Cyprus Lining Up At ATM To Withdraw Cash Before Stunning Tax On Deposit

SHTFplan.com
March 17, 2013

Over the last few years political and financial leaders in Europe and the United States have implemented policies, regulations and bailouts costing global taxpayers trillions of dollars with the promise that these measures would lead to economic growth and recovery.

What happened in Europe today is yet further proof that nothing they’ve done has fixed the underlying fundamental issues surrounding the events that led to the crash of 2008.

For those who don’t believe the government is prepared to take extreme measures that may include the seizing of retirement accounts, cash savings or even gold, look no further than Cyprus, the latest recipient of bank bailouts.

As of right now, citizens of Cyprus are scrambling to withdraw funds from their bank accounts after the EU, with agreement from the Cypriot government, announced they will decimate funds held in personal bank accounts to the tune of up to 10% of existing deposits.

You read that right.

The European Union has made the determination that the people of Cyprus are now responsible for the hundreds of billions of dollars in bad bets made by their government and bank financiers, and they are moving to confiscate money directly from the bank accounts of every citizen in the country.

Restrictions have been imposed to stop people emptying their accounts or moving their money out the country after the Cypriot government announced that up to ten per cent of deposits will be seized and used to bailout the island’s crisis-hit banking system.

The deal with other eurozone finance ministers is the first time that ordinary citizens’ deposits have been directly raided in this way.

…

One furious expat said: ‘This is plain theft. I’d love to hear someone explain to me why it isn’t.’

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Under the deal, all bank deposits over €100,000 will be hit with a levy of 9.9 per cent. Those with smaller savings will pay 6.75 per cent.

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The move sparked panic and violent protests yesterday as crowds desperately tried to withdraw their money at cash machines.

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‘Why would you risk putting your money in Greek, Spanish or Portuguese banks after this?’

British expats were stunned by the news, with many left high and dry by the restrictions on accounts.

Cash machines had been working, but many ran out of notes because of the panic withdrawals.

…

But financial experts said the raid – designed to stop Cyprus crashing out of the euro, potentially destroying the currency – would send shock waves through the eurozone.

If savers in other troubled nations fear their accounts might be next, they could withdraw their money and spark a catastrophic run on the banks.

Source: Daily Mail

They’re calling it a “tax.”

As Market Ticker’s Karl Denninger notes, “Like hell that’s a tax. That’s direct confiscation of the funds of people who did nothing wrong!”

It should now be obvious. There is no recovery. There never was.

No matter where you live, your government is likely preparing measures to deal with the coming financial and economic collapse. This means they are going to be coming for anything of value that they can get their hands on.

If you have the majority of your net worth allocated in bank accounts, money market funds, retirement plans, stock markets or the host of other ‘safe’ assets recommended by your financial adviser, then you are playing Russian roulette.

And in this version there’s a bullet in every chamber.

When they come, they will take everything they can.

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Comment by Central Scrutinizer on March 17, 2013 at 1:12pm: way ahead of ya, savings now have $12.45...and staying @ that level for now ;)

Comment by Elyag Reed...We are Legion on March 17, 2013 at 12:31pm: Get those funds and assets out of the banks -
Now Now - Next Friday of payday may be too late. Look at Cyprus and tell
yourself again - Oh they will not do that here. What do you think they are
preparing all the Ammo - Tanks - Mobile Checkpoints for - Practice. It will
come like a thief in the night and not in physical form. Just a little click on
the program and a Special Tax (AXING) move will take whatever percent or even
Convert it to the New Money - What New Money - Perhaps SIX of the old Dollars
for ONE of the New Dollars. Where do we obtain that number - Plug One dollar
into this site: http://www.dollartimes.com/calculators/inflation.htm with the
year 1968 as off the gold standard. Oh you will still be able to buy things but
on what job wage? Don't take our word for it, do your own search, even the
Brits with funds on deposit are subject to the AXE.

Time to start - Ten minutes ago would be good

We are Legion

Comment by Central Scrutinizer on March 17, 2013 at 12:19pm: here's the Achilles's heel for the supposed "Too Big To Fail" banksters. Problem is they instantly declare a "bankster holiday", and POW, u can't withdraw doodly now. Banks are useless if there is no product. Hence the push for the "Cashless" society.

Comment by merlynX on March 17, 2013 at 11:01am: The US politicians say that the banks are too big to fail, I have enough rope that will not fail for all the banksters, just bring them to me. I will be happy to build the gallows for the banksters/politicians/real terrorists.

Comment by DTOM on March 17, 2013 at 9:29am: Time to put these parasites down...worldwide.

Comment by truth on March 17, 2013 at 9:29am: Europe has done it again.

Late last night, after markets closed for the weekend, following an extended discussion the European finance ministers announced their "bailout" solution for Russian oligarch depositor-haven Cyprus: a €13 billion bailout (Europe's fifth) with a huge twist: the implementation of what has been the biggest taboo in European bailouts to date - the impairment of depositors, and a fresh, full blown escalation in the status quo's war against savers everywhere.

Specifically, Cyprus will impose a levy of 6.75% on deposits of less than €100,000 - the ceiling for European Union account insurance, which is now effectively gone following this case study - and 9.9% above that. The measures will raise €5.8 billion, Dutch Finance Minister Jeroen Dijsselbloem, who leads the group of euro-area ministers, said.

But it doesn't stop there: a partial "bail-in" of junior bondholders is also possible, as for the first time ever the entire liability structure of a European bank - even if it is a Cypriot bank - is open season for impairments. The logical question: why here, and why now? And what happens when the Cypriot bank run that has taken the country by storm this morning spreads everywhere else, now that the scab over Europe's biggest festering wound is torn throughout the periphery as all the other PIIGS realize they too are expendable on the altar of mollifying voters and investors in the other countries that make up Europe's disunion.

Bloomberg's take on the sacrifice of Cyprus' savers: http://12160.info/m/status?id=2649739%3AStatus%3A1152701