Spain confiscates 0.03% of all bank deposits.

[CoinsCoinsEverywhere]

They even laugh at us saying that the banks will pay it, as if they wouldn't put the weight on us in form of commisions or lower interests for our savings.

Yeah, that's aggravating.  Of course they'll pass it on.  Banks and corporations always do.  Anytime their expenses increase, they pass it on.

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[byt411]

They even laugh at us saying that the banks will pay it, as if they wouldn't put the weight on us in form of commisions or lower interests for our savings.

Yeah, that's aggravating.  Of course they'll pass it on.  Banks and corporations always do.  Anytime their expenses increase, they pass it on.

You forgot to say that when their expenses decrease, they don't pass it on, just so that they can grab more profit, lol.

[cr1776]

But the amount taken was very small, less the what Spaniards likely earned in interest in their bank accounts in one year so the net effect was essentially zero.

This is my initial reaction too. 0.03% is honestly too small a percentage to have any significant effect. Others have argued that government can take a higher percentage next time. They sure can, but there is a limit of times they can tax deposits before a national uproar.

True.  And I would guess that if they try it again with a larger percentage, there may be an international uproar.  They're idiots playing with fire.  If everyone starts to think that their country is going to go after their bank deposits, bank runs will start.

Just think where income tax rates began.  E.g in the US, what was the rate and what was the income that got that rate?  What income got the highest rate? 

It was the camel's nose under the tent.  Same thing here, bringing the water to a boil while the frogs are in it.

[hollowframe]

Hi, I live there( i live in a dorm and i know a lot of other people interested in Bitcoin, even tho they are all new thus they barely have any, like me). I even did a presentation, talked about Bitcoin, the community etc.
This is in principle done to help certain local councils with the debts. It's all a joke, our beloved goverment has stimated in 0.03% the tax on the bank deposits. Pretends to get 375 million out of it..

They even laugh at us saying that the banks will pay it, as if they wouldn't put the weight on us in form of commisions or lower interests for our savings.

Also be sure that this 0.03% will do nothing but keep growing.

Haha. In a normal account, our bank interest is 0.025%, even less than the tax. The next move that I am expecting is for all interest to be cancelled, and charging us more commision.
Bitcoin solves all these problems, no more unreasonable tax. If your coins get stolen, its your own fault for not storing them properly, and you need to know who to trust and who not to trust.

If you earned 0.025% APY in interest on your bank account but they took 0.03% from your account then they really only took 0.005% from what you had in your account at the beginning of the year. The amounts would likely be unnoticed to most people if they did not see it on their statement.

[zhinkk]

How long before this happens in the US?

I feel like we wouldn't let this happen as easily, there would be a public outrage. But then again, we let NSA happen. So maybe not.

[bigasic]

Well, if countries continue to do this, it will force people to use alternative ways to move or save money.. bitcoin is the obvious choice.

[DannyElfman]

How long before this happens in the US?

I feel like we wouldn't let this happen as easily, there would be a public outrage. But then again, we let NSA happen. So maybe not.

I don't think this could happen in the US. The FDIC insures all bank deposits up to $250,000 per depositor per institution. The bank would have to fail first and after that it could only apply to deposits above the above limits.

Banks already pay the FDIC an insurance premium based on how much money is on deposit at their bank. 

[theonewhowaskazu]

In the US they'd just print 0.03% more dollars. Lot less likely to cause public uproar.

[zhinkk]

How long before this happens in the US?

I feel like we wouldn't let this happen as easily, there would be a public outrage. But then again, we let NSA happen. So maybe not.

I don't think this could happen in the US. The FDIC insures all bank deposits up to $250,000 per depositor per institution. The bank would have to fail first and after that it could only apply to deposits above the above limits.

Banks already pay the FDIC an insurance premium based on how much money is on deposit at their bank. 

So you're telling me spain didn't have any of their banks insured? (Not being sarcastic, genuine question)

[CoinsCoinsEverywhere]

How long before this happens in the US?

I feel like we wouldn't let this happen as easily, there would be a public outrage. But then again, we let NSA happen. So maybe not.

I don't think this could happen in the US. The FDIC insures all bank deposits up to $250,000 per depositor per institution. The bank would have to fail first and after that it could only apply to deposits above the above limits.

Banks already pay the FDIC an insurance premium based on how much money is on deposit at their bank. 

I doubt that would make any difference.  As you pointed out, FDIC insurance pays out when banks fail.  I doubt it covers government theft.   Besides, even if FDIC insurance would somehow cover it right now, I'm sure they'd find a loophole or change the laws so it won't.

In the US they'd just print 0.03% more dollars. Lot less likely to cause public uproar.

Not that I want the government to do that, but I'd greatly prefer that to messing with bank deposits.

[byt411]

How long before this happens in the US?

I feel like we wouldn't let this happen as easily, there would be a public outrage. But then again, we let NSA happen. So maybe not.

I don't think this could happen in the US. The FDIC insures all bank deposits up to $250,000 per depositor per institution. The bank would have to fail first and after that it could only apply to deposits above the above limits.

Banks already pay the FDIC an insurance premium based on how much money is on deposit at their bank. 

I doubt that would make any difference.  As you pointed out, FDIC insurance pays out when banks fail.  I doubt it covers government theft.   Besides, even if FDIC insurance would somehow cover it right now, I'm sure they'd find a loophole or change the laws so it won't.

In the US they'd just print 0.03% more dollars. Lot less likely to cause public uproar.

Not that I want the government to do that, but I'd greatly prefer that to messing with bank deposits.

Our government doesn't even have any money, so no, there is no bank insurance here lol.

[Erdogan]

How long before this happens in the US?

I feel like we wouldn't let this happen as easily, there would be a public outrage. But then again, we let NSA happen. So maybe not.

I don't think this could happen in the US. The FDIC insures all bank deposits up to $250,000 per depositor per institution. The bank would have to fail first and after that it could only apply to deposits above the above limits.

Banks already pay the FDIC an insurance premium based on how much money is on deposit at their bank. 

I doubt that would make any difference.  As you pointed out, FDIC insurance pays out when banks fail.  I doubt it covers government theft.   Besides, even if FDIC insurance would somehow cover it right now, I'm sure they'd find a loophole or change the laws so it won't.

In the US they'd just print 0.03% more dollars. Lot less likely to cause public uproar.

Not that I want the government to do that, but I'd greatly prefer that to messing with bank deposits.

Our government doesn't even have any money, so no, there is no bank insurance here lol.

The FDIC has 50 billion of equity, probably in the form of bank deposits. It's basically just babble that you like to hear.

[hollowframe]

How long before this happens in the US?

I feel like we wouldn't let this happen as easily, there would be a public outrage. But then again, we let NSA happen. So maybe not.

I don't think this could happen in the US. The FDIC insures all bank deposits up to $250,000 per depositor per institution. The bank would have to fail first and after that it could only apply to deposits above the above limits.

Banks already pay the FDIC an insurance premium based on how much money is on deposit at their bank. 

I doubt that would make any difference.  As you pointed out, FDIC insurance pays out when banks fail.  I doubt it covers government theft.   Besides, even if FDIC insurance would somehow cover it right now, I'm sure they'd find a loophole or change the laws so it won't.

In the US they'd just print 0.03% more dollars. Lot less likely to cause public uproar.

Not that I want the government to do that, but I'd greatly prefer that to messing with bank deposits.

Our government doesn't even have any money, so no, there is no bank insurance here lol.

The FDIC has 50 billion of equity, probably in the form of bank deposits. It's basically just babble that you like to hear.

The FDIC is also backed by the US government, which can borrow basically unlimited amounts at a zero risk premium. With the backing of the FDIC deposit holders in the US do not need to worry about loosing access to the money in their bank accounts up to deposit limits.

[Erdogan]

How long before this happens in the US?

I feel like we wouldn't let this happen as easily, there would be a public outrage. But then again, we let NSA happen. So maybe not.

I don't think this could happen in the US. The FDIC insures all bank deposits up to $250,000 per depositor per institution. The bank would have to fail first and after that it could only apply to deposits above the above limits.

Banks already pay the FDIC an insurance premium based on how much money is on deposit at their bank. 

I doubt that would make any difference.  As you pointed out, FDIC insurance pays out when banks fail.  I doubt it covers government theft.   Besides, even if FDIC insurance would somehow cover it right now, I'm sure they'd find a loophole or change the laws so it won't.

In the US they'd just print 0.03% more dollars. Lot less likely to cause public uproar.

Not that I want the government to do that, but I'd greatly prefer that to messing with bank deposits.

Our government doesn't even have any money, so no, there is no bank insurance here lol.

The FDIC has 50 billion of equity, probably in the form of bank deposits. It's basically just babble that you like to hear.

The FDIC is also backed by the US government, which can borrow basically unlimited amounts at a zero risk premium. With the backing of the FDIC deposit holders in the US do not need to worry about loosing access to the money in their bank accounts up to deposit limits.

The point is that FDIC is nothing, you have to rely on the implicit government guarantee.

[cr1776]

How long before this happens in the US?

I feel like we wouldn't let this happen as easily, there would be a public outrage. But then again, we let NSA happen. So maybe not.

I don't think this could happen in the US. The FDIC insures all bank deposits up to $250,000 per depositor per institution. The bank would have to fail first and after that it could only apply to deposits above the above limits.

Banks already pay the FDIC an insurance premium based on how much money is on deposit at their bank. 

I doubt that would make any difference.  As you pointed out, FDIC insurance pays out when banks fail.  I doubt it covers government theft.   Besides, even if FDIC insurance would somehow cover it right now, I'm sure they'd find a loophole or change the laws so it won't.

In the US they'd just print 0.03% more dollars. Lot less likely to cause public uproar.

Not that I want the government to do that, but I'd greatly prefer that to messing with bank deposits.

Our government doesn't even have any money, so no, there is no bank insurance here lol.

The FDIC has 50 billion of equity, probably in the form of bank deposits. It's basically just babble that you like to hear.

The FDIC is also backed by the US government, which can borrow basically unlimited amounts at a zero risk premium. With the backing of the FDIC deposit holders in the US do not need to worry about loosing access to the money in their bank accounts up to deposit limits.

The risk premium would increase greatly in a major crisis.  Look at the US downgrade in 2011.  The risk premium would expand in a really bad situation, and the result would be that the government would have to print money to cover the insurance.  So, yes, you'd get your money back, but it would be money that is worth less than what you had in the bank.

[CoinsCoinsEverywhere]

The FDIC has 50 billion of equity, probably in the form of bank deposits. It's basically just babble that you like to hear.

The FDIC is also backed by the US government, which can borrow basically unlimited amounts at a zero risk premium. With the backing of the FDIC deposit holders in the US do not need to worry about loosing access to the money in their bank accounts up to deposit limits.

The risk premium would increase greatly in a major crisis.  Look at the US downgrade in 2011.  The risk premium would expand in a really bad situation, and the result would be that the government would have to print money to cover the insurance.  So, yes, you'd get your money back, but it would be money that is worth less than what you had in the bank.

That's likely true, but at least you would get something back.

Another interesting point to consider is that major crises are usually accompanied by deflation (at least part of which is a result of debt destruction).  So the inflation caused by printing dollars to cover bank deposits might be at least partially offset.  And the good thing about the inflationary part is that the dollars would be going more toward the working/middle class instead of the rich, which would keep the economy going better than giving banks bazillions of dollars.