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IMF Lays The Groundwork For Global Wealth Confiscation; Forbes

Discussion in 'Preparedness & Survival' started by erudne, Oct 16, 2013.

  1. erudne

    erudne The Pie Matrix PPL Say Sleeping W/Your Rifle Is A bad Thing? Bronze Supporter

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    The International Monetary Fund Lays The Groundwork For Global Wealth Confiscation


    In this handout provided by the International Monetary Fund (IMF), International Monetary Fund Deputy Director Michael Keen presents the Fiscal Monitor Press Conference October 9, 2013 at the IMF Headquarters in Washington, DC. The report said that emerging-market governments were at economic risk.

    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.”
     
  2. John H

    John H Whatcom County Well-Known Member

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    All this and no link???
     
    stryker9 and (deleted member) like this.
  3. ATCclears

    ATCclears Seattle area, WA Well-Known Member

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  4. ATCclears

    ATCclears Seattle area, WA Well-Known Member

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    I haven't made a move yet, but if this goes this way in the US then I will take say 40% (after tax) of my IRA rather than have it go to a "common" national fund, which essentially subsidizes bad gov behavior and those who have saved nothing for retirement.

    Peter
     
  5. mrblond

    mrblond Salem OR Well-Known Member

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    they can come and take it, all my assets are in polymer, steel, lead, powder and brass.
     
  6. erudne

    erudne The Pie Matrix PPL Say Sleeping W/Your Rifle Is A bad Thing? Bronze Supporter

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    If you read the title you'd see it came from Forbes
     
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  7. ATCclears

    ATCclears Seattle area, WA Well-Known Member

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  8. EZLivin

    EZLivin SW of PDX Well-Known Member

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    Taku and (deleted member) like this.
  9. stratbastard

    stratbastard eugene oregon Active Member

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    Hearing these kind of rumblings coming for awhile now, and I have no doubt it can and will happen. Any one else have that song from "Paint Your Wagon" constantly playing in your head... "Gold Fever"? Gold. Silver. Lead. I keep as little paper and digital $ as I need to get by on, and no more.
     
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  10. U201491

    U201491 Well-Known Member

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    Confiscate everyone’s retirement.
    Maybe the thieves that took mine did me a favor :-/
     
  11. Grunwald

    Grunwald Out of that nut job colony of Seattle, WA Well-Known Member

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    The problem is that average people do not have enough wealth to relieve the debt bubble.
    They have pulled the money from future earnings and spent it. It is gone and all there is left is an IOU. And an interest payment.
    This has already been done in Poland last year. I don't remember the details as there was not much in the news about it, but from what I recall the Polish government converted parts of people's private retirement funds into government ones. I do remember that someone described their system as a hybrid private/public and people had the option to direct part of their pension into a privately managed fund. So basically those who chose to have a portion of their pension in a privately managed fund had some of that money moved into a public one.
    Now they have to rely on the government for a bigger portion of their retirement payout. What ever could go wrong?
     
  12. EZLivin

    EZLivin SW of PDX Well-Known Member

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    And comments (trial balloons) out of DC are suggesting Americans are too stupid to manage their own retirement funds so the gov has a responsibility to manage the funds for them. They have gone Full Re**rd. They will try to steal everything they can from the private sector ("main street" private sector) before this is over.
     
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  13. Martini_Up

    Martini_Up NW USA Well-Known Member

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    A man with nothing else to lose is one of the most dangerous things there are.
     
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  14. sun

    sun Central CT New Member

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    Any idea how many corporations are sheltering the profits of their overseas subsidiaries offshore so that the U.S. Government can't collect taxes on it and how much it amounts to in lost revenue?
    Read about it and look at all of the American companies that are sheltering their overseas profits.
    That's right, the numbers represent BILLION$ of Dollars in profits that each are sheltering while the U.S. Government is drowning in debt.
    These are among the richest American corporations that we fight wars for and dole out foreign aid in order to protect their foreign interests. It's a shame that everyone in the U.S. must make up for the lost revenue of these most profitable U.S. corporations that do business overseas. And this is just the tip of the iceberg since these aren't even the top 100 corporations.

    Screen-Shot-2013-09-29-at-9.25.43-PM.png

    From the article:

    Fortune 50 Stashing $800 Billion in Offshore Profits

    More:

    Big U.S. Companies Park $1.2 Trillion in Profits Offshore, Study Finds - WSJ.com

    Apple, Google Among Top U.S. Companies Parking Cash Offshore To Reduce Taxes, Study Says - Forbes

    http://www.nytimes.com/2013/05/03/business/how-apple-and-other-corporations-move-profit-to-avoid-taxes.html?pagewanted=all&_r=0
     
  15. U201491

    U201491 Well-Known Member

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    Won't do them a damned bit of good with what they have planned now.
    There is NO safe haven for any cash reserves any longer.
    For ANYONE. Re read the article at the link.
     
  16. Martini_Up

    Martini_Up NW USA Well-Known Member

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    One of your links states 90 billion / yr. for the top 15 companies.

    "By booking profits to subsidiaries registered in tax havens, multinational corporations are able to avoid an estimated $90 billion in federal income taxes each year."

    90 billion on a 17 trillion dollar debt is not even peanuts, maybe the salt-licked-off-shells-on-the-floor at best.

    The US doesn't have a problem collecting taxes, it has a spending problem.
     
  17. ATCclears

    ATCclears Seattle area, WA Well-Known Member

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    The US has both an employment problem and a spending problem. On the employment problem, I've posted this article before:

    Mish's Global Economic Trend Analysis: No Progress for Long-Term Unemployed; Ten Reasons the Problem is Structural

    Ten Reasons the Problem is Structural
    1. The housing boom-bust is a once in a multi-generational phenomenon
    2. Demographics - The boomer boom has turned into the boomer bust
    3. Those graduating from college have unprecedented levels of student debt
    4. Fed policies bailed out the banks at the expense of everyone else (and now is payback time)
    5. The Fed holding rates low in conjunction with Obamacare costs has exacerbated the trend of businesses to seek new ways to eliminate employees in favor of hardware and software robots
    6. In general, Fed policies of holding interest rates low screwed those on fixed income, screwed the middle class, and screwed the poor, all for the benefit of the top 1% (and those policies are not likely to change)
    7. Housing formation by millennials is at a record low and because of student debt and a dearth of high-paying jobs is unlikely to change.
    8. Pension promises by cities, states, and counties cannot and will not be met. Several cities in California and Detroit Michigan are the tip of this iceberg.
    9. Slowdown in China, restructuring in Europe.
    10. Debt, Debt, Debt. A debt crisis is everywhere you look: Japan, Europe, India, China, US. Debt acts as a drag on the global economy unless it is expanding rapidly (and it cannot without creating still more problems)
    Peter
     
  18. DMax

    DMax Yamhill Well-Known Member

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    Number 1 on your list is not really a once in a lifetime they the Feds are doing it again trying to create a housing bubble by offering Zero down low interest loans to people that cannot afford them. exactly how it started the first time under Clinton.

    NY Times 1999 FannyMae.jpg