European Union is robbing its citizens' bank accounts. 9.9% to be confiscated.

[Peter Lambert]

This is the kind of 'tax' that started the American revolution.

I think the stamp act was much smaller than 10 %.

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[Vladimir]

This is the kind of 'tax' that started the American revolution.

I think the stamp act was much smaller than 10 %.

The population was less docile and brainwashed too. They can get away with much more now.

[Vladimir]

How Cyprus could affect Germany, UK and USA. The domino effect.

http://www.youtube.com/watch?v=oX0sed2q1-8

[yocko06]

This is the exact reason we need to get bitcoin in shops everywhere.  I think in weeks to come we will see a huge influx in bitcoin users and media attention. I would be furious if the government stole 9.9% of my hard earned.

[Peter Lambert]

This is the exact reason we need to get bitcoin in shops everywhere.  I think in weeks to come we will see a huge influx in bitcoin users and media attention. I would be furious if the government stole 9.9% of my hard earned.

I guess this goes back to the question of do you use bitcoin as your checking account or your savings account? If you want to use bitcoin to replace credit cards, debit cards, checks, cash payments, etc, then yes it is important to get merchants to accept bitcoins.

On the other hand, if you treat bitcoins more like a savings account, then no, it does not matter if anybody ever accepts bitcoins in their shops. If you want to buy something, simply take your money out of savings, convert to whatever local currency happens to be in fashion and purchase your goods. In this use case, we should help build up the bitcoin exchange network so there is a quick and easy way to go in and out of bitcoins where ever you are. Bitcoin ATMs would be good for this.

[Amitabh S]

Please answer this important question.. Does this apply to ALL EU countries, in particular Germany and France

[Vladimir]

Please answer this important question.. Does this apply to ALL EU countries, in particular Germany and France

Who do you think will end up holding all the bad bailout debts once all other EU countries default?

[conspirosphere.tk]

Who do you think will end up holding all the bad bailout debts once all other EU countries default?

the serfs

[Sage]

Not to worry Americans, this is an EU thing!

Your dollars are safe.  Something like this could never, ever happen to a Federal Reserve bank.  They're all totally solvent.  I promise....  In fact, buy some more US bonds!  They're the safest financial bet you can make.

[Amitabh S]

Planning to use Bitcoin-central or MtGox as a bank account for storing Euros. It will not earn interest but still we can make money by trading from time to time. Any comments?

[Vladimir]

Planning to use Bitcoin-central or MtGox as a bank account for storing Euros. It will not earn interest but still we can make money by trading from time to time. Any comments?

A very, very bad idea.

[Amitabh S]

What to do? Can't invest everything in bitcoins and can't trust banks.

[conspirosphere.tk]

Any comments?

I would just store cryptocoins and gold/silver coins in my possession. Ideally with canned beans (I am long canned beans).

[Sage]

What to do? Can't invest everything in bitcoins and can't trust banks.

Gold, Silver, Platinum

Also checkout namecoin and litecoin.

[Vladimir]

What to do? Can't invest everything in bitcoins and can't trust banks.

depends on your location but there are things to chose from
Cash, Bitcoin, PM, tinned tuna, guns and ammo, skills and training, real estate, "extreme couponing" and food stashes. etc... something of real value, hard assets. There are lots of prepper websites, books and nuts around, pick your poison.

Some famous investor (do not recall his name) was asked once:
Q. Where would you suggest a typical american household to invest 1000$?
A. Nonperishable food on sale.

It is an extremely good advise.

I personally thinking about starting a heirloom seeds producing biz, LOL. To hell with mining, farming is better.  

Do not forget to stash lots of popcorn too.

[bubblesort]

Not to worry Americans, this is an EU thing!

Your dollars are safe.  Something like this could never, ever happen to a Federal Reserve bank.  They're all totally solvent.  I promise....  In fact, buy some more US bonds!  They're the safest financial bet you can make.

LOL, you joke but the most fucked up part about this whole situation is that they are screwing the depositors in order to protect the bond holders.  If you were holding bonds on Cypriot banks you would be in a better position than the depositors in Cyprus.  This is the opposite of how a bank is supposed to work.  This is who is supposed to take the hit when a bank goes under (or at least this is what we have been told about it):

1.  Depositors
2.  Bond Holders
3.  Stock Holders
(4.  The Fed through the FDIC, which insures bank deposits, they pay the depositors directly, but this is an American thing)

When a bank goes bankrupt their stocks and bonds stop trading.  The company is sold off and any proceeds go to paying the depositors (in the US they pay whatever the FDIC hasn't insured, the FDIC insures deposits up to $250k per account), then whatever is left goes to the bond holders and then if by some miracle if there is anything left after that the stock holders might make a penny or two on the dollar, if they are very lucky.

In Cyprus they are reversing this.  This is who has the risk, from least risk to most risk:

1.  Bond Holders
2.  Stock Holders
3.  Depositors

That turns depositors into investors rather than customers.  The problem is, as they will soon realize, no depositor wants to invest in something as shady as a modern bank.  If they did they would buy bonds or stock in the bank.

Now that the EU has demonstrated that they are willing to do this I don't think depositors in the rest of the EU will want to play that game.  This will cause a drop in savings, which will increase consumption.  That is good for manufacturers, but that will strangle their investment sector because without depositors financiers don't have money to invest.  Interest rates are about to skyrocket.  This will cause need for another bailout, which will hurt confidence even more, causing another bailout and so forth, as more depositors leave in waves with each successive theft of their deposits.

The end game will be when they all realize the EU was a horrible idea and they go back to using national currencies that are controlled by people they elected (or who were at least appointed by people they elected).  The longer they wait to do that the more people will discover international currencies like bitcoin.

[notbrain]

This is the exact reason we need to get bitcoin in shops everywhere.  I think in weeks to come we will see a huge influx in bitcoin users and media attention. I would be furious if the government stole 9.9% of my hard earned.

I guess this goes back to the question of do you use bitcoin as your checking account or your savings account? If you want to use bitcoin to replace credit cards, debit cards, checks, cash payments, etc, then yes it is important to get merchants to accept bitcoins.

On the other hand, if you treat bitcoins more like a savings account, then no, it does not matter if anybody ever accepts bitcoins in their shops. If you want to buy something, simply take your money out of savings, convert to whatever local currency happens to be in fashion and purchase your goods. In this use case, we should help build up the bitcoin exchange network so there is a quick and easy way to go in and out of bitcoins where ever you are. Bitcoin ATMs would be good for this.

A bitcoin debit card that does the exchange automatically at the time of purchase.

[zeroday]

Just a little update.

I'm among thousands of unlucky holders of accounts in Cypriot bank which is going to be "restructured" by EU financial authorities.
Today I had conversation with my banker and found the following:

- All the bank's accounts (current, savings, deposits, no exceptions) are frozen and cannot be accessed anymore.
- The bank will be split on "good assets bank" and "bad assets bank". All money on current accounts will be treated as "bad assets" (except ones with less than 100k) and will be moved to a "bad bank" to be frozen for at least two years. Further, about 40% of these "bad" money will be lost after the "bad" bank is "sold with discount". Actually over 2 billions EUR of money from "bad" accounts will be contributed to pay state's debt.
- Accounts with less than 100k will be moved to a "good bank", but all withdrawals will be strictly limited for a long time due to new capital control law.
- All account in both "bad" and "good" banks will be subject for additional 9.4% one-time levy.

This means that Cyprus debt will be paid by the money seized from thousands of small and midsize businesses and savers who have over 100k. This includes everyone who has saved their money for many years for retirement or just to buy a house.

Could you believe all this is happening in European Union?

[SgtSpike]

Just a little update.

I'm among thousands of unlucky holders of accounts in Cypriot bank which is going to be "restructured" by EU financial authorities.
Today I had conversation with my banker and found the following:

- All the bank's accounts (current, savings, deposits, no exceptions) are frozen and cannot be accessed anymore.
- The bank will be split on "good assets bank" and "bad assets bank". All money on current accounts will be treated as "bad assets" (except ones with less than 100k) and will be moved to a "bad bank" to be frozen for at least two years. Further, about 40% of these "bad" money will be lost after the "bad" bank is "sold with discount". Actually over 2 billions EUR of money from "bad" accounts will be contributed to pay state's debt.
- Accounts with less than 100k will be moved to a "good bank", but all withdrawals will be strictly limited for a long time due to new capital control law.
- All account in both "bad" and "good" banks will be subject for additional 9.4% one-time levy.

This means that Cyprus debt will be paid by the money seized from thousands of small and midsize businesses and savers who have over 100k. This includes everyone who has saved their money for many years for retirement or just to buy a house.

Could you believe all this is happening in European Union?

Wow... 40% lost?  And 9.4% on EVERYONE?

That's just horrible.

[Vladimir]

Unbelievable. Considering that Cypriots are well armed, I do not think this will end well for banksters.