Raid on bank accounts in Cyprus

[MrsJREwing]

Nearly 10% of savings will be taxed from private individuals savings, to save the banks.

[edam]

Yeah, so the EU tells Cyprus to do it and Cyprus does it. Still the EU's responsibility. Still the EU approving the theft deal. Don't know why I'm surprised tbh, given the EU overthrew democratically elected governments in Italy and, irony of ironies, Greece, clearly the leaders feel able to do what the hell they like and sod the ordinary man and woman in the street.

Honestly, I'm aware that sounds like a UKIP rant but good grief, the EU's behaviour is extreme. I hold no candle for Berlusconi who was clearly an incompetent shit, and Italian politics is extremely murky, but he was actually elected. Overthrowing democratically elected governments was an astonishing low for the EU.

[Xenia]

I think they have supposedly a guarantee protection for savers which in effect is being ignored for the 6.75%. I suppose they must have changed the law to remove the guarantee which of course means the UK could do so too.

Perhaps people should keep their money under the bed or in gold.

[edam]

And I loved the EU's description of the new puppet governments they installed in Greece and Italy as 'technocrats'. Yeah, right, because the accurate term 'dictatorship' is soooo embarrassing.

[claig]

edam, it is the elites versus the people, that's how the system works. The people in Cyprus have had this imposed on them without a vote.

[flatbread]

Xenia, pretty right. From Zerohedge today:

"More importantly, as of this morning Europe has finally grasped that there is a 6.75% to 9.9% premium to holding physical cash in your mattress rather than having it stored with your local friendly insolvent bank"

I do think US and UK will be ok, as any other country that can print money. They have the option to devalue our savings and erode through inflation, rather than direct theft.

[claig]

'Perhaps people should keep their money under the bed or in gold.'

Don't forget that Franklin Roosevelt confiscated people's gold.

[Chandon]

Oh fatbread, that is sadly true...

[claig]

Isn't eroding through inflation indirect theft od saves' money?

[CoteDAzur]

What else were they going to do? Annual GDP of Cyprus is about 17 billion euros. They want someone to give them what their entire economy is worth in a year. It is a lot of money for such a tiny country.

Imagine if UK were to beg for almost 2 TRILLION euros. I bet whoever offered to help would ask the UK to come up with some of that amount by taxing someone.

At least Cyprus is raising most of the money they need from non-citizens who are probably not even residents. Would you rather they fund this 6 billion euro amount by taxing Greek Cypriots?

[BrianB]

It appears that CoteDAzur is pro Europe (a vote for disaster), anti Greek Cypriot and Pro Turkish. If you took away the politics, who voted what on what you were allowed to vote on and a host of other none moralistic values and you are simply left with a Europe in collapse, bankrupt and a divided island of Cyprus which morally should be a part of the EU. you are either for the European disaster or against as you are with the Greek Cypriots or against. I know where I am. Its not Europe and its not the Turks.

[MrsJREwing]

ESM Fiscal pact is why this will happen elsewhere, David Cam didn't sign.

[claig]

No I'd rather they nationalise the banks, jail the polticians who allowed this state of affairs to exist, lend the tiny amount of money something like 0.2% of European GDP, increase taxes on earnings and not touch savings on which tax has already been paid, and set a low interest rate over a very long period to pay back the debt.

Instead of the people taking a haircut, the banks should take haircuts.

[CoteDAzur]

Not sure what you mean by "pro-Europe", Brian. I don't live in the EU and have never been asked to vote to join the EU.

But don't let facts stop you from ranting.

[CoteDAzur]

"a divided island of Cyprus which morally should be a part of the EU"

"Morally", no less

Well, as edam said, I bet today they are celebrating the day when they wanted to be part of EU and were snubbed by Greek Cypriots who joined the EU on their own.

[claig]

On the Sunday Politics, one of teh commentators just said that the Dutch finance minister has refused to rule out that these typoe of measures may be used in other Eurozone countries.

The elite often test their policies in small countries before launching them on a larger scale. The elite will want to watch the reaction of the people before they attempt it anywhere else.

[BrianB]

Apart from the CoteDAzur none EU (but pro EU disaster), is there any 'Legal Beagles' that can give legal comment on a Cypriot Government that interferes with a banking system BEFORE it has taken a parliamentary vote?

[MrsJREwing]

Yes Clag, as the Dutch as with all EU members signed last years ratification allowing this. David Cameron and one other country didn't sign.

[BrianB]

Lambs to the slaughter?

C - Cypriots
L - Largely
A - Angry &
G - Gutted

[edam]

I never thought I'd have cause to say 'well done David Cameron' but it seems appropriate.

[MrsJREwing]

Edam, it seems savers in Europe will feel their money is more secure over here.

[edam]

It seems they would be right!

[Gales]

I wonder if some enterprising journalist could get details if all the large transfers made out if the country in the week before the announcement....or even if the total was higher than usual

Does this make anyone else feel differently about holding money in banks (anywhere) I would have thought it could have a knock on effect on banks worldwide as people start to wonder if that really is the best place for their cash. If it can be done legally in Cyprus surely it can happen anywhere.

[Xenia]

It is a creeping hidden communism, confiscation of wealth also to be seen in the proposed mansion tax. Better to spend your money on wine, women and song or even your children's education than risk saving or buying a house as assets that can be stolen from you can be by the state. No one can steal your education from you.

Yes, it is having a knock on effect. Value of UK shares down today etc. which affects people's pension funds.

[edam]

I would imagine the knock-on effect will be even bigger in the Eurozone, since if they can do this to Cyprus, they can do it elsewhere... yet another reason to be thankful we didn't join the Euro. But haven't checked the financial news today.

[flatbread]

I am ok with a mansion tax. The taxes on higher-end UK property are very low. In the US you pay twice or thrice the amount in annual property tax as compared to UK.

There seem to be all sorts of discussions in Cyprus on what percentage of deposits to take, between lower and higher groups. It beggars belief how badly managed this whole affair is.

I thought we are a nation of muddlers, but the Eurozone leaders seem to take a combination of arrogance and incompetence to a new level.