Yesterday I opened a letter from my bank informing me that they had recommenced raping my bank account—at the behest of the IRD. “Fair” enough, I suppose. It’s the IRD’s job to be fair. Why me? I guess I must “owe” them money because I don’t “PAYE” them anything.
Then I watched BBC World News. I was flabbergasted to learn that the Cypriot government is proposing to rape the bank accounts of literally everyone with an onshore bank account. Luckily, it’s a one-time tax, in which Cypriots stand to lose 7%-10% of their life savings in one hit, rather than the easy weekly payments I have to contend with. How fair is that?
Robert Tracinski says
The news broke over the weekend that in exchange for a bailout—or “bail-in,” whatever that means—of banks in Cyprus, bank deposits would be hit with a one-time “wealth tax” of 7% to 10%, depending on the size of the account. One expert sums up the reaction in the markets: “traders and investors are aghast.” So are depositors, who quickly emptied the island’s cash machines.
This is one of the biggest bank heists in history, and it is being carried out, not by the crew of charming rogues in your favorite caper flick, but by finance ministers. So it’s an inside job.
For an informed analysis of this latest episode in the Eurozone crisis, read Liberty Scott’s latest post. Scott notes that
The Cypriot Parliament, which must vote on this law, wont do so until Friday. Cypriot banks will remain closed until then. Will this trigger panic more widely? What would you do?
WWJD? (Trick question, Jesus never had a bank account.) To my mind, the proposal is so unthinkable that it’s unthinkable even to propose it. It’s goddamn communism! Let’s hope this proposal isn’t adopted but, even if it’s not, as Scott notes, “the damage is done to Cypriot banking.” Deposit funds into account with Bank of Cyprus? Yeah right.
Lindsay Mitchell has just the right quote
Any government big enough to give you everything you want is big enough to take away everything you have.
and Queens of the Stone Age have just the right song.
First it giveth
Then it taketh away