I can just imagine the conversations behind closed doors of the government leaders of these banana republics.
"The poor suckers. They will not even know what hit them. We can hide our overspending habits by introducing new taxes under the guise of protecting the masses. Let's play on their fears and have a merry time."
Of course, I take a few liberties imagining how the conversations must have gone, but in reality they may not have been too far from the above account.
Let's start with taxing bank deposits. For every dollar that the citizen saves, we will charge just a small token of 0.05 percent. Small enough, right? Soon we can take that up gradually until it is meaningful. Let's charge the banks and they will reduce the deposit rates to the public, who will not notice. Let's call it as a fund to save the country in case of an economic collapse. No one will know it is funds for us to use any way we want.
Muhahahaha . . .
As we all know, taxes collected for stated purposes are rarely used for the stated use.
In 1936 after a devastating flood in Johnstown, Penn., the state government passed a "temporary" 10 percent tax on all alcohol sold in the state in order to help pay for disaster relief.
Six years later the work was complete. But the tax is still on the books (now at 18 percent), with all the revenue going to whatever the state lawmakers want to blow it on.
Guess which banana republic is planning this. AUSTRALIA — the one with one of the safest banking system and largest capital ratios. If they are fearful of a banking collapse, the U.S. banks do not even stand a chance with their weak balance sheets.
Next, another deemed conversation.
Let's roll out some rules so that we can monitor and manage people's cash and see how we can find ways to tax the masses and find ways to fund our crazy programs.
Among the new restrictions is a prohibition of making more than 1,000 euros in cash payments (down from 3,000 euros). Cash withdrawals exceeding 10,000 euros per month will also now be reported to the authorities. Foreign exchange offices will now be required to obtain a copy of someone's ID to exchange more than 1,000 euros. Moving and transporting valuable commodities like gold through the country, even through a professional freight service, must now be declared and reported to customs.
Guess which country is enacting these draconian laws. FRANCE. Under the guise of protecting the country against terrorism, the country is enacting these laws to protect the public.
So if you believe that such drastic capital controls will never reach the United States, you should think again. In 2015 we are seeing such laws spreading across the so-called civilized Western world.
Strategic diversification includes multiple asset classes such as gold and real estate plus spreading out assets in multiple countries especially safe ones like Singapore, New Zealand, etc.
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