Sunday, April 7, 2013

Follow-up of Account Theft in Cyprus

This is the first post on this travesty:

The outrageous and inherently unlawful theft that was gift-wrapped with the trappings of legislation produced exactly what we feared. Those who had the most money in the bank accounts were able to spirit much of their wealth out of the country. The cash is now in the banks of other European nations, many of which were competing against each other to draw the new depositors. The Russian oligarchs, who were held out to be the bad guys in order to temporarily placate the anxious Cypriots, got off scot-free. Not that I had any problem with rich Russians (Their money is not my business nor that of any government)), but isolating those who have the most money is the easiest way to allay the people's concerns while the latter gets the worst of it in the end. The Cypriot economy also lost all the wealth that had previously been in the banks of that nation. Leftists are fond of pointing fingers at large bank accounts, but if the money in banks as opposed to hard assets such as gold or physical property (land), that means that the economy has that money to lend and use for business purposes. Hide or remove the money, and an economy stagnates.

It turns out that the ones who got hit badly were the small and middling Cypriot business owners. They lost incredible amounts of cash in this act of pillage. Many are ruined.

-From Gates of Vienna:

“The Cypriots killed their own country in one day,“ says Mikhin, referring to the day the €5.8 billion proposal was laid before Nikos Anastasiadis, the president of Cyprus. What concerns Mr. Mikhin, the owner of a shipping business, is not the levy itself. What he is worrying about is the loss of faith in the Cypriot financial system. It makes him uneasy: “The Cypriots have to understand — when the money leaves, the people who buy cars and real estate also go. The resources for the survival of the Cypriots will disappear. They are claiming that we laundered money, but they lived with this money for ten years, and they had forgotten that.“.........

One of the phony arguments “justifying” the confiscation of cash in Cyprus was that this seizure primarily affected rich tax dodgers and Russian oligarchs. However, information about the flight of capital from Cyprus during the time when the banks were closed to ordinary people leads to the conclusion that this category of people may be the very ones who are affected least by the “haircut.”

On the contrary, it becomes ever more obvious that those affected by the “cut” are the uninsured savers and the small-to-large entrepreneurs who had clearly parked their cash in Cyprus as working capital. This has to do with entrepreneurial liquidity, which is now gone forever and henceforth can no longer be used to finance entrepreneurial activities like loan payments, purchases and overhead..........

Most of the money from our account is blocked. More than €700,000 in appropriated money will be used toward redeeming the country’s debt. Possibly in 6 or 7 years we may recover 20% of it.

I am not a Russian oligarch. I run a medium-sized European information company. It is definitely ruined; all employees on Cyprus will be let go. Thousands of other firms on Cyprus are in the same situation."

If this tide is not stopped dead in its tracks, we will lose not only our wealth, but any remnants of our freedoms. The EU, the banks, and the governmental elite are in the process of enslaving entire nations worth of people. 

1 comment:

  1. When you have a tax and spend Marxist in the White House, it CAN happen here. Especially when the "party of Opposition" contains such slimy rogues as John McCain and Lindsey Graham.