Confiscation of bank deposits: Can it happen in America?

Cyprus rally

Three days ago, on Saturday, March 16, 2013, the people of Cyprus were told by the grand poobahs of the eurozone that as much as 10% of the deposits in their personal bank accounts would be “levied” confiscated, in exchange for a $13 billion (€10 billion) bail-out of their heavily indebted country to avoid default and a banking collapse.

Cyprus is a small island country in the Eastern Mediterranean Sea to the east of Greece, and a member of the European Union (EU). The eurozone is an economic and monetary union of 17 EU member states that have adopted the euro (€) as their common currency and sole legal tender.

The 10% levy figure is now undergoing furious negotiations. Most likely, Cyprus and the eurozone will settle on a “progressive” levy, wherein small savers will be spared or “levied” a small percentage, while those with 6-figures or more bank deposits will have a larger percentage of their money confiscated. Whatever the confiscation formula, what the eurozone wants is that Cyprus raise €5.8 billion to secure its bailout.

Although the Cypriot parliament must vote to approve the eurozone’s levy — and the latest news is that Cyprus President Nicos Anastasiades thinks parliament will reject the bill — that the levy was proposed at all is stunning. As the Financial Times‘ Wolfgang Münchau puts it: “the eurozone has effectively defaulted on a deposit insurance guarantee for bank deposits” given in 2008 after the collapse of Lehman Brothers to assure depositers “that all savings are safe.”

Analysts including Münchau, Phoenix Capital Research, and ZeroHedge’s Tyler Durden all expect that there will be bank runs, not just in Cyprus but elsewhere in Europe, especially in financially-troubled heavily-indebted countries like Italy and Spain. (Interestingly, Greece isn’t mentioned, perhaps because Greeks have no more money to even do a bank run.)

As Durden puts it: “the bottom line is that the Rubicon has been crossed, and deposits have now been forcefully confiscated in what Europe promises to be a standalone case. What is certain, is that nobody will wait to find out how long it takes before Europe’s class of increasingly more desperate and ill-meaning despots is found to have lied once more (as it has about everything else since the start of the European crisis).”

To prevent bank runs, Cypriot banks will remain closed till this Thursday. Customers can still use their banks’ ATMs but, as in the United States, they are limited as to how much money they can withdraw from the machines — reportedly, up to €500 a day. And as of yesterday, there have been no reports of bank runs in Spain or Italy.

Cyprus ATMPeople lining up to withdraw money from ATMS at the Bank of Cyprus, March 19, 2013. (Photo from Reuters)

How might the Great Cyprus Bank Robbery of 2013 affect Americans?

1. If you have a bank account in Cyprus, your deposits may be “levied” at a percentage depending on how much you have in your account(s).

2. If the levy is approved by Cyprus’ parliament, Americans will contribute toward the $13 billion bailout of Cyprus, thereby adding to our already gargatuan $16+ trillion national debt. Why? Because International Monetary Fund (IMF) Managing Director Christine Lagarde already said she would ask the IMF board in Washington to contribute to the bailout.

With 16.2% of the IMF shares, the United States is the largest shareholder or contributor among the 187 nations who belong to the fund—even though its managing director has always been a European. In addition to America’s 16.2% “share” (i.e., “contribution”) in the IMF, in 2009, Obama proposed and Congress approved a $100 billion U.S. loan to the IMF.

Even before Cyprus, the IMF has joined with the European Union to sculpt bailout packages for Greece, Ireland, and Portugal.  Coupled with loans from the EU, the price tags on the bailout packages came to $157 billion for Greece, $122 billion for Ireland, and most recently, $116 billion for Portugal. Alarmed about this, Congresswoman Cathy McMorris Rodgers (R.-Wash.), the premier congressional foe of spending U.S. tax dollars on IMF bailouts, points out that “The Portugal bailout is half that country’s GDP—$116 billion out of $233 billion. The IMF has refused to provide a reliable number but, given America’s contribution to the bailout, we estimate that our support of the package is equal to writing a check worth $600 for every man, woman, and child in Portugal.” She added that this ratio “was nearly identical for Greece and Ireland bailouts. (See John Gizzi, “Why Is the U.S. Bankrolling IMF’s Bailouts in Europe?,” Human Events, May 2, 2011.)

3. If bank runs occur in Europe, leading to a systemic collapse of European banks and the euro currency, that in turn will trigger a worldwide financial-economic crisis of an unimaginable scale.

4. Can it happen here? Will we wake up one day to be told that our bank deposits are also confiscated? Tyler Durden of ZeroHedge writes that the key thing about what happened to Cyprus is that “the Rubicon has been crossed,” that is, the until-now taboo subject of the forceful “levy” of citizens’ private bank accounts has been broached. As Durden puts it: “the topic of ‘wealth taxation’ is now front and center, and it stars not only Europe, but the US as well. The question then becomes … is there any possibility of Cyprus ‘wealth tax’ recurring on the other side of the Atlantic.”

Durden points out that in the US, other financial assets, namely the stock market, account for a far greater proportion of household net worth than bank deposits. It is therefore quite possible that instead of confiscating our bank deposits, thereby voiding the FDIC guarantee, the government may instead choose to tax 30% of all of your stock holdings, and achieve the same “wealth transfer” result.

Will Congress do this?

Obviously, nobody can answer that question now. However, it was “absolutely certain” as recently as three days ago that the safety of Cypriots’ bank deposits was protected.

Then things changed rapidly.

What is the lesson we should take away from the Great Cyprus Bank Robbery?

Answer: There are no longer any rules, and any assets, any “wealth” saved, stored, and hidden is now fair game.

See also:

Update: Cyprus parliament rejected the levy.

~Eowyn

16 responses to “Confiscation of bank deposits: Can it happen in America?

  1. This is exactly the kind of thing some in our government would want here.

    Like

  2. You’d better believe it can happen here. One time they seized our gold. Nothing would surprise me. I heard some commentator say today that it could never happen here because the banks are covered by FDIC. But FDIC doesn’t have enough funds to cover every depositor in the USA.

    Like

    • If you believe anything you see on TV you are in trouble. That commentator was an idiot. This will happen when the FEDS have no money left and the FDIC will mean nothing. History shows that it is one of the last things that happens in a collapse.The government seises everything they can in an attempt to save themselves.THe american EGO thinks this can never happen here that EGO is going to kill us.

      Like

    • http://www.knology.net/~bilrum/goldconfiscation1933.htm

      and the 40% overnight devaluation of the US dollar after forcing Americans to accept the paper for their stolen gold and silver: The Gold Reserve Act of 1934.

      Like

  3. Reblogged this on DeborahBidwell's Blog and commented:
    everyone needs to wake up they want all of our money and our guns, they have proven they can attempt to brain wash our children in their schools, so nobody is safe from them anymore, even if you live off the grid, you too are in danger you think you are off the grid, but NOBODY is truly off the grid, even the unibomber was on the grid still.

    Like

    • Yes, it’s probably impossible to be completely off the grid, but we mustn’t give them too much help in that regard.

      There was a story about state child stealing in the UK where all the children were taken away from their family except for one, and that was because that one child had never been registered at birth. The system couldn’t deal with someone who wasn’t a registered asset.

      Like

  4. You betcha it can/will happen!

    Slaves don’t have property rights, I thought everyone knew that :)

    Taxation, licences etc are a form of ownership. You are tagged with an asset number at birth and you are tracked through the system till your death.

    The film “Burn” with Marlon Brando shows how slavery was “abolished” and how the British used agents provocateurs to foment slave rebellions. It’s just been replaced with an idea that you owe something to someone just in order to live. If you are no longer useful, not productive or you consume too much then you will be disposed of.

    I believe that there is an informal agreement between the IMF and the World Bank that a European heads the IMF and an American heads the World Bank. Both organisations answer to the Bank of International Settlements based in Switzerland and that is headed by the Rothschilds no less. Now you know the name of the slave-owners.

    Like

  5. Oh I’m sure it could happen here. I put nothing past our government & their desire for more money.

    Like

  6. Laws have already been put in place that could let this happen here. They even drafted some stuff to go after peoples 401k’s .I guess people missed last year or year before B OF A was called out for not having enough money to cover their bets on wallstreet,so they moved the bets into user deposit area’s to cover them, after being told by the FDIC they could not do it. The banks just ignore the feds. It was talked about back in 08 by economist not connnected to the Government what is happen accross the world will eventually make it here. We are just as bad off as Greece debit per capita, and listen to what has been said about Greece all the way back to 08.

    Like

  7. Great post!

    Horace is right, Franklin Roosevelt confiscated and stole gold from American citizens when he bankrupted the country. Our taxes, which will increase with Obama’s socialized medicine program, are a form of confiscation.

    Minou makes some good points. Our birth certificate and SS number are tools that register us as property.

    I wonder if there are ulterior motives to this. Everything the satanist globalists do is planned.

    Like

  8. Im still laughing at the BLAME it on Obama crap the economy collapsed while BUSH was still in office, but it was not his fault, the United States does not have control over labor costs in other countries. The trade ballance has been out of wack for years, we now only export pretty much raw materials , which means we dont make anything, which means no jobs. Understand that we can not compete with China or India on labor cost and that is our problem. No President can change this simple fact

    Like

    • I agree that it is nonsense to blame one person for the mess we are in. It is a planned mess that is going according to plan by tptb, the timeline may be a bit delayed but everything is being put into place for the final push.

      The free trade agreements like GATT are responsible for the decline in industry and economy in the West. Under those treaties the tax-payer footed the bill for manufacturers to re-locate to the cheaper Far East and guaranteed 10 or 15 years financial returns. So in effect, the elected reps bought and paid for by the globalist parasites, signed away our lives so that China could become the new America. Isn’t democracy wonderful? (heavy sarcasm)

      Like

    • I read an article the other day that said, pelosi and her idiots were telling obama to tax our guns, start out slow, then jack the tax up high, if you don’t pay the tax, then he’ll send his goons to arrest you, and the gov will come in and confiscate everything you have. they said the tax could go up to as much as $5,000. and you will be in jail for 20 years. this is something that POS will do.

      Like

  9. Yes, it can happen here and the Federal Government has already taken money out of the Federal Employees Retirement accounts. Money we saved ourselves for later use. He is going to go after 401Ks and IRAs, then bank accounts. He has siphoned off billions for their retirements and it is stashed all over Europe. The IMF with Lagarde is fully in agreement with the happeneings in Cyprus and thinks it should happen more in Europe. Remember Obama wants us to be more like Europe.

    Like

  10. SEE the CZARS of Obama and I n Europe are here to De-develop the Western Nations because these are same extreme Environmentalists that want to DE populate the world and save the earth from Overpopulation …. and they wonder why they cannot get gun control through !!!! http://cnsnews.com/node/75388

    The DE-Industrialization of the western nations with the flawed and fraudulent Free Trade Policy of the 1990s that was managed in a Egregious and Treasonous manner and done so ON PURPOSE to make society DEPENDENT on Government so they could takeover and control the rate of Free Market driven Consumption to save Earth from Over Population Consumption is why we are watching this slow moving train wreak of our self reliant wealth creation system the Founders designed our Nations Constitution to Protect we the people from Ideologues who become convinced in the Academia and start to usurp freedom ……. whew that was a Long Winded statement but it felt good to say !!!!

    Like

  11. It will if the people of this nation are still stoopid enough to leave their money in the banks of a nation that is now well over $132 Trillion in debt.

    But what they had better worry about first is their private retirement accounts, as those will be the first things the Obamanistas (or Clintonistas) will come for, as they are very difficult to get away from the clutches of government.

    When I said back in 2008 that the election of the comrade Dear Ruler was the beginning of a communist coup, I wasn’t saying that just to see myself type.

    -Dave

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s