Wednesday, August 17, 2011

European Union Transaction Tax - Brilliant!

The introduction of a substantial Government transfer tax on all transactions might prove the most serviceable reform available, with a view to mitigating the predominance of speculation over enterprise in the United States.
John Maynard Keynes, The General Theory Of Employment, Interest And Money, p. 160

Who says that European types don't work in August? One must wonder if the earth moved in the United States, China and Japan? The stock markets sure did! Even if these brilliant changes of the Euro Bonds and the financial transaction tax don't happen right away it is all but inevitable now, the cat is out of the bag. Try stuffing it back in...

John Maynard Keynes

It is time that we started taxing the world in a 21st century fashion instead of the old tired fashion of the 19th century. The Robin Hood tax, the Tobin tax, but the first person that proposed this tax that I could find, with a reference, is John Maynard Keynes! Therefore the the new financial transaction tax should be called the Keynes Tax. I could think of no higher tribute to one of the greatest economists of all time.

There are certainly going to be very powerful forces that will do everything in their power to prevent the full integration of the European Union and the issue of Euro Bonds and the worlds first financial transaction tax. Because once this happens, the world reserve currency, will in no time, and for once and for all, will be the Euro! Do you remember back when the Euro first came out? The Americans said that it would be lucky if it ever got to 60 cents U.S! Well as far as I can recall the Euro has traded in a band of roughly 1.40 - 1.60 U.S.! Opps!  
Angela Merkel - Uber Babe!!

The European Union is going to be with us for a very long time. One of the reasons that will ensure its survival is that it is nearly totally impossible to corrupt by lobbying. Look at the United States. It is a two party system. What is the factorial of two? Yep, that's right, two. Now in the European Union with all its members and all its levels makes it nearly, if not impossible, to corrupt by lobby. This is the unnoticed and the major strength of the European Union. Simple as that.

And the Oracle of Ottawa is not in the least surprised that it is Angela Merkel at the helm here. As far as I am concerned Sarkozy is just along for the coat tail ride. He would be very wise to get on side and be on the right side of history and his high heels. I still say that the future belongs to the European Union. I see the world power of the future, and a long time into the future, not China (peasents...) or the United States, but the European Union. I will even go so far to predict that there will in the near future by net immigration to the European Union from the "New World"! Ponder that, dear demographer...

That little weeny tax will generate HOW MUCH?? It is an idea that is long overdue...

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