European Union orders seizure of depositors savings

Good day all. This story broke over the weekend, although exploded would be a better phrase. As most people know who actually pay attention to things, The European Union nations have spent themselves into bankruptcy.

The latest EU country to seek a bailout is Cyprus. They are seeking a €10 billion to recapitalize their banks and to stabilize their economy. This is pretty standard stuff for the EU, but there was one major change. The EU Finance ministers ordered that up to 10% of the bank depositors savings be seized. Needless to say, this came as a shock to every single depositor on the island. It’s also started a run on the banks as people start withdrawing their savings or transferring it to accounts in other banks overseas.

Since the markets opened this morning, the Euro has dropped, bank stocks, at least in Europe have dropped and the Cyprus government has ordered all the banks closed until Thursday. This is to give them time to have an actual formal vote to steal the depositors money and ship it back to the major banks backing the EU. (Considering that the EU is not a republic or a democracy, this vote is all but meaningless).

To say the Cypriots are not happy is an understatement. Once word came out about the demands from the EU, they hit the ATM’s as fast as they could, and promptly maxed out their transaction limits. Now with the banks closed, those ATM’s are probably not being reloaded. Electronic Funds transfers have also been frozen, which is blocking corporate accounts and foreign nationals from protecting their money.

In going through various news reports, one of the questions asked was “Has this ever been done before?” The answer is not in the EU zone. Now that a precedent has been set, people in Italy, Spain and other EU nations that are broke are starting to feel really nervous. People are asking “Who’s next?”

One of the big things about the Cyprus banks, is that they do a lot of money laundering for the Russian mob. Somehow, I doubt they are going to be very happy seeing 10% of their ill gotten gains being transferred to the Brussels Eurocrats. They might decide to make an example of some of these bankers and they have the “people” to do the job ((Spetznaz forces)). I suspect that one of these EU finance ministers getting blown up might get the attention of the others. Certainly, the biggest mobster in Russia is making no secret that he isn’t happy at this plan.

Putin hits out at “dangerous” Cyprus bank deposit levy

Russian President Vladimir Putin criticized on Monday a levy imposed by the European Union on bank deposits in Cyprus as unfair and setting a dangerous precedent.

“While assessing the proposed additional levy on bank accounts in Cyprus, Putin said that such a decision, should it be made, would be unfair, unprofessional and dangerous,” Kremlin spokesman Dmitry Peskov told journalists.

Russian citizens account for the majority of the billions of euros held in Cypriot banks by foreign depositors, and Russian banks are heavily exposed to the island as a favored offshore centre for big business

Dangerous is right, but not in the way most people think. Putin probably has a pretty good sized slush fund there and he also has access to some really interesting “Party Favors.” As I mentioned earlier, if this really stupid idea is carried out, I see a good chance of “Big Booms” happening. (Or two shots to the back of the head) I also think that of the Cypriot government goes ahead with this stupid idea, the citizens are going to rip them apart.

Now, could something like this happen here? It’s come close a couple of times. Usually it’s an attempt to grab the 401K and IRA accounts rather then loot people’s savings accounts. The last time this was brought up was in 2010 by Senator Tom Harkin, (D- Iowa). The plan was to be called “Guaranteed Retirement Accounts” and would have allowed the outright seizure of the 401K’s by the Social Security system. People would have a “Guaranteed” 3% interest rate for the their retirement savings. As of April, 2011, this amounted to $3 Trillion dollars ((Benefits Pro)). IRA accounts, which weren’t being targeted, are another $5-6 Trillion dollars. You can bet they would have gone after those next if Harkin and the Democrats had succeeded in grabbing the 401K’s. The reason they want this money, besides the obvious, (Being able to loot it as they have with the Social Security funds), would have been to fully fund the labor unions pension funds. Those funds have been looted by the Union heads for decades, (Mostly to buy democrat politicians), and most of them are teetering on the brink of insolvency. Human events had an article on this back in 2010. I also wrote about it myself.

Needless to say, it didn’t happen. That doesn’t mean that the Progressive Liberal Democrats have given up on the idea. You can bet your bottom dollar they are looking at what the EU is trying to do and thinking about how they can do that here. I wonder if they will pay any attention to the riots that will no doubt happen if this bank account looting goes forward? I have no doubt that there are going to be out right riots, and I wouldn’t be surprised at all if the Cypriot Government falls. (Or is strung up on meat hooks)

If the Progressive Liberal Democrats decide to loot the savings and retirement accounts here, all bets are off. People are already furious at the tax grabs Obama and his thugs instituted in January. Go for the savings and retirement accounts? Well, they will need that 2 billion rounds of ammunition they ordered when the rebellion starts.

Keep an eye open on what’s happening over there. It might happen over here.

Thatisall

~The Angry Webmaster~

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