It Begins: Confiscation of Private Fu...

It Begins: Confiscation of Private Funds by Government Desperate for Cash

Posted in the Spencerport Forum

IescapedNY

Since: Nov 11

Location hidden

#1 Mar 18, 2013
The small country of Cyprus is giving the world a grave reality check today by reminding everyone that government money is simply the people's money redistributed as the European Union prepares to seize private bank account savings in order to bailout years of bad economic decisions.


The surprise decision by euro zone leaders to part-fund a bailout of Cyprus by taxing bank deposits sent shockwaves through financial markets on Monday, with shares and the bonds of struggling euro zone governments tumbling.

The bloc struck a deal on Saturday to hand Cyprus rescue loans worth 10 billion euros ($13 billion), but defied warnings - including from the European Central Bank - and imposed a levy that would see those with cash in the island's banks lose between 6.75 and 9.9 percent of their money.

The initial response of investors was unambiguous. Shares lurched lower, the euro fell to a new three-month low, while safe-haven assets such as gold and German government bonds jumped.

The cost of insuring the debt of even high-quality European banks against default also rose sharply with analysts citing fears the decision could spark contagion across peripheral regions with the potential for widespread outflows of deposits.

"If I were a saver, certainly in Spain or maybe Italy, I think I'd be looking askance at these measures and think this could yet happen to me," Peter Dixon, global financial economist at Commerzbank said.

Cyprus is an incredibly small country. It's smaller by area than Hawaii and has the same GDP as the state of Vermont yet, it's having a massive impact on the markets as individuals make a run on banks and investors pull out their money. Europeans in stronger countries like Germany are asking if this could happen to them and here in the United States, people should be asking the same question.

As a reminder, the United States government has been eying and researching how Americans use their 401k plans for quite some time now. Recently we saw the U.S. Consumer Financial Protection Bureau suggest the government help "manage" retirement plans.


The U.S. Consumer Financial Protection Bureau is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings, a move that would be the agency’s first foray into consumer investments.
“That’s one of the things we’ve been exploring and are interested in in terms of whether and what authority we have,” bureau director Richard Cordray said in an interview. He didn’t provide additional details.

The bureau’s core concern is that many Americans, notably those from the retiring Baby Boom generation, may fall prey to financial scams, according to three people briefed on the CFPB’s deliberations who asked not to be named because the matter is still under discussion.

The retirement savings business in the U.S. is dominated by a group of companies that handle record-keeping and management of investments in tax-advantaged vehicles like 401(k) plans and individual retirement accounts. The group includes Fidelity Investments, JPMorgan Chase & Co.(JPM), Charles Schwab Corp.(SCHW) and T. Rowe Price Group Inc.(TROW) Americans held $19.4 trillion in retirement assets as of Sept. 30, 2012, according to the Investment Company Institute, an industry association; about $3.5 trillion of that was in 401(k) plans.

In February, the Washington Times went so far as to ask "is your 401k about to be nationalized?"


cont

IescapedNY

Since: Nov 11

Location hidden

#2 Mar 18, 2013
The $19.4 trillion sitting in personal retirement accounts like the 401K may be too tempting an apple for a government that is quite broke, both monetarily and morally. The U.S. Consumer Financial Protection Bureau director Richard Cordray recently mentioned these accounts in a recent interview, stating “That’s one of the things we’ve been exploring and are interested in, in terms of whether and what authority we have.”

This agency, created by the 2010 Dodd-Frank-Act, is very concerned about how safe your retirement savings are. They are apparently concerned that retiring baby boomers may become victims of financial scams.

If the government takes control of retirement accounts, it will not be called “nationalization.” There will most likely be an indecipherable document that provides an opt-out option (initially), but why would you want to do that? The US government only wants to ensure the safety of your retirement funds; they did after all create a new bureaucracy for that specific purpose. And what could be a safer investment than US bonds?

In case you're wondering, gold is up today.
http://townhall.com/tipsheet/katiepavlich/201...

Anyone want to try and explain the consequenses to "Low Information Voters"?

Good luck.

IescapedNY

Since: Nov 11

Location hidden

#3 Mar 18, 2013
The Obama, Cuomo plan.

First your guns, then your money then your property..........
BillyBob

Penfield, NY

#4 Mar 18, 2013
And many U.S. banks are near insolvency. This could (not likely) happen here. There would be no bailout possible for stakeholders or depositors.

Take a look at the results of the "stress tests" of many American banks. This is scary stuff. I almost envy most of the Topix posters that live day to day.
Ha Ha

Fairport, NY

#5 Mar 19, 2013
I posted this a few weeks back and I was amazed how the thread was deleted from the forum.

When does the revolution start?

IescapedNY

Since: Nov 11

Location hidden

#6 Mar 19, 2013
Ha Ha wrote:
I posted this a few weeks back and I was amazed how the thread was deleted from the forum.
When does the revolution start?
I'm in and I'm keeping my guns.

pigpen911

Since: Mar 11

Location hidden

#7 Mar 19, 2013
IescapedNY wrote:
<quoted text>
I'm in and I'm keeping my guns.
I have been in since 1967 and I'm not about to let the progressive/socilist democrats ruin this country.Time to vote out all of the loons out from both parties and take OUR country back.Just saying.
rePIGpublican

Rochester, NY

#8 Mar 19, 2013
pigpen911 wrote:
<quoted text>I have been in since 1967 and I'm not about to let the progressive/socilist democrats ruin this country.Time to vote out all of the loons out from both parties and take OUR country back.Just saying.
The dems are not ruining the country, Pig feet. It's the conservs and the jews! You should know better.

pigpen911

Since: Mar 11

Location hidden

#9 Mar 19, 2013
rePIGpublican wrote:
<quoted text>
The dems are not ruining the country, Pig feet. It's the conservs and the jews! You should know better.
I'll tell on thing I know,you are an anti-American commie troll Zippy. Does the DNC pay you by the post or do they pay you by the day? If they aren't paying you enough maybe you should talk to Soros and your God Obama about a raise.Just saying.

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