Posted:
02 Apr 2013 10:20 PM PDT
Money
Is Not Safe In Bank
Government is going to steal some of them…
Cyprus, is country on a small island and a member of the European Union (EU).
All members in EU shares the same currency known as Euro.
Cyrus is facing a financial disaster
in the country. They lent money to Greece. When the Greek economy came down,
the Cypriot banks double the gambling by buying up Greek government bonds in
the hopes of a bailout. Unfortunately, Greece is now broke. Cypriot banks owe
more money than they have. Actually, Cypriot banks owe more money than the
whole country’s GDP. Right now, the Cypriot banks need a financial bailout from
the European Central Bank. The bad news is, European Central Bank told the
Cypriot that they have to come out with their own money to save the country.
Where to find the money? Cyprus
has decided to steal the money from the people!On 15th March 2013, the
government of Cyprus announced that it was going to tax(another word for
stealing) 6.75% of all bank accounts less than €100k and 9.99% of
all bank accounts more than €100k. For example, if you have RM100k in the bank,
the next day you wake up you only have RM90k left. What happened? Oh nothing,
the government has just decided to take away your money.
As a logical response, everyone in
Cyprus rushed to the banks to take out their money. In order to avoid people getting
their cash out of the banks, the Cyprus government declared a national
holiday and closed the banks. People lined up at the ATM machine and soon
found out the ATM machines are EMPTIED.
Here is the ironic part. If the
government can steal 6.75% or 9.99% from the people, what’s stopping the
government to steal even more? On 19th March 2013, the Cyprus changed the plan.
They decided to steal 3% tax on deposits below €100k, 6.75% on those €100-€500k
and 15% on those more than €500k. The reality is, the government can steal
as much as they want.
On Friday, 22nd March 2013, the
government have decided they would steal from their pension funds (equivalent
to Malaysia EPF / KWSP). At the point of writing this, there isn’t any plan
that is finalized. But whatever “solution“ Cyprus government going to
come out with, it is going to hurt the people in the country and it is NOT
going to be pleasant.
Right now, the people in Cyprus have
lost trust the banking system. Shops do NOT accept credit card and cheque, they
only accept cash – as whatever payment made by credit card or cheque, the
government is going to steal a portion of it. This is a typical example of: your
money is safer under your mattress than in the banks.
Whatever happening in Cyprus is
hinting us the global debt crisis is not over, it is only worsening. Cyprus is
the fire starter and the worse is yet to come. During the time of financial
crisis, gold and silver are the safest option to store wealth. Gold is good for
storing high amount of monetary value.
.jpg)
