Cyprus To Raid Bank Accounts; Mattress Option Not Quite as Absurd As It Was Yesterday

by Mike on March 18, 2013

in Economy,Politics

Over the weekend, news broke that Cyprus was planning to raid peoples’ bank accounts in exchange for bailout money from the European Union.  Under the plan, those with deposits of more than 100,000 Euro would have 10 percent of their bank account raided while those making sense would “only” lose 3 percent of their savings.

This is certainly one of and probably the scariest fiscal news item I’ve ever seen.  For the last several years, we’ve seen European country after European country struggle with the consequences of extending lavish welfare benefits at the expense of those who produce the wealth necessary to fund the system.  Sometimes, the confiscation was done in the form of confiscatory taxes while at other times, it was done in the form of borrowing.  But this is new.

Your savings are something you accumulate through sacrifice over the course of a lifetime.  Every time you decided to not go on a vacation, or buy a smaller home or less flashy car, or refrain from buying your kids everything they wanted, you did so on the assumption that you would have a little something extra (or a lot, depending on how frugal you were) when you got older (think the Ant and the Grasshopper).  Now the government can take that too.  And in the process, those who take, take, and take while contributing nothing get the fruits of your sacrifices.

Well, look on the bright side:  I know the tax didn’t exist yesterday, but a might be a little smaller than thought.  Cyprus just cut taxes or something.  Party like it’s 1984 (not the cool Reagan wins 1984, the scary Orwell one).

{ 1 comment… read it below or add one }

Ryan March 18, 2013 at 6:48 pm

This is truly scary and a symptom of the people being treated as subjects of a government, not citizens in a civil society.
Watch the international left start getting little ideas, too.
Should anything like that happen here, that’s when I’d literally get my torch out and march down to city hall.


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