The Drunken Stagger: Be Aware Of These Eight Steps From The Government's Playbook

1) Direct confiscation

As Cyprus showed us, bankrupt governments are
quite happy to plunder people’s bank accounts, especially if it’s a wealthy
minority.

Aside from bank levies, though, this also
includes things like seizing retirement accounts (Argentina), increases in
civil asset forfeiture (United States), and gold criminalization.

2)Taxes

Just another form of confiscation, taxation
plunders the hard work and talent of the citizenry. But thanks to decades of
brainwashing, it’s more socially acceptable. We’ve come to regard taxes as a
‘necessary evil,’ not realizing that the country existed for decades, even
centuries, without an income tax.

Yet when bankrupt governments get desperate
enough, they begin imposing new taxes… primarily WEALTH taxes (Argentina) or
windfall profits taxes (United States in the 1970s).

3) Inflation

This is indirect confiscation– the slow,
gradual plundering of people’s savings. Again, governments have been quite
successful at inculcating a belief that inflation is also a necessary evil.
They’re also adept at fooling people with phony inflation statistics.

4) Capital Controls

Governments can, do, and will restrict the
free-flow of capital across borders. They’ll prevent you from moving your own
money to a safer jurisdiction, forcing you to keep your hard earned savings
at home where it can be plundered and devalued.

We’re seeing this everywhere in the developed
world… from withdrawal limits in Europe to cash-sniffing dogs at border checkpoints.
And it certainly doesn’t help when everyone from the IMF to Nobel laureate
Paul Krugman argue in favor of Capital Controls.

5) Wage and Price controls

When even the lowest common denominator in
society realizes that prices are getting higher, governments step in and
‘fix’ things by imposing price controls.

Occasionally this also includes wage controls…
though wage increases tend to be vastly outpaced by price increases.

Of course, as any basic economics textbook can
illustrate, price controls never work and typically lead to shortages and
massive misallocations.

6) Wage and Price controls– on STEROIDS

When the first round of price controls don’t
work, the next step is to impose severe penalties for not abiding by the
terms.

In the days of Diocletian’s Edict on Prices in
the 4th century AD, any Roman caught violating the price controls was put to
death.

In post-revolutionary France, shopkeepers who
violated the “Law of Maximum” were fleeced of their private property… and a
national spy system was put into place to enforce the measures.

7)Increased regulation

Despite being completely broke, governments
will dramatically expand their ranks in a last desperate gasp to envelop the
problem in sheer size.

In the early 1920s, for example, the number of
bureaucratic officials in the Weimar Republic increased 242%, even though the
country was flat broke from its Great War reparation payments and
hyperinflation episode.

The increase in both regulations and government
officials criminalizes and/or controls almost every aspect of our existence…
from what we can/cannot put in our bodies to how we are allowed to raise our
own children.

8) War and National Emergency

When all else fails, just invade another
country. Pick a fight. Keep people distracted by work them into a frenzy over
men in caves… or some completely irrelevant island.

http://poorrichards-blog.blogspot.com/2013/03/expect-these-eight-steps-from.html