Sunday, March 17, 2013

Cyprus Taxes Bank Accounts – New Idea May Sweep Europe – Coming To A Bank Near You?

Some reports say Cyprus ATMs are running out of money
as depositors race to withdraw their savings

It is suggested that you keep your eye on the Eurozone. Regardless of what they tell you, all is not well. It has already been suggested that Greece might have to exit the European Union. Now another bump in the road has emerged.

As in America, the solution to economic woes in the EU is to keep printing money, pretending there is no long-term debt problem that will slam into your face at some point. Now the European bankers have a new revenue-producing idea, and the small nation of Cyprus is the laboratory for this experiment.

A tax on bank deposits has been imposed there, and the citizens have begun a bank run. Unfortunately, it is too late because the Cyprus government froze the tax percentage on the full amount of what their deposits had been.

If you lived in another troubled EU country like Italy, Spain, Portugal, Ireland, or Greece, what would you do if you saw this happening in nearby Cyprus? You know exactly what you would do; you'd scramble like crazy to get your money out of the bank before your own country imposed a similar tax. This could rapidly make a bad situation worse.

Watch the next few months and see if this terrible idea catches on in other European countries. Like us, they are trying to kick the debt can down the road, but it won’t work any better there than it will here. Sometime in the not-to-far-distant future, someone will have to start paying the bill. A large percentage of our economy is in Europe, and we will not be immune to any economic collapse there. 

Perhaps the Obama administration will look at this new idea of a “deposit tax” as a source of income for their own reckless spending. The government has already considered taking charge of your 401K deposits; perhaps they will also look at your personal bank accounts as “assets” at some point...

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EUROZONE COUNTRY: SURPRISE! WE’RE PUTTING AT LEAST A 6.75% TAX ON YOUR BANK DEPOSITS
The Blaze
March 16, 2013

People with bank accounts in Cyprus were shocked Saturday to learn that as part of an agreement reached with international creditors, the government has imposed a tax on all deposits to help bail out the nation and its banks.

While the island nation may be small, it’s an international favorite for offshore banking– particularly for wealthy Russians.  The tax will range from 6.75% to 9.9%, depending on how much is in the account.


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THIS CRAZY CYPRUS DEAL COULD SCREW UP A LOT MORE THAN CYPRUS…
Business Insider
March 16, 2013

You can be forgiven for thinking that you don't need to give a hoot about what's going on in Cyprus this weekend.

After all, it's just a little island somewhere in the Mediterranean.

But what's going on in Cyprus could actually matter--not just to the rest of Europe, but to the rest of the world.


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UPDATE (3/17/13 @ 0919 HOURS EST) FROM ZEROHEDGE.COM: 

CYPRUS PARLIAMENT TO DELAY "RESCUE" VOTE DUE TO LACK OF SUPPORT, DESPITE ECB PRESSURE FOR PRE-TRADE OPEN DECISION

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What do you think?

Charles M. Grist

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