What is happening in Cyprus is akin to how the American Government plundered the American people for a few disgusting corruptocrats with the so-called TARP law, but may be even worse.
First of all, while America was robbed, at least it was done from public “funds”—or public debt. In Cyprus, the government has announced a plan to simply confiscate a portion of all money in bank accounts. Every single man, woman, or child who has a bank account, whether a citizen of Cyprus or foreign resident, is going to see a portion of their money disappear. For anyone holding up to 100,000 Euros in the bank, the Cypriot government will loot 6.75 percent of it. For anyone holding more than that amount, the government will grab a tenth of their money.
This is being called a “one-time levy” or a one-time “tax.” That is a lie. It is a bank robbery pure and simple. The media and the governments paste over reality with their government words, but it is a looting spree. The British government has promised to cover the losses of British government workers. That is as an admission that this is a new form of robbery, not merely a “tax.”
By proposing this robbery, the Cyprus politicians are breaking their promise. It no longer matters that they are a democratically-elected government. By inordinate debt, they have made their country subservient to foreign banks, specifically to the EU’s financial authority. They are owned by the EU banking class.
Does Cyprus “deserve” to suffer financially? To an extent, the answer is “yes.” They spent more than they could afford and now need to adjust to reality. That will be painful for all Cypriots. But what about the geniuses who loaned Cyprus money that the country could never afford to pay back? They actually got higher interest rates for loaning money to a riskier economy. They loaned money as a business decision. Why should every depositor in Cyprus—most of whom had no say in borrowing policy and had nothing to do with the debt—be looted to pay off people who made bad business decisions. Obviously, it is the investors who should lose all their money first. The financial pain should be shared by a country that loses its capacity to borrow and also by those who unwisely decided to loan.
But that is not happening. In fact, the government of Cyprus was reportedly ambushed by Eurocrats—taken completely by surprise at a Brussels meeting—with the demand that they raid the banks of depositors’ money. The Finance Minister of Germany initially said that the government should take forty percent of deposits. I guess he was the bad cop so that the good cop could make the Cypriot government feel like they were getting a good deal.
Naturally, the Cypriots are rushing to get their money out of banks. The banks, which are always virtually a part of the government, are closing to prevent depositors from withdrawing their money. As the legislation has not yet passed, the government is about to extend a three-day bank holiday so that no one can protect themselves.
This is the moral world we live in, and it tells you what is ahead for the rest of Europe and the United States. Children and seniors surviving on a fixed income have to pay a fee to the banks so that investors can keep getting their money. Since Cyprus isn’t even getting a real bailout, but what amounts to a loan extension, it is going to happen again (and again).
As horrible as TARP was, and as bad as the Federal Reserve’s “Quantitative Easing” is now, there are much worse things ahead of us, unless we refuse them.
I think there is one piece of good news for Cyprus, once this initial assault is over: I think Cypriots are going to see that their mattresses make good substitutes for banks. It will be interesting to see what is left of the banking industry in Cyprus by this time next year.