"It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong." Richard P. Feynman

Wednesday, December 7, 2011

Coming Soon - The Robbing Hood Tax!

It is not surprising that when a gaggle of government-funded lefties get together they would consider the solution to any problem facing them would be a new tax - just a tiny tax that would raise hundreds of billions of dollars and no one would notice. This brilliant idea is gaining traction amongst the mentally challenged chatterati who don't understand that there is no free lunch - you can't get something for nothing and in the end every depositor,super fund and bank user will pay for this. Of course we will need a complete new bureaucracy to supervise this and bank compliance costs will go up. A tax on financial transactions is iniquitous and non-productive . Of course the whole problem is exacerbated by the proposal to give these funds to a Green Climate Fund and we know how wise and careful they will be with these funds. The whole idea is so stupid the EU at least will probably adopt it!
“The Green Climate Fund is very important for developing countries. Finding sources and channels to mobilise money into the fund is crucial,” said Director UN-II Mirza Salman Babar Beg, who is part of the negotiating team in Durban.
“Out of all the options relating to innovative sources on long-term finance that are on the table, the FTT is easy to implement and monitor and can raise money in hundreds and billions,” added Beg. “There are various studies that support this argument, and so we feel this option should be considered in the negotiations.”
The Financial Transaction Tax, also known as the Robin Hood tax, is a small levy of 0.01%-0.05% imposed on the trade of stocks, derivates, currency, and other financial instruments.
Although different estimates have been proposed, global economists believe that potential revenues can range from $176 billion to $650 billion per year. These revenues can significantly contribute to the GCF, which will help developing countries to tackle poverty and climate change. It has also been proposed that the tax has the ability to discourage high frequency financial trading that causes big risks to the global economy.

2 comments:

  1. It's about as logical as the Carbon Tax. Both designed by brain-dead bureaucrats to kill the economy. It would have made a funny episode of "Yes, Minister".

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  2. As a designer of power control systems, you know what happens when you disconnect all the negative feedback loops. Your control system goes out of control. Also, you know what happens when you replace your negative feedback loops with a positive feedback loop. The system not only goes out of control, it oscillates between extreme hard limits and eventually self destructs.

    Applying that understanding to either the carbon tax or the financial transaction tax leads to a similar conclusion with regard to the economy. The economy will oscillate between hard limits before it self destructs.

    It is clear, the greens and progressives that are advocating they believe that human systems are not subject to the laws of control systems and are infinitely malleable to their whims without consequence (ie. that they are not subject to the laws of reality). Either that or they are willfully trying to cause the economy to self destruct. One can conclude they are either criminally ignorant or malignantly evil - not that there is much practical difference.

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