The modern banking model no longer can sell interest for your money, so it offers those other services.
The banks are fractional reserve banks, so the money isn't even there. It's been loaned out 10:1.
How can the government confiscate 60% of something for which there is only 10% at best?
Good question. Anyone?
If you were to deposit $100,000 in a bank, it's not as if the bank is going to take your money and keep a pile of $100,000 in $100, $50 and $20 bills in a vault somewhere. The bank uses the money to conduct its core business function: they lend it to others at a higher rate of interest than you are getting.
I don't know all the facts surrounding the Cyprus banking disaster, but it sounds as if the government-owned bank in Cyprus took the money from depositors and made a lot of loans that went into default and therefore ended up being worthless.
When we used a gold or silver standard, they could confiscate the property and one could redeem the script for gold/silver.
Any physical standard was removed in favor of fiat dollars based on...credit. An example we all recognize, “based on the GOOD faith and CREDIT of the United States.”
What does that mean? Those dollars/euros etc. should represent what? Recently I walked into a car dealership and walked out the same day with a new used car, based on a credit score and my signature. I didn’t even need to produce any proof of income! Why? Good faith and credit.
But what did I really do? I enslaved myself. So if that is a truism, then your question, “ How can the government confiscate 60% of something for which there is only 10% at best?” Is only answerable by one thing...the Cypriot has been sold into slavery to the EU.
When we say that every man, woman, and child owes our own government $xx,xxx.00 we are enslaved. But this didn’t happen by accident. And as upsetting as watching events in Cyprus are we were sold the same bill of credit in 1933.
... Like any other debtor, the federal United States government had to assign collateral and security to their creditors as a condition of the loan. Since the federal United States didn’t have any assets, they assigned the private property of their “economic slaves”, the U.S.
citizens as collateral against the unpayable federal debt.
- See more at: http://www.henrymakow.com/us-citizens-property-collatera.html#sthash.r1FNhLL8.dpuf
All we are truly witnessing is the result of government’s claiming what has been loaned through slavery. Is the average citizen to blame or have the masses been tricked & deceived. That “60% of something,” is your life, your work, your productivity and that of your children. It is that promise that somewhere out there the men who produce work...produce it. But no matter how hard you work, anywhere in this world today, you cannot buy your freedom with the useless dollars in your wallet.
The day of Americans or anyone creating their ‘wealth’ is gone. Anything new created is already enslaved to the government. They looted that property from you long before you were ever born or your work and ideas ever even dawned in your mind. It already belonged to someone or something else. And this is true the world over for the Cypriot is not seeing anything new in these actions, he is just realizing how much of a slave he is in the world.
“60% of something” loaned out on a 10:1 scale...how enslaved are they really...how enslaved are we?