Skip to comments.Raid on Cypriot deposits shakes Europeans' faith in savings (9.9% theft by govt)
Posted on 03/17/2013 3:32:46 PM PDT by Red in Blue PA
(Reuters) - Europeans' faith in the safety of their savings has been shaken by a levy on Cypriot bank deposits to pay for a bailout, even though there was no sign of a rush to withdraw cash in Madrid or Dublin.
People told Reuters they were angered but unsurprised that politicians should dip into citizens' deposits. And as bankers expressed concern the proposed terms of Cyprus's bailout could unnerve savers elsewhere, some leftist leaders voiced outrage.
Euro zone finance ministers want Cypriots to pay up to 9.9 percent of their deposits in return for a 10 billion euro ($13 billion) aid package. If approved by the island's parliament on Monday, it will be the first time savers have had to foot part of the bill for a European bailout.
(Excerpt) Read more at reuters.com ...
back to the mattresses.
If they get away with it they will do it again, you can bet countries around the world are watching and learning
Everybody sell! I’ve been waiting for he discount.
"Turn those machines back on!"
Scares me too, I’d switch to gold but I suspect its a bubble waiting to pop.
Europeans are converting euros into dollars and buying gold. America has always been viewed as a secure haven during crisis. The result is a big transfer of capital into the US economy which bolsters the dollar and the economy despite Obama’s bad policies. Gold also rises due to increased demand and long term uncertainty about the American economy.
wow... this is honestly the scariest thing that’s happened since the beginning of the great recession!
Government has basically invented a new way to cause a run on banks!
This one action has the potential to collapse the entire world economy as paniced people rush to withdraw their money from the bank.
The Beast must feed.
I may now go and buy that gun I cannot afford right now. After all, money in the bank might be worthless with this administration.
Guns and reloading equipment will be priceless. As though we needed yet another reason to run out and buy guns!
I’m thinking the same thing. To hell with the future, there may not be one. Pull my savings out and buy prepper stuff now.
he Mexicans were a little more circumspect. Back in the ‘70s, I think, they seized all their citizens’ dollar bank accounts and converted them to pesos, then devalued the peso by something like 45%, then said the depositors could convert the remains back into dollars. Not many, if any, did.
Jim Sinclair told King World News we have just witnessed one of the most important events in history and it will have a major impact on the gold market. Sinclair, whos father was business partners with legendary trader Jesse Livermore, had this to say in this extraordinary and exclusive KWN interview:
The wire reports on the Cyprus situation are working overtime to try to make the case that 80% of the deposits belong to the people of Cyprus, and only 20% of the deposits belong to the Russians. Thats absolutely false. After 1985, when the Robber Barrons of Russia took over the general economics of Russia, that was the transformation from the KGB to private business. The primary place for exported Russian funds was Cyprus.
Now, there is one leader in the world that would be very dangerous to challenge, and that is Putin of Russia....
Whats just happened is the IMF has backed up, lauded, supported, and publicized, as if it were a victory, the taking of 10% of what really turns out to be 80% of Russian black money. Russian black money is KGB money, now in business. The leader of Russia (Putin) was a former KGB official. Whos money do you think they have taken? This is the biggest mistake the IMF could possibly have ever made.
Eric King: Jim, its unimaginable to me, but, incredibly, just ten days ago you warned that you dont want to anger Russian leader Putin because he and Russia will punish the West in the gold market. Can you talk about how this is going to impact the gold market beginning on Monday?
Sinclair: What would you rather have, an insured bank account by the BIS, FDIC, ECB, when any government can come in and take 10% of your account and treat that as if you are paying a tax for monies that were lost because of devious actions by the banks themselves, or gold?
Eric King: Will the Russians take their revenge in the gold market? Is that one of the places they will seek revenge?
Sinclair: The answer is that this is one of the most important events in modern times for the popularity of holding gold rather than holding fiat money. This is the catalyst that will propel gold through the $1,600 level. To prevent a break above $1,600 in gold would take extraordinary efforts on the part of any manipulator in the marketplace.
Its very dangerous in doing business with the Russians to lose their money. Revenge will be very much a part of the motivation for what happens from this point forward. This type of event will take us out of the $1,500s and we may never see those prices again in our lifetimes.
The truly sad part is that the ones who saved and invested their money did not cause the mess in the first place.
Unfortunately, it’s highly likely that the Cypriots are giving Obama ideas.
The dominoes are being controlled from outside they will dictate to thier puppets when the time is right
Gold is the opposite of a bubble. f you are looking to profit from gold, you will be just a speculator who might win or lose. There is occasional speculation where gold gets a little ahead of the trend, but the trend is still intact (we are about at the trend right now). When the Fed creates the other bubbles, gold responds by playing the role of money. If you are looking for a way to put money in a mattress for the next decade then convert it back to goods, then you have come to the right place.