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Japan Weighs Radical Deflation Therapy
Forbes ^
| June 12, 2003
| Benjamin Fulford
Posted on 06/20/2003 12:30:31 PM PDT by VoodooEconomics
Japan is considering taxing all cash and savings in an effort to force its people to spend their money or lose it, according to Shukan Gendai, a leading Japanese newsweekly.
The plan, as outlined in the magazine, calls for an annual tax of 3% to 5% on all savings and time deposits in the country. The aim of the move is to force Japanese savers to either buy consumer goods or put their money in stock, bonds or real estate to avoid what in effect would become a steep negative interest rate on their savings.
(Excerpt) Read more at goldline.com ...
TOPICS: Business/Economy
KEYWORDS: deflation
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To: VoodooEconomics
I predict a boom in the Japanese mattress industry!
2
posted on
06/20/2003 12:32:43 PM PDT
by
AntiGuv
(™)
To: AntiGuv
I predict a collapse of the Japanese financial system and economy. They know not what they do.
3
posted on
06/20/2003 12:46:18 PM PDT
by
sourcery
(The Evil Party thinks their opponents are stupid. The Stupid Party thinks their opponents are evil.)
To: VoodooEconomics
The plan...calls for an annual tax of 3% to 5% on all savings and time deposits in the country
That is just idiocy!
To: Lee_Atwater
The Federal Reserve floated a trial balloon about a month ago stating that this would be one strategy for increasing the velocity of money in the event of deflation.
The other strategy would be to place a date/time stamp on Federal Reserve Notes that would have the face value of the FRN decrease over time. A $20 bill held too long would decrease in value, for example, to $15.
They're trying it in Japan first.
5
posted on
06/20/2003 12:59:57 PM PDT
by
Publius
To: Lee_Atwater
I'd go long on Pachinko balls.
To: Publius
I believe if that were to happen here, polititians who vote for this, or people who are responsible for this, would probably be hanging from the corner street lamps in short order.
7
posted on
06/20/2003 1:35:43 PM PDT
by
taxed2death
(A few billion here, a few trillion there...we're all friends right?)
To: VoodooEconomics
For Japan I perscribe one stiff dose of economic isolationism. If a nation can't compete on the international stage, then the solution is not not play the game.
And, of course, to start things off they should call in all their international chips.
8
posted on
06/20/2003 1:47:44 PM PDT
by
The Duke
To: VoodooEconomics
... or just stick it in the mattress, which is what I predict people will do. Or buy gold and stick it into the mattress. None of this will restart their economy.
To: VoodooEconomics
A lot of Japanese capital is invested oversea, in China, for example. If they tax savings, a lot more will suddenly be invested overseas.
10
posted on
06/20/2003 4:07:50 PM PDT
by
RightWhale
(gazing at shadows)
Comment #11 Removed by Moderator
To: arete
ping
12
posted on
06/20/2003 7:07:52 PM PDT
by
Fraulein
To: Publius
A $20 bill held too long would decrease in value, for example, to $15
A scary proposal. But what would prevent them from exchanging the notes at the bank for new $20 bills right before the date of depreciation?
13
posted on
06/20/2003 7:11:14 PM PDT
by
Fraulein
To: VoodooEconomics
Just how is an inevitable run on the banks supposed to help the economy?
14
posted on
06/20/2003 7:13:44 PM PDT
by
Fraulein
To: Publius
They're trying it in Japan first.Yep, Japan does seem to be the place to try out all the "unconventional" means and methods.
Richard W.
15
posted on
06/20/2003 7:16:29 PM PDT
by
arete
(Greenspan is a ruling class elitist and closet socialist who is destroying the economy)
To: Fraulein
Japan has no internal consumer based economy of their own like the US, and its killing them. Too many savers. This is a radical plan, but I say go for it. Yes, the big money people might well move cash offshore. But the average citizen will be encouraged to spend.
To: oceanview
So you think that central planning is the way to go?
Richard W.
17
posted on
06/20/2003 9:06:06 PM PDT
by
arete
(Greenspan is a ruling class elitist and closet socialist who is destroying the economy)
To: taxed2death
If you had told someone in 1932 that everyone's gold would soon be confiscated by law, and that everyone who refused to turn in his gold would be turned over to mob justice (the precise threat stated in the federal proclamation), nobody would have believed you. "Why, even at the announcement of that, the people would rise and hang every officeholder in America!" is what you would have heard.
All it took was a banking crisis, a state of emergency and the setting aside of the Constitution -- while the people cheered.
Now with the Patriot Act, a simple proclamation is all that is needed to declare a person or cause terrorist. Need I say more?
18
posted on
06/20/2003 9:29:33 PM PDT
by
Publius
To: Fraulein
The date involved is a creation date, not an expiration date. Depreciation would be based on a sliding scale.
When you exchange those FRN's at a bank, their actual value will be a percentage of the face value, and that percentage will vary depending on how far today is from the creation date.
Think of it as an income tax rate table where the brackets are based on time rather than income level.
19
posted on
06/20/2003 9:34:58 PM PDT
by
Publius
To: Publius
Now with the Patriot Act, a simple proclamation is all that is needed to declare a person or cause terrorist. Need I say more?I find it hard to believe how many people actually see the government as their "friend" and as acting in the publics best interests. Government acts in its own best interest and no one for even one minute ought to be so delusional as to think that government serves us. We serve the government.
Richard W.
20
posted on
06/21/2003 5:48:25 AM PDT
by
arete
(Greenspan is a ruling class elitist and closet socialist who is destroying the economy)
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