Are you ready to get Cyprussed?
This is a story that should raise an eyebrow or two on every single face in Europe, and beyond. I saw the first bits of it on a Belgian site named Express.be, whose writers in turn had stumbled upon an article in French newspaper Le Figaro, whose writer Jean-Pierre Robin had leafed through a brand new IMF report (yes, there are certain linguistic advantages in being Dutch, Canadian AND Québecois). In the report, the IMF talks about a proposal to tax everybody’s savings, in the Eurozone. Looks like they just need to figure out by how much.
The IMF, I’m following Mr. Robin here, addresses the issue of the sustainability of the debt levels of developed nations, Europe, US, Japan, which today are on average 110% of GDP, or 35% more than in 2007. Such debt levels are unprecedented, other than right after the world wars. So, the Fund reasons, it’s time for radical solutions.
Now, there’s a history to all this. WW I and WW II led to similar ideas, some of which were executed in practice. Jean-Pierre Robin even suggests that we have just resurfaced from a financial crisis that was as destructive as a war. A nice additional point is that he also says Europe and the US got rid of their debt levels through elevated levels of inflation between 1945 and 1975, but at the same time a shame he doesn’t realize that can’t work here. No inflation to the rescue this time around. But radical solutions.
Back in 2011, the Boston Consulting Group was pondering something even more radical, in a report called: “Back To Mesopotamia? The Looming Threat Of Debt Restructuring“. As Zero Hedge reported at the time:
The “Muddle Through” Has Failed: BCG Says “There May Be Only Painful Ways Out Of The Crisis”
[..] … it is time to face the facts. What facts? The facts which state that between household, corporate and government debt, the developed world has $20 trillion in debt over and above the sustainable threshold by the definition of “stable” debt to GDP of 180%. The facts according to which all attempts to eliminate the excess debt have failed, and for now even the Fed’s relentless pursuit of inflating our way out this insurmountable debt load have been for nothing.
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Aotearoa: A Wider Perspective 
Given that the global economy is beyond repair and it’s time to wipe the slate clean and begin again, this idea has commonly been put into practise as countries approaching bankruptcy made war and stole the wealth of their neighbours.
This mentality is clearly criminal which in turn is a symptom of a mental disease which has infected the rich.