Skip to comments.Bailout tax shock for Cyprus savers
Posted on 03/16/2013 8:42:06 PM PDT by alexmark
People with Cyprus bank accounts will lose up to 10% of their savings as the price of a 10 billion euro (£8.6 billion) rescue package for the cash-strapped country from its European partners and the International Monetary Fund.
The bailout was agreed early on Saturday in a bid to keep the island nation from a bankruptcy that could rekindle the regions debt crisis.
But in a major departure from established policies, the package also includes a one-off levy on the money held in bank accounts in Cyprus. Analysts have warned that making depositors take a hit threatens to undermine investors confidence in other weaker eurozone economies and might possibly lead to bank runs.
In return for the rescue loans Cyprus will trim its deficit, shrink its troubled banking sector, raise taxes and privatise state assets, said the Netherlands Jeroen Dijsselbloem, presiding over meetings of the 17-nation eurozones finance ministers. The assistance is warranted to safeguard financial stability in Cyprus and the eurozone as a whole, he said, speaking after nearly 10 hours of negotiations.
People with less than 100,000 euro (£86,000) in their Cypriot bank accounts will have to pay a one-time tax of 6.75%, those with more will lose 9.9%. The measure is expected to net 5.8 billion euro (£5bn) in additional revenues, Mr Dijsselbloem said, greatly reducing the countrys financing need.
(Excerpt) Read more at tinyurl.com ...
More on Cyprus and the Euro.
More evidence of just how much socialists/liberals simply do not understand economics.
This crazy cyprus deal could screw up a lot more than Cyprus...
‘Cyprus-Rescue Shows, No Accounts Are Safe!’
This is coming here too. Get your money out of the market, and out of accounts that the government could get into.
Interesting post. Thanks.
Good chance this will lead to a contagion effect that spreads to other countries in the region.
Russia is especially furious and can be expected to impose retaliatory measures on the bank accounts of EU nationals in Russia.
This violates international law and reciprocal agreements in safeguarding foreign assets.
got my money out of the market some time ago when I started understand that the feds were propping up it up and it was all a fake.
do you think banks will be open on Monday? How soon before they limit how much you can withdraw in person? ATM’s always had limits I think.
Looks like anyone with any money that wants to deposit (in a sane world) will get a charge and maybe 0% interest rate and possibly negative rate for them holding their money.
This is the stuff of total failure of the system.
I hadn’t even thought of that, but I agree. Russia is going to retaliate, as they should, against this action which has come directly from the EU leadership. They are thieves, lining their own pockets. It’s time they were all rounded up and arrested.
No body is going to invest in Cyprus and it can forget about a Russian bailout.
I just cannot see how this is legal to legally rob every bank customer of 10% of their holdings. Where is the contract they signed agreeing to this? NO LEGAL STANDING, NO CONTRACTS ENTERED INTO VOLUNTARILY.
Get out of the banks now if you want any of your money. I would consider it. Also consider if you need your 401k money, if you don’t want it federalized propping up bonds, if you don’t want to prop up bonds.
This stuff is getting insanely ridiculous. Heat is being turned up on a hundred different issues.
Still wonder why the DHS is buying all that ammo?
The Fed is going to pump like no tomorrow on Monday. The only problem is Ben B has been bailing the EU banks out the last year. Looks like we painted in a corner.
It’s legal because it’s being taken by the people who decide what’s legal and what’s not.
Yup it’s a TAKEN not a Tax.
Yes, this is theft, pure and simple. It would be more honest for the EU to simply say: You have money, we need money, therefore we are going to take your money.
I wonder if Cyprus has anything like a 2nd Amendment.
Curious too on the Sunday Futures. Most like red but by 10am Uncle Ben will pump big time.
The IMF wanted to tax the depositors 40%, but that was reduced to a max of 9.9% and a bit less than 7%.
The purpose of this was to get money from Russian oligarchs, hiding their cash in Cyprus.
As usual, the elitist banksters, who are international financiers and international corporatists, don't give a damn about our rights or our financial fate. The average citizen means nothing to the Globalists.
They only care about money and the power that comes with its possession.
So the IMF, which is controlled by the same people who “own” the Federal Reserve Banks in our country as well as the Bank of England, are going after the Russians.
The Russians are the only thing between ourselves and a One World government. The Russians here are not "the good guys"; they want global domination for themselves.
He who controls the money supply matters more than who controls governments.
The left has long had their eyes on 401K’s and private retirement accounts. They have proposed to take them and then put all those people on SS, or something, in return.
did they even consider the repercussions of this move?
Making up rules that only favor one side out of the blue is grounds for revolt. Rightly so. Government is just people. They are not untouchable just because they are “government”. They pull this crap and they deserve to lose their power. They are entrusted with power and not to usurp power they aren’t given, if they want to change the rules they have to go through a proper process and enough of THE GOVERNED MUST AGREE.
Otherwise they are right to be revolted against. Government is fallible, wrong, greedy, oppressively powerful, made up of imperfect people no better or worse than those they govern. When they start thinking they’re gods and the laws are only for the peons, they have lost legitimate authority and are like Saul. Godly government needs to be protected and constantly kept in check.
This is utterly ridiculous.
No. They don’t give a s5it. These people have been destroying lives for decades. They simply do not care.
The most outrageous aspect of this is that Russians are not citizens of the EU, and they are having their money stolen to fund it. It’s immoral, and would be illegal if anyone else other than the government did it. I am hoping Russia takes the EU to international court.
I am aware, it was one of the first things floated around under Obamanation Term 1.
This is a version of “regionalism” on a nation-state scale.
Never fall for regionalism. I wonder what Putin’s getting out of this in return.
I agree with you, but this isn’t the reality in the modern world. You must have been aware of this, right? The same socialist scum have been doing this for a long time. Now that everything is going down in flames, they’re grabbing every penny they can. It doesn’t matter how they get it. If they have to dive into people’s savings, and block their ATM access while they do it, then the government has no problem with doing that.
Of course it is grounds for revolt. What is being done right now in Cyprus makes the actions of King George seem like child’s play. Will there be a revolt? It’s possible. I would hope so.
I find it interesting the way they did it. Near every develop nation has deposit insurance. If the banks went belly up they would not lost a dime. Instead the dirty banks are still in business.
Thing that gets me is they’re grabbing fiat money, and money that’s almost all electronic. They created worthless stuff and they’re going after it for no other reason than to wipe these people out.
I doubt he’s getting anything. The EU aren’t the kind of people to ask permission before they do things like this, and they probably aren’t afraid of Russia. Brussels’ bureaucrats have a lot of buffer nations between them and Vladimir. By the time the tanks reach Belgium, they’ll all be in the Caymans.
Is it not illegal? I am sure somewhere along the way that seizing the property and wealth of foreign citizens would have been made a no-no.
That’s why I speculate this may end up in international court. There is so much Russian wealth in Cyprus, this can only be seen as planned international theft. In the meantime, the people of Cyprus are suffering. The Russian money belongs to billionaires who have money elsewhere and in Russia. In Cyprus, this is people’s retirement and savings.
How is this any different than our government printing money here. Both steal the wealth of saver’s. Just they are being more upfront about it.
Yes. They’ve seen this movie before. Nothing is worse in their minds, though, than them losing control of the money supply. Threats to the corrupt, global financial system are the direst threats of all.
These international financiers have, in the past, loaned money simultaneously to opposing sides in wars. You think they care about the results? They want chaos so as to form a Global government out of the ruins.
Their belief is that chaos will result in a world-wide economic collapse, and they can step in and take control.
Sounds like Cloward-Piven, doesn’t it?
What the Jihadists, the communists, and the international trade unionists don’t understand is that they are all tools being used by the international financiers. The end goal is for the elitists to have control of the Global money supply.
If you haven’t viewed the DVD, The Money Masters, a documentary by Bill Still, it sounds far-fetched, I know. But these are the people behind Valerie Jarrett, who in turn controls the Obama administration.
It’s not the ATM with a limit. Your card has a daily limit. You can ask the bank to increase it. They may or may not change it. The cash limit default is usually $300 a day.
The way we live now.
One of Trollope’s characters, Melmotte, would understand this practice of robbing Paul to pay Peter, and would approve.
I can think of many in our country who think along the same lines: “It’s for the greater good ... trust me my friend, make no mistake about it.”
“No, no, I don’t have your money. It’s in Bill’s house and Fred’s house.”
“Hey, what are you doing with my money in your house, Fred?!?”
Melmotte, although he buys his way into parliament, is just a shyster. This is being done by the Powers That Be on behalf of Masters of the Universe types. You know, the ones who are suppose to be the grownups. The ones who we’re not supposed to notice keep screwing up, century after century.
That’s true. A large number of Russian mobsters also just had their profits seized. I wonder how they’ll feel about that, and how they’ll react. There is already speculation about government officials in Germany and Cyprus becoming targets over this.
I expect, come Monday or Tuesday, that runs on European banks will be widespread. If that does happen then we can expect to see bank “holidays”, with those banks possibly never reopening.
This could easily spread to the U.S.A.
Those people are call bankers. We have their counterparts in the US called Wall Street bankers. Funny how I criticize them, there are blind free market freepers who think they are not guilty and never at fault with our current economic depression. In fact many of them want the GOP to run defending Wall Street ways and then wonder why we lose elections. Wake up America and stop thinking like 6 year olds. I did not vote for Ron Paul in the primaries for many reasons, but not everything Paul said is wrong either, especially about the Wall Street bankers and their thieving ways. For me, MF Globals ability to steal segregated customer accounts and the SEC sat there in silence is the first red flag that bankers think they can steal with impunity. That is the only Wall Street banker freepers crucify because it was run by a Dem fund raiser name Corzine, yet Wall Street bankers are given the pass by freepers because the people who criticize them are Dems. Of course the Dems are silent about their own committing the same type of crime in MF Global. Even worst AG Holder admitted in a Senate hearing that the gov cannot prosecute bankers because they are too big, and prosecution can cause the bankers to boycott operations causing harm to the US and world economy. IAW the fed gov is saying Wall Street bankers are too big to prosecute and thus have a license to steal. I wish everyone would wake up and stop judging by party and recognize, Wall Street IS THE ENEMY. A GOP CEO is capable of committing the same crime as Dem loving Corzine because they worship only one thing, MONEY at the expense of morality, country and even family.
The thing is, though, masters of finance are communists. Or socialists, at least. That’s tge only term I can think of to apply to their ideal, which is one world gubmint, control of the world’s money supply, commercialization of the entire planet (what we call globalism, but by force), entry barred for prospective new concentrations of wealth, etc. I’d say it’s fascistic, but I’ve already said they’re internationalist. Fascism is socialistic, anyway.
I will give it to tge communists, at least, that they envision a worldwide dictatorship of workers instead of bankers. Also, they predict the state shall wither away, though no one knows how. What you’re talking about is a permanent Leninistic “final stage of capitalism.” The term Late Capitalism is, or was, thrown around a lot. I never cared for it, being terribly imprecise, but this is what they had in mind, I think. Public-private incest.
They condemned it, and thought it to lay the groundwork for true socialism. But I’m sick of pretending to care about infighting, positioning, and repositioning within leftist movements. Late Capitalism is socialism, too, from our perspective.
There’s a reason Freepers, and everyone else really, get tangled up about who to blame. Because Wall Streeters aren’t bad qua bankers, traders, lawyers, etc. They have power and cause harm because they’re in bed with government, or government is in bed with them (depending upon how you look at it). No industry is run by angels, and no Wall Street crook could screw you worse than crooks in any line of work, except that they have Washington behind them, or in their pocket (depending upon how you look at it.)
Is it any wonder that the most monstrous (supposedly) private concerns, capable of the most harm, just so happen to be found in the most highly regulated industrily—or industries, counting banking, trading, lawyering, etc. seperately—in the land? It’s so centrally controlled that you can’t even deregulate it without making it worse.