Tag Archives: debt

GLOBAL DEBT AT 317% OF GDP

The world’s debt burden stands at a staggering 317 per cent of global gross domestic product, just shy of its all-time high in 2016, according to the Institute of International Finance.   Years of low and negative interest rates have fed the debt habit:   since the 2008 financial crisis, the world has added an extraordinary $70tn in debt, or 25 per cent of GDP, with sovereign debt accounting for nearly 40 per cent of that increase.

“To be clear: responsibly incurred debt can play an important and constructive role in economic development.   Long-term investments that enhance productivity can foster a more prosperous future. Amid subdued growth in many parts of the world and a critical need for infrastructure, there are arguments to be made in support of using debt to foster growth.

“But too much debt is a risk for lenders and borrowers alike, as history has shown time and again.”

(“We need transparency to keep countries out of a debt spiral,” Axel Weber, Financial Times, 6/18)

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CURRENCY WARS

Europe has been warned. Any use of monetary levers to hold down the euro exchange rate will be deemed a provocation by the Trump administration.

Further cuts in interest rates to minus 0.5pc or beyond will be scrutinized for currency manipulation.   A revival of quantitative easing will be considered a devaluation policy in disguise, as indeed it is, since the money leaks out into global securities and depresses the euro.

The Bank for International Settlements says €300bn of Europe’s QE funding reached London alone between 2014 and 2017.

If the ECB copies the Swiss National Bank and starts to amass foreign assets directly to cap currency strength Europe will face certain retaliation.

(“Currency war is the next phase of global conflict and Europe, the chief parasite, is defenceless,” Ambrose Evans-Pritchard, Daily Telegraph, June 19th)

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BRUSSELS BRIEFING

Donald Trump’s found someone else in Europe he doesn’t like.   The US president launched a Twitter tirade against Mario Draghi after the ECB president said he was ready to inject new stimulus into the eurozone, sending the euro tumbling against the dollar.  (Brussels Briefing, Financial Times, 6/1)

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 TRUMP’S WAR

“President Donald Trump cannot want war with Iran.

   Such a war, no matter how long, would be fought in and around the Persian Gulf, through which a third of the world’s seaborne oil travels.   It could trigger a worldwide recession and imperil Trump’s re-election.

   It would widen the “forever war,” which Trump said he would end, to a nation of 80 million people, three times as large as Iraq.   It would become the defining issue of his presidency, as the Iraq War became the defining issue of George W. Bush’s presidency.

 And if war comes now, it would be known as “Trump’s War.”

In conclusion:

“Who wants a U.S. war with Iran?

   Primarily the same people who goaded us into wars in Iraq, Syria, Libya and Yemen, and who oppose every effort of Trump’s to extricate us from those wars.

   Should they succeed in Iran, it is hard to see how we will ever be able to extricate our country from this blood-soaked region that holds no vital strategic interest save oil, and America, thanks to fracking, has become independent of that.”    (“War with Iran would become “Trump’s War,” Pat Buchanan, 6/18)

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Iran shoots down US drone aircraft

Oil prices jump after action by Revolutionary Guard escalates tensions between Tehran and Washington (Financial Times, 6/20)

“Iran shoots down US military drone to send “clear message” to Trump”   (Independent, 6/20)

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GERMAN POLITICIAN ASSASSINATED BY NEO-NAZI

Germany’s federal prosecutors have taken over the investigation into the murder of Walter Lübcke, indicating that the killing of the Kassel district president on June 2 is being treated as a politically motivated terrorist act.

If indeed the murder is shown to have been politically motivated, it would be the first such assassination on a sitting German politician since the 1970s.

Trail included death threats, weapons.

A number of German outlets have reported details of the alleged far-right ties of the suspect arrested in the central city of Kassel in the early hours of Sunday morning.

The German daily Süddeutsche Zeitung reported on Monday that the 45-year-old man, named only as Stephan E., had a long criminal record, had already issued death threats via his YouTube channel, and that weapons were found during the search of his home.

According to the paper, Stephan E. had written a comment on YouTube in 2018 under his alias ‘Game Over’ that read, “Either this government abdicates soon or there will be deaths.”  ( “Walter Lubcke murder raises specter of neo-Nazi terrorism,”   Deutsche Welle news)

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Xenophobia stokes extreme-right activism

Puls has also noticed that neo-Nazis became more and more vocal in the last few years, following the influx of refugees who arrived in Germany in 2015 and 2016, which led to more anti-immigrant sentiment in the mainstream political debate and hate speech on social media.

As a supporter of Chancellor Angela Merkel’s policy, Walter Lübke himself was on the sharp end of much of this.

“One can certainly say that the propensity for violence has certainly risen following the right-wing debates around immigration,” he said. “The case of Lübcke is certainly very revealing here.   Walter Lübcke faced an enormous amount of hatred in 2015.   That does raise the question:   how much does it take before one person says ‘I’ll reach for a weapon?’   In certain circumstances, not much.”

( “Walter Lubcke murder raises specter of neo-Nazi terrorism,” Deutsche Welle news)

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Stand up to far right, Germany’s Angela Merkel tells Europe

The resignation of Austria’s vice chancellor led German politicians to warn against alliances with populists.   Chancellor Merkel spoke out against right-wing populism as many are now demanding new Austrian elections.   (DW)

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NEO-NAZIS IN AMERICA

The definition of a neo-Nazi is someone who belongs to an organization that is similar to the German Nazi Party of Adolf Hitler.

“Frontline” (PBS) this week showed the growth of neo-Nazis across America.   It showed synagogues that are now doing everything they can to prepare for further mass shootings.

It also interviewed members of neo-Nazi groups and showed a perverse link with the current Administration.    “To make America great again, you would have to make America white again”,  is a direct quote from a leader of the neo-Nazi movement, the Waffen.

“FRONTLINE and ProPublica continue reporting on the resurgence of white supremacist groups in the United States.   “Documenting Hate:   New American Nazis” investigates a violent neo-Nazi group that has actively recruited inside the U.S. military, and examines the group’s terrorist objectives.” (Frontline).

Overlooked here is the major contribution made by liberals, in the growth of Nazism.   The massive influx of immigrants since 1965 has led directly to anti-immigrant feeling.   The 2008 financial crisis contributed greatly to anti-semitism.

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ZUCKERBERG LAUNCHES NEW CURRENCY

“He causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has [a]the mark or the name of the beast, or the number of his name.” (Rev 13:16-17)

Zuckerberg’s $538 billion social network on Tuesday announced plans to create a new digital currency and financial system that it claims will revolutionize banking. Facebook announced the new currency, called Libra, in a 12-page white paper that promised vast improvements on bitcoin and other volatile digital coins.” (New York Post, 6/18)

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THE DARK SIDE OF ZUCKERBERG’S POWERFUL NEW CRYPTO COIN

“In its quest for world domination, Facebook has already disrupted everything from the media industry to American democracy, drawing scrutiny for things like its pitiful handling of user data, its monopolistic tendencies, and a “digital gangster” mentality along the way.   Now, as regulators in Washington, D.C., bear down on Facebook, co-founder Mark Zuckerberg has acquired a new target: the global financial system.

“On Tuesday, Facebook announced plans to debut Libra, a cryptocurrency it has been developing for more than a year. Described by the company as “a simple global currency and financial infrastructure that can empower billions of people,” Libra will partner Facebook with Mastercard, Visa, Uber, and an array of other high-profile companies in what the New York Times called “the most far-reaching attempt by a mainstream company to jump into the world of cryptocurrencies.”

“David Marcus, who is leading Facebook’s blockchain technology research, is stoked.   “It feels like it is time for a better system,” Marcus told The Times. “This is something that could be a profound change for the entire world.”   Even Zuckerberg, who has spent much of the last two years on a sort of apology tour, sounds like he’s regained his change-the-world mojo.   “Being able to use mobile money can have an important positive impact on people’s lives because you don’t have to always carry cash, which can be insecure, or pay extra fees for transfers,”    Zuckerberg wrote in a Facebook post.   “We aspire to make it easy for everyone to send and receive money just like you use our apps to instantly share messages and photos.”   (Eric Lutz, Vanity Fair, 6/18)

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THREAT TO US FOOD SUPPLY

“US beekeepers lost 40% of colonies over past year” – The Guardian 6/19

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GLOBAL OUTLOOK BLEAK FOR 2019

There have been an increasing number of articles warning about the global economy.   The latest predicts a depression worse than the Great Depression.   None are specific, in terms of “when” but all say the signs are there.

The most common problem cited is debt.   Governmental debt is already over $22 trillion in the US.   This is the highest amount any country in history has ever owed, so it’s difficult to predict what will happen.   In addition, there’s also corporate and private debt.   The figures given do not include mortgage debt, which is also extremely high.   Nor do they include the annual commitments for Medicare, Medicaid, Social Security and other government programs, the so-called entitlements.

The 2008 financial crash started as a mortgage failure.   So did the 1873 crash.   It began in Austria-Hungary and spread around the world.   This particular crash was known as The Great Depression, more than fifty years before the depression of the thirties.   It would be a mistake to think it cannot happen again.

In fact, depressions have been a regular feature in America’s history.   There have been as many as 47 recessions and depressions since independence.   After the end of the Revolutionary War, there was a depression, in which the economy slumped by 50%.   The depression of 1873 lasted 25 years, on and off.   Unemployment was at 50% in the 1896 election, resulting in the highest turnout ever – a full 80% of voters participated that year.

Not every year saw the economy in deep depression.   It came in three waves.   It finally ended with the Spanish-American War, which got the economy moving again.

PANIC OF 1873

The 1873 depression in the US started with the collapse of Jay Cooke & Co., then a major component of the American banking establishment.   Contributory failures were the post-Civil War inflation, rampant speculative investment and losses in the Chicago and Boston fires (1871 & 1872).   Bank reserves plummeted in the first two months from $50 million to $17 million.

“The failure of the Jay Cooke bank, followed quickly by that of Henry Clews, set off a chain reaction of bank failures and temporarily closed the New York stock market.   Factories began to lay off workers as the United States slipped into depression.   The effects of the panic were quickly felt in New York, and more slowly in Chicago, Virginia City, Nevada (where silver mining was active), and San Francisco.

“The New York Stock Exchange closed for ten days starting 20 September.    By November 1873 some 55 of the nation’s railroads had failed, and another 60 went bankrupt by the first anniversary of the crisis.    Construction of new rail lines, formerly one of the backbones of the economy, plummeted from 7,500 miles (12,070 km) of track in 1872 to just 1,600 miles (2,575 km) in 1875.    18,000 businesses failed between 1873 and 1875.    Unemployment peaked in 1878 at 8.25%.    Building construction was halted, wages were cut, real estate values fell and corporate profits vanished. ”  (Panic of 1873, Wikipedia)

GRUNDERKRACH

I single out the 1873 depression because of the similarities in the global situation today.   The depression in German speaking countries is known as the Grunderkrach, or Founders Crash.   When Germany was united following the Franco-Prussian war, a lot of money flowed into the country, mostly from French war reparations. Loans were then made, mostly for mortgages.   When people couldn’t pay them, the banking system collapsed.   This spread to the US and Britain.   It was the beginning of the end of Britain’s global supremacy.

The Great Recession of 2008 began as a housing crisis.   It actually began two years earlier when housing prices started falling.   For years previously house prices had been rising fast.   Millions of people bought homes, homes they could not afford.   The banks loaned to people who should not have had loans.   It was a recipe for disaster.

The same thing is happening again.   Bad loans and speculative investments are pervasive.   Student loans are so high they could be the cause of a collapse by themselves.   Government debt is at an all-time high as are corporate debt and consumer, non-mortgage debt (credit cards).

I am reminded of what the late President of France, Charles de Gaulle, said over 50 years ago.   He did not want Britain to join the EU (he had incredible foresight!).   He dismissed the US and the UK as “the Anglo Saxon debtor nations.”   The British-American economic systems have been built on massive debt.   It works well . . . for a while!   Eventually, there comes the day of reckoning.

That may be this year.

We should never have borrowed so much money, especially after the Crash of 2008.   Often it’s been encouraged by government, when it makes little sense.   Social engineering has boosted the value of homes and increased the number of loans (more profits).   A government decree made under the last administration was that all neighborhoods should be 25% minority; the only way to achieve that was to give 100% loans to people who had never owned a house. Additionally, 100% loans have been made to immigrants, who have had little time to learn how the economy works in the US.

Remember, at stake here is America’s global leadership role.   A serious set-back for the economy would weaken the US.

It’s interesting here to note that the euro is set up very differently, with government borrowing limited to 3%.   The euro has its own problems, but could emerge as the greater currency in the event of a global depression.  It’s already used by more people than the US dollar.

Debt can mean the borrower ends up in servitude to the lender. Note the following warning from scripture:   Proverbs 22:7 7  “The rich rules over the poor, And the borrower is servant to the lender.”

This is a far cry from the promised blessings for obedience:

Deuteronomy 15:6 says:  “For the Lord your God will bless you just as He promised you; you shall lend to many nations, but you shall not borrow; you shall reign over many nations, but they shall not reign over you.”

A second cause of financial concern is impending TRADE WARS.   These will slow down the global economy.   Once again, uncertainty is an issue here.

A third reason the global economy is at risk is BREXIT, now less than two months away.   This could seriously affect inter-European trade.

A fourth factor, increasingly seen, is the economic Rule of Inequality. This is an economic law that predicts the likelihood of revolution based on the gap between the rich and the poor in any country. China is very concerned about this.   There is only one country with a greater gap and that’s the US.   Trump’s election was our “revolution” – if he is not able to deliver, there will be trouble ahead.

There are many countries around the world with a similar gap. France is going through weekly demonstrations about the rising gap between rich and poor; Venezuela and Zimbabwe are on the brink of revolution.

Other factors to watch are China’s slowdown and even the weather. Both can impact economies.

The above are all the predictables.   There may be other factors, unpredicatables, such as war, that can add to economic woes.

It remains to be seen.   But the warnings are there.   The only question is “When?”

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RUSSIA & CHINA POSE BIGGEST THREATS TO US

“Former national security adviser Zbigniew Brzezinski warned in 1997 that the greatest long-term threat to US interests would be a “grand coalition” of China and Russia, ‘”united not by ideology but by complementary grievances.”   This coalition “would be reminiscent in scale and scope of the challenge once posed by the Sino-Soviet bloc, though this time China would likely be the leader and Russia the follower.”

Nobody listened back then, but now it’s becoming clear that the two countries are cooperating to deal with what each perceives as the American threat.   The latest development is in Venezuela, where they are supporting President Maduro and condemning the US for backing the “usurper,” Juan Guaido.

In the past, the US has thought a Sino-Russian entente outlandish. Only now it’s happening.   As Mr. Brzezinski warned, it’s not that they have a lot in common, but rather they share a common enemy.

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UK TO CRASH OUT OF THE EU

Now, nothing can stop Brexit from happening.   Even many supporters of remaining in the EU see that.   The way Europe has treated the UK will make it impossible to avoid a hard Brexit.   (This assumes no change of heart in the EU.)

The facts are that British incompetence has led to Europe just wanting to get it over with.   Looking back on almost 50 years of membership there is a realization that Britain has never been a good fit, either, so why try to keep the British in?

A third reason is NATO.   Most of the other European countries sense that the US is pulling out of NATO, that it doesn’t want the responsibility or cost of defending the other members.   This is why Europe is trying to put together its own military force.   Britain, more pro-American, would only get in the way of this.

So, expect a full Brexit on March 29th.

This will not prevent Mrs. May running around Europe like a chicken with its head cut-off!

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BOOK QUOTE

“From July 1780 until the end of the year, the Catawba River Valley and the adjacent northern districts were the scenes of some of the most brutal warfare ever fought in what is now the United States.   It was a civil war, with all its horrors, as neighbors and families turned on one another with a vengeance.”   (page 140, Partisans and Redcoats, by Walter Edgar, 2001)

DEBT, DEBT AND MORE DEBT

debt

I heard a few days ago that there are twice as many Cash Advance outlets as Starbucks in the US.

Now, there are plenty of Starbucks stores around.   In fact, it seems that they are on every third or fourth block but, apparently, there are twice as many places lending people money at exorbitant rates of interest.

It shows that an increasing number of people are desperate.

When they have to pay a bill or borrow cash to buy a birthday gift for a loved one, they need to borrow the money.   They have no savings, no bank account and no credit card.   Sometimes they are simply maxed out, having borrowed and borrowed until they cannot borrow any more.

Borrowing from cash advance places does not improve a person’s financial condition in the long term.   The APR can be a staggeringly high 1800%, depending on how quickly the money is paid back. Sadly, most of those borrowing from such places have little understanding of how to handle money.

With this in mind, it’s encouraging to note that Croatia has become the first country in modern times to cancel the debts of its 60,000 poorest citizens.

When you think about it, this may be a quick and effective way of getting an economy moving again, assuming the 60,000 can be taught how to live within their means.   Further borrowing would only repeat a negative cycle.

Debt cancelation is not something new.   You can see evidence of it in the Old Testament.   Leviticus, chapter 25, commanded the cancellation of all debts every fifty years.   It was known as the Year of Jubilee and began on the Day of Atonement at the beginning of the 50th year.

Consecrate the fiftieth year and proclaim liberty throughout the land to all its inhabitants.   It shall be a jubilee for you; each of you is to return to your family property and to your own clan.”  (verse 10)

In addition to what we read of ancient Israel, the Babylonians had a similar system of debt cancelation.

It’s arguably the best way to get western economies moving again.

At a higher level, it could even be applied to countries like Greece, who are overwhelmed with debt.   The problem, though, is that Greece has been guilty of reckless over-spending and does nothing about corruption.   These would have to be dealt with at the same time as canceling debt obligations.

But canceling debts may be the only way out of the fiscal mess the West is in.

GAP BETWEEN RICH AND POOR – A WARNING OF FUTURE UPHEAVALS

Mind the Income Gap

It disturbs me when fellow conservatives make insensitive comments about the poor.   Many of them are too busy making money to read much history, but, if they did, they would know that Marie Antoinette did not live long after she dismissively said, “Let them eat cake!”, when told the peasants had no bread.   Whether or not she really did say that is irrelevant – people believed she said it and she soon had an appointment with Madame Guillotine!

128 years later the Russian Revolution began with a bread riot in the capital Petrograd (now Saint Petersburg).  Both the Bourbons and the Romanovs lost their thrones.

It’s the height of arrogance for us to think that, because we have supposedly matured to a better form of government, it cannot happen here.  When people are hungry, they won’t care about constitutional niceties.  If they are not fed, they will get violent and will then turn on those with the food.

Marie Antoinette might have survived if she had been familiar with the economic Rule of Inequality, an economic law by which you can accurately predict the likelihood of civil disturbance right up to and including revolution.  Simplified, what it says is that the greater the gap between rich and poor, the more likely revolution becomes.   And, if there’s a revolution, the wealthy will lose everything, so the wealthy do have a definite interest in the welfare of the poor.

A nineteenth century Conservative leader of Great Britain saw this clearly.  Benjamin Disraeli wrote the novel “Sybil; or the Two Nations” in 1845.  He was extremely concerned about the increasing gap between the haves and the have-nots.   Disraeli showed that Conservatives can do a great deal to help the poor.

China has tried to address this problem.  Frightened at the prospect of revolution as the wealthy rather vulgarly display their wealth in front of peasants who barely eke out a living. The Chinese government is trying to rectify the imbalance.

The only industrialized nation in the world that has a wider gap between rich and poor is the United States.  Yet, in the last election, the issue of poverty was not even addressed.

Mitt Romney, the Republican candidate, sounded rather like the late decapitated French queen when he talked of the “47%”, the voters who depend on government, saying they would never vote for him.   Even the Democratic leader, the current president, had nothing positive to say about the poor.  They are largely forgotten.

The United States and China are not the only countries with this problem.  It is a worldwide phenomenon that has already caused riots and revolutions in some countries.

Jesus Christ said: “the poor you will always have with you” (Matthew 26:11).  That’s very true.  The Rule of Inequality refers, rather, to the widening gap between rich and poor, a gap we see widening with almost every announcement on the economy.

As a fiscal conservative, I do believe government should live within its means.  But if, as some suggest, government programs like food stamps, WIC (food for Women, Infants and Children), Medicare for the elderly and Medicaid for the really poor, are abolished or greatly reduced, this could trigger off the revolution Marie Antoinette did not see coming!

Put bluntly, abolishing food stamps will mean riots in the streets of our big cities.  Again, that’s how the world’s worst revolution started, in Russia in February 1917.

This does not mean, either, that government programs are the best way to alleviate poverty.   The New Republic magazine showed two decades ago that the Salvation Army is far more cost-effective in caring for the poor, than is the federal government.

But that’s a separate issue.  The reality is that the poor do need help – or we will all suffer the consequences.

Conservative churches in the United States never seem to address this issue.  They tend to focus on abortion and same-sex marriage, both of which are unbiblical.  But they should remember that a major reason for God’s condemnation of ancient Israel and a reason why He let their nations be brought down, was because they exploited and neglected the poor.  Maybe a reason why churches won’t address this issue is because too many of their members are involved in exploitation – people who appease their conscience by making generous donations to the church!

Note the following condemnation of supposedly dedicated people who fast, but oppress the poor while they fast.   “You seem eager for God to come near you.  Yet on the day of your fasting, you do as you please and exploit all your workers.  Yet is not this the kind of fasting I, your Lord, have chosen: to loose the chains of injustice…to share your food with the hungry and to provide the poor wanderer with shelter—when you see the naked, to clothe them?” (Isaiah 58: 2-7).

Also note: Prov. 14:31 Anyone who oppresses the poor is insulting God who made them. To help the poor is to honor God.

One way in which the poor are exploited is through usury.   Millions of people are heavily in debt.  It’s too easy to say that they brought it on themselves.  It would be better to look at what the Bible says.  What many Christians do not realize is that usury, the charging of interest, is condemned in the Bible.  “If one of your brethren becomes poor, and falls into poverty among you, then you shall help him…Take no usury or interest from him….”  (Leviticus 25:35-36).  In stark contrast to this biblical instruction, our cities are full of “Cash Advance” stores that charge exorbitant rates of interest.  The more interest people have to pay on loans, the less money they have to spend, hence the recession!

It wasn’t until 1694 that a Christian country, England, allowed interest to be charged, when the Bank of England was founded.  Before that, Christians were not involved in banking.  That was the preserve of Jews.  This practice often led to pogroms against the Jews.  In York, England, in 1190, all the Jews in the city were killed, when town officials stirred up the people in order to get out from under their own debt obligations.

Today, we see people’s debts constantly rising.  Student loan debt is at an all-time high.  Many students will never be able to pay off their debt and will never be able to buy a house, marry or start a family.  In spite of this, our society encourages people to get deeper into debt.

What’s needed is a biblical Year of Jubilee.  The peoples of ancient Israel were instructed to cancel all debts once every fifty years.  You can read about this in the Book of Leviticus, chapter 25.  The result of the Year of Jubilee was that nobody could become too wealthy or too poor.  Instead of the Year of Jubilee, we have a depression or a recession approximately once every fifty years.  The Great Recession of 2008 was brought on by too much debt.  We have not been able to get back to where we were before 2008 and we won’t be able to until we cancel all debts.

It’s an ancient idea but it remains the best way forward for western nations today!

WHAT DO CYPRUS AND MICHIGAN HAVE IN COMMON?

cyprus_map

The government is debating a levy on deposits, taking 9.9% from those with accounts showing a balance of over 100,000 Euros and a smaller percentage from those under 100 grand.

Naturally, people today are lined up outside banks withdrawing their deposits.

This will not, of course, stop the government – they can simply back date it and send residents a bill.

While Michigan residents may be thankful they don’t live in Cyprus, Michigan does have the same problems that Cyprus has.

An article in the Lansing State Journal reported three days ago that “Michigan cities (are) facing $12.7 billion in unfunded liabilities”  (March 15th).  The unfunded liabilities are mostly for healthcare and pension commitments to local employees.

As reducing spending never seems to be an option for government, an economist at MSU, our local university, warned of “higher taxes.”   An alternative would be for cities to charge people for streetlights and other services, which is the reason we needed city government in the first place.

What is clear from the report is that government employees are not subject to the vagaries of the market as are people employed in the private sector.  Thanks partly to strong unions their incomes and benefits are guaranteed and cannot be tampered with.

Unless this changes, Michigan may have to follow Cyprus and find innovative ways of taking more money from over-taxed tax payers.

If stealing from peoples’ bank accounts isn’t an option, the federal reserve is already helping.  Since the crash of 2008 the money supply has been increased by 25%.   This will inevitably speed up the rate of inflation.  Inflation has often been described as a “hidden tax.”   It’s a clever way for governments to increase spending and, while they are at it, reduce the amount of debt they have to pay back.

Sorry, not an option for Cyprus where they use the Euro, a currency shared by sixteen other nations and controlled by the European Central Bank.

Cypriots are blaming Germany.  The Germans won’t help without the proposed levy.

As the Germans remain one of the few creditor nations (nations with a surplus), could a debtor nation like the US one day need German help?  In which case, we also may have to suffer a levy on our bank accounts.  That is, of course, assuming we have anything left in the bank by then!