The Visible Watermark of A Confiscatory Threshold.
The Cyprus ‘bail-in’ is merely to settle the casino banking debts of large investors, bankers, financiers…..who have seen a 121 % increase in their incomes while ordinary worker’s wages stagnated. Greek bonds that went bad in the recent past, have been placed on the shoulders of the ordinary Cypriot. The IMF and Euro ministers were happy to make oligarch’s debts into Cyprus’s national debts.
The designated Russian ‘bad guys’ and their money left the Cyprus island long before the draconian IMF and EU punishments arrived in Brussels last night. I recommend the Iceland rebellion solution. Tell the folks in Brussels where they can stuff it.
I would be complicit with banks stealing from small uninsured savers, entrepreneurs, small businesspersons in Cyprus…….. mortgage holders, and those about to be dispossessed of houses, jobs and well-being, if I chose to sit around, to keep mum, and watch passively as this theft occurs.
The panic began ten days ago when the Brussel’s crew demanded a percentage of bank depositors accounts, less for insureds and more for those in the uninsured (>100K Euros). The final deal places the burden on pensioners and small businesses with uninsured amounts of more than 100,000 Euros.
For a pattern-maker, a sudden change in the pattern adds a new dimension: The Cyprian cuts for uninsured depositors is now the visible watermark of a confiscatory threshold: that of arbitrarily taking small depositors’ monies from their bank accounts. This is important because if it stands, it will signal that any person’s savings account is no longer fully safe.
I see no difference between taking money from savers and from small business accounts, and stealing from earned benefit social insurance programs, such as Social Security, Medicare, and Medicaid. Both were created from personal income, from payroll taxes, from general income taxes, and both were supposed to be protected by governments responsible for the security of such resources.
The pattern of austerity now adds a new facet: confiscation rationalized as a rescue. But the pattern is not merely composed of shrinking government and through allowing anti-worker and anti-union forces to succeed, off-shoring manufacturing jobs, and attacks on social insurance programs and civil liberties. Unfair tax policies allow revenue to escape untaxed. Neither US 2014 budget (R or D) makes capital gains taxable as normal income. Neither budget demands a Wall Street financial transactions tax. Neither budget raises income tax rates to fair levels.
For retired persons who rely on savings accounts for security, the ZIRP (low interest) policies of the Fed have reduced their income severely. Coupled with President Obama’s stated interest in reducing the size of social insurance programs, (his emphasis on making cuts to Social Security and Medicare), retired persons have been subjected to political stress too. Who is on their side? Certainly not the beltway folks who manufacture their own statistics so that they can conflate old people with a Federal deficit. There is plenty of money and influence for rich people. But in the new confiscatory part of the pattern there apparently is no safety for retired persons with Social Security benefits and savings accounts.