19 Mar

The Cyprus Effect…Why We Should Be Worried In America

                                       

cyprus bailout
(h/t Zero Hedge)

What’s happening right now in Cyprus should be worrying every reader here. Why? Because what is happening there WILL effect us, and it could very well come to our shores.

For those unfamiliar with what is going on the short story is that Cyprus, a little island in the Mediterranean

cyprus

Is going bankrupt. They went to the Eurozone for a bailout as every country in Europe has it seems and it was granted, with the condition that every depositor must have a portion of their money confiscated.

So every person who has money in the banks will have some money taken from them without their permission.

As you can imagine that caused a run on the banks. Cyprus fixed that by disabling all withdrawals.

The firestorm this caused has now pushed the Cyprus government to contemplate voting against the bailout. Good for them right?

But the genie is already out of the bottle:

The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.

Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

Why should we worry here?

There is about $20 trillion in US Retirement “assets.” A “small” 10% “one time” tax levy on those assets would fund the US Deficit a couple of years from now, and I will go out on a limb now and predict that exactly that will be done.

We all know that someday are entitlement debt will become just to much. It WILL happen as we continue kicking the can down the road. At that point what will government do?

Think it can’t happen here?

Think again.

As for the markets today?

Things are escalating rather quickly… Treasuries have soared to yesterday’s low yields (below 1.90%), S&P 500 futures are cracking lower on heavy volume -10 points (with the cash S&P below yesterday’s lows) – after the other indices all went green earlier. The FX market is in a mini-crisis with EURUSD dumping and JPY strengthening considerably and rapidly. In Europe, it is worse as Portuguese, Spanish , and Italian bond spreads are snapping wider to post Cyprus wides; Spanish and Italian equity markets are tanking down 3-4% on the week; and GGBs are back under EUR50 – their lowest in 3 months. Gold and Silver are rising as Copper and Oil slide. Swiss 2Y rates are negative at their lowest in over 2 months. VIX is up 33% from Thursday’s lows and back above 15% – biggest 2-day jump since Nov 11.

Go the link to view some troubling charts.

This bailout, too big to fail, entitlement culture will not end well for the globe I’m afraid.

Exit quote:

As far as I am concerned, the klepto-kretins have finally crossed the collectivist Rubicon by merely suggesting that private property rights should be sacrificed at the alter of bailout kapitalism.

The situation drips with historic irony given the Russian connection.

Their Nobel farce has now been fully exposed for what it is.

There is no rule of law in the European Union.

There are only ends justifying the idiotic means of tyrannical klepto-midgets.

All their grandiose bloviations are nothing more than pompous hot hair:

“United in Kleptocracy”

A fiat accompli!

About Curt

Curt served in the Marine Corps for four years and has been a law enforcement officer in Los Angeles for the last 20 years.
This entry was posted in Communism, Economy, Europe, Nanny Government, Politics, Russia, Socialism. Bookmark the permalink. Tuesday, March 19th, 2013 at 10:16 am
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22 Responses to The Cyprus Effect…Why We Should Be Worried In America

  1. Phil-351 says: 1

    In case you think that such a thing cannot happen here, Hillary Clinton under her Health Care Initiative were planning on exactly such a ‘penalty’, around a 15% one-time tax, on all 401K’s and IRA’s until the Republican Revolution stopped her in her tracks. Since then, it has popped up a few times, like Charles Rangels one-time 5% penaty on 401K’s to fund inner-city initiatives and the like. Luckily to be shot down every time, but they keep trying.

    ReplyReply
  2. Vox Logicae says: 2

    You have it correct when you say that until we address entitlements we are moving in the wrong direction.

    ReplyReply
  3. Hedda Sun says: 3

    I posted this on the other thread:

    Then what can we do to stop this “progression” to tyranny?

    What can we do when the left can openly seize our assets and hand them over to their followers to have them go along with whatever they want?

    We are rapidly losing control of our own destiny with a Feral Government that takes from a few to buy the loyalty of the majority.

    What can we do about this short of you-know-what?

    The only choice we have remaining is to stop producing wealth the left can use to against us.

    This will happen eventually, but only after much strife and conflict, so what do we do NOW?

    The answer is simple: We go on Strike.

    And we go on these strikes for the first time on one of the most symbolic days possible – April 15th, Tax Day

    Call it a Taxpayer Strike, Taxpayer Resistance Day, a General Strike, or whatever.

    But we make it clear this is only the beginning, if they think they can take our property and tyrannize us in the process they had better realize that we will not submit.

    Because they need our hard earned money to fuel their tyranny, and we have the option to just not work to produce that money.

    The first will be April 15th, Tax Day.. but it will not be the last.

    ReplyReply
  4. Randy says: 4

    Do not forget Pelosi has stated numerous times she wanted to add 401Ks to SS.

    ReplyReply
  5. Greg says: 5

    @Hedda Sun, #3:

    Advocating that people should stop producing to forward their own agenda is what unions sometimes do, correct?

    It’s called a strike.

    Except for the fact that—here in the United States, at least—unions have never advocated it with the deliberate intention of damaging the strength of the entire national economy.

    That wouldn’t be a lawful labor action.

    That would be an act of subversion.

    It’s one of the ways that a nation can be tricked into destroying itself.

    ReplyReply
  6. Hedda Sun says: 6

    That wouldn’t be a lawful labor action.

    What law covers a business owner from taking a day off?

    Are they required by some law to work for less and less compensation?

    That would be an act of subversion.

    Oh really?

    Not working to enslave yourself is subversion?

    BTW, don’t bother with strawmen like

    “unions have never advocated it with the deliberate intention of damaging the strength of the entire national economy.”

    I would submit that Barry and his cadre of comrades are doing that every day – those of us who are working to preserve freedom are the ones trying to prevent that destruction.

    Given that the Barry and his cadre of comrades can simply pervert the democratic process with bribery as outlined by Alexis de Tocqueville:

    ”The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money”.

    Why don’t you lay out for everyone how we can avoid our own enslavement?

    ReplyReply
  7. Greg says: 7

    I have no sense of impending enslavement.

    ReplyReply
  8. Brother Bob says: 8

    @Phil-351: I don’t understand why Republicans keep trying to cut off stupidity at the knees. Let these come to a vote, make them public, and get this into the news cycle. Let’s start making these b**tards start going on record about their true intentions and make every Democrat defend this stupidity

    ReplyReply
  9. Hedda Sun says: 9

    @Greg:
    Then you’re not paying attention.

    Can you answer my questions please:

    What law covers a business owner from taking a day off?

    Are they required by some law to work for less and less compensation?

    That would be an act of subversion.

    Oh really?

    Not working to enslave yourself is subversion?

    Given that the Barry and his cadre of comrades can simply pervert the democratic process with bribery as outlined by Alexis de Tocqueville:

    ”The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money”.

    Why don’t you lay out for everyone how we can avoid our own enslavement?

    ReplyReply
  10. Skookum says: 10

    What do you have, when the government no longer respects private property or wealth?

    Will people be so stupid as to leave their money in banks, and what happens to banks, when they have a run on deposits?

    They go tits-up. Do you trust Obama, Pelosi, and Reid not to raid your deposits and retirement accounts?

    Obama has refused to comment on the issue; consequently, he refuses to stand-up for the property and wealth rights of the individual against against the policy of seizure from the federal government. (Remember you didn’t build that.) sic.

    If you want to destroy the global economy, start seizing private wealth. Remember the bank failure stories fro the Great Depression. People tried to withdraw their money, but there was no money, Surprise! it all tied up with scumbags like Melgen and Soros and their dancing puppets like Melendez and Obama.

    There is no way to regain public trust in the banking system, the Eu has dropped their six pack on the side walk and Obama is salivating at the prospects.

    Welcome to the party americans with a little A.

    ReplyReply
  11. Greg says: 11

    @Hedda Sun, #9:

    What law covers a business owner from taking a day off?

    There is none.

    Nor is there any law against encouraging people to believe that their banks are on the verge of failure; a belief which—if suddenly shared by enough people—can cause the very thing they’re being warned about.

    I am paying attention. I’m just drawing somewhat different conclusions about various things that I’m observing. For example (and with no intention whatsoever of shifting the topic): Encouraging the belief that someone is going to take away our right to own guns is probably the most successful marketing strategy the firearm industry could ever have hoped for.

    ReplyReply
  12. Budvarakbar says: 12

    @Hedda Sun: Please quit feeding the troll

    ReplyReply
  13. Hedda Sun says: 13

    @Greg:

    What law covers a business owner from taking a day off?

    There is none.

    Then basically you’re just full of barack on the whole thing – and your attempted ‘non-distraction’ distraction makes about as much sense as your other postings.

    @Budvarakbar:

    My apologies, but sometimes its very useful to rhetorically destroy such people to illustrate a point.

    Note that it wasn’t able to answer the questions posed, or even properly respond to the point raised on its scurrilous accusations.

    One should also note that when it was unable to back up said accusations and strawmen, it shifted it’s attack into new accusations and strawmen without blinking an eye.

    (While claiming to be not doing exactly what it was doing)

    ReplyReply
  14. Hedda Sun
    yes that is a telling point,
    it would send a chilling message, but it has to be massive,
    there are some dangerous people freed by the WHITE HOUSE,
    ON THE LOOSE TO ANSWER THE CALL OF A CORRUPT LEADER
    TO GIVE PAIN FOR REVENGE HE FEEL ENTITLE TO,
    SO SECURITY MUST ACCOMPANY THAT DAY TO PROTECT ALL THE CITIZENS,WHICH COULD BE HURT INSTEAD OF THE SNAKE, WHICH SHOULD HAVE HIS HEAD CUT OFF,
    BYE

    ReplyReply
  15. THERE WILL BE A LOT OF PEOPLE TAKING OUT THE BULK OF THEIR MONEY
    FROM THE BANK
    remember the BANK OF AMERICA DECIDING ON THEIR OWN WITHOUT COMMUNICATING WITH THE CLIENT , TO FREEZE HIS WEB ASSETS BUSINESS WHEN THE ANTI GUN STOOGES BEGAN THEIR THREATS,
    TO CUT THE GUN FROM OWNER, ALL THIS SHIT CAME FROM THE WHITE HOUSE, AND THE BANK FOLLOW UP,
    YES IT CAME FROM THE TOP,
    AND HAS NOT ENDED THE THREATS SINCE THEN USING THE SEQUESTER OF DOOM AND GLOOM LIKE THE BIBLE ARMAGEDON COMING, AFTER THE THREATS OF THE CLIFF,TO FREAKE UP THE PEOPLE,
    NON STOP, WHAT’S NEXT,
    AND IS A PEACEFUL MARCH ENOUGH?

    ReplyReply
  16. Hedda Sun says: 16

    @ilovebeeswarzone:

    The beauty of this type of plan is that it serves notice to the thieving socialists that ‘Going Galt’ isn’t just in the movies.

    People like ‘Greg’ don’t think on enslavement when someone else is under the whip.

    They’re ‘Freedom’ is enhanced when property is taken from some and handed over to them, they don’t care if someone else is being enslaved, they’re just want their free stuff.

    They only care when the gravy train is about to be derailed, and judging from it’s reaction to the idea, it should be readily apparent that these actions have to be started soon and repeated whenever possible.

    Because like a leech clinging to it’s host, they won’t like it if the host wants to pull away and they will try to use the force of law they control to make such actions illegal.

    ReplyReply
  17. Hedda Sun
    what get in the skin of THE PEOPLE,
    IS THE LEADER ACTIONS AND HIS HUMONGOUS CREW,
    THEIR NEED TO USE THEIR NEGATIVE THREATS WHILE HAVING POWER,
    UNTO A TOLERANT PEOPLE LAW ABIDING, RESPECTFUL OF THE LAWS GIVEN TO THEM
    CENTURY’S AGO,
    THE PEOPLE DON’T NEED THAT IMPOSITION OF YOU MUST ABIDE OR BE PUNISH,
    AND THEY REJECT IT, THEY ARE LEFT WITH ONLY ASSEMBLE TO PROTEST THE IMPOSITION,
    AND IT IS AN UNEVEN RESPONSE DEFENSE PEACEFUL BUT BOILING INSIDE THE GUTS,
    IT IS SICKENING THE WARRIORS WHO ARE THE PROTECTOR AND ENABLER OF IDEAS TO COUNTERACT TO ATTACKS, THEY STAY ON MILD DEFENSE TO FIGHT A ERRATIC PSYCHOPATH,
    WHO IS UNTOUCH AND READY TO DESTROY THE PEACEFUL ASSEMBLY INSTEAD OF LEARNING WHAT THE PEOPLE ARE TELLING,
    YOU SEE THE INJUSTICE WHICH i’M TRYING TO EXPLAIN?
    I always thought of where there is a WILL, THERE IS A WAY, BUT IT SEEMS THAT THOSE WHO COULD DO SOMETHING THEY ARE PAYED BY THE PEOPLE TO REMOVE THE ROCK UNDER THE WHEEL,
    DON’T HAVE ENOUGH OF WHAT IT TAKE, AND HERE ON THIS BLOG WE FIND THEM TRYING
    SO HARD TO FIX THE PROBLEM WHICH IS GROWING TO A POINT OF NO RETURN, AS YEARS GO BY,
    SOME THINK WE WILL WAIT, BUT LIKE YOU SAID , IT MUST BE DONE BY THE PEOPLE,
    WILL THEY COME OR ARE THE PEOPLE TO THE POINT OF NOT GIVING FAITH TO A RESOLUTION
    EVER COMING,
    BYE

    ReplyReply
  18. Greg says: 18

    @Hedda Sun, #16:

    My apologies, but sometimes its very useful to rhetorically destroy such people to illustrate a point.

    That seems to be the approach many on the right take with anyone voicing opinions or citing information that they dislike. On the meta-level, it’s a means of encouraging people to shut down all channels of information and communication that would challenge the right’s insular, angry, and increasingly paranoid world view. Only then, presumably, can a person come to have a clear and unbiased understanding of issues and events.

    When people are telling you things like that, it’s a warning sign. You’d best think a moment before you decided who exactly are the “sheeple,” or who’s really taking in the most Kool-Aid.

    I am not “people like.” I am one person, with opinions that evolve from my own thoughts and observations. I don’t claim always to be right. I am, indeed, a bit left of center. But I need binoculars to see to the far edge where some folks are. I still know where the middle ground lies. It’s only a few steps from me.

    One should also note that when it was unable to back up said accusations and strawmen, it shifted it’s attack into new accusations and strawmen without blinking an eye.

    I’m not an “it,” either.

    Nothing derails a topic quite like a personal attack. Which is what you’ve launched. You remind me a bit of someone who has recently gone missing around here.

    ReplyReply
  19. GREG
    YOU NEVER CLAIM TO BE WRONG,
    IT’S THE POSTERS WHO HAVE TO TELL YOU’RE WRONG
    ALL THE TIMES,

    ReplyReply
  20. Poppa_T says: 20

    Actually what is happening in Cyprus has been going on here, in a different manner, for the past few years. Historically bank CD rates have averaged a rate of return between 5% and 6%. Since 2008 the Fed has manipulated the interest rate to pin CD rates between 0% and 1%. This has allowed the banks to borrow at near-zero, whether from depositors or directly from the Fed, and invest in Treasuries or mortgage-backed securities earning 2%, 3%, or more. Using this free-money interest rate spread, along with government bailouts like TARP the banks have returned to solvency. The citizens and depositors of banks in Cyprus are facing a one time theft of 6.75% or 9.9%, we who save, on the other hand have lost a minimum of 4% annually for 5 years running.

    ReplyReply
  21. I think the big international unions are responsible for that, by pushing for more of
    the government jobs and at their norm benefits and earning topping the regular non unions business,
    only for gaining,they are just selfish, no matter if they crash a business or government they keep pushing,
    IS IN WHAT THEY HAVE DONE IN AMERICA, HELL THEY ELECT ONE OF THEM
    NO MATTER OF HIS NOT ABLE TO DO THE JOB, AS LONG AS HE APPLY THE WILL OF THE UNION MASTERS IN GOVERNMENT AFFAIRS,
    YOU SEE HOW OBAMA IS AFRAID OF CUTTING THE GOVERNMENT JOBS COSTING A LOT ON THE PEOPLE’S POCKET,
    HE IS AFRAID OF HIS BOSS ALL OF THEM, WHO COULD TAKE HIS JOB OUT FROM HIM FASTER THAN HE WOULD THINK, IF HE DISOBEY HIS LEADERS SENDING HIM IN A LAND OF NO RETURN, THOSE GUY DON’T FOOL AROUND WITH
    ANY WHO DISOBEY THE RULES,
    WE NOTICING CYPRUS ACTIONS AND GREECE REVOLT

    ReplyReply
  22. Hedda Sun
    hi
    here on a later time, I came to read again,
    and one thing came back to me.
    that is what I read some times before, that the TAX checks will be coming later
    this year for a reason I forgot, I think it’s because of a new law,
    so they could retaliate if the strike happen, and not send the checks
    or decide to hold it,
    I am mentioning here that it would be a “SEQUESTRATION” wouldn’t it?
    we know that OBAMA has in his mind, thoughts of “revenge ” and “punishment”

    ReplyReply

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