Do High European Tax Rates Create Low Capital Formation and Spawn High Borrowing Rates?

DSC00139Do High European Tax Rates Create Low Capital Formation and Spawn High Borrowing Rates?

Finland and Government Payments?  by Thomas M. Cole JD

As our tour guide explained, in Finland no one has to worry about school, books or pencils until collage.  The government here covers all education expenses from age one and a half where child care kicks in, to collage and beyond if you’ve got the ability to go that far.

Healthcare was the same story. All is covered except dental for people of the older generation, which is not covered so well.  Pensions also cover high earners at a e1500 Euro/month and less for low earners at e750/month after 58 years.  They are moving the retirement age up to 68 soon, however.

Also exciting for Finlanders is the paid maternity leave of a year and a half for mom and six weeks for dad. Also there is the child credit of E500 a month for each child till age of majority. Parents may collect on multiple children.  Can we Americans recognize this same trend at home? Many in the USA call it runaway welfare with multiple babies creating enhanced income from the state.

Borders and Public Policy

Surly Finland has a secure border so these extravagant state giveaways are not overwhelmed with foreign interlopers. Think again. As our Art PHD historian guide explained,

We Finlanders are very lazy in the baby department, only creating 1.5 babies per family. So the government is immigrating people from Somali and Russia to keep our population stable. We will see how this works out…”

Even the state of Finland now has a policy to maintain population with no thought to national and cultural unity. Why would this be? To what advantage is a stable population and to whom does this advantage accrue?

The Euro and Frankfurt Control 

Touring across the Finish country our guide was extolling the benefits and virtues of the socialism. Finland is now part of the Euro system. They gave up their Finnish Mark several years ago with much debate and disagreement. Now Finland looks to the European Central Bank ECB in Frankfurt Germany to set their monetary policy. Accordingly ECB monetary  policy is set by The Bank of International Settlements (BIS) in Basil. Smaller EU nations tend to give away sovereignty in exchange for promises of better trade agreements, alleged pacts of protection within NATO and promises of better economic conditions.

The results are far from conclusive as Finland struggles with 20% unemployment and young people leave the country for greener pastures. As our guide explained,

“We Finns are very lazy with the baby’s only making 1.2 baby’s per marriage.”

So to compensate, Finland is importing new citizens primarily from Lithuania, Poland and Somalia. The state is worried that a dwindling population will cut into Finland’s ability to pay pension bonds and other aging population debts taken on by the state. Keeping in mind that since adopting the Euro, the state has no ability to print it’s own money, and now must go to the ECB in Frankfurt to borrow.

Once we understand the power of the Euro and ECB over Finland and other EU countries, Finland’s curious immigration policy becomes more clear.

Finland’s nanny state monetary and population growth policy are more an accommodation of EU/Frankfurt/ECB than a policy to benefit Finland, and here’s why.

First as the Finland State takes cash from citizens, they have less to save and invest. Finland takes 30%-60% income tax and a Value Added Tax (VAT) of 25%  a whopping 85% top rate. Add in corporate tax rates and we see Europe’s top taxing hot spot. But everything is paid for now by the government. Or at least everything that Basil and the UCB wants paid for.

Here’s the rub, the catch, the clincher, to this everything you want is free system.

As capital is drained off from the citizens in the form of high taxes, there is no capital left for investment. The Nanny State puts an end to capital formation. Free economies require capital formation. Nanny-State high tax rates preclude the formation of capital and force citizens into becoming debtors for major purchases such as cars and houses.

This condition of being cash poor is ever so convenient for the UCB, the bankers for the Euro Zone and it’s shareholders in the International Monetary Fund (IMF). Now every Finland home or car buyer must come to them, hat in hand asking for a loan.

Keeping in mind the Euro was a dream put into motion by Henry Kissinger and other one world banking types who formed the Bilderberg Group in 1954 for for the stated purpose of creating a one Europe currency. It took this long for the reality to be created across Europe. This is all pointed out in clear documentation from my book 200 Years of Central Banks…

And so now under the guise of helping Europe, the ECB is now dictating national birth and immigration policies in Finland and all the other EU countries. Not for their own good, not for the good of Europe or the world, but for the good of a handful of international bankers.To make sure these EU countries can successfully pay their bond debts.  Making all of Europe as one, dependent on Frankfurt ECB and Basil BIS for financing. Keeping in mind the Euro was the design and goal of the Bilderberg group, Founded in 1954, founding member Henry Kissinger.

As outlined in 200 Years of Central Banks, by this author, the usual goal of one money/one world schemes is to concentrate monetary control in one group, and spread debt load to the joining nations. These joining nations are lured in with the usual promises of cheap money, better economies and some fanciful promise of military protection. The result is joining nations end up with monstrous debt loads, higher prices, a diluted population, lower wages and greatly diminished sovereignty.

This is the result of giving up national sovereignty for alleged economic and security benefits. A nation looses it’s boundaries while it’s borders are now internationally controlled. It’s birth rates and population are controlled and augmented to insure bond pay back to the international bankers, while national identity is erased by influxes of foreigners further disemploying locals and dropping the pay scale.

All this leads to further borrowing and indebtedness by citizens, whose national assemblies are more aliened with Frankfurt as a collection agency, than that of representatives of a sovereign nation.

America is now in the same stages of enforced debt, porous borders, rising taxes and devaluing currency. Our immigration polices are set by foreign bankers. Our tax rates set by foreign bankers. Our Central Bank the Fe dReserve is run by a foreign banker, Stanley ‘Fisher, Israeli citizen, appointed by our impostor in chief Barry Soetoro Obumma. Throughout the western world, Christian freedoms are under attack as Marxism rides the high tide of financialism, hiding behind the worlds central banks.

by  Thomas M. Cole JD

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