Eurozone Chief: Cyprus was just the start

Posted by: Phineas on March 26, 2013 at 2:37 pm

**Posted by Phineas

"Obama loan officer at work."

“EU bureaucrat at work.”

Hoo, boy. I just had a feeling that, once the the EUrocracy learned it could take depositors’ money at will without a total meltdown, the temptation to do it again (and again and again and again…) would be too great to  resist. Thus we read in the Telegraph:

Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief

Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe’s single currency by propping up failing banks, a senior eurozone official has announced.

The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy.

The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, told the FT and Reuters that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.

“If there is a risk in a bank, our first question should be ‘Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?’,” he said.

“If the bank can’t do it, then we’ll talk to the shareholders and the bondholders, we’ll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders.”

Ditching a three-year-old policy of protecting senior bondholders and large depositors, over €100,000, in banks, Mr Dijsselbloem argued that the lack of market contagion surrounding Cyprus showed that private investors could now be hit to pay for bad banking debts.

Don’t you just love how Dijsselbloem puts it? “We’ll ask them to contribute.” As if Manuel the Madrid taxi driver, who’s put his life’s savings into a bank he thought he could trust, will get any chance to say no. If he’s lucky, he’ll wake one morning to discover that his masters in Brussels have left him anything at all.

This is just immoral. Depositors in Cyprus are being robbed to cover for the bad borrowing decisions of governments and the equally stupid lending decisions of bankers, and now Dijsselbloom and his fellow mandarins are casting their gaze across Europe and seeing a smorgasbord filled with tasty accounts waiting to have a bite taken out of them.

Let’s review an old principle of (real) liberalism that’s more and more forgotten these days: your bank account is your property, as it represents the fruits of your labor. Security in your right to property is essential to your liberty; if you do not have the first, then you lack the second. If some bureaucrat can come and take your property via a diktat dressed in legal finery, then you are not a free human being.

Desperate to save their precious Euro at all costs, the Eurocrats and the national governments are all but guaranteeing a future bank run and financial panic as frightened people take their money and try to put it beyond the reach of grasping, blundering officials and quite possibly creating the very crash they’re trying to avoid.

With establishment politicians like these, is it any wonder people turn in frustration and anger to radical politics?

PS: And I wish the EU would stop giving Obama ideas…

via Bryan Preston

(Crossposted at Public Secrets)

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4 Responses to “Eurozone Chief: Cyprus was just the start”


  1. Great White Rat says:

    Well, of course. I’m surprised it took the socialists this long to start confiscating people’s savings and property.

    Think about how your average liberal – Nancy Pelosi, for example – talks about any cut in taxes. Listen to their words. They’ll always talk about it like it’s a “giveaway”, and it’s depriving the State of what it rightfully owns.

    In other words, what your earn doesn’t belong to you. It beongs to them. And they’re being generous by letting you keep as much as they do. So why would it surprise anyone that they’d come after your life savings? The mindset is that the money was never yours in the first place, so all they’re doing is taking back some of what they didn’t grab before. And if you don’t like it, you’re greedy, and a hater, and most likely a raaaaaacist!

    Liberals, at heart, are totalitarians. Understand that, and very little of what they do – whether it’s this, or banning sodas, or editing the Second Amendment out of the Constitution, or deciding what you’re allowed to do in the name of Globull Warmening – will surprise you.

  2. Carlos says:

    “This is just immoral.”

    ‘Course, some of us believe that the EU is immoral to begin with.

    And that Democrap/lib/socialist attempts to make us a de facto part of such a union, or worse, part of a “world union,” is immoral, too.

    And that every time people anywhere are taxed without their specific approval is immoral, too. (Yes, I’m talking to/about you, Barry and Dingy and John and Mitch.)

  3. Drew the Infidel says:

    The EU was and still is a stupid idea and a grand human experiment soon to fail. It seems those stingy workaholic Germans do not like the idea of waiting till age 62 (or maybe later) to retire so the Greeks can start laying on their dead a*ses at 55 with full benefits.

    Q: How do you get rich?
    A: Watch what poor people do and then don’t do that.

  4. Tex says:

    I can’t say the Europeans don’t get what they deserve with this new bank savings theft thing for their propensity for socialism . But my biggest worry in all this is that the EU may have just given Eurocentric Obama, and his Eurocentric Democrats, a new idea for their “transfer of wealth” fixation.