Pay attention: Cyprus gov’t raids 60% of private accounts

Socialist contagion ripples forward

The tiny island of Cyprus is a stunning example of the ravages of the financial crisis that has ridden like a dark horse through much of Europe. A deal to prevent Cyprus from leaving the shaky European Union and abandon the euro needed financing to overt a catastrophic financial meltdown. The small nation’s hefty banking sector, which is over eight times the size of the economy is reliant for its survival on Germany — the EU’s leading economy. All very complicated. 

First some background: The thrust behind the 1992 treaty that formed the union, was the belief that the 17-nation EU group would grow into a world power based on joint financial strength — with the euro as the controlling currency. That entailed surrendering the national currencies of the union’s members. As an example, France gave up its franc, Italy abandoned the lira and Germany its detusch mark on the promise of this strength.  The EU became the reigning government of the European community with a controlling Parliament and Court of Justice, mutual Foreign and Security Policy, and Justice and Home Affairs  — as the nation states retained little more than their own languages.

In the past couple of years the situation was further exacerbated by the longstanding socialism that undergirds the European countries. When the mechanism for funding health care and other social benefits upon which the masses had become reliant began to deteriorate, hundreds of thousands rioted in the streets, furious over talk of austerity and government cuts. Great Britain, Greece, Italy, France, Spain and Portugal experienced violent demonstrations. Although plagued  by the same economic problems, Great Britain is not a member of the EU.

The Heritage Foundation’s Foundry notes that Cyprus’s government spending has increased markedly since it joined the EU in 2004. Read more here.

Individual, private bank accounts above 100,000 euros have been seized by the government and earmarked to pay the bailout. The accounts are expected to yield 4.2 billion euros ($5.5 billion). It was previously reported that account holders would suffer an estimated 40% loss of their own assets. Under today’s regulations the news worsens. Depositors in the Bank of Cyprus will get shares in the bank worth 37.5 percent of their deposits over 100,000 euros. The rest of their deposits may never be repaid. The bottom line is that officials now acknowledge that these private account holders will lose 60% of their own money, saved in their own bank accounts — and now confiscated by their own government. Reuters has more here.

After being shutdown for nearly two weeks, banks reopened Thursday as Cyprus negotiated what is being called a “rescue package.” Cypriots are permitted daily withdrawals of 300 euros.

Think it can’t happen here?  We are seeing the future in Europe. Obama has been laying the groundwork for such a power grab as he demonizes the wealthy and encourages class warfare — while continuing to spend over $11 billion a day and saddling Americans with nearly $17 trillion in debt, with no end in sight.

Check out the U.S. Debt Clock here. By moving your cursor over each set of figures, the sources for the calculations will appear. Arizona’s ticking clock can be viewed here.

14 Responses to Pay attention: Cyprus gov’t raids 60% of private accounts

  1. Frankly Speaking says:

    Can you imagine the chaos that would ensue if our government decided to seize our bank accounts for its own use? But do you put such actions against this Obama administration which tells business owners “You didn’t build that”? I don’t. Why do you think gold and silver sales are skyrocketing and people are stocking their pantries with canned food? There is a real fear among alert Americans.

  2. American Dad says:

    Excellent analogy to our own government’s outrageous spending. And thanks for the background on the EU. I have to admit, there were gaps in my knowledge about its formation and how many countries belong. Underlying all of this is a case of the “gimmes” that far too many Americans have developed as government programs have disgracefully expanded to cover about half of all American households. This is madness that has to be reined in. But Obama has no commitment to doing that. He was just reelected by promising more and reviles job creators as the “top 1% who need to pay their fair share.” They pay that and more, but the average Obama supporter despises them, because they’ve been encouraged to by the Vacationer-in-Chief.

  3. Doc says:

    Allow me to add a hypothesis: All of th’ current BS gun legislation. Why all th’ sudden? Because if th’ gubmint STOLE 60% of our bank accounts HERE, & the Citizens are still “armed”, th’ 2nd Amendment’s ACTUAL PURPOSE would be realized & utilized. As we all here know, that Amendment has nuthin’ to do with “huntin'” (N.Y. Gov. cuomo is such a moron, I can’t believe he’s even capable of BREATHING on his own…) but in FACT, Has EVERYTHING to do with our defense of Freedom & Liberty from a TYRANNICAL government.

    …sound reasonable? Or am I off base?

    • Ajo Joe says:

      You’re more than “reasonable,” Doc. I think you’ve hit the nail on the head….again. I put nothing past Barack H. Obama, and if he sees this seizure of citizens’ private bank accounts works on Cyprus, there is nothing to restraint him for attempting to do it here as well. It’s clear he doesn’t respect our laws as evidenced by his bypassing them via his numerous “executive orders,” appointment of “czars,” (bypassing the senate confirmation process) and handing over the keys of the nation to foreign nationals who have flooded the US in violation of the law. I believe he has made his disdain for our great nation crystal clear from day one of his presidency when he embarked on a global apology tour. He thinks our greatness is shameful and is doing his best to unravel it. Your comment is right on. We are being “disarmed” by restricting access to ammo. Have you tried buying any lately?

  4. eubykdisop says:

    Connect the dots.

    1 – Cyprus has broken the ice and established a precedent.

    2 – DHS has bought or is buying two billion rounds of hollow point ammo, fully automatic capable military rifles and even tanks. Napolitano and DHS won’t tell Congress why. Fifteen members of the House just sent a letter to DHS demanding answers. Remember, DHS is not part of the military and not subject to any limitations placed upon the military regarding operations within the U. S..

    3 – Baby boomers, the big post WWII population surge, are at retirement age. Their bank accounts and 401(k) accounts are at their peak. Ten or fifteen years from now, much of that money will have been spent.

  5. Kent says:

    Takers? Try these on for size:

  6. eubykdisop says:

    “Republicans Sound Alarm on Administration Plan to Seize 401(k)s”

    “By: Connie Hair

    “In February, the White House released its “Annual Report on the Middle Class” containing new regulations favored by Big Labor including a bailout of critically underfunded union pension plans through “retirement security” options.”

    “The radical solution most favored by Big Labor is the seizure of private 401(k) plans for government disbursement — which lets them off the hook for their collapsing retirement scheme. And, of course, the Obama administration is eager to accommodate their buddies.”

    “Vice President Joe Biden floated the idea, called “Guaranteed Retirement Accounts” (GRAs), in the February “Middle Class” report.”

    “In conjunction with the report’s release, the Obama administration jointly issued through the Departments of Labor and Treasury a “Request for Information” regarding the “annuitization” of 401(k) plans through “Lifetime Income Options” in the form of a notice to the public of proposed issuance of rules and regulations.”

    “Now the backdoor bulls-eye is on your 401(k) plan and the trillions of dollars the government would control through seizure, regulation and federal disbursement of mandatory retirement accounts.”

    • Braveheart says:

      OMG!! I just read it through. Twice!!
      Americans need to band together and file a class action lawsuit against Obama, and the secretaries of Treasury (Jack Lew), and acting secretary of Labor (Seth Harris). This is even more urgent than I realized.

      Thank you, euby, for this vital information.

      • eubykdisop says:

        I’m glad that you noticed the date. The plan has been in the works, in one form or another, for years now. Democrats are also proposing to tax interest on 401(k) accounts as capital gains. That plan is most recent.

        You’re welcome, Braveheart, Forewarned is forearmed!

  7. Braveheart says:

    This is more than concerning, euby. I intend to go directly to the Human Events article in this link you provided and read it through. I see the date was 2010. It could be right about time for him to begin putting this plan into effect. What do we do with our money? And the 401(k)s are not exactly under the absolute control pf most workers. Early retirement isn’t an option for most of us. Precious metals? Gold is so high and silver is becoming scarce. I’m buying what I can, but I’m concerned the bottom is about to fall out of the economy.

    • eubykdisop says:

      Rule number one: Always remain calm. Calmness is the oil for all of our mental machinery.

      Rule number two: Calmly ask God for guidance. Don’t pray from fear. Pray from a certainty that He will guide you as to what to do. After all, you are His child and He loves you beyond measure.

      Rule number three: Take action. Use what God has given you. Use your mind. Use your will. Research and investigate. God will guide your efforts if you invite Him to do so.

      Rule number four: Never forget that it is God who sustains you, not money or any other material thing. If money becomes valueless, the wealthy may starve but in the midst of famine God provides for those who love Him and claim Him as their own.

      I’m considering cashing out my 401(k), since it won’t be early and subject to penalties, and taking the tax hit. That way no matter what they do I still have cash in hand. Haven’t decided yet but leaning in that direction.

      I’m not so naïve as to think that I could get around the Obama scheme so easily, LOL! Realize that in Cyprus they went after bank accounts. So I’m also contemplating getting a substantial home safe and only leaving relatively small amounts of money in the bank.

      I don’t think for one minute that Obama hasn’t anticipated savings institution withdrawals as well. Probably plans on tracking spending. Easy to do with credit card/debit card use, electronic purchases and bill paying, etc..

      Best practice IMHO; seek inner guidance and follow it.

  8. eubykdisop says:

    This article is from just last month:

    “The Feds Want Your Retirement Accounts”

    “By John White
    February 22, 2013”

    “Quietly, behind the scenes, the groundwork is being laid for federal government confiscation of tax-deferred retirement accounts such as IRAs. Slowly, the cat is being let out of the bag.”

    “Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers’ personal retirement accounts “including 401(k)s and IRAs” and convert them to accounts managed by the Social Security Administration.”

    “Your Government universal GRA investment savings account is an annuity managed by Social Security. Hedgecock noted ‘[m]ake no mistake here: Obama is after your retirement money. The “annuities” will “invest” not in the familiar packages of bond and stock mutual funds but in the Treasury debt!’ ”

    “By 2010 Bloomberg published an article titled “US Government Takes Two More Steps Toward Nationalization of Private Retirement Account Assets.” In that article Patrick Heller observed that, with Democrat control of Congress and the Presidency:”

    “[I]n mid-September 2010 the Departments of Labor and Treasury held hearings on the next step toward achieving Ghilarducci’s goals. The stated purpose was to require all private plans to offer retirees an option to elect an annuity. The “behind-the-scenes” purpose for this step was to get people used to the idea that the retirement assets they had accumulated would no longer be part of their estate when they died.”

    “So the Government would get the money, not the estate or family of the people who saved the money during a lifetime of work. That’s a one hundred percent death tax on savings. Worse, the most responsible and poorest families will be penalized.”

    “Democrats had a blueprint for diverting people’s savings from private investment to government debt.”
    So this is pure Socialism with redistribution of wealth, the elimination of inherited wealth and the use of private savings to pay government debt.

  9. LEO IN TSN says:

    The groundwork has long been laid for the seizure of private American money. A stealth provision of the stealth obamaocare bill (“We have to pass it to find out what’s in it”) gave the obamao czardom access to all American bank and financial accounts. By his own executive order, aided by several insane pieces of legislation, obamao has secured the power to seize the financial sector for “national security.”

    If this Congress doesn’t abandon amnesty for illegals and start taking back the government, we are doomed. (Have you heard anything from the AZ4 lately – or at all?)

    God bless America.

    • eubykdisop says:

      We are never “doomed”, Leo, precisely because God does bless America! Our nation has gone through difficult times in the past and will, no doubt, go through difficult times in the future but because God exists, we are never doomed!