Posted Jul 22, 2013 by Martin Armstrong
When the founders of the United States put pen to paper, they outlawed DIRECT TAXATION to preserve liberty. The American Revolution slogan was NO TAXATION WITHOUT REPRESENTATION. Now G20 backs new tax transparency plan that will be the fatal blow to the world economy. The new tax reform action plan has won the support of the G20, which is including the China, India and Brazil.
Cyprus was induced to commit economic suicide. The current politicians agreed to give up all historical information of everyone who had bank accounts in their country. Banking was the number one industry and unemployment on that island has nowhere to go but up. The politicians yielded to the demands of Europe that to get any loans, they demanded the info. Cyprus was a deliberate economic hit by the EU for the purpose of tax collection.
Luxembourg, the Netherlands and Ireland are next. Luxembourg and Lichtenstein are unlikely to survive as tax havens. The new global standard on transparency was endorsed by G20 finance ministers meeting in Moscow on Saturday, adding impetus to the international crackdown on tax evasion. These new rules are intended to promote automatic exchange of tax information between nations and they cannot see that what they are doing is causing the global economy to implode. Liquidity is still down by 50% from 2007 levels. When the economy turns down 2015.75, we can expect even wider swings in prices in everything because of the collapse in liquidity.
As the G20 finance ministers and central bankers gathered in Moscow, the stimulus programs have attracted most of the attention from those claiming hyperinflation is coming, while it has been the collapse in Marxism that is threatening to destroy everything by deflation confiscating any capital that creates the economy because taxes are firmly the primary agenda. The G20 is backing a plan which aims to close loopholes which allow multinationals like Apple and Google to avoid billions of dollars in taxes.
The economy must collapse because we are looking at restricting capital flows. The new tax iron curtain is closing rapidly and this is creating communism in slow motion. The economic theories of Marx have killed far more people than any other theory in history surpassing even religion. The future appears dim at best and we are looking at the collapse of the economy with rising costs (taxation) with the decline in economic growth (rising unemployment). When we turn down 2015.75, we must be on point because the decline in liquidity will ensure that the point-swings will reach levels twice what we have seen following the turning point of 2007.15.