Isn't this just the logical outcome of consolidating financial control and political power into a centralised government? Elitist who revel in power and the sacrifice of others for their own benefit is the price for centralised decision making and control. Like flys to a dung heap, it attracts the worst type of people...those who want to exercise control over the freedom and resources of others. However, for some reason at every election, people ignore this and argue vehemently for one of these type of would be "leaders" over another, convinced that somehow this time it will be different. Unfortunately there will always be these type of power seeking, controlling, would-be elitists, so it should be no surprise that they gravitate to positions of power, or that the more powerful the position the more dastardly the people become. What is surprising is that people are continually surprised by this and every few years argue for more of the same.
While she did use the word reset several times, it was not in connection with seizure of part of assets.
^^^^ The problem is that this is an example of a lack of liquidity. QE in its various forms around the world has shown the problem isn't a lack of liquidity (otherwise QE would've solved the problem) The problem is a lack of solvency. Citizens, companies, whole countries are insolvent. They can't pay off their debts even with injections of 'cash' to stimulate. There is so much debt that productivity can't repay. It was caused by loose lending practises & loose fiscal restraint by govts. & central banks which have undermined the public's trust in currency. And without trust a currency is doomed.
That German tourist scenario also fails in that it neglects the relationship of the currency with debt and the role of banks, credit card companies and other debt issuers. That is the vast majority of currency only exists because of debt and if debts are fully repaid to the issuing lenders in a fractional reserve system currency is destroyed. Which produces deflation, as purchasing power of the remaining currency in circulation increases with the elimination of debt, in the absence of issuing new debt. Which is the banking nightmare. The issue is debt saturation and bad debts. New debt is required to produce inflation, but there is no capacity to take on new debt, without zero or negative interest rates and bad loans are defaulting. If debts are being annihilated by default through bad loans and repayments, with no demand for new debt and the banks only have a fraction of the reserves necessary to meet their obligations to the savers with deposited money, then there are some serious, existential problems for the banks. Not much the German tourist can do to assist that situation, except pay his taxes for redistribution to the failing banks. Enter the Troika of the European Commission, ECB and IMF.
Bundesbank is jumping on the bandwagon. Calling for a capital levy to avert government bankruptcies; Reuters
Unless they introduce capital controls by stealth I don't see how a wealth tax could possibly be constructive. Whatever private wealth is left in the troubled European nations would simply take flight to other more receptive nations seeking private investment and lower taxes.
Fair point... But only after those responsible for the profligacy are reprimanded and made sacrifice a significant amount of their much-higher-than-the-average-Joe's salary. For the most, Mr Average Joe doesn't have a clue where their tax money is going and has SFA influence on how it's spent. They only hear about it after it has been spent and usually millions upon millions over budget. Look at all the TBTF banks, taxpayers paid for the bailouts yet the ones responsible got a slap on the wrist and massive bonuses. Prevention is better than the cure etc and while tougher regulations and enforcing significant penalties on the culpable isn't a panacea, it would be a start.
If the government is about to go broke due to it's bailing out private enterprises such as banks then I would expect that country to default and to put the politicians responsible in front of a jury.
Does anyone here think the many basket cases in Europe will solve anything by stealing the bank accounts of the people? Might reduce government or bank debt a bit, but they will just go back to more borrowing and spending tomorrow. Back to square one in 5 years. OC
Definitely not "solve" anything that's for sure! What you have to remember is that politician's timeframes are no longer than how long they are in power! So they couldn't care less what happens after they are gone! Actually they might even enjoy if it goes badly as they'll be all like: "See how good it was when I was in power huh?
Just to muddy the waters a bit and I cannot verify the accuracy, or otherwise of the article/video. However, if true, it does not bode well for Australia. This is primarily, as we tend to mirror what the USA does. http://sherriequestioningall.blogspot.com.au/2014/01/check-your-401k-and-retirement-plan.html
