European Union Crosses Rubicon with Their Bank “Tax” on the Cypriots to Fund Bail-Out

Posted on Mar 18 2013 - 8:11pm by Harrison

In Cyprus, the government froze all bank accounts and had a plan to “tax” depositors at much at 15.6% of their account balance in order to pay for their country’s bailout:

Markets tumbled after Cyprus and the EU said they might tax private bank accounts to pay for a bailout.

Can the bankrupt policies of the Left get any more criminal?

If you’re sitting at home and can’t make ends meet you typically have three choices: increase your income, decrease your spending, or borrow money.  What is happening in Cyprus is a little different… it’s like you broke into your kid’s piggy bank and took 10% of the money you found in there to pay for the gas in your car.

That’s what the plan was, though.  Cyprus is getting another bailout but instead of raising taxes or cutting spending, banks and ATMs were shut down and, with peoples’ money stuck in their accounts, the proposal was to steal it:

Before Tuesday’s vote, which is too close to call and would send reverberations across the currency area if lost, euro zone finance ministers held an evening teleconference and said depositors with less than 100,000 euros should be protected, officials said.

Under the deal struck in Brussels on Saturday, bank deposits under that level would have faced a levy of 6.7 percent, ripping up the protection savers thought they enjoyed on insured deposits up to that limit, while those above would be stung for 9.9 percent.

The finance ministers said they favoured a higher, 15.6 percent hit for richer savers, so more modest accounts could be spared.

 The accounts are apparently going to be frozen until Thursday while the government decides how much money to seize.

The situation is rapidly changing in Cyrus but how could any person ever want to keep their money in the bank knowing that, at any moment, their corrupt government could seize any amount they wanted to pay for the country’s bills?

Ultimately, Cypriots are guilty for continuing to elect politicians that can’t balance the budget or don’t want to because they fear they won’t get re-elected.