Wealth redistribution…


I’ve been following the Cyprus story with keen interest because I believe, as many others do, that it is a test run for the finance/government unholy union worldwide to see if the populace will just roll over and take it.

Ilargi over at The Automatic Earth has two great commentaries:  Bank Run in Cyprus; Who’s Next? and The Cyprus Deal is Already Under Threat (Of Course).  Lars Seier Christensen at The Trading Floor also has an excellent commentary on the Cyprus story:  Is Cyprus Deposit Levy the New Wealth Tax?

Now, I don’t trade stocks or anything, because my grandmother taught me if you don’t have money, you don’t gamble in the hopes that you get money.  But I don’t see any reason I can’t read trading news, and follow along, in order to get an idea of what people who do have money and trade stocks are thinking.  My favorite place to get financial news is Zero Hedge.  If my family were to say anything about my personality, it’s that I’m cynical.  I prefer to say I’m *realistic* but hey, that might just be splitting hairs after all 🙂  since the outcome is the same regardless.  And I’m right much much more than I’m wrong when it comes to cynical outlooks.  Thus Zero Hedge appeals to me; the commentary is cynical, realistic, and mostly dead right.

Quite some time ago, Tyler featured an article that discussed what was probably coming in the future for the middle, and yes upper, classes.  The author (s) predict exactly what is happening in Cyprus only predict it will be world wide:  Involuntary Wealth Redistribution.  If there are no riots in Cyprus, this WILL be coming to another country near you.  Probably many.

I haven’t decided if Grandma’s money-in-the-mattress method or the British bury-it-in-the-ground method appeals to me more; thanks to long range radar and other tools that can ‘see’ what is below the surface, I think the British method has its flaws.  But then, Grandma’s method does as well; paper has its risks and metals have more.  Both leave one vulnerable to thieves.  Ah, but there’s the rub…if the government needs to levy a 30% tax on all of us, it is just one more form of robbery and nothing is safe.

I guess the answer is just to only make enough money to pay your taxes.  Keep the rest in assets that no one (for now) wants — soil, compost, animals, plants, tools.  Yes, this is risky as well, but much less so.   And much more rewarding.

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