Out of Ideas, Governments Try a Bank Heist


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Out of ideas, governments try a bank heist.

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10 comments

  • JGL

    If this is allowed to go through, and I do not think it will, then it would set the stage for a general world wide feeling in the world that THIS COULD HAPPEN TO ME! The world economy is a fiat money based economy and to allow a feeling of no confidence to become a reality would not be productive at the minimum and catastrophic at the max.

    Keep in mind we are talking about 10 to 13 Billion dollars, lunch money in comparison.

    IMO they would be better off doing an Iceland and find a creative way to tough it out and rebuilding from scratch. I know thats easier said than done but its another way, maybe the only other way.

  • joe

    The politicians are playing with fire, perhaps this is why they are buying so much ammo!

  • jwing

    What truly scares me is the Obama administration’s reaction to this naked illegal taking. In answering a White House press conference question, Jay Carney basically punted and offered that any further questions on this matter be addressed to the Treasuty Dept. In other words, no direct refutation of this unprecedented seizure of personal property by Obama.

    Fiat money, otherwise known as US dollars, are simply Federal Bank reserve notes, not backed up by gold, but by the full faith and credit of the US government. Remember, the full faith and credit of the US gevernment is a nice turn of words meaning the US taxpayer. Therefore, dollars are just financial instrumentalities called notes that can be recalled and “backed-up” by the seizure of electronic dollar deposits of US taxpayer/citizens.

    Wow!!!

  • jwing

    Addendum:

    Another way to think of this: Since “quantitative easing” is simply printing money whick increases the money supply (M3) to stimulate the economy thereby causing inflatinalry pressure which thenlowers the dollar’s value…this proposed stunt of seazing electronically deposited federal reserve notes from US citizens’ back accounts amounts to the reverse operation. Let’s call it “quantitative tightening”, whereby the amount of federal reserve notes (dollars) and the money supply are reduced by just taking peoples dollars out of the economy, eh, I mean from their personal bank accounts.

    Now, that’s fair and balanced…itsn’t it?!

  • JGL

    The situation that America finds itself in at this time in history is unique, the key being that we are the reserve currency of the world and that, as far as I can see, that will not be changing any time soon. That being said and since the FED controls the interest rates at which the government has to pay on its debt the FED can increase or decrease the supply of money as it pleases without adverse consequences. If interest rates were based on market forces then that would be a whole different story, but its not.

    In addition when the FED increases the interest rate that is how they will reabsorb the “extra” supply of dollars not by confiscating peoples money held in bank accounts, if and when they do that that is when it all falls apart. But again while America is the only economy that is the reserve currency of the world this will not happen. This is the ultimate weapon and this situation has never existed on this planet before.

    You ask yourself how does this happen and where does it come from? When you follow the string it leads directly to the existence of the Constitution. You can decide whether that is good or bad.

  • Chris Kirkendall

    I have no doubt Obama & Leftst Dems (is there any other kind, really??) would doubtless do this here if they thought they could get away with it. If by some misfortune the House flips & goes Dem in 2014 & the Senate stays in Democrat hands, there’s no doubt in my mind that if both (Dem-controlled) Houses passed such a bill, Obama would sign it. And this “crisis” in Cyprus is all because (predictably) their gov’t ran out of money because of their foolish Socialist policies. Once again, this proves Margaret Thatcher’s famous maxim: “The problem with Socialism is, sooner or later you run out of other people’s money” – no one said it better…

  • JGL

    I disagree with you on this, Obama and his fellow socialists / Marxists know that it would be the end if they were to apply such decisions and the FED would not comply. This has to be seen in a different way where the economic rules that apply to you and I only apply to you and I and not the FEd or the government.

    There will be a time in the future when accounts will have to be balanced as they always must be and so they will be. I again point out that Americas enjoys a special place at this moment in time on this planet.

    PS: Cypruss has voted to not go ahead with the confiscation of funds, this will not happen IMO.

  • JGL

    On the other hand, conspiratorially speaking, If a crash is what the FED desires then they would participate. At that point that is where a new reserve currency would have to be created.

    But backed up by who? Confidence in who? Adjudicated and administered by who? Backed up by who’s legal / contract system ?

    These questions must be answered first before we go over that conspiracy cliff.

  • Chris Kirkendall

    Well, as far as the dollar being the world’s reserve currency, that will only remain so as long as people have faith in it – if we continue to devalue it by printing worthless dollars, it will lose its standing. Already, China & Russia are planning to bypass US dollars & trade oil directly without conversion into dollars – that’s unsettling. If the dollar is no longer the world’s reserve currency, its value will decline even further…

  • JGL

    Both China and Russia are missing one vital element, confidence, no one will ever (?) have confidence in them because they are communistic thugocracies. As long as this American confidence model remains America can inflate and deflate as is needed. And yes, if that paradigm were to change it would all let loose, but it can not happen at this point in time, the people of the world have to do business and the dollar is it as far as I can see.

    You have to think a bit differently about what is going on, its very unique in history, IMO.

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