The title is from the novel The Godfather but was not used in the film.
Crooked Lawyer – Source
While the propaganda (and it is propaganda) about the E U economic recovery is starting to sound like a spinal Tap gig where the amps are turned up to eleven, what is going on behind the scenes suggests what is really happening is the opposite of recovery. In fact the latest moves in finncial markets tell us Europe is introducing a regime of capital controls.
from Zero Hedge
“Today we learned that Italy has just ordered banks to withhold a 20% tax on all inbound wire transfers: a decree which on top of everything will apply retroactively to February 1. As Il Sole reports, the deductions will be automatic (unless prior request for exclusion), and then it will be up to the taxpayer to prove that the money is not in the nature of compensation income. In other words, as of this moment, but really starting two weeks ago, all Italians are money launderers unless proven innocent.”
In effect Italy has enforce a stealth withholding tax on all inbound money Il Sole says:
“The mechanism that provides a primary role to the bank official that is to receive the declaration of the taxpayer and evaluate it. In any case, you make the deduction or not, the name of the recipient will be reported by the bank Revenue Agency. And the taxpayer has until February 28 of the year following the year of the deduction to attest to the improper application of withholding tax to the bank and ask for a refund.”
Naturally the result will be that more Italians – the seriously wealthy ones – will open bank accounts either in other Eurozone nations that have not enacted punitive measures against those who earn money abroad to the benefit of the economy, or in such tax havens as Singapore now that Switzerland’s main business model for centuries has been destroyed. The end result will be even less capital inflows into Italy – just the opposite of what the desperate Italian government is trying to achieve but don’t bureaucrats always achieve the opposite of what they are trying to do.
But that is a problem for the next Italian government (taking office this week) and the one promptly replacing it (by mid March). Meanwhile, in these meritocratic times, let’s all pretend Europe is fixed because the statistics published by Brussels say it is, even as the Euronazis prepares for the final solution to the Eurozone economic crisis; the confiscation of citizens savings.