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How Italian assets still evade the tax authorities
Italy has increased its controls at the Swiss border to prevent undeclared funds from leaving the country. The efforts are paying off, but large sums are still believed to pass customs undiscovered.
In June Finance Minister Eveline Widmer-Schlumpf will meet with Italian Prime Minister Mario Monti to discuss a new tax agreement between Switzerland and Italy. Talks will cover a new withholding tax on Italian assets in Swiss banks, taxes levied on cross-border workers in the southern canton of Ticino, access to financial markets and a revision of the current double taxation treaty. (SF/swissinfo.ch)
Video is on this link I cannot find an embed link:http://www.swissinfo.ch/eng/politics/foreign_affairs/How_Italian_assets_still_evade_the_tax_authorities.html?cid=32774674&itemId=32774662
18 comments:
http://www.ritholtz.com/blog/2012/06/first-deflation-then-inflation-but-the-timing/
John Mauldin continues his journey away from the "muddle through" that he used to talk about. A good analysis with some interesting points:
"Buying German bonds, even at a slightly negative rate, is actually a cheap call option on the eurozone breaking up. A German bond that became a new Deutschemark-denominated bond would rise in value at least 40-50% almost overnight."
Maybe, but he does not mention the 'Target 2' Central Bank transfer linkage, where Germany supports the weaker nations, which is nearing E 1 Trillion now -if Germany leaves the EUro, would they default on that, thus instantly bankrupting every other nation in EUrope? Divorce is messy, and the reactions of other nations surrounding Germany would likely not be friendly at that poi8nt.
I suggest the upside case for Germany leaving the EUro is wildly exaggerated, as they need to sell their exports to those very countries who would be very hostile at that point.
"Switzerland actually sold outright this week bonds that have a negative coupon. Again, not a sign of deflation but another call option, betting that the Swiss Central Bank will have to give up on its peg to the euro. That peg has got to be one of the biggest losing trades in central banking history, and the Swiss seem determined to lose even more money. If the euro goes to $1.15 or lower, that trade becomes an even more massive loser. At what point in the next year will the Swiss Central Bank decide it has endured all the pleasure it can stand in fighting the fall of the euro? If they abandoned the peg, the move in the Swissie (as traders call the Swiss franc) would be large and almost instantaneous. And the reward for investors outside of Switzerland buying Swiss bonds with a negative yield will be large."
I am not so sure there, the Swiss can afford now to print unlimited sums of Francs to keep suppressing it's value, there is no penalty for them to do it, with negative yields on their Bonds at absurd levels. It's an easy move to make.
"I will note in passing that solid gold stocks were up hugely during the deflationary Great Depression of the ’30s. Even with the dollar on the gold standard."
yes they were, as gold mining was profitable, and they paid dividends, a large attraction in a deflationary time - about the only way to get some yield in a deflation.
However, I would think that the performance of US $ gold during the 1930s is not comparable much to today, as the price of gold was fixed by Government at a level that made those miners profitable. Most who mention the '30s and gold don't talk about that, like the "analyst" I heard on the radio yesterday. Then, gold was guaranteed not to fall in price by Government - today, not so much, as we have seen lately.
btw I am not bashing those who comment here, as you all seem to have a level head on your shoulders.
The "goldbugs" I refer to are the types who take it overly seriously as a religious belief.
GOld is indeed money, and a 'hard' form of it, holding it's value better over time than most other assets.
But it is not a miracle cure for all ills either, and to call for a return to a 'gold based monetary' system etc, in this era, is absurd. And it does not prevent the economy from booming then crashing - like ancient Babylon, that was on a hard gold standard.
Economies are made up of humans, and we have he same problems, regardless of the type of money used. Money, in whatever form, only has "value" because we all agree it has, after all.
At one time, salt was much more highly valued than gold - this week I saw 4 lbs of salt on sale for $1.88 - at one time that would have bought a small city.
http://brucekrasting.blogspot.ca/
"On Shills, Technocrats, Politicians and the Sinking Ship"
Great analysis from Bruce, as always. One of my favorite Blogs, he always makes sense.
"There is only one option left for policy makers. Get real. Greece has to go, Spain too. Printing money will not work, that has to stop. Yes, that direction is painful. It will cost the Germans a bundle to make things right, but that is cost it must bear. After all, Germany did create this mess, and Germany benefited from it for a dozen years. The rest of the world will suffer as well. But what is the alternative?"
Curious.
Why do the HNW individuals who are moving their assets to Switzerland do so in GOLD?
Do they know something the masses don't? :)
Kreditanstalt said...
Curious.
Why do the HNW individuals who are moving their assets to Switzerland do so in GOLD?
Are they? I thought US policy was forcing Americans to repatriate there hard and soft money. Maybe someone else can elucidate.
GAW great points on the German and Swiss bonds paying negative yield. Also the difference between holding PM and holding it up as a religion. All things in moderation and I have to agree a gold based currency will not likely happen again. It can be abused just as any other currency.
He you drones out there in BC how are the prices holding up? Will you be the last to crash now that OZ is feeling the pinch. I find the real problems come with lost revenue to the governments. When times are good and property taxes high they can promise the world. Once the keg is tapped the see you later.
I can hardly talk as we were one of the first to go and still going. Prices have dropped nearly to 2003 levels or more. OBL could never have done as much damage as our terrorist bankers have done. The good thing is people are fighting back. The bad thing is people are not paying the mortgage and pocketing the rent. My brother told my his wife's sister has 5 properties and pays nothing to the banks, but she gets the rent money every month.
Late last week I was convinced Bernanke would pursue another round of QE, but after a closer look, I'm not convinced reducing the interest rate on the US Ten Year from a record low of 1.45% to something under 1.2% would so much good. There is talk of the IMF stepping in to help Spain, and Bernanke himself could do so as well-- but doing either of these will be relentlessly attacked by the Republican opposition as a bailout of Spain. Look out for deflation and the continued sinking of commodities. Bernanke and the Fed meet again in a couple weeks; if the deflation train continues, I guarantee he'll so something. The problem is, we are now nearing what some call the Keynesian End Point and I fear that he has few options that will accomplish anything meaningful.
imo QE isn't about helping anything but banker bonuses.
HI ALL...stocktwits50 have a good comment today:
http://stocktwits50.com/2012/06/02/stocktwits-50-june-4-2/
that video has a pre ww2 feel about it...as Yogi Berra said, It feels like deja all over again...
Gold will lead now, if I am reading my indicators right or if there is no Macro Voodoo that changes the charts...or news voodoo for that matter...bloody hell
GET ME OFF THE GREAT MACRO CONVEYOR BELT...I AM SO SICK OF ALL THIS CRAZINESS!( MY LITTLE RANT)
I will look to trade the indexes for a bounce. I like UPRO for a long and SCCO.
DEAD CAT BOUNCE MAY BE ON WAY, USE YOUR SIGNALS BEFORE JUMPING IN TO ANY TRADE I POST, THESE ARE TRADES, NOT INVESTMENTS
ROSG has been great too, held up completely during the correction, more than held up...I used TC2000 scan on a trend intensity and pull back scan. Keep an eye, when markets turn this may explode if news stays good
Only GOLD Ranglod comes up on my top 25 Momentum scan from Friday
I will look to trade the indexes for a bounce. I like UPRO for a long and SCCO. DEAD CAT BOUNCE MAY BE ON WAY, USE YOUR SIGNALS BEFORE JUMPING IN TO ANY TRADE I POST, THESE ARE TRADES, NOT INVESTMENTS
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