The truth is that, worse has been happening in the UK for years beneath your very noses.
According to the first EU offer, those with EUR100k or more in deposits will have 9.9% of their balance converted into bank shares. Those with below EUR100k will have 6.75% converted. As time progresses, the wolf is tempting the sheep a little by suggesting 3% on amounts between EUR20k and EUR100k, with those under EUR20k escaping and those above getting punished with 15% – transforming a bad scheme into one even more unfair.
This is not straight theft, mind, but more of a unilateral renegotiation of a loan agreement. It is no less of an outrage for that.
What most people do not realise is, a bank deposit is not cash held at a bank, but a loan to it. Putting your money in a bank is to no longer have it. One’s bank statement does not represent the cash one has, more what the bank owes. The Cypriots have found that their loans have become 90.1% on-call loan and 9.9% bank shares of dubious value and liquidity. Given the capital controls, the 90.1% loan is rapidly losing its on-call status, too.
This is bare-faced and in the open. If you want to see insidious, stealthy theft, look no further than the Bank of England, with its artificially low interest rates coupled with increasing Govt debt and money-printing, now called “Quantitative Easing” to spare their blushes. Those with holdings in Sterling, savers, in other words, have had the value of their wealth transferred away from them by these effects. Debtors gain that wealth. The State is a massive debtor, so it has a significant vested interest in such policies. It all happens gradually and under the surface so people hardly notice.
All across the world, people are shocked at the events in Cyprus, but, oddly, the very predicament Cyprus is in has forced the State to crawl out into the daylight and reveal its vile actions for all to see. Normally, it invisibly taxes by devaluing and diluting the currency, and everyone chews the cud as before. As one cannot hit the monetary base of Cyprus alone due to it being in the Euro, it is savers that are hit.
The cattle are all chained together in the Euro. The butcher had to do its slaughtering and skinning in plain sight of the other cattle, and the herd is now restless. We look on with concern, not knowing the slaughtering and skinning is being performed in the night, as Morlocks will stalk the Eloi.
Will there be widespread runs on the banks? If I were in Spain or Italy or Portugal, I would not have my money let out to an organisation that has the State’s chain running through its nose.
How long before people wake up one day to find their “savings” partly transferred into worthless UK Gilts or unwelcome RBS shares?
Desperate times require desperate measures. Desperate debtors, even more so.