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 ...
So how are polonium futures looking?
It’s one thing to increase taxes. But to just go in and confiscate money. This is surreal.
What happens when there is a run on all euro banks genius.
I’m seriously freaked out over this. I’m thinking pulling some money but am undecided on what then. I really need it to be making money.
Hmmm ..And us borrowing from China is different how? This is ugly. Watching and learning..
Makes Boehner look like a bigger fool than he already is. Debt crisis, we don’t have an immediate debt crisis.
If there’s an upside to this crap, it may give the Paul Ryan’s and those who have been working to lower our own debt some teeth. Now if only the rest of them would grow a spine.
Very promising indeed!
If I were you, I’d pull my money, find some acreage and learn how to grow things. If I had the money, I’d do it.
I doubt that anyone could give Obama any new ideas about thievery.
It's easier to say that nobody will be safe. A few examples here:
You keep all your money in the bank. On one fine morning you learn that your bank is insolvent, and so are all other banks. The FDIC insurance of small accounts is no longer valid, since FDIC is also floating belly up.
But, you say, I would know that day in advance. It's nowhere that bad. But on one fine morning you learn that all accounts are "frozen," or trimmed, or taxed - just as they did on Cyprus.
But, you say, I don't have a bank account - I only use cash. You do that, until on one fine morning you learn that the government devalued the USD. Prices rose 10 or 100 times up, and your cash is good for ... no, not even for that, it's too small and too dirty.
But, you say, the government cannot devalue the USD because it is the foundation of world trade. You keep saying that until on one fine morning you learn that the "old" cash is no longer valid, and a new cash will be exchanged only up to $1,000 per head of cattle citizen, and only if you prove legality of every dollar of it. Even if you kept it under your mattress for last 50 years. Amounts above the limit are nothing but scrap paper.
But, you say, I don't have cash at all - I have these here gold certificates! You keep saying that until on one fine morning you need to convert one certificate to gold. You suddenly learn that to do that you have to come in person to the bank which is conveniently located on Easter Island and open for business every Mayan leap year, from 3:00:00 am to 3:00:01 am on February 29th. Oh, bring *every* piece of ID you have; not that it helps because you will be denied because of the ID that you don't have with you (and likely never had.) Sorry, it's just a small clerical error, come again in another century and I'm sure this will be straightened out in no time.
But, you say, I don't need hard gold, I only want to sell the gold certificate! You keep thinking that until on one fine morning you learn that the exchange rate is such that you will lose your shirt on selling them. You are not the only one who is so smart, and it's buyer's market because you have no other viable options.
But, you say, I don't deal in paper gold, I have the real golden gold! You keep saying that until on one fine morning you learn that The One issued an edict about mandatory confiscation of all physical gold and gems. Anyone flashing those will become a criminal. You can keep them, as long as you were careful enough to hide your purchases, and as long as they aren't found in mandatory random searches of dwellings, and as long as your local MS-13 gang doesn't suspect a thing (they are good with torture tools.) Otherwise welcome to the federal prison.
But, you say, this won't happen (never mind that it had happened already in this country, and not too long ago.) Keep saying that; perhaps you are right. But one day, when you need to buy food, take your gold coin and try to buy something with it. (See above, where you tried to sell paper gold.) Need food? Great; how much gold you got? The price is all the gold that you have. The price is not to your liking? Fine, in a week it will be triple of that. Food is necessary, gold is not (try to chew on it.)
In other words, there is hardly any scenario where a citizen can steer through the economic collapse unscathed. Your best scenario would be to live in a cabin in the woods, have no links with the civilization and have a good supply of ammo. Then you will be OK. But such areas are available, in good numbers, only in Northern Canada.
Why is this so? Because you cannot win a card game against a cheater. All governments have control over laws, and they pick and choose what they want to do to you. You, as a subject of an oppressive state, have no control. The only way to not lose is not to play.
The banks made a bad investment with corrupt socialists. They should eat their own losses and socialism and globalism should die because it is a failed and courrpt social and economic ideology.
They can’t take all the property of those without power to pay those who are corrupt and make and receive bad loans.
Iceland! Pay off the bonds to foreign nations and arrest the corrupt banksters who have wrecked the joint with bad loans and corrupt “investment products.” The “bail out” was so wrong headed in hind sight. The shake down will never stop.
Good post.
And consequently, one world religion. Which is it going to be? Something humane, or something brutal?
The banks are bankrupt. They don’t have the money the depositors put in. IN the olden days, that would mean a run on these banks, and then most depositors would get 0% of their money; 100% of it would be gone.
Cyprus knows their banks are dead. But, Europe has offered to bail them out. But Europe doesn’t want to bear 100% of the costs. So, they have said that they will pay out 94% of the small depositors, and about 90% of the big depositors.
Is that “government theft”? Only if you really believe that the banks DO have the money, and that they are lying just to take the money.
Otherwise, it’s a payoff. The real problem is this — supposedly they have deposit insurance up to a certain amount. That is supposed to be guaranteed by their government. the people losing 10% have money above the insurance limit — so they are essentially getting what they would expect to have happen if the banks went bad. In fact, they are making out a lot better.
But those getting 6.7% taken — they are being shafted, because they were told their deposits were insured by the government.
So the bad thing here isn’t really that the depositors are losing money — that is the result of putting money into banks that made bad loans and are bankrupt. (BTW, those depositors have been earning 7% interest a year. So, if they had money in for more than a year, they will end up with MORE money then we do in our banks paying 0.01% interest).
The bad thing is that the bailout folks decided to reward the rich, the people with more than is insured, by taking money from those who were not insured.
On the other hand, their money will now be fully guaranteed, less the 6.7%. If they had known for an absolute fact that their money would be safe ONE YEAR AGO, they would NEVER have earned 7% interest on a bank account. That was the sign that there was risk, and that was what the banks were paying to cover that risk. To complain now that the risk has been realized is a bit of sour grapes.
Would any of you put your money in a Cypress bank paying 7%? Or would you have realized that 7% was living on borrowed time?
I think it’s all one big shell game.
I think there’s not enough money to pay for everything and it’s all being moved around to pay just what’s needed to pay at the moment.
Anyone with me??
In the Middle Ages, when nobility had a desperate need of cash they could sell rights and freedoms to cities and communities. I don't know how this might work in modern circumstances.
As far as the Cypriots themselves, they could return the favor of a bank holiday with a general strike/economic holiday. How would the government enjoy functioning after losing three days of economic activity? Limit trade to barter and essentials. This is a very unpleasant option, to say the least.
Excellent post.
The only way to not lose is to not play.
Dow futures down -135 points at this time. Nikkei down 1.8% — Interesting...
We are entering the transverse distribution phase of this SHTF event.
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