And So It Begins – Confiscation of Assets/Wealth in Cyprus

Two weeks ago I wrote that your 401k and other retirement funds were going to be seized by the government. The first step towards this in Europe has started: Bank Deposits in Cyprus Confiscated. The government, in exchange for a bailout from the European Central Bank, announced confiscation of 6.6% on the first €100,000 and 9.9% of any excess beyond that amount. Done, of course, in secret, and when the banks were closed.

This can have nothing but seriously negative ramifications for the future. There will be a run on banks in Cyprus to extract all funds before another round of confiscation. And anyone who lives in Portugal, Italy, Greece or Spain would be foolish not to remove all deposits from all financial institutions in the country. In other words, a bank run. A European-wide bank run will follow. Smart people will convert 100% of their holdings to precious metals or precious stones. And make sure it’s well hidden from the government.

If you think it can’t happen here, think again. That FDIC insurance is only good up to $100,000 ($250,000 temporarily, until the end of 2013). So far, the government has always covered 100% of deposits by transferring accounts to a sound bank. But they don’t have to. They could simply declare that all funds in all accounts for any insolvent bank are lost/forfeit if they exceed $100,000. Instant wealth confiscation. Before you say “but my bank isn’t insolvent” let me remind you that ALL banks are insolvent due to fractional reserve banking. All the government has to do is increase the reserve requirements and close the “Discount Window” at the Fed. Instant insolvency for most, if not all, banks.

In the US the Federal Reserve is inflating the money supply causing a stock market bubble while Democrats announce their intention to raise taxes and increase spending with a target total US National Debt of more than $20 trillion in 10 years. This cannot end well. The government is bankrupt, is printing more and more fiat currency and not telling the truth about GDP growth nor inflation.

Getting as many guns out of the hands of citizens is a key to the political and taker class being able to stay in control and continue to destroy wealth and seize assets. See my post on this topic here: Why They are Coming For Your Guns.

You’ve been given sufficient notice. Only swift public action can prevent this. It means doing whatever is necessary to make the political class understand that they have to reduce the size and scope of government, end the insane wars overseas and  get the budget under control. Now.

[updated]

About Stephen Adams

The founder of this site, he has a Bachelor of Science degree in history from Elmhurst College. He is an IT Director that has worked for several major global companies. He has studied the Constitution and Founding Fathers extensively and his hobby is Constitutional Law. He blogs under the “Founder’s Blog”.