The financial situation in Cyprus is looking dire, and leaders in the Eurozone country are now seeking to invade private bank accounts to steal 25% of all deposits over €100,000 (about $130,000).
Cyprus said on Saturday it was looking at seizing a quarter of the value of big deposits at its largest bank as it races to raise the funds for a bailout from the European Union and to avert financial collapse.
Finance Minister Michael Sarris said “significant progress” had been made in talks in Nicosia with officials from the European Union, European Central Bank and International Monetary Fund.
He confirmed discussions were centered on a possible levy of around 25 percent on holdings of over 100,000 euros (about $130,000) at Bank of Cyprus, and expressed hope that a package could be ready by the end of the day for approval by parliament.
Cyprus faces a Monday deadline to clinch a bailout deal with the EU or the European Central Bank says it will cut off emergency cash to the island’s over-sized and stricken banks, spelling certain collapse and a potential exit from Europe’s single currency.
If this ends up passing, EU leaders will call it a “tax,” but it is what it is: organized theft. What frightens me more than the instability that this will inevitably cause in the global financial system is the precedent that something like this will set for other countries.
We like to pretend that such brazen theft of private property could never happen here in the US, but the budget passed this morning by Senate Democrats puts us well on the path to where Cyprus is now.