rtg24

Tax on financial transactions

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Ladies and gentlemen, it is with terrible despair that I announce an upcoming tax on financial transactions, courtesy of our socialist motherlands the People's States of Europe, the details of which will be announced this September.

Don't have the details yet but Sarko and Merkel just came out to announce it.

This is disastrous. Morally, and economically. And I know that with the guys you guys have in charge, the US version should come in, oh, November. Frank & co have already shown their ability to produce thousands of pages of legislation and get it passed in days.

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Most probably. It will come with the Euro-bonds. Europe is doing what the US did when it Federalised properly. It will be expensive but the Chinese will be kind enough to play sucker in that game, since in theory it weakens the USA.

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What will this mean for investors and traders heavily involved in European markets?

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A complete drying of liquidity and massive spreads widening.

E.g. currently a 2-3m EURUSD transaction will incur a spread (aka your cost, the bank's revenue) of ~0.0001 to 0.0003 USD (~0.000000009%) + SWIFT fee ($20). Add a 0.5% tax to that and you've just widened the spread by 100,000,000x (maths could be sketchy, it's late, I haven't slept and I'm back from one of Ray's hell workouts). N.B. this is the spread you get when you pit 20 banks against each other. Don't think you'll get this from your local Chase branch.

Suddenly all the high frequency folks, the speculators wanting to flip something, etc. will be looking at profits of >1% in order to consider entering the market. On the other side, corporates will have an added cost of 0.5% per transaction for basic services like hedging which are for all intents and purposes almost free except for G&A (having an FX trader, Treasury staff, etc.). The spread might widen even further as market makers find it much harder to match transactions.

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Not to mention a severe crash of pretty much everything as the market underlying several trillion dollars' worth of derivatives - mostly used by non-financial businesses, e.g. McDonalds hedging their exposure to the price of wheat with CME Wheat November options - collapses on itself. Mass unwinding, a Lehman-like (presumably worse) disaster.

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Not to mention a severe crash of pretty much everything as the market underlying several trillion dollars' worth of derivatives - mostly used by non-financial businesses, e.g. McDonalds hedging their exposure to the price of wheat with CME Wheat November options - collapses on itself. Mass unwinding, a Lehman-like (presumably worse) disaster.

Bad news indeed. It appears that the looters just won't be satisfied until they've looted everything possible to loot.

If they try it here, they might get a little more than they bargained for. We're roiling with Revolution here in the States as it is; this could very well be the flashpoint that tips it all over the edge.

Which, quite frankly, wouldn't bother me a damn bit. I'm about fed up and spitting sparks as it is, and I ain't alone. Live FREE or DIE!

With Regards,

Brad

timeforeverymantostir@yahoo.com

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Ladies and gentlemen, it is with terrible despair that I announce an upcoming tax on financial transactions, courtesy of our socialist motherlands the People's States of Europe, the details of which will be announced this September.

Don't have the details yet but Sarko and Merkel just came out to announce it.

This is disastrous. Morally, and economically. And I know that with the guys you guys have in charge, the US version should come in, oh, November. Frank & co have already shown their ability to produce thousands of pages of legislation and get it passed in days.

Can you better function in the far east?

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Can you better function in the far east?

Although the Asians have set up fantastic regulations (or a lack thereof), such as rock-bottom taxes in Singapore and Hong Kong, an Asian free trade zone, no labour regulations whatsoever, and the local culture is one that worships success, Asia is inevitably exposed to the eventual collapse of China, which may happen tomorrow or in 10 years. China has insulated its financial system from market actors (effectively what the Europeans and Obama argue should be the case in the West) and once it will get in trouble, we will "see who was swimming naked" as the tide comes out. The collapse will be brutal, bloody and should take down its neighbours with it.

Further, Singapore is finding popular support for immigration restricting legislation (they have already only awarded half the work permits last year) as its population is increasing at a rate of 150,000 foreigners a year and the locals find they cannot find a job anymore, outcompeted by skilled foreigners fleeing socialism. It's not a good trend. And the Hong Kong resident is living on Chinese, not British territory. I have many Hong Kong colleagues who retain their citizenship for tax reasons but have no intention of going back to "the hole".

Meanwhile, Japan is slowly collapsing onto itself (it is one of the most Statist countries in the world with an extremely elaborate way of taxing its citizens stealthily via the keiretsu oligopolies), South Korea is turning protectionist (arguably it has been for 50 years) and preparing for war, and the remaining countries are too rural/basic to be comfortable to a Westerner used to a certain standard of living (non-drinking water from the tap being the main issue I have with those regions - gets REALLY annoying). India is 30 years behind civilization and whilst it has a small chance, 60% of its parliament is made of rapists and murderers (I am not kidding), they just arrested the figurehead of the anti-corruption movement, and they LOVE populism almost as much as the young Indians love and devour Ayn Rand's works. Australia is the only civilized place in Australasia with a chance, with the lowest debt/GDP ratio in the world, low taxes, a 30 year trend towards deregulation (slow but unstoppable as several Labour politicians have found out) but its commodities-based economy is extremely vulnerable to a China slowdown.

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Not to mention a severe crash of pretty much everything as the market underlying several trillion dollars' worth of derivatives - mostly used by non-financial businesses, e.g. McDonalds hedging their exposure to the price of wheat with CME Wheat November options - collapses on itself. Mass unwinding, a Lehman-like (presumably worse) disaster.

Bad news indeed. It appears that the looters just won't be satisfied until they've looted everything possible to loot.

If they try it here, they might get a little more than they bargained for. We're roiling with Revolution here in the States as it is; this could very well be the flashpoint that tips it all over the edge.

Which, quite frankly, wouldn't bother me a damn bit. I'm about fed up and spitting sparks as it is, and I ain't alone. Live FREE or DIE!

With Regards,

Brad

timeforeverymantostir@yahoo.com

I have another quote for you: Molon Labe!

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Not to mention a severe crash of pretty much everything as the market underlying several trillion dollars' worth of derivatives - mostly used by non-financial businesses, e.g. McDonalds hedging their exposure to the price of wheat with CME Wheat November options - collapses on itself. Mass unwinding, a Lehman-like (presumably worse) disaster.

Bad news indeed. It appears that the looters just won't be satisfied until they've looted everything possible to loot.

If they try it here, they might get a little more than they bargained for. We're roiling with Revolution here in the States as it is; this could very well be the flashpoint that tips it all over the edge.

Which, quite frankly, wouldn't bother me a damn bit. I'm about fed up and spitting sparks as it is, and I ain't alone. Live FREE or DIE!

With Regards,

Brad

timeforeverymantostir@yahoo.com

I have another quote for you: Molon Labe!

Hah! Being one of the ignorant, unwashed masses here in the States, born and bred into the public "school" indoctrination camps, I had to look that one up...And I concur completely. HAVE heard of Thermopylae, however, so my mind isn't a TOTAL loss. :)

Brad

timeforeverymantostir@yahoo.com

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Hah! Being one of the ignorant, unwashed masses here in the States, born and bred into the public "school" indoctrination camps, I had to look that one up...And I concur completely. HAVE heard of Thermopylae, however, so my mind isn't a TOTAL loss. :)

Brad

timeforeverymantostir@yahoo.com

Hehe, I thought you might have heard the phrase at the range, it is fairly common here as we witness our neighbours lose their rights :)

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No way the UK is going to vote for this, therefore, it is moot.

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I have another quote for you: Molon Labe!

Very brave words uttered by the Spartan captain. By the way, how did he end up? Very dead, if I recall my history of the Hot Gates.

ראובן

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Very brave words uttered by the Spartan captain. By the way, how did he end up? Very dead, if I recall my history of the Hot Gates.

ראובן

Golda Meir prepared the nukes. Should she have given up to the Egyptians and Syrians?

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So the EU is also going to apply this tax.. I read last week that some US congressmen have proposed a law for a 1% transaction tax on US banks. So any transfer of money (even from one account to another in the same name) is taxable at 1% of the total sum transferred. Imagine getting paid.. 1% of your paycheck gets taxed for the transaction fee. Then you pay a bill and there's a 1% tax there..

You know, for years I was considering Australia, but then they banned guns and made the citizens turn them all in. Australia did something else last week that was another strike against them, but my failing brain can't remember the specifics. It's horrible to think that I and many others, may become persons without a country.

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I have another quote for you: Molon Labe!

Very brave words uttered by the Spartan captain. By the way, how did he end up? Very dead, if I recall my history of the Hot Gates.

ראובן

-- King.

-- There are things worse than death.

-- We're still talking about him, so in that sense . . .

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I have another quote for you: Molon Labe!

Very brave words uttered by the Spartan captain. By the way, how did he end up? Very dead, if I recall my history of the Hot Gates.

ראובן

"If you will not fight for right when you can easily win without bloodshed; if you will not fight when your victory will be sure and not too costly; you may come to the moment when you will have to fight with all odds against you and only a precarious chance of survival. There may be even a worse fate. You may have to fight when there is no hope of victory, because it is better to perish than to live as slaves." - Winston Churchill

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