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Toto deVeer

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Posts posted by Toto deVeer

  1. " It ain't over 'til it's over "

    " Never answer an anonymous letter"

    " I usually take a two hour nap from one to four"

    " It's deja vu all over again"

    " When you come to a fork in the road....Take it "

    " I didn't really say everything I said "

    " We made too many wrong mistakes"

    " You can observe a lot by watching "

    " The future ain't what it used to be "

    " It gets late early out here"

    " If the world were perfect, it wouldn't be "

    " If the people don't want to come out to the ballpark, nobody's going to stop them "

    - Yogi Berra

  2. Really what should be done is to abolish IR35. From what I have seen here, it is a badly written regulation that makes a mockery of what is defined as a limited liability corporation. You can't just go into a limited company and change the rules of taxation arbitrarily like this.

    It's very simple to stop this, just abolish IR35 and create a new regulation that an employee cannot leave their position with an employer and enter into a new contract with that same employer as a limited liability entity. Then stipulate that type of arrangement must be either as a limited liability partnership or a sole trader entity. This would place taxation on a more equitable basis. Otherwise everything else should be allowed. This type of a legal simplification does not interfere with the sanctity of a limited liability corporation and also could stop some of the revolving door stuff that goes on between government and corporations.

    Sounds like the original IR35 was a nulabour stitch up for the lefty wing of the party.

  3. Esteemed comrades, I propose to you that a new consumer electronics factory is constructed near this site, so indentured workers from the ex-Euro zone countries can help to pay off their national debts assembling iPads and other essentials of 21st century living. My assistant, Mr Mengele assures me that with only minor modifications, the accommodation can be made secure and ready to accept our new workforce. Now, please join me in a rousing chorus of "Our land, safe and free", the EU national anthem.


    Hah! You are Martin Schulz, and I want my 5 Euro back! :P

  4. QE doesn't just monetise debt, it gives the Gilt Buyers - i.e the big banks - lots of money for no risk and it suppresses Gilt yields by creating an artificial 'demand' on the market.

    QE will go on 'indefinitely' IMO. They have already monetised about 1/3 of all national debt and to stop doing so would be to precipitate an immediate crisis. They have no choice but to keep on printing the deficit and rolling over existing QE'd Gilts as needed.

    Yes I agree that they will not be able to stop using QE. Too damned tempting to control everything, and it will only stop when these guys are forced to stop it, probably by some sort of a revolution. Look at Japan, for example. No sign of let up for 20 years now.

  5. Will March 23rd pass without event?

    If true it's going to be a very interesting weekend.

    Surely we can also expect the Fed/ECB/BoE/BoJ/Swiss all announcing emergency liquidity measures?

    During March of 2008, when Bear Sterns was about to go down, Max Keiser, just by coincidence, tried to visit the Bundesbank for a routine interview. He couldn't get in, and was told at reception that there was some problem in America and it was locked down.

    The large banks and central banks are part of the same borg. You can bet that everything will be locked down if this is true.


    A written document giving firm dates and detailed actions for a planned Greek default has been in the possession of two top Wall Street bank currency trading bosses since the second week in January. The Slog has separate but corroborative sources affirming the existence of the document, and a conviction among senior bank staff that – at least at the time – the plan represented “a timetable, not a contingency”. The plan gives a firm date of March 23rd for default to be announced after the close of business.


    The document asserts that Greece will officially be declared in default by all the ratings agencies after the close of business on Friday march 23rd . At the weekend all Greek bank accounts will be frozen, with emergency measures detailed to prevent the flight of capital. Included in the paperwork is a list of very limited exceptions to the ‘no withdrawals’ order. All major banks ‘are instructed not to deal with euro exchange as of open of business in Greece on Monday 25th march. All Greek markets will close for one day ‘at least’.

    Good luck chaps. Make sure your money is safe.

  7. What about fairness? If I see that my rich neighbour hardly pays any tax, how do I feel about this? I will also try to find ways to evade tax. This happens to some degree in all countries, but in Greece it was an epidemy.

    A government should above anything else try to be as fair as possible.

    Exactly. The fairest system of all is to eliminate income tax completely. Then your government won't be able to subsidize your rich neighbours businesses and you get to keep the fruit of your labour, rather than you being slave labour to your government, and indirectly, your rich neighbour. All governments are corporatist, and your taxes will be used to disadvantage you..

    Income tax also is the most divisive mechanism ever created, sowing discontent and envy widely across the population. It permits a small group of elites to control untold masses of people.

  8. Do these currency wars include forcing manufacturers to build tat in China, at threat of gunpoint?

    What I'm referring to is that China has pegged to the dollar and the US can't shake it off, mainly due to the way China runs their current and capital accounts. Like a big tic on the back of a dog.

    So the US used QE to flood the world with money, hoping to force China off their backs. China is about to implode, but still the US has not shaken them off.

    In the process the world has had to follow with similar programmes. This is helping the UK housing market, but it is destroying the European block.

    No one is forcing tat to be made in China but under WTO/GATT goods will be made in the lowest cost locations, and there really isn't anything that can be done about it, short of withdrawing from the treaties.

  9. Budgets are based on expected income. If that income falls short due to tax evasion, there will be a deficit. Of course they could build in tax invasion in their budget, but is that fair? I am not saying the government was not at fault, far from it, they should have cut, especially the military, state salaries and pensions. But their main inefficiency was to let the wealthy Greek individuals and companies get away with tax evasion. These were huge amounts - many billions Euro that now make an appearance all over the world, including on the London housing market.

    Governments have to learn to operate according to the amount of money they have, not what they wish to have. If you or I operated this way we would be placed in a jail cell for a very long time.

  10. If you're saving to buy a house, then the return on savings includes interest and declining house prices. On that basis, I'm getting somewhere between 4-5% on my savings. Five years ago, I would have been getting minus 4 to 5%, even though interest rates were higher.

    Look, that is strange logic.

    If base rates and real interest rates reached a true market level, house values would be declining by 5% (or more) and you would be making an 8% or 10% return, the gain being probably more than 14 or 15%.

  11. But I'm arguing that the effect of QE has been precisely to allow the BoE to use interest rates to modify currency strength. Without QE gilt yields would have been a lot higher and the BoE would have been forced to raise interest rates.

    This is a direct result of currency wars first started by China, and then spread globally by the US via QE. There is no other option for the UK but to follow.

  12. The fundamental idea of any government, including a democracy, is that laws, budgets etc can be imposed on all the population weather some agree with it or not. The level of government - big state or small state - is also decided by the elected officials. If the majority would agree with a smaller state they would vote for a party proposing a smaller state. Of course one can see a democracy as a dictatorship of the majority, or even orth as a dictatorship of party officials, but it is still the best of all ways to govern a country. Many Greek people evaded paying tax - probably because they wanted their families to benefit from the money instead - and this contributed to the downfall of that country.

    What has contributed to the 'downfall' of Greece, the UK, the EU, the US, and essentially all western so called 'Democracies' can be laid squarely at the feet of the government. Who controls the money and spending? I cannot see the fault anywhere else.

    If the Greek people did not pay taxes, the government has but one option, cut spending. Did they?

  13. Personally, if I had some surplus cash to dispose of I probably wouldn't give it to the state as I don't altogether agree with most of its spending choices

    Ultimately this is what it all comes down to for a thoughtful, educated person; where can those funds be put t better use? To support government agendas? Most people who have worked hard to better themselves and their families would come to the conclusion that it is better not to give it to the government.

    You hear the great 'philanthropists' such as Buffet and Gates saying that 'inheritance tax is a good thing, I'm going to give all my money away' etc etc. But they don't give it to the government, they give it to their own foundations where they can decide how to put it to use.

  14. Interesting article but I find the results a bit bizarre. With interest rates being artificially manipulated to values not seen for hundreds of years, it's a little bit rich to think that anything in recent history could be used to place a valuation on house prices...

    The only way to say whether house prices are reasonable is to consider what interest rates should be and then work back from there. That, I am sure, would indicate that there is a global bubble of epic proportions.

    The only exception to this is the USA where the parasitic government property taxes are so high that people won't buy because they can't afford tax repayment, no matter what the interest rates are. I'm certain that this is Detroit's problem.

  15. Maybe little Mervyn was off sick the day his class was told the story that every other five year old learns...


    And I thought that the moral of the story was something to do with global warming, but then I realized that 'Al Gore Baby' doesn't have a British accent...

    Seriously though, this is nothing about helping savers, it's about stealing from savers...

  16. Theoretical arguments aside, the main reason I believe Bitcoin will survive is that it represents free exchange. It has the potential to completely bypass the myriad capital controls that are being implemented around the world. Even if flawed, even if imperfect, people will use this and other means of free exchange.

    The more totalitarian world governments become, the more these free exchanges will proliferate. Legal or otherwise does not matter.

    Prohibition gave rise to organized crime. The War on Drugs has created drugs cartels. Governments are powerless to stop these things, and ultimately get corrupted by them. History reaffirms this result time and again.

    It is entirely conceivable that certain government agencies themselves could enter the Bitcoin arena. Who would know?

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