This is how it happens. This is what it looks like. This is how it feels! This is the kind of article you could wake up to some morning. It’s happening right now on the island of Cyprus just off the Southern coast of Turkey. The European Union is demanding full payment of a billion Euro bailout loan to the island. All deposits in banks will be taxed nearly 10%. All wire transferred have been cancelled and the Cypriot people are furious. Can you blame them, to be surprised in such a manner. No one was asked, the President just did it and it appears it will go into effect when their Parliament votes on it tomorrow Monday.
Listening to the German Chancellor speaking in German about this issue must add salt to the wound of islanders and Russians who have laundered much of their illicit gains onto the small island they now call their second home.
Getting past the obvious irritations it’s clear that Cypriots don’t pay their taxes otherwise the EU would be more humane in collecting their money. The tax rates in Cyprus are so high no one pays them and with low tax revenue the government is forced to “clawback” the money by simply taking it from savings and checking accounts.
This is a big deal and the deal is if this little trick works anybody with an ounce of sense will take their money out of all EU banks in countries that are having financial troubles like Italy, Greece, Spain, Portugal and even France. With the EU in an official recession this won’t help matters and could help slide Europe into a depression unless this is reversed. The haunting problem is that this one time Clawback will happen again and again until the government of Cyprus cuts its spending which most likely won’t happen to the liking of the unelected members of the EU.
Here in the United States we could benefit for a short time, but even our country is headed for the same demise based on our current fiscal insane policies. This is bad, very bad, because it points out how socialized the European countries of the EU are. They are applying non-growth policies when they should be helping private sector growth by lowering taxes and eliminating oppressive regulations. That’s the direction President Obama should be going but isn’t. You would think he would just look across the pond and see what a huge mistake they made, but no, he barrels straight into the abyss with destruction dead ahead!
Should you pull all of your money out of U.S. banks? I don’t know if you should, but I do know what’s going on in Cyprus is nothing more than “NAKED SOCIALIZM” something a dictator would do like Stalin, Hitler or Chavez. They are all dead now, but their techniques are still alive and well and living on a sun-drenched island in the Mediterranean. – N.P.Contompasis
Spokesman: Putin says Cyprus plan unjust
MOSCOW — The spokesman for Vladimir Putin says the Russian president is strongly critical of a plan to levy a tax on depositors in Cyprus.
Russian companies have an estimated $19 billion in Cypriot bank accounts. Russians have for years seen Cyprus as an investor-friendly jurisdiction with lax banking regulations and low taxes.A proposed bailout of Cyprus’s economy would impose taxes on bank deposits of up to 9.9 percent.Putin’s spokesman Dmitry Peskov said the president criticized the plan in a meeting with economic advisers.Putin was quoted by Russian news agencies as saying that the decision, if taken, would “unjust, unprofessional and dangerous.”
The Russian mafia can be traced back to Russia’s imperial period, which began in the 1700s, in the form of banditry and thievery. Most of the population were peasants in poverty at the time, and criminals who stole from government entities and divided profits among the people earned Robin Hood-like status, being viewed as protectors of the poor and becoming folk heroes. In time, theVorovski Mir (Thieves’ World) emerged as these criminals grouped and started their own code of conduct that was based on strict loyalty with one another and opposition against the government. When the Bolshevik Revolution came around in 1917, the Thieves’ World was alive and active. Vladimir Lenin attempted to wipe them out after being robbed by a gang of highwaymen, but the criminals survived onto Joseph Stalin‘s reign.
“Trust towards Cyprus as a safe place for placing money will be reduced to zero,” he told the Interfax agency Anatoly Axanof, MP and president of the Association of Regional Banks of Russia.
(…)Forbes also relies on estimates of the financial press upon which the deposits of individuals from Russia to Cyprus ranging from 8 to 35 billion euros.
“The Russians lost in a day up to 3.5 billion euros,” the magazine notes on its website. “The news of the tax by up to 10% on deposits of Cypriot banks sowed panic among Russian businessmen included in the list of the richest people,” adds the magazine.
An angry phone call from Russian President Vladimir Putin to Nikos Anastasiadis(Cyprus’ PM) was received early Sunday morning, The Putin reportedly said angrily to the Cypriot President –It would have been better to put the German flag at the Presidential Palace. Do not you understand that this decision will destroy your country?How banks will be Tuesday; Who will you trust?
Read more at http://investmentwatchblog.com/putin-is-enraged-youre-going-to-destroy-your-country-it-would-have-been-better-to-put-directly-a-german-flag-at-the-presidential-palace/#2qOkmRc1xPD3rZts.99