You Didn’t Save That!

You Didn’t Save That!

First “You didn’t build that” and now apparently you didn’t save that (or at least it’s not all yours anymore).  Are your savings safe?

There’s value in monitoring what other governments around the world are doing… seeing what other governments do (and attempt) is often the best crystal ball to see what in our own future.  European governments are particularly useful as our crystal ball as we continue to model U.S. governance and tax policies on post war European socialist models.

In a radical departure from previous aid packages, euro zone finance ministers want Cyprus savers to forfeit a portion of their deposits in return for a 10 billion euro ($13 billion) bailout for the island, which has been financially crippled by its exposure to neighboring Greece.

The decision, announced on Saturday morning, stunned Cypriots and caused a run on cash points, most of which were depleted within hours. Electronic transfers were stopped.

The originally proposed levies on deposits are 9.9 percent for those exceeding 100,000 euros and 6.7 percent on anything below that.

via Cyprus works on last-minute deal to soften bank levy | Reuters

Yes… you read that right!  The European Union is asking Cyprus to seize up to 10% of private deposits in Cypriot banks in order to provide yet another European buyout.  Remarkably, the news of the demand led to a bank run which will further damage the Cypriot economy.

European Union of AmericaThis comes on the heels of British politician, Nick Clegg’s proposal last summer to conduct a  emergency, one time levy on wealth that he feels could hold off a potential class conflict.  This isn’t the proposal of a political outsider either…Clegg has been the Deputy Prime Minister of the United Kingdom and Lord President of the Council (with special responsibility for political and constitutional reform) since 2010 and was previously a Member of the European Parliament.

It seems that more and more Western politicians and officials are beginning to consider our assets to be their assets…to plug the increasingly large holes in their government budgets.  Even private retirement plans aren’t safe in some countries anymore…how long before our bankrupt State and Federal governments steal (pun intended) their ideas?  Watch out for those who think that ‘you didn’t save that!’

 

 

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