AEOI
Why is this treaty important? Because it makes official and automated and mandated the transfer of bank information to tax authorities in other countries. Basically, every single bank in the world will become a snitch within the next 2 to 3 years. The public "rationale" for this act was to "combat" tax evasion, as if tax evasion would be a bad thing (see for example Tax Havens Libertys Last Bastion). We commented about this treaty in our article This Is The End.
And how would this help the US sink other countries? Simple. People would stop taking their money out from US banks to avoid paying taxes if all the other banks suddenly become transparent to US tax collectors. Furthermore, all countries would begin to do so because this would be served to them on a silver platter.
HOMOGENIZATION
We are currently in the middle of this process. Soon there will be no place to hide. But what follows next? The old "tax fairness" initiative of the OECD against "harmful tax competition". We have already seen blatant blackmail and pressures on smaller countries to increase taxation levels. For example, after the Cyprus banking debacle, the IMF made loans conditional to the raising of income taxes levels from 10% to 12.5%. Why? Why would the IMF do so? Purportedly to "enhance" Cyprus's "income" in order to "ensure" prompt payment of loans. The reality? The US gave the orders. It so happens that raising taxes also makes Cyprus less attractive for investments. What a coincidence…not!
And so we will now witness increasing examples of mysterious raises in income taxes across the board. Tax competitive countries will stop being so. Meanwhile, the US will keep their taxes at their levels (lower than their competitors) and thus maintain their economic advantage.
How will this be called? How will this be sold to people? Simple. They will call it "equality". Yes, the old socialist/communist "ethics" and "morality" supported by pseudo-science. The usual. Heck! if it worked in the USSR there is no reason it should not work here!
THE END GAME
But what then? Good question grasshopper.
Once the world is homogenized tax-wise and once there are no places on earth where you can save your money and be protected, then the final assault will begin. The rationale will be that, since we are all paying the same taxes anyway, there is no point in having 100+ taxation systems. Thus, new treaties will be developed with the express goal of "simplifying" taxation and "optimizing" revenue of countries through a global tax. This tax will be imposed to every person on the planet regardless of where this person lives. And why would countries go along with this? Because this global tax will be high. High enough to ensure extra "revenue" for politicians to keep spending. Less paperwork and more money. In addition, they get free financial policing from US. What is not to like?
And then what?
Politicians will revert to the old practice of hiking taxes. They have done it for 200+ years in their countries; why wouldn't they do it now that the entire world population is trapped? Of course they will! They must in order to keep their jobs. There are two positive feedback loops that so demand:
- In order to stay in their jobs politicians must outspend their competition.
- Debt engenders more debt and thus more money is required to pay the interests which engenders even more debt.
HOW HIGH CAN YOU GO?
And so the final question is this, how high can these global taxes go? We don't know, but from the history of heavily socialistic countries we know that they can go very high. Moreover considering that the hikes will be slow and progressive (the more you make the more you pay) the standards of living will continue to drop.
How is it so?
Because constantly increasing taxes are pushing us towards 100% taxation. And do you know what is the name of a political system where everything belongs to the state? Communism.
That's right. The entire world is moving towards communism of the worst type (i.e. totalitarism) one treaty at the time.
If you don't believe us, take a look at which countries are the most vociferous ones in pushing the AEOI. You will only find fine examples of conservative spending…not! Among the luminaries we have US, UK, France and several other "usual suspects" all big spenders and big debtors. On the other hand, countries that have not yet reached the Walhalla of socialist bankruptcy are the ones that were opposing it (such as Switzerland, Luxembourg, Hong Kong, Singapore and others). What a coincidence…not!
BUT SURELY THIS IS FICTION, RIGHT?
Well…no. This is not fiction. This is happening today. We simply extrapolated current and past events into their logical conclusion. We don't know for sure what will happen but when many things trend towards the same point, chances are excellent it will happen. But of course, you don't care because you don't have assets abroad, right? So, what's the problem? The problem is that global taxes and, more importantly, rising global taxes will produce what they always produce, misery, but this time on a global scale. Hope you are acquainted with communism because this is where we are heading. And we all know how well the communist system worked.
SO, IS THIS THE END?
Well… yes and no. Luckily enough for us, the stupidity and idiocy of politicians and governments plays in our favour. They will bankrupt governments far before they reach a homogeneous Global Tax stage. Several times over. Which will accelerate their desperation, which will accelerate the Global Taxation scheme. And this will only accelerate the fall of our standards of living. Which will only increase totalitarian control measures. Which will make people really, really angry. At some point or another political evolution will happen. People will begin to realize that politicians and bureaucrats only have the power that people gives them. Once they realize so, people won't care any longer and there will be an orgy of evolutions. Governments will topple and dissolve. Countries will fall.
No. This is not political fiction. We saw it happen. We were there. It will happen again. And so the good news is that the more successful they are, the closer they are to their own demise. Poetic justice in action… or political evolution…same, same.
CONCLUSION
The end game of all this systematic attack on bank privacy is the creation of a Global Tax scheme. It will be based on massive control systems to ensure everybody pays. This has undoubtedly been developed in US (yes truly Made in USA - how proud you must feel USA citizens!) and pushed by US. The more desperate the US becomes, the more desperate the measures it (and its partners in crime) will take and this their own selfish good (politicians, we mean). Desperate measures only force idiotic decisions and overwhelming control. The problem is, people get used to control measures and they need to be increased all the time. And so control leads to fear, fear leads to terror and terror leads to absolute tyranny… but then what? What happens when people get used to tyranny? They cease to be afraid because they have nothing left to lose and when that happens, all control vanishes. Governments become afraid of their citizens yet again, as it should be. Welcome to the (global) evolution.
Unless, of course, you prefer being taxed to death and controlled by unlimited authority. Who knows! You may even be a devotee of political BDSM. In this case, we congratulate you, things are definitively going your way.
Note: please see the Glossary if you are unfamiliar with certain words.
