Posted on 03/16/2013 9:51:45 PM PDT by dennisw
You can be forgiven for thinking that you don't need to give a hoot about what's going on in Cyprus this weekend.
After all, it's just a little island somewhere in the Mediterranean.
But what's going on in Cyprus could actually matter--not just to the rest of Europe, but to the rest of the world.
Here's the short version of what's happening:
Cyprus's banks, like many banks in Europe, are bankrupt.
Cyprus went to the Eurozone to get a bailout, the same way Ireland, Greece, and other European countries have.
The Eurozone powers-that-be gave Cyprus a bailout--but with a startling condition that has never before been imposed on any major banking system since the start of the global financial crisis in 2008.
The Eurozone powers-that-be (mainly, Germany) insisted that the depositors in Cyprus's banks pay part of the tab.
Not the bondholders.
The depositors. The folks who had their money in the banks for safe-keeping.
When Cyprus's banks reopen on Tuesday morning, every depositor will have some of his or her money seized. Accounts under 100,000 euros will have 6.75% of the funds seized. Accounts over 100,000 euros will have 9.9% seized. And then the Eurozone's emergency lending facility and the International Monetary Fund will inject 10 billion euros into the banks to allow them to keep operating.
(Excerpt) Read more at businessinsider.com ...
My theory is our leaders have been conditioning the People for unconstitutional and illegal activities throughout the three branches of the government to gage our reaction over the time since President Reagan. President Reagan was "the bump in the road" for the socialists, communists, and fascists. After President Reagan it was back to business as usual. They (our elected and unelected bureaucrats) have believed over the course of time their unconstitutional and illegal activities were thrust in the Peoples faces that the People would be helpless to stop them even if gun rights and the 2nd Amendment could not be repealed. Thus far our elected and unelected bureaucrats have been correct. Their plans may not even involve taking our firearms. Plan A, Plan B, and Plan C along with a host of contingency plans are available to our elected and unelected. The elected and unelected bureaucrats are coming (no doubt). It is simply a question of when their end game will be attained.
The bondholders were largely Germans, and Germany controls he Eurozone.
Soros is laughing.
Wait until this little problem comes to a Bank of America near you soon.
***a “one-time tax”.****
Rudyard Kipling
Dane-Geld
A.D. 980-1016
It is always a temptation to an armed and agile nation
To call upon a neighbour and to say: —
“We invaded you last night—we are quite prepared to fight,
Unless you pay us cash to go away.”
And that is called asking for Dane-geld,
And the people who ask it explain
That you’ve only to pay ‘em the Dane-geld
And then you’ll get rid of the Dane!
It is always a temptation for a rich and lazy nation,
To puff and look important and to say: —
“Though we know we should defeat you, we have not the time to meet you.
We will therefore pay you cash to go away.”
And that is called paying the Dane-geld;
But we’ve proved it again and again,
That if once you have paid him the Dane-geld
You never get rid of the Dane.
It is wrong to put temptation in the path of any nation,
For fear they should succumb and go astray;
So when you are requested to pay up or be molested,
You will find it better policy to say: —
“We never pay any-one Dane-geld,
No matter how trifling the cost;
For the end of that game is oppression and shame,
And the nation that pays it is lost!”
-Rudyard Kipling
Of course. Especially since the government considers tax-deferred accounts their property until the taxes are paid in full. Why shouldn't that money be redistributed to meet desperate human needs like an Obamaphone? /s
That’s why I keep what I have left in the form of steel, wood, plastic, springs, firing pins, er, I mean, nails, hammers, copper, lead.
With all of my money in a bank, 401k and a trading account, I don’t feel so good. I feel like a turkey and Thanksgiving is around the corner.
“Those who warned me to convert my money into gold, go get yourselves some crepes.”
https://www.youtube.com/watch?v=K5R2JyU_MKg
Damn... I really was planing to buy SDS on Friday, to play the coming S&P correction. Maybe, there will be a short delay?
And those who have gold stored in bank safety deposit boxes need to consider alternate storage plans.
This isn’t a tax on the rich. Not really. The wealthy do not have most of their funds sitting around in a bank account. This is a tax on the middle class and upper working classes, imo.
Looks like Japan is down 200 shortly after the open.
The bears’ll be going for a ride now...
I was just thinking that many here are worried about Jack booted thugs showing up for their AR15’s, but they might just pick up your gold bars while they are at it. Why do they need mine resistant armored vehicles to serve warrants? They need double granny under drive to haul tons of gold away from people’s homes with all their bullets. Lead and gold don’t ya know.
It has been discussed, in the past, to “convert” IRA’s and 401K’s to gubmint accounts. You know,....just to keep them safe.
Cypress is a member of the European Union.
If the EU allows this to stand, the taint must spread to all member states!
Of course, the development I advocate is a recipe for a world-wide Depression. But so what? Bring it on!
The EU is conducting an experiment and they have chosen to do so on a very small country.
Also, what is the difference between confiscation of 10% of your bank accounts and 10% inflation or currency devaluation (give or take a point or two of math)?
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