The IMF is pontificating again. Apparently debt is now so bad that governments are going to have to develop sophisticated “instruments” to – in effect – inflate away, confiscate and/or force us to spend our money. (See Cyprus – “haircut” history)
“The (IMF) paper says the Western debt burden is now so big that rich states will need same tonic of debt haircuts, higher inflation and financial repression – defined as an “opaque tax on savers” – as used in countless IMF rescues for emerging markets.”
I like the reference to “rich countries”. Can a country which is vastly indebted still be considered as “rich”? Am I supposed to consider as rich my mate down the road who has vast debt and yet STILL continually spends way more than his income just because his house is stuffed full with electronic gadgets and he somehow manages to run a posh car?
In layman’s terms, this all seems to amount to a “savings tax” – the confiscation of money legally and frugally acquired but not spent. Please correct me if I am wrong. This must surely be the ultimate in Big Brother lunacy. We ALREADY pay LOTS of tax on what we earn and then we are to be taxed again if we choose to be frugal and careful and save some of what’s left. This really IS in the category of “You could not make it up.” What’s next; a 100% tax and the government spending it FOR us?
And all this financial chaos is NOT OUR FAULT; government over-spending is to blame. The PLEBS did not rack up this insane debt; GOVERNMENTS did. The concept of “living within one’s means” just does not seem to enter into it.
None of these people that we elect have the guts to say to their people: “Sorry, we can’t afford that.” Instead, they spend vast sums they do not have to effectively BRIBE voters with their own money to vote for them. I say “their own money”, but most of it is of course BORROWED.
Yup, the current situation is caused by GOVERNMENTS: people we ELECT and PAY to LEAD US. But I did not ask Gordon Brown to rack up vast debt; I did not ask the Coalition to CONTINUE to INCREASE debt. I elected them to do what is necessary to reduce it, because – bleedin’ obviously – too much debt is very BAD. I know that; all my mates down the pub know that; my 90-year-old Gran knows that, but Europe’s politicians apparently do NOT. Or if they do, they do not CARE. In extreme cases, having got their own countries into extreme debt (France) they want some OTHER country (Germany) to bail them out.
I have a theory that Homo Sapiens is basically unhinged when it comes to collective actions affecting the long-term. Can someone convince me it’s not true?
However, it is important to try to read between the lines. All this twaddle (beautifully wrapped up in posh economists’ psychobabble) is from the IMF, an organisation run by French political-crony Christine Lagarde. Having totally failed as French Finance Minister to put a brake on her own country’s lunatic spending she was put in charge of the IMF to tell other people how it should be done. You might think this to be worth yet ANOTHER “You could not make it up” award. And of course, her secret agenda is to find a way to bail out France so it can continue with its “French model” of high state spending, taxes and general interference and insane regulation. That’s what this is about ……
So, I have seen through your little game, Ms Lagarde ….. and stealing our savings will NOT help you to the French Presidency …… your plebs are going to have something to say about that. Please do something useful: retire and go and plant potatoes and trees: the former to feed us and the latter to save us from Global Warming.
OH, some of the debt crisis might be eased if you would pay tax on your OWN vast salary ……..