xryan.jacksonx
Sharpshooter
- Jun 3, 2012
- 313
- 18
A Word Out Of Place Sends Europe Tumbling | Zero HedgeLet the EU bank runs begin.
Every individual bank account is being taxed.Money on deposit.Not interest,not income...deposited money(err fiat Euros).
Cypriot Outrage Over Tax Could Derail Euro-Area Bailout - Bloomberg
...coming to a country near you soon(after your retirement accounts of course in the USA).
*Less than a day,and it is spreading.
The Swiss are working on a "deposit" tax as well,they will use negative interest rates though.IE pay a tax via fees on all deposits.
"Depositor Repression" May Spread To Swizterland, EURCHF Spikes | Zero Hedge
If the EU and IMF do not change this,it will be the start of the largest bank run in history.No one in the EU will feel like it is safe to deposit money in a bank.This is the end of the Euro as it currently stands.
Cypriot Authorities in Revised Deal Talks
"If this is successful then it will be used in the future," predicting Spanish and Italian banks could face similar levies. "If this is not successful then who cares about Cyprus."
"Cyprus a Template For [STRIKE]EU[/STRIKE] All Fiat Currencies Worldwide (including the US)"
Anyone else concerned about the national online sales tax bill as it relates to gold and silver purchases? A 7% hike will be very unwelcome.
The only good thing is that it might give some momentum in the legislature to make gold and silver tax free in the state.
It would be more than unwelcome. I'd make the drive to a sales tax free state to purchase if need be.
Here We Go Again: EU Lawmaker To Push For Bail-In Resolution Law For Deposits Over
The European Parliament will demand that big savers take losses if their banks run into trouble, a senior lawmaker told Reuters, adding momentum to a policy unveiled as part of a Cypriot bailout.
Although some policymakers have sought to portray Cyprus and the losses suffered by depositors at two of its banks as a one-off, many experts believe it marks a dramatic change in tack in how Europe deals with troubled banks, to spare taxpayers who have been on the hook for previous bailouts.
Jeroen Dijsselbloem, head of the Eurogroup of euro zone finance ministers, said on Monday that in future, the currency bloc should first ask banks to recapitalise themselves, then look to shareholders and bondholders and then "if necessary" to uninsured deposit holders.
Now the likelihood is rising that tough treatment of big depositors will be written into a new EU law, making losses for large savers a permanent feature of future banking crises.
What's scary is that you can almost hear the justification for doing this or it's cousin--confiscating retirement plans savings--here in the US.
I don't see anything wrong with this policy. When a bank needs to be re-capitalized someone has to pay. Uninsured deposits (over 100k) are better than taxpayer money imo. If you are dumb enough to deposit uninsured money in an insolvent bank, you should pay, not me. I think bond holders should be hit before deposits, but both of those before taxpayers.
People need to realize that putting uninsured money in a bank is the same as putting it in the stock market from a risk standpoint. A bank isn't a secure version of putting your money under the mattress. It invests the money that you deposit and it can take losses. For markets to work risk has to be properly priced.
I can see what you're saying about most peoples perception that banks are 100% safe vaults where they can never loose any money, but what's happening over there isn't that a bank is goign to default through it's own actions or inactions. The government is seaizing money that's already been taxed and has been saved for other uses in the future. Two completely different discussions.
I read this a few days ago,but did not add it to this thread.It is very relevant,so I am choosing to add it now.
March 21 (Bloomberg) — The Treasury auctioned 10-year inflation-indexed notes at a negative yield for an eighth consecutive time as investors remain skeptical that Federal Reserve measures won’t lead to a resurgence in consumer prices. The $13 billion in Treasury Inflation Protected Securities, which mature in January 2023, yielded negative 0.602 percent, versus the average forecast of negative 0.603 percent in a Bloomberg News survey of nine of the Fed’s 21 primary dealers that are required to bid on U.S. debt sales. Holders of TIPS receive an adjustment to the principal value of the securities equal to the change in the consumer price index, in addition to
a fixed rate of interest that’s smaller than the interest paid to a holder of conventional debt.
“The negative yield is a result of the Fed policy,” Aaron Kohli, an interest-rate strategist in New York at the primary dealer BNP Paribas SA, said before the auction. “It’s a sign, on a longer horizon, to get inflation protection because the Fed is still very accommodative and that drives significant demand from investors.”
Once again im having a hard time understanding something in this thread .... How can you auction something off at a loss on return(s)? Who in their right mind would contribute to this?