Skip to comments.Forget Cyprus, Nobody Is Stealing from Depositors More than Bernanke
Posted on 03/21/2013 2:41:34 PM PDT by Kartographer
After the Federal Reserve reaffirmed its easy money policy Wednesday, Chairman Ben Bernanke was asked whether the U.S. would ever think of taxing bank depositors as Cyprus has done. He said that was very unlikely but Jim Rickards, senior managing director of Tangent Capital Partners, says the Fed already has its hands in depositors pockets. Nobody is stealing more money from bank depositors than Ben Bernanke, Rickards tells The Daily Ticker. Bernanke's doing that, Rickards says, by maintaining interest rates near zero.
(Excerpt) Read more at finance.yahoo.com ...
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Inflation is the most insidious unkindest tax of all...
Insidious because no one knows it is happeneing until it is too late.
Unkindest because it affects the middle class job creators the most.
The easy money policy is for all who rely on government for their incomes, including services with customers who receive incomes from government. Stop the easy money policy, and without a large manufacturing base (for sustainable revenues), the funny money economy stops—no more incomes.
The answer is a large manufacturing base facilitated by laying off all who regulate against new, small production shops (zoning), all who regulate against home building (for those technically inclined men who know how to build and manufacture) and all NIMBYs who gossip, plot and scheme against their better neighbors’ productive activities.
The reality will probably be waves of layoffs for government employees, haircuts for pensioners (’cause bond investors will take their “haircuts” first) and generally...the default process. After the political majority of busybodies sucking on debt are concentrating more on each, their own survival, technically inclined folks will rebuild and govern more properly.
Have fun. Enjoy the slide.
I have long believed that the Federal Reserve was given a deceptive name to make people believe it was some USA government controlled entity. I have recently read that the Federal Reserve was in fact a creation of the USA government at the time of world socialist POTUSA Woodrow Wilson. However, the catch as I see it, was that the Fed was actually a creation funded for stock holders. I’m thinking that it was through such a financial mechanism that Wilson and his Austrian banker friend allowed the Fed to become the spoon for world wide USA dollars to international bankers in which group I include the infamous historical Rothschild family it’s spawned progeny like Soros and the Rockefellers.
It affects savers the most. Since job creation comes out of capital formation, and you can’t expand production without saving, yes, it strikes directly at job creation. That is, productive job creation. They create jobs during the boom part of tge cycle off inflation tax proceeds, but they never seem to stick around through the bust.
Let’s hypothicate that the world is _worth_ 1,000 trillion. Estimating the financial hypothification of this worth, safely I think, at 200 trillion, would have _taxed_ every _worth_dollar_ by 20% and running, above the actual taxes paid to create the wealth in the first place...
For worth I’m assuming that chattels aren’t worth anything tangible, since this is the norm.
I have been saying this for two years now.