Middle Class Dismissed

Greece Closes Banks and Stock Markets, Introduces Capital Controls

"The banks in Greece and the Athens Stock Exchange will remain closed until at least July 6, the day after the referendum on the austerity measures demanded by the country’s creditors. In the meantime, cash withdrawals at ATMs will be limited to 60 euros ($66) and transfers abroad will be forbidden. Greece is the second Eurozone country, after Cyprus in 2013, to impose capital controls. The move is evidently aimed at preventing panicked Greek investors and savers from taking their money out of the nation’s banks and moving it elsewhere. In the days before the predictable stall of the negotiations with Europe, many Greeks rushed to withdraw their money." Continue reading →

Continue ReadingGreece Closes Banks and Stock Markets, Introduces Capital Controls

Indian in US? Your Account is Now Under Delhi Surveillance

"Thousands of Indian citizens in the US – from IT workers, health professionals, students and everyone else under the sun – will soon be innocent victims to snooping by the Indian government. If an Indian citizen holds a bank account in the US, minute details about his/her bank account will be shared with New Delhi by Washington. Although India gets access only to bank account information of Indian citizens, the US can get access to even information of 'non-US entities' operating in India if it has even one American working for them. That means information about any Indian corporation or organisation would be provided to Washington on request, if it has an American on rolls." Continue reading →

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Feds to return $107K they seized from NC business owner

"McLellan is just one of thousands of Americans the IRS has seized money from, supposedly for 'structuring' funds to avoid a law requiring banks to alert the government of deposits over $10,000. The law was instituted to help the government ferret out drug dealers, terrorists or other criminals -- but the IRS occasionally flags deposits of just under $10,000 as suspicious even if there's no evident criminal wrongdoing, in turn ensnaring people who may be innocent. That's what allegedly happened in McLellan's case. His convenience store in North Carolina was raided in October by IRS agents who said he made a series of just-under-$10,000 deposits in a 24-hour period." Continue reading →

Continue ReadingFeds to return $107K they seized from NC business owner

American Airlines cuts Venezuela flights after Maduro threat

"American Airlines says it is cutting almost 80% of its flights to Venezuela from next month. Tight foreign currency controls make it difficult for foreign airlines to repatriate money from ticket sales in Venezuela. The authorities have restricted access to dollars and want to make them more expensive to purchase, which may lead to losses for companies that are still waiting for cash from as far back as 2012. In January, Ecuadorean airline Tame also suspended flights to Venezuela, demanding $43m (£26m) in overdue payments for tickets. President Nicolas Maduro said at the time that airlines that reduced their operations in Venezuela would face 'severe measures'." Continue reading →

Continue ReadingAmerican Airlines cuts Venezuela flights after Maduro threat

Spain Issues Retroactive 0.03% Tax on Bank Deposits

"Spain will retroactively tax bank deposits to January 1, 2014 stating the move will boost growth and job creation. Guru Huky correctly labeled the tax for what it is 'More than a tax, this looks like a mini seizure of deposits. Someone likely needs a few million and to balance the books.' The notion that a tax increase will boost the economy is of course absurd. But don't worry, it's only 0.03%, nudge nudge, wink wink ... for now." Continue reading →

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Bill Bonner: The Greatest Fraud Ever

"Banks – with the happy connivance of the Fed – create new money. Corporations use it to buy their own shares. Central banks buy shares too. Besides, buying stocks seems to please everyone who matters. Investors are happy. Speculators are happy. Economists are happy. Politicians are happy, too. After all, a rising stock market means the economy is getting better, doesn’t it? But there is a heavy price to pay, dear reader. The financiers end up owning more of the real businesses… the real enterprises… the real houses… the real output of the real economy. Wall Street firms own more houses. And more stocks. All are bought with money that they – or their cronies – created." Continue reading →

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Neofeudalism’s Tax Donkeys and the Battle for Control of Resources

"Those with access to the low-interest unlimited credit spigot of the Federal Reserve are free to snap up tens of thousands of houses and tens of thousands of acres of productive land, along with other rentier assets such as parking lots and meters, fossil fuels in the ground, and of course the engines of credit creation, the banks. Should a legitimate (as opposed to black market/cash business) small business manage to open its doors, it faces a blizzard of junk fees, permits and taxes that make its survival a dubious prospect. No wonder self-employment and small business are in structural decline." Continue reading →

Continue ReadingNeofeudalism’s Tax Donkeys and the Battle for Control of Resources

Japan consumer price growth at 32-year high

"Consumer prices in Japan rose at an annual rate of 3.4% in May, the fastest pace in 32 years, as the effect of the sales tax hike from 5% to 8% started to be felt. The price growth in May follows a 3.2% jump in April and is a big boost for Japan's attempt to trigger inflation. The country's central bank has set a target of a 2% inflation rate. The measures, which include boosting the country's money supply, have started to have an impact and consumer prices in the country have now risen for 12 months in a row. Policymakers have been hoping that consumers and business will be encouraged to start spending and not hold back on purchases, as they may have to pay more later on." Continue reading →

Continue ReadingJapan consumer price growth at 32-year high

Europe’s Pain is the World’s Gain

"Last week the ECB announced that it was cutting its headline lending rate to 0.15 percent and taking its deposit rate to negative 0.10 percent. That means banks must pay the ECB to hold their money, a move the ECB hopes will spur lending. It will also make $545 billion worth of inexpensive loans available to banks with the caveat that they lend more to the private sector. First tranche euro zone banks will be permitted to borrow up to 7% of the value of their corporate loans with additional tranches of funding [on the way]. While the goal of easing is to improve economic conditions at home, the money will ultimately flow to where it can find the greatest returns, as our own experience has shown." Continue reading →

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Bill Bonner: The Japanese Will Learn to Tango

"For nearly a quarter century, Japan’s diligent savers have funded its government deficits. Now, the savers are retiring. They need their money back. At the same time, Japan’s trade surplus is disappearing. Where will the money come to keep the lights on? Nowhere. Already, there are days when scarcely a single buyer steps up to buy Japanese bonds. The central bank of Japan takes up the slack. And as people get older (spending their savings rather than adding to them) and as the country’s current account surplus disappears (Japan is not the export powerhouse it once was), more slack appears. The Bank of Japan will come to the rescue, of course." Continue reading →

Continue ReadingBill Bonner: The Japanese Will Learn to Tango