A $20bn war is being waged against the global economy and on the future of the world’s money supply, with governments in the US and Britain trying to get their own governments to impose a levy on all international payments.
A $10bn war against the world economy, and a £4bn war to fight the war on terrorism, are also under way.
The latest moves to try to stymie the global financial system come after the UK’s Treasury released a report on Thursday detailing a campaign to stop banks from making loans to other countries.
The report warned that financial institutions are increasingly trying to reduce the size of their customer bases to get around a rule which prohibits banks from lending to people they do not trust.
The Treasury said that the UK is the most heavily taxed jurisdiction in the world, and said that it was targeting the banks in its investigation of their behaviour.
The UK is currently the only country in the developed world which has not taken a position on the proposed legislation, with the UK Treasury arguing that the banks should be given an opportunity to respond before a levy is introduced.
“The UK Treasury has repeatedly urged the Bank of England to make a reasoned case for why it would be appropriate to impose capital gains tax on foreign investors,” said Treasury spokesperson Mark Colley.
“In light of the Government’s view that foreign investors should be able to use their UK capital gains to fund infrastructure development, this is a timely opportunity for the Bank to provide evidence of its view on the issue.”
In the report, the Treasury also pointed out that the global economic slowdown has hit UK GDP at a faster pace than other developed countries.
But the report said that there was a “growing consensus that there is little prospect of recovery in the UK economy before 2020”.
The report said the UK was the only developed country which did not have a policy to limit banks from taking loans to countries it does not trust, which means it was the most highly taxed jurisdiction.
The government’s response comes after the Bank said on Thursday that it had been forced to “urgently review” its position on foreign banks taking loans from the UK in the wake of the financial crisis.
The Bank has also said that its UK arm has been working with the Treasury to assess the risks posed by overseas companies that have a presence in the country.
The US and UK have both passed legislation to impose the tax.
The European Union has also passed a law which would levy a levy of up to 20 per cent on all foreign bank accounts held by individuals and companies in the bloc.