Shock in Cyprus as Savers wake up to bailout levy - they're coming to take your money

So the theft of the publics money has begun in a small state of the EU. It doesn't surprise me that this is happening in one of the smallest states of the Eu in terms of size, population and economy. TPTB are trying this on for size and seeing how it runs. I can only hope there is a revolt, otherwise this is one day soon coming to your shores

I did a search with no results so hopefully I 'm not repeating another member info.
From the link below.

People in Cyprus have reacted with shock to news of a one-off levy of up to 10% on savings as part of a 10bn-euro (£8.7bn; $13bn) bailout agreed in Brussels.

Savers could be seen queuing at cash machines amid resentment at the charge.

The deal reached with euro partners and the IMF marks a radical departure from previous international aid packages.

And

The country has been in financial difficulties since the collapse of the Greek economy, where Cypriot banks had huge investments.

'Robbery'
People in Cyprus with less than 100,000 euros in their accounts will have to pay a one-time tax of 6.75%, Eurozone officials said.

Those with greater sums will lose 9.9%.

Cypriot bank officials quoted by AP news agency said depositors could access all of their money except the amount set by the levy.

Co-operative banks, the only ones open in Cyprus on Saturday, closed after people started queuing to withdraw their money.

"This is robbery and we must get the EU to stop this," Alan, a British expatriate saver in Cyprus, told BBC News.

www.bbc.co.uk...
abcnews.go.com...
www.economicpolicyjournal.com...

First they came for the savers but as I had no savings I did nothing

This is only my opinion but I believe this has always been part of the plan and that astute watchers of the financial system could identify that this was coming as long ago as 2006. That's when I began withdrawing from the banking system.

This small state is being used to 'game' the scenario for real, to learn lessons and avoid mistakes for when these actions roll out across Europe and then

Make no mistake this is eventually coming to everyone and if you haven't already made arrangements to turn your paper and electronic money in to physical assets this should be your wake up call. Savings are losing value anyway regardless of the coming thefts from peope's accounts.

Buy physical be it gold, silver, manufactured goods, long life foods, prepping equipment, generators, solar panels, or electronics. Having money sat in an account is not the answer, its losing value every day anyway. It would even be better to gamble off the indicies than leave your savings in a bank doing nothing. All the markets are incredibly over valued but if you can get in and out quickly there are still profits to be made.

Bless her, my dear old mother has spent her lifetime denying herself pleasures, vices and luxuries so that she would have saved up a legacy for her children when she dies. But there won't be anything of worth to leave behind. Sure it's possible there might be numbers and pounds remaining in her accounts but they'll have no value.

Since 2006 I've been begging her to either spend all her money on herself in her twilight years to give herself a few good years, or at the very least invest it in gold, silver, land, forests or bricks and mortar. But so far she hasn't. Hopefully this action in Cyprus will wake her just enough to get her money out of the banks and in to tangible assets, though somehow I think theres a good chance she'll be paralysed like a rabbit in headlights as her legacy is sequestered, stolen, taxed and evaporated away.

Oops

the ability to use these fiat types of currency (euros or dollars) is a benefit granted to the citizens of bankrupted countries by their creditors.

unfortunately, citzens have no given right to hoard (save) money.

Now we'll see a true bank run and the riots begin. To take money from people that are unemployed is absolutely going to be the last straw IMO.

It's theft pure and simple.

Peace

reply to post by tinhattribunal


That maybe so but it doesn't mean people shouldn't have already been making arrangements for themselves.

If you are not part of the solution you are part of the problem.

I believe there is an ultimate agenda to end the system of private property and financial assets, so that in the end owning real estate, land, housing, and tangible goods will not protect you. However, until that day comes moving savings into these areas means you get to survive that bit longer than those believing in and relying on that fiat currency system That alone is reason enough to take action now.

I wish my mother would buy the gated sheltered apartment she wants in a block for retired persons, where she can live out her final years in security, with friendship and company. I want her to spend it now. Spend it on herself, if only for the reason that her efforts to bequeath us some money will be in vain.

reply to post by jude11


This is why I believe Cyprus has been deliberately chosen as the test case. It's small and easily controlled and the lessons they learn now will help when they move on to the next state.

Hopefully there will be enough of a response in Cyprus from the public that TPTB hold off for a while before trying it again either there or elsewhere.

Theres also a big possibility of money taking flight from cyprus to other currenies such as the yuan, aussie dollar or even the US dollar, which undeservedly still has merit in some markets. Although to be honest I don't have a great deal of knowledge in how their economy is structured and how easily capital can flow. I'm sure the billionaires had advance notice.

I'm in the UK and my sister is currently vacationing on cyprus in the property they purchased and renovated there about 6 years back I warned against it not just for financial reasons but for the Syria problem, but they went ahead anyway. I can see the day coming when foreigners assets will be siezed there for the good of the country.

If I decided I needed some extra cash & dipped into everyone's accounts to take a cut I'd end up in prison.

They can call it a tax if they like but it's really just the bully deciding he didn't get a big enough cut of your lunch money the 1st go 'round.
They've likely already taxed the money in these accounts but now they want more so they're just going to take it.

Similar to nationalization? maybe
Theft/Robbery/Extortion? definitely

Despicable

My understanding is that the citizens are hitting the ATMS in an attempt to remove their funds but that the 10% "tax" is not available for withdrawal. So, they are having a bank run but it isn't going to get the little folk their money back.
It will be interesting to see if the bank run mentality extends further into the E.U. Greece will not be impacted by this as they have decided to transfer Greek accounts to Greek owned banks. But, I suspect the Greeks will bank run anyway just to be sure that they get their money.
Italy and Portugal are the next in line to run imho and then, if that happens? Who knows where it goes from there.

The catch here is that bank runs will not be good for anyone - even in non run countries. But, if there aren't bank runs large enough to stick the system then this precedent will be set and we can likely expect to see it again in other countries.

One of the articles had a line right at the bottom where an analyse indicated that they saw this as "a dress rehearsal for a country's exit from the Euro". I have to pnder that a bit as it *is* very interesting and has a whole additional set of implications if correct.

reply to post by coldkidc


Tax? They're even trying to avoid using that term. But you are absolutely right a levy is most definitely a tax in polite circles but this is theft pure and simple.

It's absolutely sickening when you know the entire financial system is a fraud, the debts aren't real and are the banks debts anyway, not an nations. But the sheep in many countries an mot certainly here in the UK can no longer even connect the banking fraudulent collapse of 2008 with the current austerity measures. Their attention span is so short. This is why I think the gloal revolution against the banksters will either have to begin in the US, France, or Scandanavia. Theres no hope in hell the British will wake up......well not unless the price of milk goes up too much.

This is bizarre and scary.

You don't just go into your citizen's accounts and take money across the board- up to 10% of money that has already been taxed!

Who is getting the bailout money- the government or the banks? The article didn't make it clear.

Those poor people. I hope they receive justice and this madness is stopped.

Originally posted by merkins
reply to post by coldkidc

 

Tax? They're even trying to avoid using that term. But you are absolutely right a levy is most definitely a tax.

It's absolutely sickening when you know the entire financial system is a fraud, the debts aren't real and are the banks debts anyway, not an nations. But the sheep in many countries an mot certainly here in the UK can no longer even connect the banking fraudulent collapse of 2008 with the current austerity measures. Their attention span is so short. This is why I think the gloal revolution against the banksters will either have to begin in the US, France, or Scandanavia. Theres no hope in hell the British will wake up......well not unless the price of milk goes up too much.

My understanding is that it, at its base, has to be a tax to be legal because EU banking regulations protect against bank losses. But, the countries can tax at any time...
Doesn't make me like it, and doesn't make me think that it is right...

reply to post by watcher3339


Yes that 'exit' statement is interesting.

I have a divided opinion on the bank runs. Half of me feels they need to collapse and people should spend every penny on tangible goods. But part of me knows that a collapse will provide the ultra rich with opportunities to suck up more property and more land from the public like they do every few years with housing bubbles.

This whole thing reminds me if a scene from blackadder 2 episode 1 where blackadder fires his man servant baldrick, replacing him with Bob, but baldrick comes back asking if he can stay on working for free if he lives in the gutter.

reply to post by merkins


Personally my economic life is very "hedge your bets". Debt is actually good if there is hyperinflation or total collapse, metals are always solid, cash on hand, and cash in bank. It's been a wild couple of years. This Cyprus thing indicates that despite my fondest hopes -- it aint over...

...and just as I was really starting to enjoy some of the U.S. indicators...

reply to post by AshleyD


This is so crazy and so in your face. Talk about 'in plain sight' I hope I don't wake up tomorrow to hear of the first protester deaths. This is being scrutinized very closely by TPTB, and I fear a brutal crackdown on the public, initially before pulic opinion from other states forces them to ease off on the brutality.

reply to post by watcher3339


I wish I was in a position to hedge my bets, but I have none to hedge. I understand how currency devaluation is good for evaporating away a nations debt, but I'm fuzzy on the 'debt is good in hyperinflation scenarios'.

Watcher could you do me and I'm sure other members a favour by expanding the reasoning on this and maybe provide a link or two for research puposes? It would be most appreciated, as I've done a quick search but none of the results really address your statement.

reply to post by merkins


"debt is good in hyperinflation"
On a personal financial basis: if I buy something on credit and owe 100K. I have to pay the annual interest on it (which has been historically low). I consider the cost of the interest to be rather like an insurance policy against inflation. If the expense of the interest is low enough, then I can pay it for the opportunity to keep cash on hand -- or better yet invest it in something which would hold value in the event of inflation. Then, if inflation strikes wages will rise and I will use those new, higher, wages to pay off the old debt which was at the former rate of exchange. Given that goods will increase in cost under inflation - hyperinflation will have benefited me in keeping with the amount of my debt. The sheer amount of debt facing the governments of the Western world is part of what makes me think hyperinflation (or a slow but oh so steady increase in inflation) could happen.

The danger with that scenario is over extending yourself in debt. So, I consider it important to keep cash or other assets equal to the debt so that the debt, while it exists on paper, isn't actually money owed that I don't have. The only cost is the annual interest. A fixed rate is important though, especially if you don't keep the full amount of the debt owed available. You wouldn't want to suddenly find yourself unable to pay the debt and charged a much higher interest rate. That would be a recipe for disaster!

Link

reply to post by watcher3339


Thanks mate. Gotcha. Very well explained.

I believe their banks don't open until tuesday. I expect the ATMs to be empty before then. This could get very ugly, come lunchtime tuesday. I really feel for these people. And all this for such a small total sum.

My sentiments on this at this moment are.

First they came for the Greeks and I did nothing because I wasn't Greek.
Then they came for the Cypriots and I did nothing because I wasn't a Cypriot....

Spouse and I were chatting about this. Major world currencies are so close to parity that driving down the Euro a bit, followed by a bank run across many countries, it could be an opportunity to impose a single currency. (Not that I really think the Euro is working out so well...) They could then impose the "tax" even on money that wasn't in a bank by rolling it into the rate of exchange when your brought in your old currency for the swap.

If this was to be western world wide - it would have to be dollar (U.S.) because they wouldn't be able to do away with the U.S. governmental requirements to be able to print own currency. China could also benefit from that since they are already holding so many dollars. Now, a single currency push is a tin foil hat moment for me. I don't actually think it will happen (now) but I have been struck for a while by the continued movement toward global currency parity.

reply to post by merkins


They deserve it for being in the EU and for submitting to the IMF.