Budget 2015: Federal Government set to introduce tax on bank deposits, Labor accuses Tony Abbott of backflipping on election promise

In Australia it will now cost you to deposit your own money into your own bank account, courtesy of the government and against the banking industry’s wish.

 

The Federal Government looks set to introduce a tax on bank deposits in the May budget.

The idea of a bank deposit tax was raised by Labor in 2013 and was criticised by Tony Abbott at the time.

Assistant Treasurer Josh Frydenberg has indicated an announcement on the new tax could be made before the budget. Continue reading

Central Planners Are In A State of Panic

The central planners are in a state of fear and panic.  They are trying everything and anything to create market validation for their policies, watching with trepidation as their favored economic metrics fail to respond to all of their frenzied efforts.

They are so far over the tips of their skis right now that there’s nothing they won’t do. They’ve summarily thrown granny under the bus because they have this idea that negative real interest rates are the cure.  The cure for what?  The massive amounts of debts and imbalances their prior policies caused.  So savers are punished in the pursuit of policy.  You know, ‘for the greater good’ and all that.

They’ve spurred the greatest wealth gap ever in US history, greater even than at the extremes of the Great Depression, apparently without the slightest concerns for Plutarch’s ancient admonition that “An imbalance between rich and poor is the oldest and most fatal ailment of all republics.”

They’ve even gone so far in Europe as to now force negative nominal interest rates on savers, dispensing with their usual slight-of-hand of letting inflation steal from each unit of currency in their system.  When you’re panicking, there’s no time for subtlety.

They look the other way as “someone” dumps huge amounts of gold contracts into the wee hours of the night, seeking one thing and one thing only: lower prices.  But that’s okay because the central banks destroyed price discovery a long, long time ago. First by invalidating the price of money itself (by driving interest rates to zero), and then in everything else — most importantly risk. Continue reading

Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief

If it can happen in Cyprus, it can happen across more European nations as the EU and its ‘troika’ set a precedent by changing its own rules. What’s more is that if it can happen in Europe, it can happen in the United States.

Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe’s single currency by propping up failing banks, a senior eurozone official has announced.

The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, announced that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe. Continue reading

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