Monday, December 30, 2013

2014-2016 Crucial Years for the Left and Mega-Bankers

Recently, I noted that worldwide Marxism expert Trevor Loudon stated that the next two years are key ones in which either the Left is topped or we will have a far greater problem on our hands than we do now.

Now, ol' Robert Reich is making the same case, but to his people - the ones who are willingly supporting their own enslavement. He takes advantage of the fact that Congress has been unable to do much of anything except to block some of the moves by the American Left, and uses that to blame them for doing nothing. Among other things, he makes it clear that the US needs to change to minimum wage (so that young people will never have a first job) and enact immigration laws that are far more destructive than are the current ones (to ensure that the electorate is permanently changed in their favor).

Meanwhile, the Left in the Fifth Republic is continuing in their march towards consolidating their power:

And, to top it all off, the IMF wants the what will amount to a worldwide (read - affecting citizens mostly in Western nations) seizure of saved money in banks accounts. This, like the vicious theft of the same committed in Cyprus, will be euphemistically referred to as a one-time tax and will be used to satisfy the mega-bankers of the world:

IMF Proposes Piratical Cyprus-Like Taxation To Fund National Debts

"Between ObamaCare, Iran and last quarter's uptick in U.S. economic growth, taxpayers these days may be distracted from several dangers to come. But households from the United States to Europe and Japan may soon face fiscal shocks worse than any market crash. The White House and New York Mayor-elect Bill de Blasio aren't the only ones calling for higher taxes (especially on the wealthy), as voices from the International Monetary Fund to billionaire investor Bill Gross increasingly make the case too.

In his November investment commentary for bond giant Pimco, Mr. Gross asks the "Scrooge McDucks of the world" to accept higher personal income taxes and to stop expecting capital to be taxed at lower rates than labor. As for the IMF, its latest Fiscal Monitor report argues that taxing the wealthy offers "significant revenue potential at relatively low efficiency costs." The context for this argument is the IMF's expectation that in advanced economies the ratio of public debt to gross domestic product will reach a historic peak of 110% next year, 35 percentage points above its 2007 level........

What the IMF calls "revenue-maximizing top income tax rates" may be a good indication of how much further those rates could rise: As the IMF calculates, the average revenue-maximizing rate for the main Organization of Economic Cooperation and Development countries is around 60%, way above existing levels.

For the U.S., it is 56% to 71%—far more than the current 45% paid in federal, state and local taxes by those in the top tax bracket. The IMF singles out the U.S. as the country where raising top rates toward 70% (where they were before the Reagan tax cuts) would yield the most revenue—around 1.25% of GDP. And with a chilling candor, the IMF admits that its revenue-maximizing approach takes no account of the well-being of top earners (or their businesses).................

Of course these measures won't return the world's top economies to sustainable levels of debt. That could be achieved only through significant economic growth (the good way) or, as the IMF puts it, "by repudiating public debt or inflating it away" (the bad way). In October the IMF floated a bold idea that didn't get the attention it deserved: lowering sovereign debt levels through a one-off tax on private wealth.

As applied to the euro zone, the IMF claims that a 10% levy on households' positive net worth would bring public debt levels back to pre-financial crisis levels. Such a tax sounds crazy, but recall what happened in euro-zone country Cyprus this year: Holders of bank accounts larger than 100,000 euros had to incur losses of up to 100% on their savings above that threshold, in order to "bail-in" the bankrupt Mediterranean state. Japanese households, sitting on one of the world's largest pools of savings, have particular reason to worry about their assets: At 240% of GDP, their country's public debt ratio is more than twice that of Cyprus* when it defaulted.

From New York to London, Paris and beyond, powerful economic players are deciding that with an ever-deteriorating global fiscal outlook, conventional levels and methods of taxation will no longer suffice. That makes weapons of mass wealth destruction—such as the IMF's one-off capital levy, Cyprus's bank deposit confiscation, or outright sovereign defaults—likelier by the day."

In the early 1990's when we were basking in the warn glow of a post-USSR and supposedly post -Socialist world, I would have bet every dollar that I would ever earn that we would never see anything like this such a short amount of time. Today, I would bet the same, including all that I have earned previously, that we will indeed be facing exactly what I once believed would-never happen.

We are but inches away from a new worldwide Socialism.



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