Amidst the flagrant fiscal deterioration of the Euro-zone since its inception, the most recent insult is what is happening in Italy. The Italian government has commanded the Italian banks to impose a 20% tax on all inbound wire transfers, treating the transferred money as taxable income. This ruling is retroactive to all wire transfers beginning from February 1, 2014. It now becomes the incumbent duty of businesses or individuals receiving wire transfers to prove to the Italian banks and by extension the Italian government, that this currency is not income. Therefore all Italians are considered “money launderers” until proven innocent. A startling realization!
This is happening not so coincidentally, as we near the 1 year anniversary of the Cyprus “bail-in” wealth confiscation that occurred in April 2013. For those of you unaware of this historic event here is a brief summary. Cypriot depositors awoke on a Saturday morning to find their accounts were frozen, nothing allowed in or out. The Cypriot banks were on the verge of defaulting and asked the European Central Bank for a bailout. What resulted came to be known as a “bail-in”. For approximately 2 weeks all accounts were frozen as Cypriot government officials were deliberating as to how much currency to steal from its citizens in the form of a tax appropriation. During these deliberations Cypriot depositors were rioting and protesting in the streets for their money to be returned to them. Alas such actions have little effect once the process of wealth confiscation has begun. The final agreement dictated that accounts with 100,000 Euros or more would receive a 47.5% tax appropriation or “hair cut”. As it turned out, those with such large accounts were owned by Russian mafia members, although many of the larger notorious Russian oligarchs were tipped off before this entire debacle occurred and succeeded in removing their currency in time before the freezing began.
After this event other banks in the Eurozone, Canada, and in the United States subtly changed their banking policy to include this “bail-in” as a possible emergency measure to be taken in times of financial crisis. This event also made clear the notion that once a deposit is made in any bank that currency is no longer your own. You are now considered an “unsecured creditor” as you have just lent your currency to that financial institution and in the event of a financial crisis, as an unsecured creditor, you will be the last to be compensated if that financial institution were to fail or default. Keeping one’s wealth in a bank or credit union has scarcely been so dangerous as it is now and vulnerable to wealth confiscation schemes of a variety of sorts.
We all work hard for the currency we earn. The last thing we would like to see is our currency being used to fund bankrupt “countries”, murderous “politicians”, or criminal financial institutions. Our true wealth is our time and freedom. Money is simply a conduit to store that wealth. Currency is the imposter that has been given to us to fool us into believing we are earning things of value. Currency is simply pieces of paper with fancy ink that “government” has dictated through legal tender laws has value. In reality nothing can be given value by “government” that will not soon thereafter return to its intrinsic value of zero. Fiat currency is no exception. Historically fiat currencies have a life span of 30-40 years. We are just beginning our 43rd year of the fiat currency experiment known as the US Dollar, more aptly put the Federal Reserve Note. Were it not for our powerful military forcing all countries on Earth to use it as the world reserve currency and as the petro-dollar, the Federal Reserve Note would have collapsed years ago.
Put the fruits of your labor into things of real tangible value that will not depreciate and that bankers cannot counterfeit at a whim. Over the course of time such things that have proven themselves as having intrinsic value include diamonds, precious stones, real estate, farm land, crypto currency, and precious metals. Of all these substances gold and silver have, for at least 2000 years, risen above all the others for their superior qualities. I am aware of only 2 methods by which gold and silver can be produced; from the collision of two neutron stars or as a result of a supernova explosion. Therefore as long as “politicians” cannot engineer these events I do believe they will retain their premier stature.
Gold and silver are essentially indestructible, which means all the gold and silver that has been mined from the time of the Ancient Egyptians is still around in some form. Their value has never gone to zero. They are the world’s first global monetary system and they are here to stay! Do not insult nature and the collective monetary choice of free and peaceful individuals. Gold and silver are the Free Market choice for wealth preservation and the foundation on which a truly prosperous society can grow. Once they become adulterated and diluted by mendacious “politicians” acting on behalf of cancerous “governments” nothing can halt the ensuing Wealth Transfer until the cycle is complete.
All we can expect is that the people will have learned their history lesson and stop trusting that “governments”, “politicians”, and financial institutions will protect their wealth and ensure their future prosperity. The only wealth these entities and “politicians” protect is their own. The only prosperity they ensure is their own. We must take fiscal, economic, and personal responsibility for our own freedoms. These things cannot be entrusted to anyone, regardless of sophomoric rhetoric or ostentatious garb. You own yourself! You are captain of your own destiny! Start acting like it!
“I am more concerned about the return of my money than the return on my money.” Mark Twain
Just do good things