Beware the Bail In

                 Back to the Spawning Grounds

Going to attempt to keep this brief, much of this I have covered before, though not from this particular angle.  Quickly to give a basic overview of why bail in's are certain to lie ahead, and will be coming to a bank near you.  Our monetary, or currency system can be likened to a pyramid structure.  Though an easier representation is monopoly, unrestrained capitalism is like a monopoly game.  Someone eventually wins, they take control, and ownership of so much, that the game freezes, no money is able to move around.  As anyone who has played monopoly knows, when this happens the game is over, someone won, and everyone else lost.  The pieces go back in the box, and everyone including the winner has to find something else to do.  In america this was well known, and up till recent time regulations were in place to make sure no one could win the game.  You could get ahead of the other players, but a cap was put on how far ahead an individual or group was allowed to get. This was not done to punish the rich, it's to ensure the system continues to function as a whole.  It ensured that if a person reached the top they either stop playing, and just maintain, or fall back into the herd, or they work to close the gap between the bottom and the top. Even if it is purely selfish motivation of coveting personal wealth.

                       The Injection Deception

Make no mistake, taxes are wealth redistribution.  Yes we pay taxes ostensibly to pay for public services, and public works projects.  You've likely heard the phrase "time is money", if we use that as a lens to understand taxes, why the highest tax brackets were hit with the highest percentage of tax burden for so long.   Most people have a job, they trade time directly for money, this is the idea of wages.  When you are in a job earning wages, the taxes you pay, can be seen as giving a portion of your time to the state every year.  So in simple terms if you pay 10% of your wages for a year, you spent 10% of your time laboring for government.  Almost like the idea of 36 days, and work for the government for nothing.  So far so good, we all like having nice public services. Like good schools, parks, water, roads, all the obvious things we all use and share.  The issues with this begin to show when a person stops trading time for money, and instead trades someone elses time for money.  This is the idea of income,  it does not have to be exploitive, though when the difference is between wages, and income are forgotten it certainly will be. When you pay rent, or a mortgage any kind of loan, and you are paying it with wages, you can consider the time spent to earn that money as spent working for that person.  As is more then likely apparent to most, you can not physically be in more than one place at the same time, your limited to working one job at a time.  This is not the case for income, in income you can be working all over, all the time, no matter what you are physically doing.

       What does this have to do with you, bail in's, and how close they might be?

Stay with me just a bit longer and it will be clear. If capitalism is like a giant monopoly game, and all monopoly games end the same way, than the governments job in managing a capitalist economy is to make sure no one actually wins.  That is the only way the economy can keep going, if to much money is allowed to be owned by any one player the economy stops.  That is where the taxes come into play, before the reforms in the 80's there was a 75% tax bracket.  This meant that if someone started making so much money that it would hurt the economy, the government would step in and take most of it, and redistribute it  back in the game.  This type of taxation, where the highest earners pay the highest %, is part of the balance to keep the game from ending.  In this set up, the government uses the taxes to provide basic services for everyone, and when it is needed. The government stimulates the economy, by taking money from the rich, and giving it to the poor.  Not in handouts, and welfare, but in public works projects.  It puts them to work, with the rich peoples money, to make new things for everyone to use.  Once the % of earnings paid in taxes inverted with the top earners paying a smaller % than the middle, and low earners. You start cutting off the flow of money to the poorest, and most vulnerable first, though all are eventually affected.  The government ends up taking from the bottom, and middle, and directly handing it to the top.  We saw this in the 2008 event, what followed is exactly what honest economic models predict.  The interest rates, and what normally thought of as safe haven or hedge assets are kept artificially low.  Money printing starts, and stays going non stop, money pours into speculative markets, instead of working it's way through the economy.  This is what measured in currency velocity, it measures how fast money moves through the economy. Along with this comes the high numbers of unemployed, or underemployed.  Though this has been hidden in changing how unemployment is calculated, all you need to do is watch labor participation rates, as more and more are forced out of the system entirely.  As this continues, those that understand how the system works begin to see they are going to lose everything when the system crashes.  They can pull out, or give away most of their money, or lose all of it.  Many of the top earners are doing just that, pulling out, or suggesting the billionaires give away half their money.  George Soros are among the pull out crowd, with Buffet, and Gates in the give away camp.  Both of these are selfishly motivated, do not kid yourself into thinking a multi billionaire giving away large sums of money is kindness.  When Buffet says it's a problem he pays a lower tax % than his secretary it's because he is being altruistic. He understands that if that continues eventually he won't have a secretary at all.  These are the QE money injections, they only kick the can down the road a little bit, till you create so much debt that everyone starts to panic, before that is allowed to happen, they will take currency out of the system.  This is the bail in, it's purpose is to keep a lid on the panic of hyper inflation, I can't say when, only that it will happen, the law to allow it was in the last budget.