Cypriot Austerity Measures

[Super Tigers]

Should be some interesting numbers movement next week, gold has been steadily declining in value, I expect that might start to reverse an head back upwards and $2000 per ounce looks a good target again. I expect the £ and $ to strengthen against the €. Should be good for people going on holiday soon!!
Nervous times ahead me thinks, this 'levy' or 'theft' could set a precedent, and the Greeks, Spaniards and Irish governments will be watching with concern.

 

[[TW]Fox]

There would be riots.

Does the demographics of your average person with enough savings for this to be a big impact generally align with the demographics of the average person who would, given the opportunity, take to riots?

I suspect not - so I doubt there would be riots.

Yet another policy that rewards those with high debt and penalises those who saved.

However it's not as if the BOE's pathetic interest rates haven't pretty much done exactly the same thing to British savers.

 

[M1k3H]

Does the demographics of your average person with enough savings for this to be a big impact generally align with the demographics of the average person who would, given the opportunity, take to riots?

I suspect not - so I doubt there would be riots.

Yet another policy that rewards those with high debt and penalises those who saved.

However it's not as if the BOE's pathetic interest rates haven't pretty much done exactly the same thing to British savers.

But what you are saying assumes that the only consequence of this will be just the 7-10%. It's not. Cyprus GDP is 80% based on the banking sector and services. With this "tax" the banking sector is going to take a big hit, in credibility, leaving Cyprus with a much smaller GDP, essentially dropping income for everyone.

 

[Muffin`]

But what you are saying assumes that the only consequence of this will be just the 7-10%. It's not. Cyprus GDP is 80% based on the banking sector and services. With this "tax" the banking sector is going to take a big hit, in credibility, leaving Cyprus with a much smaller GDP, essentially dropping income for everyone.

Reading between the lines it looks like it has been given choice but to implement this measure considering who and what utilizes it.

 

[Muffin`]

Does the demographics of your average person with enough savings for this to be a big impact generally align with the demographics of the average person who would, given the opportunity, take to riots?

I suspect not - so I doubt there would be riots.

Yet another policy that rewards those with high debt and penalises those who saved.

However it's not as if the BOE's pathetic interest rates haven't pretty much done exactly the same thing to British savers.

and QE!

 

[V4NT0M]

I read this headline and it was almost unbelievable. I wonder if those in the government are being levied and whether they moved their money prior to this...

 

[Ilikeitblackplease]

Well the council tax is in theory... in reality its still partly a poll tax... a million pound house doesn't pay 20 times more than a 50k house - someone who doesn't own the asset but lives in it & rents it could be liable to pay it...

The mansion tax is however and I also object to that - tis also a good illustration of why taxing assets is wrong... old widowers who have a low income but happen to have a valuable property... even a 1 bedroom basement flat in West London could be liable.
I don't have an issue with taxing assets when people die though.

The queen pays £1,375.24 a year council tax for Buckingham palace, I'm in favor for a mansion tax, just like the Tories are in favor of a bedroom tax.

If you have an expensive home but you are on a low income then sell it, if you can't afford it then why should you receive subsidies while others pay higher rates for a lesser property.

 

[Dolph]

The queen pays £1,375.24 a year council tax for Buckingham palace, I'm in favor for a mansion tax, just like the Tories are in favor of a bedroom tax.

If you have an expensive home but you are on a low income then sell it, if you can't afford it then why should you receive subsidies while others pay higher rates for a lesser property.

As soon as you start comparing asset taxes with benefit reductions, it quickly becomes clear that you know uour view wont stand up to honest scrutiny and hence go for confusion and appeals to emotion instead.

 

[Ilikeitblackplease]

The Euro....what a complete and utter failure.

No it would have been good, it was an alternative to the dollar, and its destruction by the US just like the US destroyed the sterling.
I do want the Euro to succeed.

 

[Dolph]

No it would have been good, it was an alternative to the dollar, and its destruction by the US just like the US destroyed the sterling.
I do want the Euro to succeed.

The euro could never succeed without centralised fiscal control to match.

The US didn't destroy it, it was destined to fail from the moment they decided to have monetary union without fiscal union.

 

[Ilikeitblackplease]

As soon as you start comparing asset taxes with benefit reductions, it quickly becomes clear that you know uour view wont stand up to honest scrutiny and hence go for confusion and appeals to emotion instead.

Well if the Tories wanted a Bedroom tax which they are imposing, then why should there not be a mansion tax. if i can not afford something i do not buy it, if i can not afford to run something i sell it.

 

[Ilikeitblackplease]

The euro could never succeed without centralised fiscal control to match.

The US didn't destroy it, it was destined to fail from the moment they decided to have monetary union without fiscal union.

The why were US banks so heavily involved in those countries, why did GS and other large banks helped those countries to manipulate figures to get them to borrow.
Bankers devised a special kind of swap with fictional exchange rates. That enabled Greece to receive a far higher sum than the actual euro market value of 10 billion dollars . In that way Goldman Sachs secretly arranged additional credit of $1 billion for the Greeks.

 

[Freakbro]

The euro could never succeed without centralised fiscal control to match.

The US didn't destroy it, it was destined to fail from the moment they decided to have monetary union without fiscal union.

Oh dear but..

I agree with Dolph

*ahem*

Anyway, as important as fiscal union was, it would never have got through, due to the howls from the right about national borders and a federal European super state.

So we got the halfway house, that ultimately has suited no-one, except the Germans...for now, and was on the road to failure from the start, it's just the world economic credit crunch exposed the cracks in the system sooner than later.

 

[Ilikeitblackplease]

Oh dear but..

I agree with Dolph

*ahem*

Anyway, as important as fiscal union was, it would never have got through, due to the howls from the right about national borders and a federal European super state.

So we got the halfway house, that ultimately has suited no-one, except the Germans...for now, and was on the road to failure from the start, it's just the world economic credit crunch exposed the cracks in the system sooner than later.

They should have had a two central banks, one for the north and one for the south, this is where they went wrong. Germany profited from having the Central bank in Germany and based on the German economy.

 

[Muffin`]

Well if the Tories wanted a Bedroom tax which they are imposing, then why should there not be a mansion tax. if i can not afford something i do not buy it, if i can not afford to run something i sell it.

There is no Bedroom Tax, it is a reduction in payment for excess resources. To call it a Tax is being disingenuous or you're just illiterate. Recent proposals for Wealth Taxes raise no where near the amounts needed for what, supposedly they will go onto fund. Also they come with a requirement for means testing, which is again at a cost.

 

[Freddie1980]

I'm watching sky news, the guy on there is saying the banks in Cyprus were offering sky high interest rates to savers and the government was backing deposits encouraging people to plough cash into the failing banks only then to get hammered by this tax. Sounds like a con from start to finish to me.

 

[Ilikeitblackplease]

There is no Bedroom Tax, it is a reduction in payment for excess resources. To call it a Tax is being disingenuous or you're just illiterate. Recent proposals for Wealth Taxes raise no where near the amounts needed for what, supposedly they will go onto fund. Also they come with a requirement for means testing, which is again at a cost.

It is still a tax, no matter what you my think, and who says it would not raise a good amount of money. I remember seeing that the 50% tax rate raised more money than suggested in the reports.
Council tax should be a fix percentage for everyone. So using your theory I should pay less tax because I have no children.

 

[aardvark]

do people still think buying gold is a bad idea??? governments can't steal what you have hidden.

 

[Ilikeitblackplease]

I'm watching sky news, the guy on there is saying the banks in Cyprus were offering sky high intereat ratea to savers and tje government was backing deposits encouraging people to plough cash into the failimg banks only then to get hammered by this tax. Sounds like a con from start to finish to me.

The whole thing is a con, I read somewhere that the cost of corporate benefits by the state costs us more than social benefits.

 

[Django x2]

Whilst this is (or does seem to be) disgusting, I'm trying to work out if there's really any difference to say, your company making compulsory 5% pay cuts to keep afloat in difficult financial times with no propspective reward for doing so?