IMF paper warns of savings tax and debt repudiation
By: Chris Powell, Secretary/Treasurer, GATA
Thursday, 2 January 2014
Dear Friend of GATA and Gold:
The International Monetary Fund study cited below by The Telegraph’s Ambrose Evans-Pritchard, warning of defaults, a tax on savings, and higher inflation to repudiate excessive debt, is posted at the IMF’s Internet site here:
Evans-Pritchard’s report on the study cites “financial repression.” He writes: “Financial repression can take many forms, including capital controls, interest rate caps, or the force-feeding of government debt to captive pension funds and insurance companies. Some of these methods are already in use but not yet on the scale seen in the late 1940s and early 1950s as countries resorted to every trick to tackle their war debts.”
But despite many attempts, your secretary/treasurer has been unable to persuade Evans-Pritchard that a primary mechanism of “financial repression” is suppression of the price of gold and that such “financial repression” long has been Western central bank policy, as amply and perhaps now even tediously documented by GATA here:
We’ll just have to keep working on it.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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IMF Paper Warns of ‘Savings Tax’ and Mass Write-Offs as West’s Debt Hits 200-Year High