Cyprus Robbed in Broad Daylight and We Let it Happen – Watch this Mechanism Become Standard Useage -‘So Prepare’

The Great Cyprus Bank Robbery

March 18, 2013

It is well known that there are a number of countries in Europe that are in dire financial straits. So dire that they make our $16.7 trillion national debt look manageable.

We know about Greece and Italy, Portugal and Spain. Not only are they drowning in debt, but they have high unemployment (Spain’s is nearly 25 percent) and negative GDP growth.

But the scariest news over the weekend came from the tiny country of Cyprus.

I’ll wait while you try to remember if you know where Cyprus is located.

Ok. It is an island about half the size of Connecticut, with a population of about 1.1 million, located in the Eastern Mediterranean south of Turkey.

It is also broke.

Cyprus has close ties with Greece and had invested heavily in Greek bonds. Unfortunately for Cyprus, foreign investors in Greek debt were forced, in 2011, to take a voluntary haircut of up to 50 percent of the value of those bonds.

With an economy as thin as Cyprus has, a loss of that magnitude in the funds it had, essentially, parked for safety sake was more than just a jolt. It threw the economy into a tailspin.

Why am I bothering you with the Cypriot economic woes? Because of the manner in which the big guns in the European Union – in this case Germany – wanted to structure a $13 billion bailout

Here’s what they decided: Individuals who have deposits of at least $130,000 (equivalent) in Cypriot banks will pay what the New York Times called a “one-time tax” of 9.9 percent of their deposits.

Smaller depositors will have their funds confiscated — taxed to the tune of 6.75 percent.

The Times reported that many of the higher-value depositors are “Russians who have put vast sums into Cyprus’s banks in recent years” but it wouldn’t matter if it they were North Korean generals. A deposit is a deposit for the use of the depositor, not for Angela Merkel.

Naturally as soon as word hit that this “tax” was going to be imposed on Tuesday, there was a run on the banks to get money out of bank vaults and into mattresses where it would be safe.

Naturally the ATM networks were shut down to prevent the good people of Cyprus (or Russia) from getting to their money before the government could take it away.

Chancellor Merkel said that making the depositors help pay for the bailout is the right thing to do. “That way,” she said, “those responsible will contribute in it, not only the taxpayers of other countries.”

I have $12.75 in the bank in Alexandria, Virginia. How does that make me responsible for creating the national debt?

My fear is this becomes a standard mechanism for helping to reduce what is known as the “sovereign debt” – the money countries owe.

Think about what will happen when officials of the Obama Administration come to work this morning and read that the EU could force Cyprus to confiscated legally deposited funds.

According to the Federal Reserve Bank of St. Louis, as of last Monday there was $6.8 trillion on deposit in U.S. banks.

No one, not even Barack Obama, would consider taking 100 percent of those deposits, but I can certainly hear the clack-clack-clack of keyboards drawing up the talking points explaining why rich people with deposits of over, say $50,000 should be willing to do their fair share in paying down the national debt.

Maybe to the tune of a “one-time tax” of, say, 15 percent. That’s not 15 percent of $50,000, it would be 15 percent of whatever you’ve got in the bank – in all your accounts. Maybe throw in those greedy 401(k)s and brokerage accounts that have swollen with the sudden rise in the U.S. stock market.

Sample Talking Point: If you can afford a 401(k) and $4/gallon gasoline, you’re making too much.

I’ll be a little late for work this morning. I’m going to the bank with my change purse and get my money out before I become an unwilling donor to help reduce the Obama debt.

It may only be $12.75, but the taxes have been paid on it, and it’s mine.

On the Secret Decoder Ring page today: Links to the CIA entry for Cyprus, to the NY Times coverage of the bank robbery, and to unemployment by EU country. Also two Mullfotos showing the present structure and a drawing SP4 Hockenberry’s new home you helped pay for.

Comments:
It’s BOTH corporatist parties and The Fed. (which has reduced the value of the dollar by 98%) Stop arguing over left and right ideas.

  • “We must keep the people busy with political antagonisms. We’ll
    therefore speed up the question of reforms (of tariffs within) the
    Democratic Party; and we’ll put the spotlight of protection for
    the Republican Party. By dividing the electorate this way, we’ll
    be able to have them spend their energies at struggling amongst
    themselves on questions that, for us, have no importance
    whatsoever.” UNITED STATES BANKERS magazine 1892 So what has
    changed? NOTHING!!! You’re STILL having the wrong conversations!!!
    END THE FED!!!

  • Reply
  • garyinaz66 2 months ago

    oblamer and the dems already did this to us with obamacare. biggest tax increase ever.

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  • ronb39339 2 months ago

    Surprised they’re not thugging up on the bankers with knives & clubs. Of course, hitting bank accounts hits the people who actually work for a living or have retirement money… Doesn’t hurt the welfarers at all; Thus it damages the ideal of working for a living.

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  • Mark Kortum 2 months ago

    Savings are being taxed in the United States right now under the euphemistic term “quantitative easing”. Quantitative easing is nothing fancier than good old fashioned printing of paper money. The only difference is that in the US all accounts are being taxed, not just those over $130,000.

    Paper money printing gives the government money to spend when it wants to spend more than it collects in taxes. The Fed. keeps interest rates low and the value of the dollar (your savings) is diluted by the percentage of new dollars that enter the market as compared to the USA’s cumulative net worth. It is sort of like a company that splits its stock. If it splits on a two-for-one basis the value of each share halves. The only difference is when there is a stock split you get the new shares. When the government prints money (issues new shares of stock in the US) you never see it and the value of your shares (money) decreases.

    Our combined US net worth is about $75 trillion. When the Fed prints $1 trillion more dollars it dilutes the value of each dollar by 1.4 percent. It does not sound like a lot but it adds up over time. If my grandfather gave me $1,000 in cash in 1954, the year I was born, that cash would be worth $137.00 today. By printing money for the past 58.5 years the Federal Government have taxed $863 out of my birthday gift. . . maybe not as much per year as Cypress is doing but much more insidious because of the clandestine way in which it is done, hoping no one will notice. At least the Cypriots are honest!

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  • Avatar
    Dens 2 months ago

    Your bank has been reporting every dime that moves in and out of your accounts, where it came from and where it went to the government for some time. The IRS watches your financial activities like a hawk.

    It’s really just a simple keystroke for them to clean you out instantly if and when they decide it’s “for your own good” or if you spend money on things they deem “inappropriate”. Do you trust your present “leaders” in the Administration and Congress not to do that?

    Remember, they are trying to disarm you right now so you will have absolutely no defense against anything they decide to do to you and your family financially or otherwise. Just imagine how truly naked and helpless you, your family and friends will be when they have your guns and your money.

    Of course they know what’s best for you and it is after all “for your own good” and will make things “safer” for everybody…right? If you are not yet afraid of your government….you damned well should be.

    When only one Senator will take it upon himself to stand up and make an issue over the government’s “right” to kill American citizens on a whim then you surely must be afraid even if you are liberal to the core.

    It is probable, progressives or liberals are as likely to be taken out if not directly then collaterally just for being near a conservative target when the government strikes. They also can be wasted as the primary target if they offended the wrong ones in our present regime.

    see more

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  • pupsncats 2 months ago

    Money has no value anyway. Since going off the gold standard in 1971, there isn’t anything tangible to base the value of money and that is why the Fed can just keep printing it. Since the world bases the value of their money on our dollar and our dollar is worthless, when the time comes for those who put a stake into buying up our worthless money demand repayment of something that does have value, the world economies will crash because money is completely worthless.

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  • Frank_O 2 months ago

    More reason to take all your “spare” paper Dollars out of your checking or savings account & hide it someplace safe (not in a bank) & put at least some of it into gold & silver now (as a hedge against inflation & a storage form of REAL wealth) & also store that someplace safe (not in a bank). Buy a bit more gold/silver monthly so as to “cost average” some of your “spare” Dollars in the future.

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  • WTF 2 months ago

    This is why we have guns. Not for hunting but to protect our rights and freedom from a out of control Government. This will happen if we also contune doing what we are doing. History will repete itself.

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  • Avatar
    Fed-Up Great Grandpa 2 months ago

    This current administration contains a bunch of greedy spendthrifts who don’t respect the Bill of Rights. Of course they do in all in the name of “fairness” which includes being totally unfair to those who work hard to make a decent living.
    In short, they’re educated idiots!

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  • snaketrapper 2 months ago

    Hans Hoppe shows how to make the banksters pound sand in his idea of a Private Law Society.

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  • Washington76 2 months ago

    The Inflation chart you will not see or hear about in our government run media!

    Jan. 17 (Bloomberg) — In today’s “Single Best Chart,” Bloomberg’s Scarlet Fu displays how inflation has increased in the 100 years since the creation of the Federal Reserve. She speaks on Bloomberg Television’s “Bloomberg Surveillance.”

    http://www.bloomberg.com/video…

    “Perhaps the fact that we have seen millions voting themselves into complete dependence on a tyrant has made our generation understand that to choose one’s government is not necessarily to secure freedom.” Friedrich August von Hayek

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  • RhettButler1 2 months ago

    Pelosi is pushing this hard in our country. She wants to confiscate all retirement plans and 401K accounts. That pile of money just drives leftists crazy when they think of what they could be spending it on and stealing some for themselves.

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  • Gill O’Teen 2 months ago

    Keep in mind that o’bummer’s regime (and it’s predecessor) has been keeping its great bloodshot eye of Sauron upon OUR 401k plans. That plan is to confiscate those in exchange for OUR VOLUNTARILY ‘CONTRIBUTING’ them to their Social Security lockbox where they will assuredly be as well cared for as all previous monies ‘secured’ in said lockbox. Do not forget that its current economic policies are just mere repetitions of every failed idea of the past. The probability it will view this blatant theft of other people’s money as anything short of brilliant is extremely unlikely. For the most part, any money placed in a bank account has already been taxed.

    This robbery has already declined the Oriental markets. I track 8: Nikkei 225 (Japan) down 2.709%; Hang Seng Index (Hong Kong) down 1.996%; SSE Composite Index (Shanghai) down 1.685%; S&P/ASX 200 (Australia) down 2.047%; CSI 300 Index (Shanghai) down 1.472%; SZSE Comp Index (Shenzhen) down 1.150%, BSE SENSEX (India) down 0.692%; TSEC weighted index (Taiwan) down 1.465%

    Stories over at Market Watch and Motley Fool are placing the blame for these declines on the bank account tax.
    http://au.finance.yahoo.com/ne…
    http://www.marketwatch.com/sto…

    Expectations are that this earthquake will send shock waves throughout the Euro-zone and the USA before the day is done. However, if their strong central banks increase their level of stimulus. They might succeed in continuing their illusion of prosperity.

    To the ‘progressive’ way of thinking anyone with the means of putting $12.75 in the bank, is one of THEEVILRICH.

    see more

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    Fred 2 months ago

    This is all in the cards for the US. There’s nothing that can be put past this purple lipped, Marxist, ego-maniacal, narcissistic, Hitler and Stalin wannabe.

    If Osama doesn’t get his way, he’ll begin to take money from people’s bank accounts, without permission of course. You know, it’s all “for the people”. Spread that money around.

    He’s already raping the American people with his “no-healthcare”, refusal to bring domestic sources of oil online, and so many other things, we’ll just all bend over and take it, because he says it’s the “right thing to do”.

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