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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (2338)	6/10/2003 2:51:20 PM
From: Perspective	Respond to of 4905

That would have some bizarre effects. Since cash is neither created nor destroyed when it is spent, it seems like the real effect would be to limit credit creation. It would turn it into a hot potato. Nobody would want to get stuck with the cash, so you would expect reduced demand for loans. Wouldn't it effectively increase the price of money, and increase interest rates? BC

To: NOW who wrote (2338)	6/10/2003 3:01:58 PM
From: ild	Respond to of 4905

This should be immensely beneficial for gold.

To: NOW who wrote (2338)	6/10/2003 3:04:49 PM
From: KyrosL	Read Replies (1) \| Respond to of 4905

Sounds like a hoax to me. eom

To: NOW who wrote (2338)	6/10/2003 3:31:13 PM
From: yard_man	Read Replies (2) \| Respond to of 4905

that is so obscene -- surely it is a joke!!

To: NOW who wrote (2338)	6/10/2003 3:39:09 PM
From: GraceZ	Respond to of 4905

I might have to change my opinion about them turning around.

To: NOW who wrote (2338)	6/10/2003 4:05:53 PM
From: GraceZ	Read Replies (1) \| Respond to of 4905

If people fail to change their old bills before that time, they will become worthless pieces of paper. Needless to say, underground money held by gangsters, tax cheats and others would be forced into real estate, bonds or stocks. Uh oh, I see new demand for US dollars. I'm almost certain a great deal of the demand for dollar currency was caused by the Euro switch over and their attempt to flush out illegal money.

To: NOW who wrote (2338)	6/10/2003 5:38:27 PM
From: UnBelievable	Read Replies (1) \| Respond to of 4905

The Difference Between Taxing Unspent Money and implementing policies which result in negative real interest rates (which is what the Fed is trying to do in this country) is not really that great. Both will have considerable adverse economic consequences. This has gone beyond unbelievable, it is truly unfathomable.

To: NOW who wrote (2338)	6/10/2003 6:38:45 PM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 4905

Hi tooearly, Not as absurd as it might seem at first blush... My guess is that someone has run this idea up the flagpole to measure the response from the various interested parties, such as taxpayers, business, foreigners, etc... The idea is not a new one, but merely a variation on the old idea of taxing assets, which is what a property tax does. At various times (even in the USA), there have been proposals to tax (luxury) possessions such as boats, fancy automobiles, jewels, precious art, and other various stuff. Taxing one's cash holdings is just another variation of this idea, albeit the stated intention is to remove the cash from the "safe" confines of one's mattress and put it to work in the form of consumption or capital investment. Use it or lose it... And this strategy has the added benefit of being a one-time only tax, because they're certainly not going to redo the currency every few years. If I were in Japan, how would I react to this story? Maybe I'd buy gemstones, precious metals or something else in the general grouping of "hard assets". But I'd certainly be reducing my exposure to cash. I wonder if this story might cause a run on the banks and postal savings system??? KJC