Posted on 03/16/2013 9:47:25 PM PDT by Para-Ord.45
Shocking!
It is difficult to describe the weekend bailout package to Cyprus in any other way. The confiscation of 6.75 percent of small depositors' money and 9.9 percent of big depositors' funds is without precedence that I can think of in a supposedly civilised and democratic society. But maybe the European Union (EU) is no longer a civilised democracy?
The consequences are unpredictable, but we are clearly looking at a significant paradigm shift.
This is a breach of fundamental property rights, dictated to a small country by foreign powers and it must make every bank depositor in Europe shiver.
if you can do this once, you can do it again. if you can confiscate 10 percent of a bank customer's money, you can confiscate 25, 50 or even 100 percent. I now believe we will see worse as the panic increases, with politicians desperately trying to keep the EUR alive.
This is a major, MAJOR game changer and the fallout will be with us for a long time to come.
This is full-blown socialism and I still cannot believe this really happened.
(excerpted)
Another Cyprus story.
Test run for a 6 to 10% tax on any asset you have in a bank or 401k?
http://www.docstoc.com/docs/97122913/BCG_Back_to_Mesopotamia_Sep_11[2]
The word is THEFT. Socialism is institutionalized theft.
They are the rich that need to be taxed, since they are not the poor who live paycheck to paycheck.
This will surely discourage traditional savings for a rainy day or saving for retirement.
People will in the future hold gold, diamonds, or other hard assets that the government will not be able to track.
Personally, I think I will invest in firearms as I see a booming market in that hard asset.
The money seized will have no real effect as everyone with a brain in the EU will start withdrawing their cash and keeping it at home. The other banks will lose far more than is confiscated here, and some will have to be bailed out that would not have had to be otherwise.
In 2008 individual retirement accounts were seized by the Argentine government during its default crisis. I think this money was eventually paid back.
Pulling all my money out of the bank would be first on my list next week.
Might want to take a minute to read this:
Jim Sinclair told King World Newswe have just witnessed one of the most important events in history and it will have a major impact on the gold market. Sinclair, who’s 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. That’s 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....
“What’s 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. Who’s money do you think they have taken? This is the biggest mistake the IMF could possibly have ever made.”
Eric King: “Jim, it’s unimaginable to me, but, incredibly, just ten days ago you warned that you don’t 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.
It’s 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.”
Apparently, the Cyprus government hasn’t even signed the law that this was done under; they just came in and retroactively (back to Friday, so pulling money out now makes no difference) chewed out their “contribution” with no cover of law. So now, not only has precedent been set for any dubious bank/economy in the EU, and raised questions in every banking customer’s mind, they have given yet another genuine example of how the law doesn’t matter anymore.
You realize your second sentence proves the first one wrong? Mass withdrawals will crush the banks who don’t have the funds to actually pay off depositors? I think we and probably Canada see a bunch of that withdrawn cash.
Do you seriously believe the Russians left their money in Cyprus after the first whiff of trouble?
This is very scary!
This is a breach of fundamental property rights, dictated to a small country by foreign powers and it must make every bank depositor in Europe shiver. if...
.........................................................
Europeans aint the only ones shivering Hoss.
“Do you seriously believe the Russians left their money in Cyprus after the first whiff of trouble?”
Do you? Evidently not! I was simply contributing some information that I saw. The commenter seems to feel that the Russians have lost substantial funds. I guess time will tell won’t it. My bigger concern is the idea that your money in a bank isn’t safe from appropriation by a “needy” government, what this move will do to other countries in Europe and how it may “embolden” those in the RAT party who want to “confiscate” your retirement savings so they can piss it away on the bums in this country just like they have already done with Social Security.
Interesting.
And so it begins. These idiots have no idea what they’re doing. If its true that this is Russian mob money a whole lot of EU bureaucrats just signed their own death warrants.
Socialism Is Legal Plunder - “The Law”; Frederic Bastiat 1801-1850
http://bastiat.org/en/the_law.html
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.