The German central bank, the Bundesbank, has significantly expanded its ability to control and access cash transactions in the hunt for taxes. They have required statements and assurances from cash-demanding commercial banks for the purpose of the intended business requiring cash. The Bundesbank has declined to comment on the new policy. The Federal Association of German Banks has also refused to explain. What is clear is that we are witnessing a growing trend to reduce cash and like Australia, just adopt the position that cash is for criminals.

The Turkish President Recep Tayyip Erdogan’s economic policy is a disaster. This is reflected by his plea for Turkish citizens to search under their mattress for foreign banknotes and gold to convert into domestic currency. It has been his economic policies and dictatorship that is driving Turkey into an economic collapse. Of course, the only way to support the lira at this stage requires a change in government. That is unlikely on any voluntary basis. Meanwhile, President Donald Trump responded to the collapse in the Turkish lira by announcing a doubling of tariffs on steel and aluminum. His logic is that the collapse in the lira would allow them to sell steel and aluminum at cheaper prices. But the logic fails as Turkey in moving into hyperinflation and the economy is just collapsing.

Turkey began its meltdown on target in May. The next turning point was August. The Quarterly level shows a Directional Change in the 2nd Quarter of 2018 and that is when the meltdown began. We will update on the Private blog this weekend on the impact of other markets as the Euro has also collapsed by the 115 level. At this stage, there is no hope of restoring confidence in Turkey as long as Erdogan remains in power

People who think that Trump alone embarked on protectionism, really need to look around the World. Australians have been blocked by Amazon from buying anything from their US site because the government has imposed effectively a tariff of 10% on anything an Australian may purchase under $1,000 from the internet overseas. The Australian government is violating international law demanding that anyone selling anything on the internet must collect a 10% tax from an Australian and pay it to the Australian government.

The Australian government has shifted a tax-collecting burden to the entire world. Amazon has now blocked Australians from buying from their sites outside of Australia. They correctly criticized Australia stating that delivery companies such as Australia Post should be made to collect the tax, not the stores. The Australian government is pretending this is to “protect” Australian companies. However, this applies to absolutely everything sent to Australia even if there is NO LOCAL competition. That is a greedy tariff. Simply said, Australia is really becoming the most anti-capitalist country in the West. The Australian dollar has been declining since 2011 and this hunt for taxes continues to expand with the most anti-free market laws in Western civilization. It is only a question of time before the USA turns and looks at the crazy laws coming from Australia and begins to retaliate.

The is absolutely no foundation in International Law that allows a country to impose obligations upon business in other countries and force them to collect taxes. The proper point to collect taxes is when goods are delivered to Australia – not that an Australian buys something overseas requires everyone in the world to collect Australian taxes for them. This is really just insane.