. Heartless Cheney....no accident there when it comes to 9/11.
The lack of a moral compass with the Middle Class and Poor's Accounts is widely evidenced by the disconnect of Obama AND the IMF. Destabilizing the Economies of the ME over the last few years is a UST, CIA Agenda. The failure to RV/CE/GCR is indicative of morons clinging to Austerity and parsimonius, downward set paradigms characteristic of teenagers stuck in dealing with the hypocracy of pathological, sociopathic mentally ill adults. The occlusion of programs and agendas to AGGRESSIVELY get people working at jobs that pay well and that they want is obvoius.
The failure to restore the term fiduciary and being of service to the customer is a travesty, tragedy and indeed criminal. But then large Institutions have rewarded greed, tyranny, torture, spying, manipulation, gulags, concentration camps, privatized prisons, black sites and lots of media propaganda.
Remember when the morons of the auto industry told you putting seatbelts into cars was going to bankrupt them? Same morons in the IMF, Congress, White House, NSA, Too-Bid-to-Fail-Banks today.
Same morons. Technically bereft of knowledge and a moral compass.
Jobs, technology, education - and please nationalize the Energy/fossil fuel industry removing the speculative raping everyone blind over time aspect with glutonous supplies and non-competitive pricing/markets.
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