Monday, March 18, 2013
Will Obama Get Any Ideas From The Cyprus "Bailout"?
This weekend, the government of Greek Cyprus -- under pressure from the European Union -- negotiated a bailout that had as one of its provisions an assessment on the capital of those with deposits in the banks on Cyprus. Those with under 100,000 Euros in their accounts are slated to receive a 6.6% haircut while those with more than 100,000 Euros in their accounts will be docked 9.9%
Worked your whole life to save $100K to retire on? Sorry - the oligarchs of Europe need to maintain their power and save face, and it will cost you $6,600 - probably somewhere between one and two years of your savings.- in order for them to do so. But don't worry - they have your best interests in mind.
"Interests". It's a funny word. It's usually what a bank pays you for leaving your money on deposit, and allowing them to profit on it by loaning it out at higher rates.
But if you've noticed, lately nobody's been getting paid any interest on their bank accounts. That's because the United States government is forcibly keeping interest rates low so it can continue to print money maniacally, and borrow even more at manageable rates. Which it then wastes on green schemes, or on welfare payments to society's unproductive, in exchange for their votes. But our oligarchs need to maintain power and save face too...
On my interest-bearing checking account, average balance of a few thousand dollars a month, my last quarterly interest payment was...$0.01. Isn't that abomination an inadvertent tax on my money, a confiscation of potential income that I am denied so that our debt-ridden government can take a few more huffs off the deficit crack pipe?
That's where Evil Obama comes in. Taxation is such a negative word - even hardcore lefty Bill Maher has had enough - that it might not be the best strategy to acquire the funds necessary to keep the liberal Ponzi scheme afloat
But what about..."a negative interest charge", on a sliding scale?
"The rich" - depositors with over $100K in the bank - could pay 9%, those with $75K 6%, those with $50K 3%, and all others pay 1% or less. It's not a tax, it's a negative interest charge (hey - it's not like you were earning any interest anyway!), and everyone will have skin in the game. Why, Obama's negative interest charge can actually be perceived as fair and progressive wealth redistribution! At least, by his comrades in The Party...
Of course - like Cyprus - Obama will have to declare a multi-day bank holiday, in order to prevent a run on the banks and a Great Depression. Which would no doubt cripple the economy, the way you would be crippled if your car hit a brick wall at 80 MPH.
But for Barack Obama - Socialist - that's a feature, not a bug.
Watch for it. It's coming...