Wealth confiscation goes global

[Operatr]

http://www.zerohedge.com/news/2013-09-26/cyprus-style-wealth-confiscation-starting-all-over-world

Cyprus was just the testing ground for what was to come next, and that is bankers simply stealing your money to save themselves from insolvency.

The last time this occurred:

http://money.cnn.com/2013/03/28/investing/bitcoin-cyprus/index.html

http://www.foxbusiness.com/investing/2013/03/22/bitcoin-interest-explodes-as-cyprus-nearly-implodes/

http://www.zerohedge.com/news/2013-04-07/rethinking-money-bitcoin-quadrupling-cyprus


I see no reason why that can't happen again. This time it is several banks and not just one however. These actions are helping to rapidly erode confidence and trust in the fiat institution, which is ultimately why Bitcoin has any value at all as a currency I think. The common people are waking up to how badly big banking is screwing them, and now they are not even trying to hide it.

We are entering an age where banks rob their own customers. This cannot stand, and like Cyprus people want a way out of the broken, dishonest trainwreck that is fiat.
A new Bitcoin rally in the making? I really hope so.

Oh, and if you have money in a bank, get it out NOW

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[murraypaul]

This appears to be reporting a 'news' that retail deposit guarantees are restricted to amounts below a certain level.
That isn't news, it has always been the case, at least in the UK, and I think most of Europe.
And in the UK, that limit has been raised, not lowered.

[ElectricMucus]

Cyprus was a money laundering and tax evasion industry. People who had funds there gambled with them... and lost.

[johnyj]

Deposit guarantees are just like insurance, that insurance is only an oral promise to calm down people, it never has enough money to cover the loss if more than 10% of the deposit were lost

[murraypaul]

You seem to be confusing capital requirements and deposit guarantees again.

[cypherdoc]

confiscation is highly likely to come to the US one day. 

possibly deposits but more likely pension plans.  don't forget MFGlobal too.

[600watt]

Cyprus was a money laundering and tax evasion industry. People who had funds there gambled with them... and lost.

so is delaware, english channel islands, luxemburg, switzerland, lichtenstein, cayman islands, ... ... 


you imply it was ok to seize funds ? what about regular companies bank accounts in cyprus ? or do you really want to say there were only criminals making business on this island ?

[adamstgBit]

Cyprus was a money laundering and tax evasion industry. People who had funds there gambled with them... and lost.

so is delaware, english channel islands, luxemburg, switzerland, lichtenstein, cayman islands, ... ...  


you imply it was ok to seize funds ? what about regular companies bank accounts in cyprus ? or do you really want to say there were only criminals making business on this island ?

yes it was OK to seize the funds.

people need to wake up, banks aren't a big safe to store cash into, they are more like a index fund you buy into, but you'll get cheated out of any profits they make, and bare the losses. some banks take big risks with depositors money, and others play it safe.

the problem isn't the banks its the people blindly depositing. if people asked questions, and looked to place their money in banks that play it safe, pretty soon all banks would be playing it safe. and it use to be like that, and then to big to fail happened.

[wachtwoord]

*Cough* Poland *Cough*

[thezerg]

My only problem with bail-in is that it seems to avoid bankruptcy, these people who lost your $ keep their jobs and don't go to jail (if applicable). 

But surely on these bitcoin forums you guys don't think that we should magically print more $ to cover what the bank lost?

[DeathAndTaxes]

Cyprus was a money laundering and tax evasion industry. People who had funds there gambled with them... and lost.

No Cyrpus lost.  Generally speaking people don't put money into banks which seize it.   Offshore banking is ~60% of Cyrprus GDP, or maybe I should say was 60%. 

[ElectricMucus]

Cyprus was a money laundering and tax evasion industry. People who had funds there gambled with them... and lost.

No Cyrpus lost.  Generally speaking people don't put money into banks which seize it.   Offshore banking is ~60% of Cyrprus GDP, or maybe I should say was 60%.  

Yeah, don't put money into banks which seize it, and if it's a known taxhaven with almost nil controls it might just increase the risk of that happening.

[DeathAndTaxes]

Cyprus was a money laundering and tax evasion industry. People who had funds there gambled with them... and lost.

No Cyrpus lost.  Generally speaking people don't put money into banks which seize it.   Offshore banking is ~60% of Cyrprus GDP, or maybe I should say was 60%.  

Yeah, don't put money into banks which seize it, and if it's a known taxhaven with almost nil controls it might just increase the risk of that happening.

Actually it rarely happens in offshore locations.  Take Belize for example there has never been a single cent of depositor loss in the 40+ years it has operated as an offshore banking location.

Why?  Because it is a death blow to the economy.  Generally offshore banks have very high minimums, high fees, and low (or more commonly no) interest.  The only reason people use them is reputation.  Cyprus is done for, they are the Yifu of offshore banking.  The entire country will be in recession for the next decade or so.

There are lots of reasons to keep money offshore beyond just evading taxes.  Off shore trusts are a very effective way to ensure you CAN'T be forced to remit funds back to your host country.  Very useful if you no longer trust your own government.  They are also useful in legal tax avoidance (evasion = illegal, avoidance = legal) to reduce tax liability.

[Sir Lagsalot]

This may relate: Panama announces 5 day bank 'holiday.'

Whether or not savers wake up Tuesday to find they just saved the bankers country, 5 days is a major inconvenience - especially around payday.

[RodeoX]

I try not to be too paranoid, but I learned something in 2008. As the collapse played out I went to the bank to withdraw my savings and most of my checking. I explained to the teller (and then the manager) that I was worried about a freeze in liquidity and preferred the cash. I was assured repeatedly and vehemently that there was nothing to worry about. Now I know that the entire US financial system was within hours of shutting down. The ATMs would stop dispensing and the banks would close. I did not believe them then and I don't now.  You have to be the grown up when dealing with banks. They do not know something you do not. Trust yourself.

[wachtwoord]

I try not to be too paranoid, but I learned something in 2008. As the collapse played out I went to the bank to withdraw my savings and most of my checking. I explained to the teller (and then the manager) that I was worried about a freeze in liquidity and preferred the cash. I was assured repeatedly and vehemently that there was nothing to worry about. Now I know that the entire US financial system was within hours of shutting down. The ATMs would stop dispensing and the banks would close. I did not believe them then and I don't now.  You have to be the grown up when dealing with banks. They do not know something you do not. Trust yourself.

But owning cash is risky in itself. Firstly it can be stolen or lost. Secondly, it could devalue very quickly in such a scenario.

Good thing you have an alternative now. If the above would happen the price of Bitcoin would be the out of the stadium

[gaston909]

*Cough* Poland *Cough*

What he said!

[chmod755]

People still use banks in 2013 

[gaston909]

Unfortunately my customers like transferring money using banks... so until they all go bitcoin/other I guess so!

 

[niko]

Lots of facts and good analysis, with focus on Canada:
http://www.globalresearch.ca/the-confiscation-of-bank-savings-to-save-the-banks/5329411

I think it's a good thing in the end. Why let banksters steal from tax-paying members of public, when you can direct them towards their opt-in customers? At least it's a free choice, no matter how hard.

Bitcoin looks great, yes.