“It could never happen here”?

Tomorrow all bank deposits over €100,000 will have 10% expropriated in Cyprus, while

Goat herders, taxi drivers, et al. (what the New York Times calls“pensioners, workers and regulator depositors”) with less than €100,000 get whacked 6.75 percent.

What do they get for that? A €10 billion bailout from the International Monetary Fund and European lenders.

Roger Kimball has the story.

In Ireland, Hungary, Poland, Bulgaria and France, the governments take over citizens’ pension money to make up government budget shortfalls.

In 2008, Ambrose Evans-Pritchard asked, Argentina seizes pension funds to pay debts. Who’s next?

My fear is that governments in the US, Britain, and Europe will display similar reflexes. Indeed, they have already done so. The forced-feeding of banks with fresh capital – whether they want it or not – and the seizure of the Fannie/Freddie mortgage giants before they were in fact in trouble (in order to prevent a Chinese buying strike of US bonds and prevent a spike in US mortgage rates), shows that private property can be co-opted – or eliminated – with little due process if that is required to serve the collective welfare. This is a slippery slope.

This is only the beginning, folks.

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3 Responses to ““It could never happen here”?”

  1. jlh Says:

    The new Greek government–put in by the EU to replace the elected premier when he had the temerity to contemplate a plebescite on a tax rise–recently responded to pressure from the EU and IMF by passing a law that gives the government full access to all bank accounts. It is described as a move to root out tax cheats, and probably be used that way…at first. But then what?

  2. Fausta Says:

    But then what?
    We shall soon find out.

  3. Cyprus’s Sham-Wow | Fausta's Blog Says:

    […] Yesterday the plan was to scalp all bank accounts over €100,000 by 10%, and everybody else by 6.75%. […]