This should be big news

[jim4silver]

While we often talk about PM confiscation as a possibility when PM prices are on the rise, it is not really talked about much as prices decline or go sideways as they have over the past year and a half. Here is a new one though I never really thought about: how about a gov actually talking a percentage of your bank deposits to help bail out said country /gov? Well, this did happen just the other day in Cyprus, and right now they are experiencing a "banking holiday". As usual, such a big story is not really reported in the MSM if at all. But this incident is huge in my opinion, and shows just how easy it is for a gov to take what it wants/needs at anytime.

I believe such events will happen more frequently as time goes on. Whether it is pensions, IRAs, 401Ks etc. What does shock me is that they went straight for the bank accounts and unlike what is often talked about as the "gold confiscation" or possibly forcing retirement funds to go into bonds, those bank account holders in Cyprus had their money taken and will supposedly get stock shares of the bank in which their money is sitting equal to the value of what was taken from their account. The article doesn't say what said stock will be worth in the future, but I doubt in the end it will be a good deal for the account holders.

This type of event galvanizes my belief that some day those holding PMs will come out very well and the holders of paper will not. It may take longer for this to happen, but it will happen nonetheless. I wonder if it is merely a coincidence that PMs are being pushed down as these world events take place, in some type of effort to make the sheeple not want to hold PMs and instead put their money into a vehicle more easily taken in times of need? I mean, who wants to hold PMs when you can have paper assets that are on the rise and will keep rising like stocks and will never fall (just like in 2000, think tech bubble days).

I say again, if PMs get pushed down like I believe they will over the next few weeks/months, it will be the best and last opportunity to enter the PM market for most regular folks; a chance to buy reasonably cheap insurance for their paper assets before things get really ugly.

All just my opinion.

ekathimerini.com | Shock in Cyprus as bailout brings bank account haircut [update]


Jim

 

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[Jason in Enid]

With most major employers requiring employees to take payment through direct deposit, the government knows they can get most of our money. This WILL come to America, and probably not too far in the future.

 

[jim4silver]

Pretty amazing that a nation announces it is going to grab 10% of a depositor's cash in the bank, and gold (we won't even talk about silver) is up a measly $10 or so??

This announcement should have sent gold up $100 or more today (even if for only a few days). This is the exact type of thing gold bugs warn about and it is why they want hard assets in their possession. This should make it clear to any doubters out there that gold is manipulated. There is no other explanation. Even if the sheeple are asleep, there are enough wealthy people, hedge funds and institutional investors out there that should be going into gold after this weekend, but apparently aren't as of right now.

As more info comes out on this Cyprus deal, it seems the money is not even going to the gov or the "people", but instead is being used to keep the banks from going under. So in a sense they are using their customers' money (forced taking) to save the private banks. I guess this is why the article I linked above said the account holders would get shares of stock in the bank where their money is being held (and confiscated). Maybe too this is some sort of trial balloon to see how the locals there react, and maybe they will do similar things in other Euro nations? We'll have to see.

Just my opinion.

Jim

 

[TreasurePirate69]

I agree that this is a pretty amazing story. But I am still left wondering if this will really happen. Time will tell. Perhaps the gold buyers are holding off to see if this really comes to fruition. If so, watch out! I can't imagine the people putting up with this. Unless of course, most of the bank deposits really aren't owned by the "people" and are instead owned mostly by other banks. Banks taking money from other banks isn't likely to get the people too riled up.

Is this just a ploy to get bailout money or do they really intend to take depositors' money? I guess we will find out later this week. Keep your fingers crossed.

 

[Jason in Enid]

I agree that this is a pretty amazing story. But I am still left wondering if this will really happen.

WILL IT HAPPEN?!!! It HAS happened. The government has forced the banks to close through thursday to prevent people from clearing out their accounts before the government can steal 10% of it!

 

[TreasurePirate69]

WILL IT HAPPEN?!!! It HAS happened. The government has forced the banks to close through thursday to prevent people from clearing out their accounts before the government can steal 10% of it!

I highlighted the appropriate phrase above. In other words it hasn't actually happened yet.... It may indeed still happen though.

 

[Jason in Enid]

I highlighted the appropriate phrase above. In other words it hasn't actually happened yet.... It may indeed still happen though.

Why are you acting like this is some hypothetical? It IS HAPPENING right now. This isn't some conspiracy theory, it's been on national media.

 

[TreasurePirate69]

Why are you acting like this is some hypothetical? It IS HAPPENING right now. This isn't some conspiracy theory, it's been on national media.

The Cyprus parliament has rejected the deposit tax. So it appears that it will not happen after all unless they change their minds. What you appear to be missing is that they closed the banks ahead of actually enacting the so-called tax with the expectation that the tax would be approved. The tax was not approved so the banks will potentially reopen Thursday and everyone's bank accounts will still be in tact.That's why I kept saying that it hadn't happened yet. They had closed the banks but they had not actually approved the plan to implement the deposit tax. They had just threatened to do so. I wasn't treating it like a conspiracy theory. I was just trying to point out that the plan had not even been approved yet.

This is my understanding of the current situation. Of course, things can definitely change at a moment's notice. There is also the possibility that the banks will not reopen on Thursday. Here is some info on the latest.

http://www.nytimes.com/2013/03/20/b...-set-to-reject-tax-on-bank-deposits.html?_r=0

 

[TreasurePirate69]

For what it's worth I did read somewhere yesterday that this type of deposit tax is not unprecedented. Several other countries have done this in the recent past. The biggest difference is that the supposed tax rates were all way under 1% compared to the 10% Cyprus was going to levy.

 

[jim4silver]

I have no clue how this will be resolved this week (or whenever), but I will tell you now that if they resolve it in a way other than by taking depositors' money, or if they come up with something that only affects a small percentage of account holders, you will see gold and silver get smacked back down big time short term. I am actually hoping for that, but we will have to see. I have some $$$$ just waiting to go back into silver/gold, and hopefully at cheaper prices.

If they do go through with this and take the money from the account holders, we could see PMs start to rise again in that such a move will not be ignored by those in Europe especially, but in other countries as well.

If I were a betting man, I would bet they will solve this in a way that causes less alarm then what they proposed so far. Maybe they know that and just wanted to see how everyone would react?

Just my opinion.

Jim

 

[TreasurePirate69]

I have no clue how this will be resolved this week (or whenever), but I will tell you now that if they resolve it in a way other than by taking depositors' money, or if they come up with something that only affects a small percentage of account holders, you will see gold and silver get smacked back down big time short term. I am actually hoping for that, but we will have to see. I have some $$$$ just waiting to go back into silver/gold, and hopefully at cheaper prices.

If they do go through with this and take the money from the account holders, we could see PMs start to rise again in that such a move will not be ignored by those in Europe especially, but in other countries as well.

If I were a betting man, I would bet they will solve this in a way that causes less alarm then what they proposed so far. Maybe they know that and just wanted to see how everyone would react?

Just my opinion.

Jim

I totally agree.

 

[Marchas45]

I believe Cyprus will default on their loan as there is to much pressure from Russian bank customers and Russia, seems that there is a lot of Russian money in Cyprus. Isn't it strange that all they needed was 27 votes for the bill to pass and now nobody voted for it next time around after they heard about the Russian fleet moving into the Mediterranean. Lol
If they do open the banks on Thursday I see a big bank rush happening, especially the Russian accounts as well as the Cypriots and British expats.
Some exciting times ahead and now New Zealand is talking about doing the same thing.