German ’Wise Men’ push for wealth seizure to fund bail-outs
By Ambrose Evans-Pritchard | The Telegraph
RIC Note: Echoing the old Soviet Union, the EU government is punishing the people with money, but not those who stole it! This is what Vladimir Bukovsky warned about when he questioned if the European Union was in fact a ’new’ Soviet Union. (read below).
Two top advisers to German Chancellor Angela Merkel have called for a tax on private wealth and property in eurozone debtor states to force the rich to fund rescue costs, marking a radical new departure for EMU crisis strategy.
Professors Lars Feld and Peter Bofinger said states in trouble must pay more for their own salvation, arguing that there is enough wealth in homes and private assets across the Mediterranean to cover bail-out costs. “The rich must give up part of their wealth over the next ten years,” said Prof Bofinger.
The two economist are members of Germany’s Council of Economic Experts or “Five Wise Men”, a body that advises the Chancellor on major issues. There is no formal plan to launch a wealth tax but the council is often used to fly kites for new policies.
Prof Bofinger told Spiegel Magazine that it was a mistake to target deposit holders in banks, the formula used in the EU-IMF Troika bail-out for Cyprus where those with savings above €100,000 at Laiki and Bank of Cyprus face huge losses. “The canny rich in southern Europe just shift their money to banks in Northern Europe to escape seizure,” he said.
Prof Feld said a new survey by the European Central Bank had revealed that people in the crisis countries are richer than the Germans themselves. “This shows that Germany has been right to take a tough line of euro rescue loans,” he said.
The ECB study found that the “median” wealth of is €267,000 in Cyprus, compared to just €51,000 in Germany where home ownership rate is just 44pc and large numbers of people have almost no assets.
The median or midpoint level -- which strips out the distorting effect of the super-rich -- was €183,000 for Spain, €172,000 for Italy, and €102,000, and even €75,000 for Portugal.
Average wealth in Cyprus is €671,000, far higher than in the four AAA creditor states: Austria (265,000), Germany (195,000), Holland (170,000), Finland (161,000).
The ECB survey has hardened attitudes in Berlin, dooming efforts by Cyprus extract more money from the Eurogroup as rescue costs surge from €17.5bn to €23bn.
The study shows how EMU states have twisted themselves into a Gordian Knot under monetary union, and why Germans feel a strong sense of grievance over escalating bail-out demands. Yet it is also highly controversial since it relies on data before the housing crash in Spain, and may understate implicit wealth in Dutch pensions or German life insurance.
Prof Bofinger told Spiegel Magazine that it was a mistake to target deposit holders in banks, the formula used in the EU-IMF Troika bail-out for Cyprus where those with savings above €100,000 at Laiki and Bank of Cyprus face huge losses.
The political debate on euro membership may change dramatically if rich Cypriots, Italians, Spaniards, and Portuguese start to see EMU as a threat to their property, rather than a defence.
Read the full article at : telegraph.co.uk
Vladimir Bukovsky - The European Union - the New Soviet Union?
From: | Red Ice Creations
Vladimir Bukovsky, a former Soviet Union Gulag prisoner, revealed in this speech, confidential documents from secret Soviet files which he was allowed to read in 1992. These documents confirmed the existence of a "conspiracy" to turn the European Union into a socialist organization.
Former Soviet Dissident Warns For EU Dictatorship
Bukovsky published the documents here:
EUSSR The Soviet roots of European integration
Latest News from our Front Page
Dutch King Willem-Alexander declares the end of the welfare state
King Willem-Alexander delivered a message to the Dutch people from the government in a nationally televised address: the welfare state of the 20th century is gone.
In its place a "participation society" is emerging, in which people must take responsibility for their own future and create their own social and financial safety nets, with less help from the national government.
Why a Caucasian-Japanese is not Perceived as Japanese
The Japan Times has a hilarious article about a White guy who is angry and upset at the horrible and racist world we live in because customs agents and border agents are questioning his "right to be Japanese."
It's seems that Debito Arodou's experience at border crossings suggest that no one takes a White guy seriously, for claiming to be Japanese.
"Open the border - we're going to the UK!" Chanting mob of 200 storm Eurotunnel
Migrants make their way towards the Tunnel entrance in the early hours of Sunday morning
An organised mob of 200 migrants charged into the Calais entrance of the Channel Tunnel early yesterday, chanting â€˜open the bordersâ€™ and demanding to be allowed into Britain.
They tore down fences and charged past police, who retaliated by spraying tear gas. When the migrants were finally ...
Forgotten British Heroes Campaign
The text of the letter from the Forgotten British Heroes Campaign to the Israel ambassador in London, Daniel Taub.
This will be delivered to the Israel Embassy on Saturday 1st August, the day on which the Campaign will hold a wreath-laying and then a meeting at the site of a notorious Zionist terrorist bombing near to Trafalgar Square (the former British ...
Baltimore Murders Tie Records After Freddie Gray Killing, 45 Killed In July To Make It The Deadliest Month In At Least 45 Years
The number of people murdered in Baltimore hit a record-tying 45 homicides for the month of July, the Baltimore Sun is reporting. The number is an uptick that follows a trend of increased violence in the city in the months after the Baltimore riots that resulted from the death of unarmed black man Freddie Gray on April 12.
The increased violence in Baltimore, which was already one ...
|More News » |