Sunday, March 17, 2013

European Union Central Bank Confiscating Savings

As part of a bail out deal to rescue banks in Cyprus, the EU Central Bank is assessing a tax on personal savings in those banks.  In an unprecedented move, negotiations are under way with the government of Cyprus to take up to 3% of savings from those with 100,000 Euros or less, even though these accounts in the bank are protected by insurance and as much as 12.5% for those with savings of 100,000 Euros or more in the bank.   This is pretty scary stuff.  Of course, it has caused a run on the banks in Cyprus.   The question is what will happen in the rest of Europe this week.   Let's hope not, but this could cause panic, which may have world wide implications.    

In the US, personal savings in a FDIC insured bank are typically guaranteed up to $250,000 by the Federal Deposit Insurance Corporation, even if a bank goes bankrupt.   The very notion that personal savings can be confiscated in a wealth tax, even with deposit insurance in place, is particularly disturbing.   It proves once again that we need to fear the hand of government that can by fiat just take what belongs to us.   This move is similar to Obama stealing GM from its legitimate owners, the bond holders, to give it to his auto union supporters, which was a violation of long established bankruptcy law. 

Who knows, one day a bankrupt US federal government could just go after our 401K's, since Trillions of Baby Boomer money are just sitting there.  Of course, confiscation of wealth has been happening since imposition of the income tax for years as US Socialists like President Obama and his pals in government insist that we pay our "fair" share, which if left to them would be everything we own. 

What is happening in Europe is an indication of what can happen in the US.   Having lived through the Great Depression when there was a run on the banks in the US, this Blogger's Dad was so suspicious of banks and government in general that he used to say it was best to put money in a tomato can and bury it in the backyard.   While growing up, I always used to call my Dad an alarmist.   Dad must be turning over in is grave as he sees what is happening in Europe.  

Could the US be next?   Anyone who believes this sort of government over reach can't happen in the US is naive and unaware of the lessons of history.  Is this the plan that Obama has for our country as he pushes us closer and closer to national bankruptcy.   Buy Guns, Gold and Real Estate to protect yourself from national calamity.   That tomato can solution is also starting to look pretty good.  Thanks Dad. 

No comments:

Post a Comment