Europe Announces Bailout For Cyprus — Bank Depositors Get Instant 10% Tax
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Europe Announces Bailout For Cyprus — Bank Depositors Get Instant 10% Tax
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Re: Europe Announces Bailout For Cyprus — Bank Depositors Get Instant 10% Tax
#2And the Bitcoin community did this http://www.reddit.com/r/Bitcoin/comments/1aes4q/bitcoincentr....
Re: Europe Announces Bailout For Cyprus — Bank Depositors Get Instant 10% Tax
#3The people who elected a government that made their country a tax haven leading to the crisis in the first place.
Re: Europe Announces Bailout For Cyprus — Bank Depositors Get Instant 10% Tax
#4Money in the bank is not your money anymore. By the time of credit cards, banks moved from being a custodian of money, to a service provider that can cut anyone off from their service.
Sure, this time it was not the banks itself but rather the government that did this, but they could only do this because banks and government has stopped seeing money in the bank as belonging to the person who put it there. They would have never gone to a farmer and taken 10% of their grain. They would have never gone and taken physical property in peoples home. That would had been an complete impossibility. I even strongly doubt that any safety deposit boxes will be effect by this.
I understand the idea that this is a blow against companies that are using Cyprus as an tax haven. Its fully understandable. But I really dislike this current system of treating money in the bank as belonging to the bank. This story is just a clear example of this behavior expanding further.
Re: Europe Announces Bailout For Cyprus — Bank Depositors Get Instant 10% Tax
#5Is this really any different than US Monetary policy that leads to continual inflation making your savings worth less over time?
Re: Europe Announces Bailout For Cyprus — Bank Depositors Get Instant 10% Tax
#6Is this really any different than US Monetary policy that leads to continual inflation making your savings worth less over time?
Yes.
Re: Europe Announces Bailout For Cyprus — Bank Depositors Get Instant 10% Tax
#7Money in the bank is not your money anymore. By the time of credit cards, banks moved from being a custodian of money, to a service provider that can cut anyone off from their service. Sure, this time it was not the banks itself but rather the government that did this, but they could only do this because banks and government has stopped seeing money in the bank as belonging to the person who put it there. They would…
There's no such thing as an intrinsic value for "money", even in gold. If you keep your money in the form of dollars (or Euros) shoved into a mattress the value can go away through inflation. If you keep your money in the form of gold bars the value can also go away through inflation, but perhaps less so.
Re: Europe Announces Bailout For Cyprus — Bank Depositors Get Instant 10% Tax
#8Re: Europe Announces Bailout For Cyprus — Bank Depositors Get Instant 10% Tax
#9Money in the bank is not your money anymore. By the time of credit cards, banks moved from being a custodian of money, to a service provider that can cut anyone off from their service. Sure, this time it was not the banks itself but rather the government that did this, but they could only do this because banks and government has stopped seeing money in the bank as belonging to the person who put it there. They would…
There's no such thing as an intrinsic value for "money", even in gold. If you keep your money in the form of dollars (or Euros) shoved into a mattress the value can go away through inflation. If you keep your money in the form of gold bars the value can also go away through inflation, but perhaps less so.
I thought gold went up with inflation.
Re: Europe Announces Bailout For Cyprus — Bank Depositors Get Instant 10% Tax
#10Is this really any different than US Monetary policy that leads to continual inflation making your savings worth less over time?
It's significantly different.
If I told you that every year your money would be worth 3% less, that's different than me saying that 10% of your savings are gone now.
It's more complex as well because inflation influences salaries and prices, plus the whole long-term vs immediate aspect.