Posted Jan 24, 2014 by Martin Armstrong
When Larry Summers said interest rates should be negative, he was flying a balloon to see how it was taken. Negative interest rates are coming. When the economy turns down after 2015.75, they cannot lower rates that are already too low, so in their mind, they have to go negative. You will be taxed effectively on money you do not spend.
Of course, the mainstream press only put out the propaganda that government wants anyhow. I cannot tell how many talk about the top 1%, how guns on the streets are dangerous, and a host of other issues. Of course, taxes are going to be raised dramatically! They always claim to be targeting the top 1%, but somehow it always comes down to the middle class. The “rich” today is HOUSEHOLD income of $250,000 and they can justify if your children cannot find a job and struggle to pay student loans and now have to live at home, well gee wiz – that increases HOUSEHOLD income doesn’t it? The IRS can make that interpretation without Congress and what judge will ever say they are wrong? The “definition” of the rich will always decline because if they confiscate ALL the wealth of the top 1%, they are still broke.
And as for guns, real criminals do not buy their guns in stores – they prefer the black market that is everywhere. Even the guns confiscated and buy-back programs are corrupt for the police need money and have been caught selling the guns themselves from California to New Jersey. (see also Arizona, Texas, NY Times, national loophole.
The other balloon of Larry Summers was ELIMINATE cash. He called for moving to ELECTRONIC money. Behind the scenes, this is a HUGE topic. Banks have embraced it everywhere – even in Germany. The various tax authorities see this as a tremendous bonus for they claim it will eliminate the underground economy, law enforcement see it as eliminating drugs etc and the Mafia, but all of this will only create a barter underground economy. The future is going to change in ways you never imagined.