Wednesday, April 3, 2013

Other countries likely to develop depositor expropriation plans to deal with big financial crises

“Truth Out” has a rather disturbing article describing plans in New Zealand to partially confiscate ordinary bank deposits should a Cyrus-style crisis develop there.   Future banking crises, he writes, could make depositor expropriation or garnishment common practice.  

It’s an op-ed by Gaius Publis, from the “America Blog”. It suggests that the same plans will come to the UK and the US and that eventually FDIC depositor  insurance will belong to the past.  The link is here.
It also notes depositor losses of up to 60% in Cyprus.

Technically, once you deposit money in a bank, you don’t “own” it.  There is an IOU to cover it (sounds like Social Security, doesn’t it). But this sort of thinking encourages  armed “doomsday preppers” hoarding gold and silver coins.  In a crisis, some funds can be frozen and only gradually released.  
There is a related column “No austerity anywhere in the world has restored prosperity” by the same writer, link here.   It talks about the financial class and political leadership, and even the media that support them, as a “baronial class” that lives in luxury as parasites on the working man.  But it was the Reds who wanted to confiscate from the rich – and sometimes that means confiscation from the middle class, who can “look” rich.

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