The great EU bank robbery!
Whit the current EU order that Cyprus should take money from people's bank accounts to lessen the debt do you think this could be the start of a world wide government cash snatch?
Well they can try and snatch what they like from my bank account - there ain't anything in it!!! But trust the EU to come up with something absurd like taking money from people's bank accounts. If this is not illegal, then it should be!
Some people have not got the brains they were born with! If this goes through all that will happen is a run on the banks in Portugal, Spain, Ireland and Italy. And people wonder why we in Britain just do not trust the ever-growing power of the EU.
I think it is absolutely terrifying! As you mention, it could be the start of a world- wide chaotic scene. I would think that it will have a domino-effect,with people in different countries making runs on the banks. I try to think what I would do, and I guess unfortunately I would probably do the same, preferring to keep my money under the mattress! But if everyone did that the result would be absolute chaos.
Its time to review the floating rate system that I presume EU is adopting. In this system, the creation of money is through an entry in the book of accounts in the central bank. There is no back up for this entry because the gold standard is not in effect. This entry is then sold to the public or the lower banking system. If the entry is 10 billion Euro, this amount is created new money in EU. Then the next tier of banks will lend the purchased entries to lower tier of banks as loans to entrepreneurs. So this book entry is now an expansion of the economy of EU.
This summary of the floating rate system may be improved upon. The point is that entry in the book of accounts can be written off. In common language, forget about the loans. So instead of getting from the accounts of private citizens to reduce the debt of Cyprus, the debt should be written off.
But why will EU not write off the debt? It is protecting the monetary system of EU. If the debt of Cyprus were written off, other countries may come get a big loan then when unable to pay, ask for a write off of the loan. That way the EU monetary system losses integrity. The choice is between: protect the EU monetary system or protect the people.
This debt might be a signal for the review of the floating rate system. Now if the return of the gold standard may be considered, its flaws must be remedied. Virtually, there is now a return of the gold standard because of the Basil III ruling that gold is now made Tier I. I have a Hub "Should the gold standard return, its flaws must be remedied."
I heard about that this morning.
I wonder if Cyprus banks will have clientele after this little stunt.
I think the key words here are 'lessen the debt'. By how much I wonder. I wouldn't be surprised if politicians have not already calculated the total amount in savers accounts against the total debt and have got their greedy eyes on it as away of wiping the slate clean.
This pilfering of savers accounts is just the start. The distorted politics and policies that have brought all economies to this state have not been abandoned. I think politicians do not believe that people should have savings. They believe that if you are earning more than you need you give it to the state.
The Fed does this everytime it artificially lowers interest rates and prints money out of thin air. The number of dollars in the account stay the same,but not the value. Same Difference. Everytime a tax is raised on businesses, it is a higher cost of goods and services we pay...a loss of dollar value again. Our federal government is just more adept at doing it in these "subtle" ways. It's still theft.
I think its a bad call. They are still deliberating if it will be pass as a law. I am sure that a lot of people are now withdrawing their money from bank. Good job guys you just make bank obsolete. Who will like to deposit their hard earn money with no guarantee it will be safe fro robbery ? (Government robbery)
It happened in Brazil in the early 90s. Many Brazilians will never go back to their country for this reason. Since a large tax cannot get voted in they must get it somehow to function. Buy some gold instead of all cash.
Sadly it shows the fragility of the banking system, perhaps it itself is running out of money. It has created the system, it was aware of the hedge funds.
I'm going to put my money in a tin and bury it in the garden!
I agree with Mitch Allen! The government is capable of whatever it so desires regardless of "law" It creates loopholes cleverly or right out does what it pleases
Polictics is not my favorite subject for discussion I dont like it and I dont want to offend anyone.
Games government plays either party can be foul!
This is not the first one and also not the last to happen. The fiat currency and financial rescue to bank is nothing else but robbery. They saving rich and destroying poor.
Failure to pay debt shows leak somewhere. One is war, like Korean war that destroyed not produced; others are ignored risk, high government spending for perks. Leak can be pinpointed; hard to make those accountable pay. Make powerless foot the bill..
by Sean L2 years ago
Why do people rob banks when everyone of them today get caught? So they know they can't keep the $.
by jerryl7 years ago
What's your opinion, and the reasoning behind it?
by Flightkeeper7 years ago
Philippians 4:11-13For I have learned to be content, whatever the circumstances may be. I know now how to live when things are difficult and I know how to live when things are prosperous. In general and in particular I...
by Gary Anderson8 years ago
Our meltdown can also be understood. This is must see. All hubbers need to take the time to watch this video:http://video.google.com/videoplay?docid … 0256183936
by logic,commonsense7 years ago
Read an article on MSN that the projected deficit for this year is 1.5 trillion dollars. Makes bush look like a piker with his measly 3-400 billion dollar deficits.Course there will be those that forget that bush...
by atomswifey7 years ago
Small Business Encyclopedia:Value-Added TaxA value-added tax (VAT) is a fee that is assessed against businesses by a government at various points in the production of goods or services—usually any time a product is...
Copyright © 2018 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.