IMF and U.S. Congress – making you pay for their failure, communist re-distribution through the backdoor
On November 5th 2013 an article on PersonalLiberty.com with the title “Are you prepared for a U.S. Bank Bail-In” reads as followed:
The days of the Federal government’s stealing money from taxpayers or borrowing it from the Federal Reserve to save troubled banks — as in it did in the 2008 crisis — may be over. Congress is considering imitating the theft in Cyprus and letting troubled banks “bail in” depositor money in order to make themselves solvent.
Jim Sinclair, chairman and CEO of Tanzania Royalty Exploration Corp., and whose family started Goldman Sachs, Salomon Brothers, Lehman Brothers, and others, has been warning of this for a while:
Bail-ins are coming to North America without any doubt, and will be remembered as the “Great Leveling,” of the “Great Flushing.” Not only can it happen here, but it will happen here… It stands on legal grounds by legal precedent both (sic) in the U.S., Canada and the UK.” (© Personal Liberty Digest)
What happened in Cyprus in 2008?
After the banks in the Tax oasis Cyprus crashed the local government decided to avoid tough constraints from the European Union and their extended arm the EZB (European Central Bank) they just take the money they need from the depositor savings.
The idea was that people who had savings there should do their share on rescuing the country by being forcefully stripped of 10% of their savings no matter if cash on a savings account or any form of assessment. After a major outcry in the public the Cyprus government paddled back and decided only people with more than € 10.000 Euro on savings are affected.
Could this happen in the U.S.?
Yes it can. According to the Personal Liberty Digest the United States Congress is already talking about a proper law that allows holding innocent Citizens responsible for the failure of Bank managers; the very same Bank-managers that we trust with our money.
But it gets worst
Bank-Managers are not the only irresponsible People with our money. Even worst is the Government and their denial to responsible administer the “People’s Money” commonly known as Tax revenue.
A new easy way out for Governments
In U.S. Mainstream media ignored, but in the European Media a huge Information-Bomb the IMF under Christine Lagarde came up with a radical idea on how governments could level their budgets.
Basis of the context is that the governments currently are and will not be capable of cutting their National debt and fulfill their fiscal responsibility of a balanced budget and no policy so far, investment and stimulus vs. Budget cuts, has been of any success.
And they really mean every savings no matter if it is cash on a savings-account or some sort of stock options. No matter if you are a private citizen, entrepreneur, small business owner or corporate owner.
And here is how it works
If you are a Private Citizen: Every responsible citizen tries to save some money. Either for the kid’s college, the well-deserved world travel in retirement, or just for hard times.
Savings are generally money “left” after it is taxed. This money then is called in the bankers’ language “Substance” or “Basics” because it is already taxed money. Now we are clear that on interests received on those saving substance we have to pay tax again – but ONLY on the interest and not again on the substance.
If the governments however follow the IMF guideline or idea then you are not only pay tax on your income and interest but also are stripped of 10% of the substance / stock option / retirement or any other saving.
If you are an Entrepreneur/Small business owner: You probably have a business account. After paying all your dues and fees to all sorts of state, federal or local governments you might save some money in a savings account – a so called “appropriation” for further investment and to grow your business.
In addition to what you now been stripped as Private Citizen (above) also your business appropriations is forcefully taxed. DON’T FORGET – IN ADDITION.
If you are a midsized Business owner (50 Employees and more) or corporate owner: Also to the two mentioned above add all your pensions’ funds and social funds you have aside for the wellbeing of your employees.
There is no limit to the upward spiral.
Christine Legard paddles back and relativized
After the publication hit the news, ignored by the U.S. Media it hit like a bomb in the European Media especially in Germany and Austria who have not only already been there but also those governments including the French government think very loudly for the longest time with this idea.
Facing public outcry over this idea Christine Legard, current chair of the IMF, immediately paddled back and announced that this is NOT policy only the summery of a brainstorming and analytical work by their think tank. But here is the real danger.
What is the IMF?
The International Monetary Fund (IMF) is an international organization that was initiated in 1944 at the Bretton Woods Conferenceand formally created in 1945 by 29 member countries. The IMF’s stated goal was to assist in the reconstruction of the world’s international payment system post–World War II. Countries contribute money to a pool through a quota system from which countries with payment imbalances can borrow funds temporarily. Through this activity and others such as surveillance of its members’ economies and the demand for self-correcting policies, the IMF works to improve the economies of its member countries.
The IMF describes itself as “an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.” The organization’s stated objectives are to promote international economic co-operation, international trade, employment, and exchange rate stability, including by making financial resources available to member countries to meet balance of payments needs. Its headquarters are in Washington, D.C., United States.
Reading between the lines proves why this “analytical work” is so dangerous. While other think tanks usually serve as basis for broader discussion the ideas of the IMF usually become policy.
The IMF ideas usually become the worldwide policy and guidelines for key interest rates and the financial course of the member countries.
Officially disclaimed, the discussion over an extensive Debt-cut commonly known in the financial world as “haircut” is evident. The positive experience for debtors by haircuts in Cyprus and Greece increased the liking of this idea. Also evident is who will be paying for those haircuts at the end – those who still have the funds on day X.
Thus this idea of the IMF is nothing new. The basics of this study dates back to 1952 and the “German Model” also known as “Germany 1952”.
Back then German restructured his derailed national budget elegantly with a compulsory levy of 50% but not at once.
They did it in form of a 30 year limited “1.67 percent-once-a-year wealth compulsory levy”.
The renowned “Boston Consulting Group”, short BCG in September 2011 came out with a very similar idea. Under the title “Mesopotamia – the looming threat of debt reduction” this highly respected group suggests in their, publically not very well recognized, study a permanent compulsory levy.
You see this idea is not new after all.
Bank Bail-In & Government Bail-In
Putting 1+1 together the idea of the U.S. Congress, allowing a bank bail-in through customer compulsory levy makes a whole lot more sense when you look at the idea of the IMF.
What at the first look appears to be a favor to banks and a move towards responsible fiscal policy not making tax payers but rather customers responsible for their banks at a closer look appears to be a test run.
If people accept the idea of a bank bail-in why should they not accept a “Government bail-in”? Properly sold, and we know how good progressive Democrats play the media propaganda, people could actually think that this is a one-time deal and it helps the government.
After all, it was the Democrat John F. Kennedy that said in 1961 “Don’t ask what your government can do for you, ask what you can do for your government”.
Have you ever experienced that our or any western, government was learning from its mistakes? Have you ever experienced when the federal government increases the income through higher taxes they actually cut spending, be more responsible, pay off their debt and put money aside for hard times (as Texas does with the Rainy day fund)?
I didn’t and who tells us that this will be case when the IMF gets through with their idea? And who will tell us that this idea of the IMF remains a one-time deduction and not a permanent re-distribution?
And is this the American way? Your thoughts are welcome.
God bless America
Die Presse, Austria – Nach IWF-Aufreger-Wer keine Schulden hat, zahlt
How the former Miss USA 2003, Harvard Lawyer and Republican Hopeful can salvage the GOP’s Image and easy become the Democrats Nightmare in 2014 AND in 2016
Fact is the Republican Party has among many others two major problems; one is the trench-warfe between the establishment, the Independent and the Grassroots Conservatives on one side and second Problem the GOP has is a major image problem. Those are facts we cannot deny.
Especially the latter is a major issue. While Conservatives have in every aspect no matter if it is social, economic or any other issue the better answers, solutions and ideas, the Democrats sell themselves better by using general known Communication tactics (Topic of my next column) as well as Saul Alinsky tactics to give the GOP the bad image of a Racists, woman hating, coldhearted Party that only cares for the rich.
There is hope
Outspoken Senators Rand Paul (R-Ky.) on Liberty Issues and Ted Cruz “Missile” on ObamaCare not only rule the media but also the social networks among Grassroots Conservatives, Libertarians and Tea-Party activists.
But we also have to look into the nearby future and prepare for 2014 to maintain majority in congress and regain control over the Senate.
There are more true conservatives that need our attention and support. One of them is the young Lady I am about to introduce.
A young Lady that fights a fearless concentrated and neither in the regular media nor in the social media almost not-acknowledged fights for her political future in one of the Bluest States of the Nation – Illinois.
And it is a shame that she seems to vanish in lack of nationwide recognition because SHE IS the type of person we need in the GOP as the future. And she can drive the Progressive Liberals nuts, which sure is a major bonus.
She is outspoken, highly intelligent, young and beautiful enough to appeal to the younger voters has true conservative values without the Schoolmaster appearance of the Old-Man-Establishment.
Meet Erika N. Harold
Small town girl next door Erika N. Harold is everything but the “average Girl-Next-Door”. She is one of the most intelligent, interesting, and amazing characters in today’s politics.
Far away from the Democrat accusations of the GOP being a white-man-racist Party Erika is the living proof we are not. And she has a record that speaks volumes.
Born in February 20, 1980 Erika grows up in Urbana, Illinois a rural 37,000 people town with an amazing varied ethnical background.
On her father’s side she has Greek, German and Welsh ancestry and on her mother’s side Native-American, African-American and Russian descent.
Erika attended University High school and Urbana High School in Urbana Illinois. In 2007 she graduated with a B.A. as a Phi Beta Kappa from the University of Illinois at Urbana-Champaign and her law degree from Harvard University J.D. in 2007.
- While still going to school Erika Harold was 2002 selected Miss Illinois. Her Platform was “Preventing Youth Violence and Bullying: Protect Yourself, Respect Yourself”.
Her Platform choice grew out of personal experience being the subject to sexual and racial harassment with teachers and school administrators having her concerns dismissed.
- In 2003 Erika Harold became Miss America
- In the first week of her 2003 Pageant campaign she additionally adopted a dual platform for sexual abstinence. Of course not without being hammered by – you guessed it – Liberals accusing her of having a hidden agenda.
Washington Times Officials suggested a liberal bias on the pageant officials since they had no problem with the 1998 contestant running an HIV prevention platform.
She officially refused to drop the topic of sexual abstinence during a speech in 2002 at the National Press Club in Washington and received 38 support letters from members of Congress.
- Recently Erika has gained unfortunate headlines as GOP senior Official Jim Allen called her in an email to “Republican News Watch” a “little Queen” and liken her to a “Streetwalker with the Democrat party and RINO Republicans as pimps”
He later on had to resign over this remarks.
I guess we do a hell of a way better job the democrats ever can killing our own candidates with racial slurs and so play the democrats right in their hands. What a jerk Jim Allen is.
Politics (taken directly from her Website)
Taxation and Regulation
Erika believes that the government’s role should only be to build a framework or business that does not inhibit innovation or create excessive layers of bureaucracy. Narrowing the scope of power delegated to administrative agencies. A streamlined and modernized tax code and she opposes increases in individual marginal tax rate or capital gains tax rates.
Erika Harold proposes a Crop Insurance program to safeguard farmer’s needs. In addition she opposes implementations of burdensome regulations that undermine the agricultural industry. Recognizing the increasing global demand for sustainable and renewable energy sources, she also will support biofuels as a tool for addressing those demands.
Erika’s landmark issues are individual liberties, religious freedom according to the First Amendment and to battle every attempt to infringe our second Amendment rights. Other than that she is he a firm believer of the Constitution itself and fights for proper limits on governmental power.
Erika believes in the Declaration of Independence and “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.” She is pro-Life and supports reforms within the criminal Justice system.
Unfortunatley Ms. Harold has not responded to my request to answer a few questions going deeper into her believes and stands on current political issues.
1) Wikipedia on Erika Harold
2) Erika Harold for U.S. Congress
3) Republican News Watch
4) PolicyMic – Erika Herold_Miss America tries to Save the Republican Party
5) Meyer Capel Attorneys – Erika N Harold_Law Firm introduction
6) UPI – GOP official resigns after calling Erika Harold a streetwalker
7) Weekly Standard – Miss America vs. Mr. Incumbent