Cypriot lawmakers on “one-time” bank deposit levy: Yeah, we’re not doing that

posted at 9:31 pm on March 19, 2013 by Erika Johnsen

I cannot even begin to fathom what it was that was going through these oh-so-august European finance ministers’ minds when they thought this insidious little scheme up, unless it was deepening Europe’s debt and economic crises with a vengeance — but Cyprus issued a resounding “no” on this particular bailout package on Tuesday. Via Bloomberg:

Cyprus’s parliament rejected an unprecedented levy on bank deposits, dealing a blow to European plans to force depositors to shoulder part of the country’s rescue in a standoff that risks renewed tumult in the euro area.

Protestors cheered outside the parliament in the Cypriot capital, Nicosia, as lawmakers voted 36 against to none in favor of the proposal. There were 19 abstentions. Hammered out by euro-area finance chiefs last weekend, the deal sought to raise 5.8 billion euros ($7.5 billion) by drawing funds from Cyprus bank accounts in return for 10 billion euros in external aid.

“This is not a good result, neither for Cyprus nor for the eurozone, and we have to look together for alternatives to the negotiated package,” Luxembourg Finance Minister Luc Frieden said in a phone interview. Another meeting of the 17 euro-area finance chiefs is needed to discuss “next steps” with Cyprus’s government. “What matters now is to undertake all necessary measures to ensure the stability of the eurozone,” he said.

Phew — for now, at least, although I think the incredulity that this was even a serious proposal will rightfully linger. It really doesn’t matter that Cyprus is a tiny island nation with only a million people and less than one percent of Europe’s GDP, nor that the bailout was a relatively tiny one — as Robert Tracinski explains, that is not what this is about at all.

This is described as a “wealth tax,” except that it’s not a tax. A tax is a regular rule that operates uniformly according to a pre-determine formula. A one-time, ad hoc seizure of money isn’t a tax. It is confiscation. Or we can use a plainer word for it: theft. …

But in showing us what they’ll do to an unsympathetic target, Europe’s leaders are showing us what they would like to do everywhere: dig themselves and the crony banks out of a tight spot through the mass confiscation of wealth. It’s the ultimate bailout plan: they just take whatever they need.

And there is more to it than that. This is confiscation, but it a particular kind of confiscation with particular implications. It is the end of deposit insurance. Depositors, particularly small depositors, are supposed to have an ironclad guarantee that their money will always be there, no matter what—that they won’t wake up one Monday morning to find that 6.75% of it is gone.

Meanwhile, back in the United States, the ruling party of our elected leaders is tiptoeing through the tulips, pretending that our mounting debt isn’t really a big problem with which we should be immediately concerned. Exit question (trademark, Allahpundit) from Charles Krauthammer: Enough with the “the U.S. is in danger of becoming like Greece;” time for “the U.S. is in danger of becoming like Cyprus”?

CHARLES KRAUTHAMMER: I think we do have to revise our doomsday pronouncements. We had been saying up to now America’s headed the way of Greece, I would say it’s headed the way of Cyprus, because if you start to confiscate people’s money retroactively you got a real problem on your hands.

And I guess, I think if you put it to a vote for the people of that state, you’d get the same result that you got today in Cyprus in the parliament where nobody, not a single member of the parliament supported an agreement that the government itself had proposed. The government party, not one of them voted yes. It abstained entirely on a proposal that it had agreed to. So that tells you how unpopular it is.


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Plus, Krauthammer: The United States is “headed the way of Cyprus Argentina.”

FIFY

Lanceman on March 19, 2013 at 9:36 PM

Obama taking copious notes.

VorDaj on March 19, 2013 at 9:36 PM

Clinton proposed a wealth tax. Anyone else remember that?

pat on March 19, 2013 at 9:37 PM

As Americans age, imagine how tempting all that 401-(k) money just sitting in retirement account will become to lawmakers. Why, those selfish old people *hoarded* money for themselves! How selfish. Etc.

DarthBrooks on March 19, 2013 at 9:38 PM

Had lunch with a couple of liberal business associates of mine today. Great lunch , shrimp fajitas, yum! Anyway this exact topic came up, they were both incensed. When I remoinded them it could happen here. Crickets. Good lunch!; )

Bmore on March 19, 2013 at 9:39 PM

remoinded=reminded

Bmore on March 19, 2013 at 9:39 PM

I think they were going after the Russians. Hearing the Russians squeal about the sanctity of private property was music to my ears.

unclesmrgol on March 19, 2013 at 9:39 PM

Or should that have read livid? No matter, still a great lunch. ; )

Bmore on March 19, 2013 at 9:40 PM

Sooooooooo, STEALING money from peoples bank accounts not gonna work eh?

How dare these financial chiefs even think such an abomination.

Confiscators I spit on thee…

*spit*

I have heard for many months now rumours that the govt would LUV to access 401ks and savings accounts for a similar scheme… I sure hope it is just a rumour…

Scrumpy on March 19, 2013 at 9:42 PM

It is great to see how effective citizens can be when they are INFORMED and their elected leaders know they are ANGRY!

Congratulations to the citizens of Cyprus on their victory in this round!

This victory should inspire voters throughout the world.

wren on March 19, 2013 at 9:44 PM

The Cypriot parliament members I’m sure were fearful for their lives. I read somewhere yesterday that the Russian mob is not something to toy with. Not to mention the citizens themselves. They’d be out for blood, and not in the figurative sense. The real question is what will Germany do now. Merkel is up for reelection this fall and I’m sure she’s loathe to go in front of the people and pull a “please sir more” routine. The real story will be written when banks open (supposedly) on Thursday.

volnation on March 19, 2013 at 9:45 PM

How do you say…….
” make ‘em an offer they can’t refuse” ,
in Ruskie ?

FlaMurph on March 19, 2013 at 9:47 PM

Clinton proposed a wealth tax. Anyone else remember that?

pat on March 19, 2013 at 9:37 PM

So did Trump. 1o percent one-time tax on anyone with more than 15 million.

I have heard for many months now rumours that the govt would LUV to access 401ks and savings accounts for a similar scheme… I sure hope it is just a rumour…

Scrumpy on March 19, 2013 at 9:42 PM

Already did it in Argentina. Yes it can happen here.

Lanceman on March 19, 2013 at 9:48 PM

As Americans age, imagine how tempting all that 401-(k) money just sitting in retirement account will become to lawmakers. Why, those selfish old people *hoarded* money for themselves! How selfish. Etc.

DarthBrooks on March 19, 2013 at 9:38 PM

That’s coming and you can bank on that. There’s $20 trillion in aggregate funds that the DC pols would just love to get their hands on. For the children of course. If there’s another downturn ala 2008/09 watch for the Feds to pitch a plan that makes cooperating citizens “whole” again if they’ll just convert their 401k’s (whats left of it) into a monthly annuity yielding 2%. Non-transferable of course. Just like Obamacare 2k+ pages the plan is already written, it’s just sitting somewhere waiting to implemented.

volnation on March 19, 2013 at 9:50 PM

The government party, not one of them voted yes. It abstained entirely on a proposal that it had agreed to. So that tells you how unpopular it is

…well then!…Nancy Pelosi will want it!

KOOLAID2 on March 19, 2013 at 9:51 PM

There’s $20 trillion in aggregate funds that the DC pols would just love to get their hands on. For the children of course.

volnation on March 19, 2013 at 9:50 PM

I actually heard out of Nan Pelosi’s mouth calling money that we keep a ‘tax expenditure’.

Lanceman on March 19, 2013 at 9:52 PM

Clinton proposed a wealth tax.

pat on March 19, 2013 at 9:37 PM

So did Trump. 1o percent one-time tax on anyone with more than 15 million.

Lanceman on March 19, 2013 at 9:48 PM

The Unconstitutionality of a Wealth Tax

Resist We Much on March 19, 2013 at 9:52 PM

Protestors cheered outside the parliament in the Cypriot capital, Nicosia, as lawmakers voted 36 against to none in favor of the proposal.

I’m sure they’re all relieved. And as soon as those banks re-open, all that money is still coming out of the bank and going under the mattress. This will not stop runs on the banks. The damage is done.

rogaineguy on March 19, 2013 at 9:53 PM

FlaMurph on March 19, 2013 at 9:47 PM

Here you go :-)

“Сделать” мне предложение, они не могут отказаться,

Scrumpy on March 19, 2013 at 9:54 PM

The Unconstitutionality of a Wealth Tax

Resist We Much on March 19, 2013 at 9:52 PM

Heh! What Constitution?

Just as I might say to you, Magna Carta? What’s that?

Just wait until they start taxing on imputed income.

Lanceman on March 19, 2013 at 9:56 PM

“Сделать” мне предложение, они не могут отказаться,

Scrumpy on March 19, 2013 at 9:54 PM

Good heavens, it’s in hieroglyphics!

I need Solatarov to translate.

Lanceman on March 19, 2013 at 9:57 PM

Confiscation is a dangerous precedent. I see what’s going on here, though. These Euro countries (Greece, Cyprus, Italy, Spain, Portugal, etc) elect governments that give them all kinds of free goodies but then these same people and their leaders while going bankrupt refuse to enact austerity and other measures which leaves wealthier nations like Germany holding the bag. There is a very high political cost for asking for more money from the citizens of these nations who already feel they’ve done too much. Germany’s people will surely demand that Cyprus pay their own way. This is what forced this confiscation proposal. This threat of confiscation may just be a Red Herring to acclimate the electorate of wealthier European nations to the idea that it can’t be done unless the wealthier nations foot the entire bill, which may have been the plan all along.

Corporal Tunnel on March 19, 2013 at 9:58 PM

…they haven’t heard about the Russian Mafia?

KOOLAID2 on March 19, 2013 at 9:59 PM

Guys, that ship sailed, sunk and was calcified. No amount of taking this back is going to forestall the bank run that’s going to occur on Thursday.

knob on March 19, 2013 at 10:02 PM

Did I mention that Cyprus is the first country in history to democratically (I know right) elect a communist President?

What did they think was going to happen? Cmon.

Raquel Pinkbullet on March 19, 2013 at 10:04 PM

“Fè” m ‘yon òf yo pa ka refize!!

Scrumpy on March 19, 2013 at 10:08 PM

Just wait until they start taxing on imputed income.

Lanceman on March 19, 2013 at 9:56 PM

Read my piece and you will see why that is, likewise, problematic. Employment benefits, save health insurance, are, generally, already taxable.

Resist We Much on March 19, 2013 at 10:11 PM

Cyprus….
The Obamas are vacationing there this year..

Electrongod on March 19, 2013 at 10:15 PM

Anybody remember MFGlobal and Jon Corzine, the former Democrat NJ Senator?

He stole $1 Billion in customer deposits. And still walks free today.

tom daschle concerned on March 19, 2013 at 10:17 PM

In order to create a disincentive to deposits in shaky banks without actual confiscation, the regulators might convert a fraction of each large account into a time deposit, still guaranteed and earning whatever interest it otherwise would, but not available without penalty for 18 to 36 months.

njcommuter on March 19, 2013 at 10:19 PM

…I hate the picture of the beach!…first day of spring…and in Michigan…we froze our bluegills off today!

KOOLAID2 on March 19, 2013 at 10:22 PM

Read my piece and you will see why that is, likewise, problematic. Employment benefits, save health insurance, are, generally, already taxable.

Resist We Much on March 19, 2013 at 10:11 PM

I read it. I just didn’t put the phones on for the M2RB – watching WKRP.

Lanceman on March 19, 2013 at 10:22 PM

Exit question (trademark, Allahpundit)

Well done, young one. The last time a poster tried to conceptually credit AP, there was confusion.

Btw, California is already doing retroactive taxation. Fox ran a report on it earlier. A former tax credit was repealed, and those who’d utilized it were not only ordered to pay back the credit, but are being charged interest.

wolfsDad on March 19, 2013 at 10:26 PM

I’m sure they’re all relieved. And as soon as those banks re-open, all that money is still coming out of the bank and going under the mattress. This will not stop runs on the banks. The damage is done.

rogaineguy on March 19, 2013 at 9:53 PM

I am not convinced that they can re-open their banks in the normal sense. Look for a partial re-opening with severe withdrawl limits for the near future.

In the long run, Cypres is going to be a mostly cash-n-carry economy. With interest rates at ~1%, and the possibility of the government robbing you, there is simply no reason to use a bank.

… seems like I was reading about some Eu/IMF deal for financial transactions that they were trying to drag the US Banking system into … hmmmm ….

Freddy on March 19, 2013 at 10:30 PM

Btw, California is already doing retroactive taxation. Fox ran a report on it earlier. A former tax credit was repealed, and those who’d utilized it were not only ordered to pay back the credit, but are being charged interest.

wolfsDad on March 19, 2013 at 10:26 PM

… and PENALTIES for paying late!

Freddy on March 19, 2013 at 10:32 PM

Scrumpy is spitting over this.

Rusty Allen on March 19, 2013 at 10:32 PM

I read it. I just didn’t put the phones on for the M2RB – watching WKRP.

Lanceman on March 19, 2013 at 10:22 PM

Alas, no M2RB on it.

Resist We Much on March 19, 2013 at 10:32 PM

Oh and I forgot to mention. The topic then migrated to gun control. I simply said, see, that’s what the guns are for. ; ) Great lunch!

Bmore on March 19, 2013 at 10:33 PM

Lanceman on March 19, 2013 at 9:57 PM

“Make” me an offer they can not refuse,

Solaratov on March 19, 2013 at 10:35 PM

Anybody remember MFGlobal and Jon Corzine, the former Democrat NJ Senator?

He stole $1 Billion in customer deposits. And still walks free today.

tom daschle concerned on March 19, 2013 at 10:17 PM

“Rule of Law”?

Shirley, you jest.

Solaratov on March 19, 2013 at 10:38 PM

Alas, no M2RB on it.

Resist We Much on March 19, 2013 at 10:32 PM

That ain’t like you. You always have M2RB.

“Make” me an offer they can not refuse,

Solaratov on March 19, 2013 at 10:35 PM

:P

Lanceman on March 19, 2013 at 10:41 PM

Btw, California is already doing retroactive taxation. Fox ran a report on it earlier. A former tax credit was repealed, and those who’d utilized it were not only ordered to pay back the credit, but are being charged interest.

wolfsDad on March 19, 2013 at 10:26 PM

I think that you’ll see more and more of this as the leviathan that is the Federal govt hears it’s belly start to rumble in a year or two or three. Child tax credit? Gone – oh did I say 2012, what I meant to say was 2008, so pony up jack. That previously approved amortization schedule we accepted since 2005? Revised……retroactively from 2007. Anyone that thinks that the beast won’t go to any lengths to feed itself is nuts. What they don’t accomplish through dilution of the currency they’ll try to shore up with increasing taxation and regulatory nonsense. We are all Cyprus now.

volnation on March 19, 2013 at 10:41 PM

OT: Maetenloch @ Ace’s linked a “Loose Change Inside Job” about the destruction of the Death Star in his ONT.

Pretty funny.

tom daschle concerned on March 19, 2013 at 10:46 PM

California also requires over-withholding. Sort of an interest-free loan to the thieves in Sacramento.

I feel like the Cyprus folks backed down because so many Russians keep their dough there.

Don’t mess with Vlad!

PattyJ on March 19, 2013 at 11:03 PM

Robbing banks? Chump change for amateurs. This government prints an extra trillion $ a year and it acts as an inflation tax against all dollar denominated accounts around the world and no one says it is criminal and the people just reelected the administration that is robbing them.

KW64 on March 19, 2013 at 11:34 PM

Yep. Our elected thieves have long drooled over all that money sitting there in retirement funds.

justltl on March 19, 2013 at 11:37 PM

Zerohedge had a link to this typically reserved and properBritish analysis:
http://www.youtube.com/watch?feature=player_embedded&v=YDXtHsz2q6Q

Kenosha Kid on March 19, 2013 at 11:46 PM

I feel like the Cyprus folks backed down because so many Russians keep their dough there.

Don’t mess with Vlad!

PattyJ on March 19, 2013 at 11:03 PM

Some of the largest companies in Russia and world (metals, gas, oil, etc.),and had it not been for Russians Cyprus economy would be that much worse off. Russians bring in tourist euros in ridiculous amounts. That supposed “only 20%” number of Russian stake in bank deposits reported is actually the reverse, no way in hell that Cypriots, just 1 Million of them, cumulatively hold the other $50 Billion in bank deposits and somehow require a bailout. Numbers just don’t jive and indicate it is actually the other way around, Russians hold most of the deposits there. As well as provide a good number of well paying jobs supporting banking and service firms, as well as tourism, jobs that will go elsewhere now. But, hey, EU will provide for them, right?

Russians pulled out most of the money prior to this and now openly say in media they will move the rest of the money out, regardless. Fool me once and all that…

Germany and the rest of Europe will now face higher prices for gas come winter, and maybe even limited supply, as retribution. Serves them well for trying to grab money that never belonged to them. Never stand between Putin and his money.

riddick on March 19, 2013 at 11:47 PM

I actually heard out of Nan Pelosi’s mouth calling money that we keep a ‘tax expenditure’.

Lanceman on March 19, 2013 at 9:52 PM

Yep, the democratics are perverting the English language to help feed their greed for our money.

slickwillie2001 on March 19, 2013 at 11:48 PM

Cyprus lawmakers on “one-time” bank deposit levy: Yeah, we’re not doing that

The peasants should be grateful.

Dr. ZhivBlago on March 19, 2013 at 11:59 PM

This is described as a “wealth tax,” except that it’s not a tax. A tax is a regular rule that operates uniformly according to a pre-determine formula. A one-time, ad hoc seizure of money isn’t a tax. It is confiscation. Or we can use a plainer word for it: theft. …

We shouldn’t let our guard down on this one. Remember we still have Justice Roberts, and some day he may swing the court and say it’s NOT a tax, so it’s OK or something.

Dr. ZhivBlago on March 20, 2013 at 12:03 AM

This is described as a “wealth tax,” except that it’s not a tax.

This reminds me of the Medieval moveable goods “tax” that would be imposed to raise money for extraordinary expenses. For example, to ransom Richar I (the Lion-Hearted) England seized one-quarter of all of the moveable goods in English households. If you had four chairs the government took one. Twelve spoons, the government took three, etc.

Talk about putting breaks on capital formation. Why accumulate goods, much less money, if they could be seized at the whim of a government?

No Truce With Kings on March 20, 2013 at 1:10 AM

Cyprus Government: How about we seize ten percent of your savings?
Cyprus People: How would you like your head on a pike?

John the Libertarian on March 20, 2013 at 1:16 AM

Btw, California is already doing retroactive taxation. Fox ran a report on it earlier. A former tax credit was repealed, and those who’d utilized it were not only ordered to pay back the credit, but are being charged interest.

wolfsDad on March 19, 2013 at 10:26 PM

That’s not the first time they pulled something like that. Several years ago they changed the reporting date for Sales Tax. Interest penalty for failure to comply, of course.

The notices were mailed out the day after the date to comply.

trigon on March 20, 2013 at 1:20 AM

Happen here?…..I don’t think so.
If any executive or Congress tried to pull this crap, they would ALL be “dead pols walking”.
We would just take our deer rifles and wait for the bastards to go home….and kill them at their doors.
Or maybe we just round up some D9 Cats and bulldoze the Capital.
We AMericans can be pretty inventive when the need arises.
No foolin’
III/0317

dirtengineer on March 20, 2013 at 1:26 AM

Chase Bank just pulled something where accounts were set to “zero” for hours.

Response? Massive “tweets”.

Even in Cyprus a few handfuls of people stood there with “NO” written on their hands. The PTB are probably saying to each other, “That’s all???”

Dr. ZhivBlago on March 20, 2013 at 1:44 AM

It’s already happening here. It’s called “quantitative easing” aka monetizing the debt. What difference does it make if the government steals 10% of your savings or if they simply devalue the dollar so much that inflation makes your saving worth 10% less?

Either way you’re losing 10% to pay their bills. The Euro zone was just being more open about it.

29Victor on March 20, 2013 at 3:41 AM

The 19 that voted present- hang them.

We know what voting present leads to.

Lonetown on March 20, 2013 at 5:35 AM

Guys, that ship sailed, sunk and was calcified. No amount of taking this back is going to forestall the bank run that’s going to occur on Thursday.

knob on March 19, 2013 at 10:02 PM

Yeah I agree. Anyone with an active gray cell will yank their money. They know this; If the aristocrats can try to take your money once, they will eventually do it.

How many times did the Mass legislature push the seatbelt law over the objections of the people, until they finally got their way OVER the will of the people? THREE TIMES.

Once the crooks get an idea like this in their head they don’t give it up. Eventually they will do it.

dogsoldier on March 20, 2013 at 5:49 AM

Either way you’re losing 10% to pay their bills. The Euro zone was just being more open about it.

29Victor on March 20, 2013 at 3:41 AM

Actually, no. They were doing both. They made the paper worth less and they were just going to take some. Next they’ll probably introduce new currency, invalidate the old currency with a 50% trade in or something.

That’s another trick that’s been used.

dogsoldier on March 20, 2013 at 5:52 AM

Look, our left has already planned and programmed the theft of individual’s private savings. They didn’t float that idiocy of stealing our pension plans for naught. That is the exact mode they use; a suggestion here, a study there, a crisis here, and to save the nation (blam!) it’s done.
Don’t think for a second that, but for waiting for the right moment,they won’t.They fully believe we responsible people don’t deserve what we earned and they fully believe that it is their money to redistribute for power. He’s been busy manufacturing the crisis since he was first elected–spending and printing fake paper beyong all rational thought. This is being bone with impunity for a reason.

They have a plan–Socialists always have a plan.

Don L on March 20, 2013 at 6:15 AM

This is being bone with impunity for a reason

That was supposed to be done -not bone, though a bone is all they’ll leave us with before they get through.

Don L on March 20, 2013 at 6:17 AM

Time for a tax payer funded junket to Cyprus by our senate foreign relations chair and some of his senate cronies to screw some pre-teen foreign hookers.

May not have anything to do with solving our debt crisis but it does affirm their status as ruling elite.

acyl72 on March 20, 2013 at 7:10 AM

The Banksters overreached this time.

If this is done the banking system world wide will collapse. With interest rates of near zero there really isn’t any reason to have your money in banks anyway!

Add to that the risk of indebted nations confiscating your deposits to cut a deal with internationalist lenders keeping your money in a bank is FOOLISH.

wildcat72 on March 20, 2013 at 7:50 AM

Actually, no. They were doing both. They made the paper worth less and they were just going to take some. Next they’ll probably introduce new currency, invalidate the old currency with a 50% trade in or something.

That’s another trick that’s been used.

dogsoldier on March 20, 2013 at 5:52 AM

By the time Obama (in his third or fourth “term”) gets around to stealing our IRA’s and 401K’s the dollar will probably already be worthless as a result.

As I said in my last post, there isn’t any REASON to have money in a savings account. You aren’t getting any interest anyway, certainly far less than inflation.

wildcat72 on March 20, 2013 at 7:53 AM

The nexus of politicians and banks is coming to a head. For a long time, governments understood the value of capital formation and banking support for a nation’s economy. It is the old british model which Hamilton used to great affect since our founding.

The problem – the govt “public servants” (aka thieves and cheats)began to realize that the issuance of debt and its implied guarentee made it easy to provide more than just what tax receipts could provide – and not just because of a rainy day – but forever. It’s kind of like coke I’m told – the first few times are great and a hell of ride – but after a bit you are just chasing it, and never quite getting there no matter how much you use.

That is our govt – debt is like a coke junkee strung out.

So either the govt stops/significantly reduces issuing debt or they default and go cold turkey. The bankers didn’t do their due diligence – as many ultimate investors did not do – but if the govt can’t repay, default is the answer. The reason why pols are loathe to do that is because that will result in cutting off their “coke” supply in the future. So in desperation – unwilling to quit either gradually or cold turkey they will do anything to keep buying more – including robbing you of your money (just like an addict stealing to support the habit). Cyprus was the first real blatant attempt.

And yes – their are factions in the current govt who are eying 401(k) accounts. And it won’t be voluntary, they will just take them in exchange for a govt pension so they can keep snorting away.

If that day comes, all the guns we have are going to come in handy.

Zomcon JEM on March 20, 2013 at 8:26 AM

Our own government does these things anyway. They just do it more covertly & cleverly & couch the language as something different.
But it is still all the same.
Many here & elsewhere wonder why accumulate monetary wealth?
Since I don’t have any, I suppose I can say I won’t do that easier than those who have it.
Invest in property? Why when the state governments can seize it?
I’m beginning to see more & more the things to accumulate will be more tangible goods like guns & ammo, horses & buggies, & food.
I’m not a conspiracy theorist by any means.
But I think it is certainly not going to hurt to start becoming a prepper on the side.

Badger40 on March 20, 2013 at 8:42 AM

their are factions in the current govt who are eying 401(k) accounts. And it won’t be voluntary, they will just take them in exchange for a govt pension so they can keep snorting away.

If that day comes, all the guns we have are going to come in handy.

Zomcon JEM on March 20, 2013 at 8:26 AM

I agree that this will happen.
But as for the guns part?
No one will be outraged enough to use them.
The peasantry is quite happy with its chains. As we see from history it really takes a hell of a lot of abuse over a loooooonnnnng time to get people in enough number riled up to revolt.
With modern society & the high living our poorest of the poor have compared to the real poor in the rest of the world, I predict nothing monumental revolt-wise will happen.
I have watched this disunity in my local communities where outrageous outrages happen time & again, each time one upping the next, & the community bends over & takes it.
All they do is b!tch moan & complain, but they never do anything concrete about it in the numbers needed to force change.
I’m afraid I have little confidence in my fellow man to do a damned thing about any of these things.

Badger40 on March 20, 2013 at 8:47 AM

Good for Cyprus’ Parliament. The haircut (tax) of the guaranteed depositors (100K Euro) was unwarrented.
Cyprus should just guarantee what they are obligated to. (i.e. the guaranteed deposits). Let the rest of the depositors seek their claims against the failed banks. Nobody guaranteed their money past 100K euro. They apparently balked at a 15% haircut for deposits >100K euro. See what kind of pennies on the dollar they will get from failed bank.

It should be noted that Cyprus’ gov’t was running a surplus as recently as 2008 (1.2% of GDP Surplus). Now they are deep in the red. (4.2% of GDP deficit in 2012). Source: CIA Factbook

New_Jersey_Buckeye on March 20, 2013 at 10:17 AM

If that day comes, all the guns we have are going to come in handy.

Zomcon JEM on March 20, 2013 at 8:26 AM

That’s exactly why all the bullets are disappearing.

jpm02779 on March 20, 2013 at 10:53 AM

Does anyone else think the Chase bank “error” was a test run for the obamacare real time electronic access to our bank accounts to see how quickly the accounts can be stolen and also to see what the response would be? With these demonrats anything is possible.

johnny reb on March 20, 2013 at 1:28 PM

2 years ago in New Zealand the government removed its Bank deposit guarantee. One year ago they put in place a law that enabled them to freeze bank accounts in the event of a financial crash. This year the NZ Reserve Bank has nearly completed a plan to do the same as Cyprus proposed. They will also be able to hold creditors liable for a bank’s debts, which sounds an awful lot to me like anyone who has a mortgage. Banks have to be ready to implement by the end of June and the government has “refused to rule out” bringing it into law.

So from the end of June this Kiwi at least will have a bare minimum in his bank account at all times. Just another reason to put it into physical bulion…

Liam1304 on March 20, 2013 at 1:38 PM

I think they were going after the Russians. Hearing the Russians squeal about the sanctity of private property was music to my ears.

unclesmrgol on March 19, 2013 at 9:39 PM

According to Jon Bachelor, the Cypriot finance minister is in Moscow now and its likely that Russia will give them an indirect bailout, thus undermining Europe and increasing their prestige in the area.

virgo on March 20, 2013 at 4:59 PM