Cyprus bailout deal loots 40% of bank deposits
Paul Joseph Watson
March 25, 2013
The deal to “save” Cyprus which, according to Cypriot President Anastasiades was struck “in the the best interests of the EU,” will inflict “huge losses on wealthy savers” of up to 40% of their bank deposits.
While savings accounts containing under €100,000 will remain untouched, those who have scrimped and saved all their lives to amass a relatively modest sum of anything over that amount face a “haircut” amounting to almost half of their wealth.
While the initial plan to take 9.9% of savings over €100,000 was met with protests and widespread fury, the media is characterizing the new deal as a huge victory worthy of celebration, without asking the key question;
Since when did having €100,000 euros in savings make anyone “wealthy”?
According to dictionary.com, the term “wealthy” means “having great wealth; rich; affluent.” Since when did working your entire life to accrue €100,000 euros make you “rich”?
When we think of the term “wealthy,” we think of old money, family legacies, aristocracy, mansion houses and lavish estates. In most European countries, including Cyprus, €100,000 euros wouldn’t even buy you a tiny 3 bedroom house in a good area.
Indeed, miniscule one bedroom apartments in the Cypriot capital of Nicosia start at around €135,000.
So according to the new definition of “wealthy” now being bandied about by European Union leaders and the mass media reporting on the Cypriot “bailout,” the “wealthy” who will be forced to pay a debt for which they have no responsibility include savers who could not even afford to buy their modest own home without a mortgage.
As Henry Blodget explains, the precedent is now set. Bankers can seize the deposits of anyone with over €100,000 euros in the bank to cover their gambling losses.
In addition, the outcome in Cyprus now communicates a clear message to millions of middle class people throughout Europe who have more than €100,000 euros in savings – your money could be swiped next.
“It makes the euro zone more susceptible to bank deposit runs in the event that banks come under question,” states a CitiGroup analysis. “This may make any future bank-related crisis more intense. The fact that deposit insurance was called into question so casually will make other depositors wary of policymaker assurances that they would not behave similarly.”
Anyone with an ounce of common sense who has over €100,000 euros deposited in European banks should now be scrambling to convert some of it to precious metals or at least spreading it out in smaller amounts between different banks.
Forget Russian oligarchs, the great looting in Cyprus has taught us that the vampires running the European Union and the IMF are now ready to sink their teeth into Europe’s middle classes with total disregard for the consequences – a systematic collapse in the confidence of the banking system which threatens to engulf the entire continent.