Cyprus Fiscal meltdown

Peter has yet more you need to read.

Cyprus: the plot thickens

And remember, it CAN happen here.  Especially if you stick your head in the sand and say "It can't happen here."

Once again Peter is very astute.

First Peter has a post about why it doesn't matter if Democrats or Republicans are in office. Both parties are extravagant spendthrifts, and yes I know the extra extravagant is is in there.  It IS intentional.

Why politicians don't cut spending

Then Peter write about the contagion that is Cyprus and it's malevolent spread throughout the EU.

The Cyprus contagion spreads

Next up Peter looks at how fuel usage relates to the economy.

As goes fuel usage, so goes the economy

Seriously. You need to check those out.

Wholesale governmental theft

"NICOSIA, Cyprus (AP) — Big depositors at Cyprus' largest bank may be forced to accept losses of up to 60 percent, far more than initially estimated under the European rescue package to save the country from bankruptcy, officials said Saturday.

Deposits of more than 100,000 euros ($128,000) at the Bank of Cyprus will lose 37.5 percent in money that will be converted into bank shares, according to a central bank statement. In a second raid on these accounts, depositors also could lose up to 22.5 percent more, depending on what experts determine is needed to prop up the bank's reserves. The experts will have 90 days to figure that out.

The remaining 40 percent of big deposits at the Bank of Cyprus will be "temporarily frozen" until further notice, but continue to accrue existing levels of interest plus another 10 percent."

First it was 10%, then it was 20%, then 40% now it's 60%.  Does anyone seriously believe that this will NOT go to 100% of the confiscation of all the money in those banks?  And does anyone NOT think that this is an isolated occurrence? Other countries in the EU are already saying they might follow Cyprus example.  And rumors of Democrat legislators and their supporters are talking of doing the same here in the US.  And don't say it CAN'T happen here.  It already has happened here, FDR and the forced purchase of Gold, with the government setting the prices.  That is the same thing as what is happening in Cyprus.  So if you really don't think it will happen here again, leave your money in the bank, in your 401k, in your IRA, and Money Market account.  Then ask yourself why Soros, Buffet, Kerry, Reid and others have been moving THEIR money out of US banks for the last 2 years.  They already had money held outside of the US, now they are moving large portions of their US held investments to Cayman Island accounts, Singapore accounts and according to 3 rumors I've been hearing Russian Banks are offering to transfer funds without their usual fees if the funds are being transferred to Russian banks.

Granted many of what I have been hearing is rumor and speculation.  However in most rumor there is a kernel of truth.

We're hosed

"I have to wonder if we will not see a slow but heavy decapitalization of banks worldwide as savers realize their money is no longer safe from thieves in their bank of choice."

You might want to start removing your your funds from banks and other markets.

Unfortunately I don't know exactly how you should protect it, but I don't think you should start buying precious metals.  Recent articles have shown just how the market can be manipulated.

If anyone reading my blog is a financial planner please hit my e-mail, I'd like to talk to you.

Do you have anything to declare?

Over at Ace's there is a post with 2 links you should read.

"Customs officials said border guards at the counrtry’s air and sea ports have been instructed to check baggage and monitor whether travelers are taking more than €10,000 (about $13,000) out of the country. Any amount above that €10,000 threshold can be confiscated."

Click that to go over to Ace's.

Cyprus Rejects bailout

"NICOSIA (Reuters) - Cyprus overwhelmingly rejected a proposed levy on bank deposits as a condition for a European bailout on Tuesday, throwing international efforts to rescue the latest casualty of the euro zone debt crisis into disarray.

The vote in the tiny legislature was a stunning setback for the 17-nation currency bloc, angering European partners and raising fears the crisis could spread; lawmakers in Greece, Portugal, Ireland, Spain and Italy have all accepted austerity measures over the last three years to secure European aid."

This Cyprus bailout was touted by some as a precursor to the further deteriorating European Economy.  Some said that if this had succeeded it would be a blueprint for further seizures of funds from the EU citizens and companies.

Some had even speculated that it's origins were in the United Nations in the quest for a One World Government, and to "Spread the Wealth".

I make no allusions to any of those theories.  I will tell you to do your own research and make your own determination of the facts.

About Cyprus - more added

"Sure, they didn’t call it confiscation, but that’s essentially what it is. Pure unadulterated theft.

There’s two things that are concerning here. First, this was done primarily by the European Central Bank. No, they can’t legally do it, but the pressure to sieze the cash came from them. Rumor has it they wanted 40%, not 10%.

They flat out said over the weekend that Italy is next on their radar. It’s reasonable to think that Greece won’t be that far behind.

That’s a worrying thing for sure. But a side comment by one of the guys involved in Cyprus caught my eye a little more. He said (paraphrased) that if they get away with this, then everyone’s going to do it."

 Couple with the Obama Administration eyeing our 401k's and IRA's, I wonder just how long before some dim Dem in Congress suggest we follow the EU's example.

And just what is that going to do to our economy.

ETA:


FINANCE: THE CYPRIOT CONFISCATION IS TERRIFYING

POSTED BY ANN BARNHARDT – MARCH 16, AD 2013 9:27 PM MST

Yes, it is every bit as bad as it sounds, and worse. Word is that the initial plan was for a 40% (!!!!) levy confiscation of Cypriot bank accounts. They settled for a MERE 6.75% and 9.9% dual-layered compromise.

And Peter has more for you to ponder: This isn't a 'tax' - it's theft, pure and simple