Skip to comments.Sowell: Can It Happen Here?
Posted on 03/25/2013 1:19:16 PM PDT by jazusamo
The decision of the government in Cyprus to simply take money out of people's bank accounts there sent shock waves around the world. People far removed from that small island nation had to wonder: "Can this happen here?"
The economic repercussions of having people feel that their money is not safe in banks can be catastrophic. Banks are not just warehouses where money can be stored. They are crucial institutions for gathering individually modest amounts of money from millions of people and transferring that money to strangers whom those people would not directly entrust it to.
Multi-billion dollar corporations, whose economies of scale can bring down the prices of goods and services thereby raising our standard of living are seldom financed by a few billionaires.
Far more often they are financed by millions of people, who have neither the specific knowledge nor the economic expertise to risk their savings by investing directly in those enterprises. Banks are crucial intermediaries, which provide the financial expertise without which these transfers of money are too risky.
There are poor nations with rich natural resources, which are not developed because they lack either the sophisticated financial institutions necessary to make these key transfers of money or because their legal or political systems are too unreliable for people to put their money into these financial intermediaries.
Whether in Cyprus or in other countries, politicians tend to think in short run terms, if only because elections are held in the short run. Therefore, there is always a temptation to do reckless and short-sighted things to get over some current problem, even if that creates far worse problems in the long run.
(Excerpt) Read more at creators.com ...
Before gun confiscation? Not likely this overtly. They’ll just steal our money in ways that are not as overtly theft.
After gun confiscation - all bets are off.
They could just come TAKE all your stuff and shoot you in the head.
Cyprus had no deposit insurance. This was a fee to bail them out.
Still, it is an interesting power play. I still think it has more to do with Russia than Cyprus.
I believe so much of the country is so soft and so dependent, it can easily happen at least once.
I don’t know. We mandate people to have health insurance. Well, it’s not really insurance any longer; it’s a collective pool.
Anything can happen here.
What’s the difference from the government forcing us to buy expensive health insurance?
They just borrow and print more “money”, thereby devaluing the face value of fiat currency.
That is theft.
There is no reason why a loaf of bread or a galon of gas should cost more than 30 cents, unless the government has engaged in inflationary practices. (It should cost less with improvement in production and delivery of goods.)
Another great Sowell column.
Amen...He explains a lot in just a few words.
“Can” it happen here?
It already has.
Look at the GM “bankruptcy”. Senior bondholders lost their shirts, UAW made out like bandits (because they are). Standard application of bankruptcy law would have made it the other way around.
Jon Corzine stole 1.6 gigabucks. There’s no evidence anyone in “law enforcement” ever asked him where it went.
Has happened here. They’ve even seized real property like gold.
Nothing you can do to stop them either.
I plan on making someone bleed for it if they do it again though. Actions have to have consequences.
Sounds like an excellent reason to not just give up the guns quietly...
Ask people who lived throught the Great Depression when the banks closed and they lost everything. Many banks never re-opened.
Yeah, if they’re going to steal from us, make them do it in a sneaky way.
John Maynard Keynes quote:
Lenin is said to have declared that the best way to destroy the Capitalistic System was to debauch the currency. . . Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million can diagnose.
Been to the gas station lately?
Agreed. Kinda hard to whip up a lynch mob over debasing currency.
Much easier to do when 20-30% goes missing from your accounts in one shot.
There is a term for people who remove money out of people’s accounts without permission. They are called BANK ROBBERS.
WWBD? Cyprus is easily something Barrack would do.
However, he’d do it much better. For the children, old persons, disenfranchised etc. He’d do it to protect the investors, etc.
That’s why inflation is a politician’s favorite tax.
(9 out of 10 sheeple will blame the gas station/oil company for the higher cost)
Not a lot of difference - maybe none...
There’s a joke going around South Cyprus right now.
A man walks into a bank in Nicosia.
A bank teller pulls out a pistol and says, “Hand’s up! This is a robbery!!”
They can pretty much do that now, as long as they don't do it too often.
politicians tend to think in short run terms, if only because elections are held in the short run. Therefore, there is always a temptation to do reckless and short-sighted things to get over some current problem, even if that creates far worse problems in the long run.
This shoulc be carved in stone some where.
If only the first black President were in Thomas Sowell’s league. *Sigh*
They got the idea from the Banksters. Basically, when one of the member farms was up for foreclosure, they would turn out a crowd of people to bid on everything up for sale and basically buy everything back for pennies on the dollar and return it to the farmer. The debt and foreclosure thus discharged, the banks had no further recourse.
I asked him what happened when outsiders came to the auction to scoop up bargains. He told me they would take them quietly to the barn or other outbuilding where a noose was dangling from the rafters or, sometimes, a freshly butchered hog was hanging on a meat hook. They were then asked if they really felt it was a good idea to bid with all the Holiday Association members there. Most of the time, they took the hint and left. If they stayed, it was to observe and not to bid.
It Can't Happen Here......but it can................
IF THEY TAKE MONEY OUT OF OUR ACCOUNTS LIKE THIS IT’S TO THE STREETS!!
I see that joke morphing into “In Cyprus the bank robs you!”
In fact, the US government has already reneged on their currency several times.
1913 - creation of Federal Reserve with authority to issue fiat currency at will
1932 - gold confiscation and end of gold backing of the dollar for US persons despite explicit promises on printed on the currency itself
1965 - end of silver backing for dollar despite explicit promises printed on currency itself
1971 - end of the pretense of gold backing in international trade
2008 - TARP, QE1, QE2, QEternity
The fact is that a sound currency is not attractive to government.
Cyprus did have deposit insurance, though in fact “deposit insurance” - whether offered by the US or the Cypriot government - is a fraud.
Like Sowell says, the the FDIC and depositors can pressure Congress to pressure the Fed to print more dollars. The quantity of dollars that the Fed can issue is limited only by the number supply. Certainly the US Fed can do better than Zimbabwe.
“There is a term for people who remove money out of peoples accounts without permission. They are called BANK ROBBERS.”
There’s also a term for people who issue fake money. They are called COUNTERFEITERS.
That's my distinct impression as well. It almost seems like these "too clever by half" b@$t@rds think they can steal money from the Russians who have flocked to deposit their money into Cypriot banks to avoid taxes in Russia, only to find that they were subject to thievery by off shore banks as well.
IMHO - nobody in their right mind would try to wholesale steal from the Russians, especially with an American government in place run by liberals who treat world disorder like my drunken brother in law constantly threatening his unruly children from the safety of his couch. The Russians may just decide that they're going to get their money back by taking over a nice little Mediterranean island.
I’m sure it can and will. Obama is just waiting to see if that tact will be successful in Cyprus. Why do you think Homeland Security is ordering up all that extra ammo? It’s certainly not to protect our borders.
Even with their bad aim, I would probably need some time to recover from the previous head wound.
Years ago I worked with a woman whose parents had a narrow squeak with that. She heard her parents discussing whether they should buy a car that weekend or wait until the following week. The father decided to buy the car that Friday, withdrew their entire savings, $600, and bought the car. The following Monday Roosevelt closed the banks and the other savers lost all their money.
Sorry, that is wrong.
Cyprus has deposit insurance up to 100,000.00. SOURCE
This solution was theft.
Theft of what government could steal, then they will let the banks default. Depositors will lose every penny over that 100k.
They were plotting to steal some of the insured money too, but we will need to see how that plays out.
Socialism Is Legal Plunder - The Law; Frederic Bastiat 1801-1850
Cyprus writ large...
DEPOPULATE socialists from the body politic. ELIMINATE the FED. DEFUSE the debacle.
live - free - republic
They already are, but in the USA, they have a better, time proven method.
Inflation. In this case, it may develop into hyperinflation.
In Cyprus, they will steal the actual banknotes from depositors. They will let you keep the banknotes in the USA, but are stealing the value instead. Same thing really... you will be left with just the 'wrappers' for your money.
Just like in 1965 when they took 50% of the silver out of the coinage and in 1969 when they took the rest of the silver out... you are left with the 'bottle' that the silver once came in.
Your currency is now just the wrapper that once contained money.
In Cyprus, they took away your money - but at least it was honest.
In the USA, you will still have the banknotes, but they will be worth about the same as what a Cypriot has when this is finally over.
That is the road we are being led down.
they had deposit insurance up to 100euros. At first they were going to break the insurance and take everybody’s money but decided to just take some of those over 100euros. I sa an interview with person there that said it was no big deal as they were under the limit. Fools!
It happens in kali-fornia. Check out this idiot business man, who twice voted for obozo, and is complaining about retro-active taxes:
Ouch! The truth hurts. It’s happening here already. I’ve finally made the connection, thanks to Dr. Sowell, between inflation and the way the government takes our wealth by making our money worth less, soon to be worthless.
[shivers] Bryan and I worked our tails off for the past 40+ years to have what we have now. We have never taken a penny from anyone. We worked and earned and paid for everything that we have by the sweat of our brows. To think that this rapacious government might just raid our accounts is a disgusting travesty, and it is not to be tolerated.
May God help us all.
Sad but true my friend.
For all of us that have worked all our lives for what we have for our retirement these shenanigans hurt us the most. We don’t have the time nor youth nor means to overcome runaway inflation.
Plotters like the turkey in the WH full well understand this but could care less, in fact he cares not for anyone but himself.
Amen, brother. And we who have listened to him from the beginning know full well what he has been plotting (or carrying out the plots of others) since he burst upon the political scene.
Wish we really could go Galt.
Not caring about others is one mark of the extreme, sociopathic narcissist.
Indeed. In the 1970's I hated Jimmy Carter and runaway inflation. Know the difference between Carter and Obama? I was getting from 5 to 8 percent interest on my bank deposits and CDs. Under Obama, we get 0 percent interest on our money, and still have inflation. Obama is worse.
“After gun confiscation - all bets are off.”