Eurozone Chief: We will raid private bank accounts to pay for future bailouts

Well, it’s pretty much what everyone expected to happen in Europe once the government made plans to use depositor’s own bank accounts over $100,000 to pay for the bailout in Cyprus. In the wake of the bailout being made on Monday, a top eurozone official has now said that the Cyprus model will be used as a template for future bailout in the European Union.

Jeroen Dijsselbloem, the Dutch chairman of the eurozone, said “If there is a risk in a bank, our first question should be ‘Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?”

He then added, “If the bank can’t do it, then we’ll talk to the shareholders and the bondholders, we’ll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders.”

The policy is a shift from the past three years where large bank accounts with over $100,000 and senior bondholders had been protected. Dijsselbloem said that the Cyprus bailout showed that private investors could be forced to pay a “haircut” for bad investment and deals by the banks.

“What they’ve done in Cyprus is they have closed and frozen the bank accounts. They have taken the bank accounts, frozen them.  Anybody who had $130,000 or 100,000 Euros in the bank, they have now frozen those assets and they are only going to take 30 to 40%, they believe, 30 to 40% of those assets to pay down the debt,” Glenn said.

“As we told you last week or ten days ago, this was the beginning. This was the Petri dish. And as soon as they got it through Cyprus, they would do it in other countries,” he explained.

“Well, they announced today…they were thinking about doing this now in Spain, in Greece, in France, and where was the other one, Stu? Italy.”

Glenn explained that when the European Union started, people concerned with national sovereignty were concerned because they were giving up their self-rule. But critics shouted them down.

“Remember the guy who started the Euro, the guy who dreamt this up. He said, ‘Look, we’re going to start the Euro and everybody will, you know, they will still retain some of their sovereignty until there’s a national emergency, until there is a banking crisis. And then we will cobble everybody together and we’ll collapse it and then restart as one nation.’ So I mean, this was the plan from the very beginning. That’s the plan as stated by them,” Glenn said.

“This is one of those things where conservatives and people who actually care about their nation’s sovereignty looked like maniacs when this thing was started and complained and complained and complained that they were giving up their sovereignty and then years later when it happens, no one remembers,” Stu added.

Glenn asked the audience to consider what they would do if these practices spread beyond Europe.

“So what are you going to do? When they come and they just take 50% of your 401(k), your life savings, what are you going to do?” he asked.

  • landofaahs

    There is no honor among thieves.

  • landofaahs

    Who then will ever deposit in a bank and where will investments come from?  Implosion and anarchy are acomin’.  We know what must be done to tyrants.

  • http://www.artinphoenix.com/gallery/grimm snowleopard (cat folk gallery)

    A Petri dish indeed – nudge, shove, shoot…sound familiar?

    Nudge – you have a choice 6% or 9%; the people choose neither as the money in the accounts is their private money. It belongs to no one else.

    Shove – now it is 30-40% of the assets, the ‘haircut’ is now a person being scalped. This will destabilize the region and begin to draw larger players into the mess. Look for Germany and Switzerland to be made into scapegoats.

    Shoot – crackdown of the bottom by the top by means of coercion by force of arms.

    After that it is only a matter of time until the next regional war commences. Remember that WWI began with the death of Arch-Duke Ferdinand; a small event in the larger picture that reaped a harvest of death.

  • http://www.artinphoenix.com/gallery/grimm snowleopard (cat folk gallery)

    Understand clearly, as spoken of in the Book of Daniel, Europe will never be united as one nation; war is coming and no one is listening.

  • landofaahs

    And God is in control.  Fear not.

  • landofaahs

    What if they are bald? 

  • landofaahs

    Too bad the citizens are not armed.

  • http://youtu.be/0iRCvDwF26Q Sam Fisher

    The only thing keeping me on the right path and from freaking out about banks because they may try to take my freedom away but the can never take me from God.

  • http://youtu.be/0iRCvDwF26Q Sam Fisher

    They will do this here it is only a matter of time. We cannot trust our leaders to do the right thing anymore. We will be foolish to trust them with our money that they see as government property not the people who worked for it. If we don’t take a stand now then we are lost.

  • Guest

    “We have a deal,” said President Nicos Anastasiades, Jeroen Dijsselbloem of the Netherlands, said the agreement could “be implemented without delay” and without a further vote. “This has indeed been an arduous week for Cyprus.”
    Laiki Bank, would be reduced in size and bondholders would lose their investments. The Bank of Cyprus will have forced losses without calling it a tax.”

    Cyprus Rescued by the EU

    UPDATE II
    It could never happen here!

    http://theconservativepush.webs.com/apps/blog/

  • Draxx

    lando, then it would be a scalping because they are going to take something (no matter what it has to be, if you refuse the haircuts & scalping, then they will kill you with Lead Poisoning [lead that goes bang])…

  • Draxx

    I Do Not Know Anybody That Could Withstand The Loss of 30-40% of Their Money!!!  The same thing here in America would Destroy it as we know it…

  • Draxx

    That is why they have been diluting the Christian Faith in America, so that people who lose God may lose Hope…  Persecution coming to a church near you!  And I believe that they will attack all religions and religious people…

  • Anonymous

    What does a man who has lost everything
    have left to lose?

    I see our fascist overlords making three endgame mistakes.

    1) Our military is not stupid. The American fascist views them as stupid.

    2) They think our military will fire on our people.  They will not.  It is more likely our military will turn on the fascists.

    3)  They view DHS agents as modern-day brown-shirts.  They are not.  They are much more likely to turn on the fascists than our own people.

    I am glad for their over-reach.  

  • greywolfrs

    Not that I disagree with your point, but these people are NOT Fascists,. Liberals in general are collectivists, their leaders are all for totalitarianism. One of the major tenets of Fascism is a strong national pride, exactly the opposite of what the left wing dolts are preaching.

  • greywolfrs

    I guess it only matters if you keep all your assets in banks, the market and on paper that they can get to. If one is smart and only keeps limited amounts in those accounts, then puts the rest into commodities that they physically own, there isn’t problem. Gold is a bad idea, it costs too much and the price is already over-inflated. It may go up more, but that means it has further to fall. Right now, the smart money is on silver. It is still, relatively, inexpensive.

    Or you can listen to the left wing dolts, who claim the economy is doing great and joblessness is going down. They will keep their assets invested in the market and hold on to their Federal Reserve notes, known as green backs. These are easily tracked and taken, just like Cyprus.

  • http://youtu.be/0iRCvDwF26Q Sam Fisher

    Unfortunately for me I lost my job about four months ago and this so called recovery sucks. How can it be a recovery if people can’t still find work?

  • Anonymous

    This shouldn’t even be a surprise. When the idea of government insured bank holdings was invented [FDIC] it was to promote a confidence that is not based in reality. The government has no power to insure that which it defaces by over increasing the currency supply. Manipulation of currency can only decrease wealth. The only way for us be prosperous is to increase production; something our current administration fights hammer and tong! 

  • Anonymous

    I use fascist for a reason.
    It really ticks them off.
    Plus, regulars don’t mind.
    They know a pig when they see one.

  • Anonymous

    Also, I realized this when I called the “Democratic” Party the Democrat Party in front of one of my local fascists.
    Boy, did he blow a gasket.

  • Jessica Robert

    If you think Carmen`s story is exceptional…, 5 weeks ago my aunts step daughter got $5416 just sitting there sixteen hours a week from there apartment and they’re neighbors step-aunt`s neighbour done this for five months and got paid over $5416 part-time On there computer. use the tips available on this page. http://www.GoogleProjectsGetPosition.qr.net/kgsp

  • greywolfrs

    It isn’t a recovery. That sucks you can’t find work, I  hope things get better for you.

  • greywolfrs

    That is probably because they are not fascists, they are communists…

  • Anonymous

    We’re headed to a new era of feudalism.

  • landofaahs

    They could. But sayin’ ain’t doin’.

  • landofaahs

    How true. What ever they establish though, will not last.

  • Snorri

    What’s the difference between Nazi’s and the German Army stealing from sundry European countries and the EU politicians and bankers. Oh! the latter use neither guns nor mayhem just legislation.  Yes! the Germans ave refined their approach. “A man with a briefcase can steal more than 100 men with guns”.

  • Kay

    “You’re rich…” So, I’m rich, so it’s okay to steal from me? (I’m not rich, just sayin’.)  b…s….  

  • Anonymous

    You make a great point on silver, but for those who saw this coming 10yrs ago and bought gold and it’s in your hand’s if it cost 280 an ounce HOLD IT that is your new bank account.
    Greywolfrs we have written to each other before and you know that when gold goes down next time the whole thing will come down .
    So people who are reading this trust what he say’s about commodities 2 more metal’s that should be looked at are brass and copper.
    But all of these thing’s are worth nothing if you don’t see past what can be taken and what is never to be given up.
    God bless brother

  • Anonymous

     Statism breeds corporatism. Now the mega rich will only get richer. One more step towards one world government and total control of the people.

  • greywolfrs

    I was simply stating that buying gold right now would not be the best investment. If one bought it long ago, that is one thing, currently doing it would not be wise.

  • Anonymous

    Please don’t misunderstand my point, Some people have money for siver it wouldn’t hurt at all to buy 1/20th 1/10th ounce bullion or numismatic coin’s as a back up to that silver it would improve one’s ability to have that bank account I spoke of nevertheless I believe when you need to have something to exchange for more silver it won’t be dollar’s that’s why i put it the way I did about 280 an oz. In the near future  90 1/20 to 170 1/10 maybe still within people’s range and it’s better to bet on both if possible , what if it does go to 2500  an if it don’t hold it pass it down to your kid’s or grandkid’s this is far  from over set them up cuz this will not last and they will need it ,
    I totally agree with ya you make great point’s so when reading what you say about commodities , I just wanted to say that you still can do well by getting small amount’s without going broke .
    Take care 

  • Anonymous

    tinyurl.com/cnaff79