Skip to comments.Cyprus now looks to take 25 percent from bank accounts of wealthy...(Obama must be drooling)
Posted on 03/24/2013 8:45:12 AM PDT by Dallas59
NICOSIA -- Cyprus said on Saturday it was looking at seizing a quarter of the value of big deposits at its largest bank as it races to raise the funds for a bailout from the European Union and to avert financial collapse.
Finance Minister Michael Sarris said "significant progress" had been made in talks in Nicosia with officials from the European Union, European Central Bank and International Monetary Fund.
He confirmed discussions were centered on a possible levy of around 25 percent on holdings of over 100,000 euros (about $130,000) at Bank of Cyprus, and expressed hope that a package could be ready by the end of the day for approval by parliament.
(Excerpt) Read more at worldnews.nbcnews.com ...
The Russian mob is going to start killing Crypus govt officials...and Obama will send in US troops for the sake of civility...while taking notes to do the same in the US!
This is what happens when a society doesn’t have the will to cut spending. When there’s no more money to tax, the government simply takes it. This will end up happening in every Welfare State — including the United States — that has lost the will to control spending and the size of government.
Coming a to a bank account / 401k near you!
The Age Of Austerity is here and the big political parties in this country will wheel and deal higher taxes and “cuts” in spending on us.
Neither big party will commit themselves to the balanced budget because they’re afraid of losing elections by really cutting spending.
The disaster comes regardless of how much wealth is taxed or seized in the years to come because the political leaders refuse to cut spending to the level where the budget will be in balance.
Cyprus ends up being a special case. No one in the government questioned the arrival of the Russians....the lack of taxation on anything they made profit off...or the fantastic amount of money they dumped onto the banks, with no one in the government or the public questioning the wise or unwise investments.
Russians literally flew in and deposited billions onto an island country with barely one million residents. The bank managers literally threw the money into the wind....never having anyone question them.
If you check around....by summer of 2012...almost everyone agreed the whole banking sector was now screwed up. The EU as of last summer, already knew how bad this was, and it was a simple process to blame massive Russian investments. This took less than ten years. If you go back to prior 2000 and the arrival of the Russians and the Euro...they were doing ok. You could probably write a 500-page book on stupid investing and how the Russians disregarded every rule in the book (dump the money and expect results).
As for a comparison? It’d be closer to compare the Cyprus event to 1929 crash...which the banking sector dumped headfirst into Wall Street investments and dragged all of their customer’s money (sitting in plain checking and savings accounts) with them. Cyprus has done the same thing. The EU has a point here....they will only guarantee the accounts of 100k Euro or less, that’s the general rule. That was the insurance rule to protect everyone in the first place. The rest of them? Tough luck. Unwise investments by the banking sector got them into that situation.
Exactly. If you have saved for retirement instead of blowing your paycheck each week, you will be one of the greedy rich who isn’t paying his fair share.
130K is "wealthy"?
That said, any such confiscation is Marxist.
The Greek government isn't backing the 25% interest rate gains the depositors earned is what I also read elsewhere.
I don't know everything about this, but there is more to this it appears than just taking some savings by vote.
Seems they are getting back the interest and leaving the principle with the depositor. Yet again, if I got 25% interest I'd be pissed as well to see it taken back.
This is how it will be twisted in few years. “We can’t fix our economy...but you can!” “Avoid penalties on your money accounts! Donate them to the Government!”.
You can bet he is having nocturnal sweats just dreaming about it!
What is keeping these "wealthy" folks from pulling out their money before it is confiscated?
Look at the USA:
Government debt: $20Trillion
Gov't Spending: $3.75 Trillion
IRS Revenue: $2.5 Trillion
You know where this is headed...
IRS Revenue: $2.5 Trillion
Entitlement spending $2.6 Trillion
Interest on debt: $2.6 Trillion
When you count off-balance-sheet debt, the US has some $65Trillion to never ever pay off ever...
I think I’ll be rooting for the mob.
When bank accounts are seized, it is an assault the rich, and on savings and increases the insecurity of savings.This is an assault on the process of capital accumulation and the process of production.Individuals with surplus funds will have more incentive to hold their funds in hoards of money or accumulations of consumers' goods and less incentive to invest. This will result in less demand for capital goods or less demand for labor.
Less demand for capital goods leads to less production of capital goods and less capital accumulation. This will lead to economic stagnation and lower productivity of labor, which leads to lower real wages and lower standard of living for the average wage earner.
Lower demand for labor leads to lower money wage rates fir the average worker.
This is the future of America if the libtards can achieve their goals
I would laugh....but this is true reading in about 10 years.
Cyprus is now eating its seed corn.
Another excuse to expand government, in the name of the people, of course. As small governments centralize, they are gobbled up by larger centralized economic systems. The authoritarians realize that the only way to make the fiat currency game work is one world government.
Hopefully, we will see a break up of the EU with competing currencies.
what you “heard” appears to be wrong
check the facts for yourself
whole lot of “blame the victim” going on and not much sympathy for seizing the deposit bank accounts of “the rich”
Time for “the rich” to get mad AND get even, imho
” Itd be closer to compare the Cyprus event to 1929 crash...which the banking sector dumped headfirst into Wall Street investments and dragged all of their customers money (sitting in plain checking and savings accounts) with them”
Actually, this scenario is being replayed right now in the U.S. stock market. The Fed is giving their banks pretty much all the extra spinning ones and zeros they want for practically zero interest rate, those banks in turn won’t lend those spinning ones and zeros to legitimate borrowers (too much risk), but instead make 30-day loans for a tiny markup above zero interest rate to Wall Street “investment” houses, and they in turn pump it into the U.S. stock market.
Too many spinning ones and zeros sloshing around looking for too few legitimate investments.
At this point, it seems to me that,
U.S. Fed banks + U.S. Stock Market = Russian “investors” + Cypriot banks.
The one difference I see....at the moment of ‘Black Thursday’...when the Wall Street collapse occurred in 1929....there were these unknown folks who turned on a dime and sold off in massive quantities. To this day....no one in the gov’t or media will ever say who these individuals were and where their profits went in such a hurry. Note, there was an eleven percent sell-off in a matter of minutes that morning.
I don’t see that type of situation with the Cypriot banks. Their investment activity just went down a black hole...day after day, and no one in the Cyprus gov’t, the public sector, or the banks ever acted as it was a big deal....until summer of 2012.
ALL the world is watching Cypress. The politicians in every country are plotting and scheming based on what happens there, no doubt. The Socialist see a way of keeping their government(power) for just a while longer. The die-hard Marxist are salivating because they see a way of taking as much wealth from the people with impunity, for the greater good dontyaknow. See tagline
It’s my opinion that pretty much anybody keeping significant amounts of money in U.S. financial institutions these days is behaving foolishly. Interest bearing instruments (esp. bank accounts, CDs and money market funds) pay essentially zero interest rates right now. So, basically, depositors bear a non-zero risk of not getting their money back when they want it in return for essentially zero reward. People would be much better off putting their money in their mattresses. Much safer. And about as productive.
Even better, if ALL conservatives would withdraw their savings from the system, the system would collapse. That would be the modern way of “Going Galt”: don’t remove yourself physically from the system, just remove your money!
No need to uproot and move to a mythical valley in Colorado. Simply starve the Obammunist/fascist/socialist beast by having all the producers withdraw their capital from the system all at once. THEN the socialistic, moocheristic morons would understand the value of capital: when there wasn’t any of it anymore.
Oh sure, Big Ben would conjure even more fiat spinning ones and zeros to “replace” the withdrawn capital, but it wouldn’t be REAL capital. And yes, that would produce inflation (actually just accelerate it), but inflation would destroy the beast too, and the Galters could protect their withdrawn assets from Big Benism by buying hard assets like farm land, farm equipment, water rights (in the West), rental housing, and selected companies that make essential products.
In fact, I would love to see the Galters band together, and form an offshore investment corporation, The Galt Corporation, that purchases essential U.S. industries lock, stock and barrel. No need to uproot the industries and move them to Galt’s Gulch; just buy them and take them private.
And when I say essential, I mean industries that produce stuff people HAVE TO HAVE: food, water, electricity, guns/ammo, and medicine. Buy all the firearms and ammunition makers to start with. Buy the fertilizer makers next. Then buy the farm-equipment makers. Then the food companies. And finally the medical makers, which you immediately physically move offshore as a separate, non-U.S. corporation to remove them from the tribulation of fascist regulation. Totally inflation proof, all of ‘em. Removed from fascist control as far as possible. And people have to have the stuff they make. You do not need to control the means of production. You merely need to control the means to produce food, medicine, guns and ammunition.
And, if there is excess capital after The Galt Corporation owns all of that, pay cash dividends that people can stockpile in their mattresses.
PS: Was in Greece about a half year ago. The people there say their problems stem from so many on what we call welfare and even worse all the people uneeded on government employment. They have 900% too many like us.
One person told me the Greece government employees are like sperm; a million go in, but only one does the job.
Also, in the mountains where people retire, most all the places are closed down except the ones who have government jobs. So I can see where those on the dole and the government employees would try and confiscate private wealth to maintain government handouts and employment. FEAR IT HAPPENS HERE MORE. We already have new taxes and wealth confiscation through Obama-care.
Didn’t South Africa try something like this? Took land and money from producers and gave it to non-producers? That worked, right?
Kidding - Stealing from your citizens is an early choice of tyrants... they love that kind of stuff. ‘Nationalized’ the property of others - works every time.../s
Well, we could
grow our economy INFLATE OUR CURRENCY to a point that would make $20 million a insignificant number, where ever that point is. Everyone would have two jobs and all of our kids would be working too.
That is what has been set into motion. A loaf of bread will soon cost a million at the rate they are going...