Bernanke States Cyprus Style Depositor Haircuts Possible in US if Events in Europe Become Contagious

Here we go... at yesterday's FOMC press conference Ben Bernanke stated that Cyprus style "haircuts" are possible here in the US. In other words... "Yes, we can and will steal money from people's bank accounts here in America if we need to." This certainly isn't surprising to me, but I have to question his motive in saying this. Just the other day the Obama Admin stated that such a thing isn't a possibility here in the US, but the one man with access to EVERYONE'S bank account says that it is. I believe that Bernanke said this to see if anyone out here in the land of "Real Housewives" is paying attention. I would bet that they are not. This is why I don't keep extra money in the bank, instead I keep physical silver in my gun safe. (oops, sorry... I said the "G" word... I didn't mean to scare anyone)

At 3:18 PM EST Bernanke was whether a seizure of deposits could happen to US depositors as in Cyprus, if the economy gets worse?

Beranke’s translated response: Only if the Cyprus event or another event in Europe were to become contagious and the people lose confidence in the US dollar.

While QE to infinity will be pursued as long as possible, the entire Cyprus fiasco is now officially on the table when it comes down to it if unlimited counterfeiting fails. (and gold revaluation which is the next tool in Bernanke’s toolbox)

Link to story

It didn't even take a week for the nations top financial criminal to suggest robbing OUR banks was possible too. Hmm... They give people many years in nasty federal prisons for doing that over just a few thousand dollars. He's already screwing us for 10's of trillions and now even suggests taking directly from people's pockets?

I'm starting to think they WANT a civil uprising. Maybe Obama WANTS to get himself into the same position of that President he thinks so much about. Lincoln. After all, had Lincoln lived after the war, he was in a position to make changes like were never possible before and have never been again since. Not to the degree that level of low position allowed.

Robbing AMERICAN bank deposits would likely see people getting shot... No kidding and no joke, in my opinion.

I have no money in banks to worry about..so don't look at me for such craziness. However, we live in a nation where people damn near kill each other over a shiny widget on sale for Christmas. This would simply blow things wide open.

How would a Federal Reserve Chairman be removed from his position anyway? There must be a legal process since the President appoints him and the Senate Confirms him. There is no way that can be a one way ticket with no way to cancel, is there?

reply to post by Wrabbit2000


Wrabbit.... I think Bernanke is just poking a sleeping bear with a sharp stick. He has to know the reaction he will get by saying this, so I think he is just testing the waters. I want to see how many "Liberals" out there who support higher taxes will support this. Probably not too many since it will directly effect them.

OH, Bernanke...I can't even watch him anymore without retching. The man makes me sick and he's printing more money, 85 billion.

Cyprus is in a jam. If they get a bailout and reopen banks then there's going to be a bank run. If they don't take a bailout, and banks collapse, the problem is going to spread to other nations in the eurozone.

I don't see a good outcome of this either way.

Originally posted by OptimusSubprime
reply to post by Wrabbit2000

 

Wrabbit.... I think Bernanke is just poking a sleeping bear with a sharp stick. He has to know the reaction he will get by saying this, so I think he is just testing the waters. I want to see how many "Liberals" out there who support higher taxes will support this. Probably not too many since it will directly effect them.

I think the liberals would be lining up to support this if/when the time comes, the perfect way to take more money from the well off, isn`t that what they are always trying to do anyway?
Most liberals don`t have any money so they have nothing to lose if this happens. I don`t think all those millions of inner city liberals have any money in the bank to lose.

reply to post by Tardacus

In all fairness to those of the Left leaning persuasion... I've never seen a bank ask political affiliation on the account paperwork. Liberals lose just as hard as everyone else. Contrary to popular myth, welfare queens and drug addicts may have helped the vote but they didn't elect Obama. Some hate to admit it..even I have a hard time grasping it sometimes, but a good and healthy % of middle to upper class Democrats are who paid his ticket to the White House. Twice.

They get hit as hard as anyone else since Bernanke won't care and couldn't know anyway. The only color he cares about is green ..not red or blue. If anything, this could be the thing to really UNITE both sides outside the real extremes. Nothing will get through to the extreme left OR right. I give up on the fanatics with or without this happening.

Not even a week goes by and suddenly the Cyprus style theft is an open option for all? Now I am starting to lean more towards this was well planned ahead of time rather than a spur of the moment idea and decision. I really do not want to see what happens here in the US if they even hint at doing something like this. Could give a whole new meaning to the term bank run.

Originally posted by Wrabbit2000
It didn't even take a week for the nations top financial criminal to suggest robbing OUR banks was possible too. Hmm... They give people many years in nasty federal prisons for doing that over just a few thousand dollars. He's already screwing us for 10's of trillions and now even suggests taking directly from people's pockets?

I'm starting to think they WANT a civil uprising. Maybe Obama WANTS to get himself into the same position of that President he thinks so much about. Lincoln. After all, had Lincoln lived after the war, he was in a position to make changes like were never possible before and have never been again since. Not to the degree that level of low position allowed.

Robbing AMERICAN bank deposits would likely see people getting shot... No kidding and no joke, in my opinion.

I have no money in banks to worry about..so don't look at me for such craziness. However, we live in a nation where people damn near kill each other over a shiny widget on sale for Christmas. This would simply blow things wide open.

How would a Federal Reserve Chairman be removed from his position anyway? There must be a legal process since the President appoints him and the Senate Confirms him. There is no way that can be a one way ticket with no way to cancel, is there?

edit on 21-3-2013 by Wrabbit2000 because: (no reason given)

Did you read any of the twitter reactions to chase after their computers messed up and showed everyones accounts to have a zero balance?

I think that was the first step in trying to test for public reactions honestly. Too bad they were mostly things along the lines of, " my money better be back tomorrow, or I am gonna take it back".

I dont see a reason, when the country is already printing more money than we have in the bank every couple of konths, for them to take money from people.

Honestly, they shouldnt even tax us since they can simply print what they want without end.

It means they are only taxing people to keep the screws to them.as should seem obvious.

If I can make money at any quantity I desire, at any time of my desire, why woukd I need to take any from the people at all? The answer is simple, there is jo reason to, except to cause financial hardships on purpose. It is the only answer that makes sense.

I kean either money matters and is tangible, thus taxes are needed to pay things, or the government can print as much as they want, and have jo neex to tax the people.

It cant be both, as being both implies the entire system is fake, which means there is jo need to take anything from anyone to begin with.

Nice.

Is anyone really surprised by this announcement?

Keep your money out of the banks, folks.

I don't like how it is so easily and openly discussed as if it is the natural next step.

'Oh hey, we ruined the economy by our outrageous, irresponsible spending and money printing, so now, we are going to take your money! Hope you don't mind! Love, Ben'

reply to post by Wrabbit2000


"I'm starting to think they WANT a civil uprising. " Well mate,I think your spot on. Its in Europe/Asia/ USA . It seems the horsemen are at work.

They are truly creating a worldwide spread of civil unrest.

reply to post by Senduko

Well, if it all blows up, let's hope each of us here can chat about it in the aftermath with the same good health we enjoy today. Things are getting weird out there for things happening which no one ever thought they'd see done or even talked about. Who knows, right?

theres is an easier way to take peoples money out of banks, Print FRN's and inflate the curancy. No one will ever know what hit them until its to late

Originally posted by OptimusSubprime
Here we go... at yesterday's FOMC press conference Ben Bernanke stated that Cyprus style "haircuts" are possible here in the US. In other words... "Yes, we can and will steal money from people's bank accounts here in America if we need to." This certainly isn't surprising to me, but I have to question his motive in saying this. Just the other day the Obama Admin stated that such a thing isn't a possibility here in the US, but the one man with access to EVERYONE'S bank account says that it is. I believe that Bernanke said this to see if anyone out here in the land of "Real Housewives" is paying attention. I would bet that they are not. This is why I don't keep extra money in the bank, instead I keep physical silver in my gun safe. (oops, sorry... I said the "G" word... I didn't mean to scare anyone)

At 3:18 PM EST Bernanke was whether a seizure of deposits could happen to US depositors as in Cyprus, if the economy gets worse?

Beranke’s translated response: Only if the Cyprus event or another event in Europe were to become contagious and the people lose confidence in the US dollar.

While QE to infinity will be pursued as long as possible, the entire Cyprus fiasco is now officially on the table when it comes down to it if unlimited counterfeiting fails. (and gold revaluation which is the next tool in Bernanke’s toolbox)

Link to story

That is not what Bernanke said at all, the question at the FDOC was whether or not the problems of Cyprus could affect the financial markets and the response was that if there was some contagion that it could have an effect on the US markets,

nothing was said about taking American depositors savings, nothing, nada, zip.

Please get the facts and state them properly instead of going for WOW factor. I am in agreement that the US is in big financial trouble but falsely reporting stories on here will not help anyone.

PEACE,
RK.

So Bernake is admitting the U.S. economy is really in the toilet, no matter how high the stock market is now and how the current administration says the economy and jobs are better.
Shows how fake that market is being propped up and we are in far worse shape than they have let on.

REALITY CHECK - This thread is BS and FEARMONGERING (which goes over well on ATS, I realize)

The OP's source of the information "Silverdoctors" itself calls this "version" of Bernanke's comments a "translation". The "truth" isn't available, only their opinion. See below for the REALITY.

The Op is parotting what the source said, and the source (Silverdoctors) is clearly trying to inflame emotion in its readership. This "translation" of Mr. Bernanke's comments is nonsense.

Here are excerpts from yesterday's Q&A following Mr. Bernanke's statement, related to the Cyprus Bank Topic, from the Wall Street Journal's blog (reporter Sudeep Reddy) of the Q&A session:
BEGIN
1:49 pm Cyprus: It took 15 minutes to get to Cyprus and its reverberations, but we're there.
"It's a difficult situation in Cyprus," Bernanke says, outlining its many problems and the uncertainty about its implications for others in Europe after Cypriot lawmakers rejected a bail-in plan Tuesday.
"The vote failed and the markets are up today. I don't think the impact has been enormous. ... We hope the Europeans will come up with an efficient and equitable solution." The Fed is monitoring it, but so far doesn't see much risk to the U.S., he says.

2:16 pm Back to Cyprus: As a central banker, do you think it was appropriate or fair to impose a levy on every bank deposit, even the insured ones?
"I know they're grappling with a very difficult problem," Bernanke says. "I think the issue they face is there's a pretty big financial hole" -- a fiscal issue and a bank restructuring issue. "I think everyone understands there are certain risks with that" beyond hitting lower-income people and setting a precedent.
"There's probably no easy way to do it. We're going to keep monitoring that. But I don't envy them" with "that particular challenge."

2:21 pm The problems there don't have direct implications for the U.S. and would only become a problem if the runs became contagious, Bernanke says. Could a bank levy occur here? The FDIC created bank insurance in 1934 and has never lost a dime of anyone's insured deposits, Bernanke notes. "During the crisis the response of the government was in fact to increase the level," he says, adding that such a levy is "extremely unlikely in the United States."
END

So, the headline of this thread, and the source of the "translation" are BS. Although, the wild-eyed responses are very entertaining - thanks for these

reply to post by mugger

Given my personal understanding of the numbers down deep where the sausage gets made? I'm frankly stunned we've seen it remain running this long. Basic economic fundamentals should have seen some very bad things already well underway. The fact it's still running like everything is just dandy in cosmetic appearance is a feat I think economic text books will have chapters written about in future generations. It's been quite an accomplishment...defying basic laws of natural order that way.

It can't last forever ..as some have been saying for over a year or more. How did we all think it would look before it began to fall? (looks around) Yup..... Looks about right.

Might be close to that dig-in time.. Financially, anyway.

thanks for keeping us updated on this subject. it's hard to know when the house of cards will come tumbling down, but it would appear sooner than later.

Is there some law on the books that makes government seizure of private deposits legal or will this be another Executive Order deal? Or will they even bother with such trivial technicalities as "law" in this circumstance? This would be a hugely bold step. I also feel confident in saying the next step would likely be violence. You cannot just rob people and expect anything short of rampaging.

...just by him saying that 'depositor haircuts' (what a name) could be possible if....is going to spur some into action...but dont worry, i'm sure they will be labeled 'terrorists' and appropriately delt with.

and in the past there was talk about a nationalized pension system and to eliminate private retirement accounts including IRA’s and 401k plans...hmmmmm

is he just rubbing the check before he slaps it? it seems like the admistration is trying to goad the citizens into some type of action, then they will be able to justify an...'appropriate response'.....