It’s coming folks.
The sort of disruption you’re seeing in Cyprus, with outright confiscation of bank deposits and brokerage accounts, especially retirement assets such as 401(k)s and IRAs.
Within two years.
How do I know?
Because the precedent has already been set, and you, the common American, sat for it.
You allowed the GM bailout to take place where the seniority of bondholders was ignored and they were screwed while the UAW was made whole.
You allowed Obamacare to be passed with the Congress denoting it was a “fine” rather than a Tax, because Congress knew that a direct, unapportioned tax was unconstitutional — and then you sat again when Judge Roberts of the USSC rewrote Obamacare to be that very same unconstitutional direct Tax.
You allowed John “I’m a traitorous jackass” McCain to suspend his campaign to make sure TARP passed, then you cheered both him and Obama for shoving that piece of crap legislation down Congressional throats, and just two weeks later you returned nearly all of the people who voted for it to office.
You still allow people like John Boehner to make the following sort of statement without showing up outside his office and home and refusing to leave until he resigns in disgrace:
House Speaker John Boehner broke from some Republicans on Sunday when he agreed with President Obama and other Democrats who say the country does not have an immediate debt crisis.
“We do not have an immediate debt crisis,” the Ohio Republican said on ABC’s “This Week.”
HERE’S YOUR SIGN:
In a word, bullcrap.
It’s not a crisis when your outstanding debt goes from $6 trillion to $16 trillion in ten years, far more than a double, and what’s worse is what is causing the escalation — medical expense — and you won’t even talk about derailing the policies that you put in place that made this happen?
In two years federal medical spending along with Social Security and interest will, on current paths, reach the total of all tax receipts.
At the outside the market will realize that Congress will never address the underlying issue with medical care because they have steadfastly refused to do so. At that point we will have become Greece and Cyprus.
For those who say that our banking system is “strong” and “not corrupt unlike Cyprus” may I ask what the record is on money laundering and intentional obfuscation of the truth with regard to firms such as HSBC and Wachovia (both of which were caught laundering enormous amounts of money) and JP Morgan (which was just grilled, along with the regulators, regarding the “London Whale”) and not one person or institution has been indicted and prosecuted?
There is about $20 trillion in US Retirement “assets.” A “small” 10% “one time” tax levy on those assets would fund the US Deficit a couple of years from now, and I will go out on a limb now and predict that exactly that will be done.
Of course the “one time” aspect will be a lie too, but you’ll lap that one up as well just like you have all the others.
The simple fact of the matter is that the purpose of capital supervision in a banking system is to prevent a degrading banking institution from ever going into negative capital and thus having to hit depositors. But the record from 2007 to the present is that our banking regulators, including the FDIC, have repeatedly and wantonly failed to follow the law on Prompt Corrective Action which mandates that no bank be allowed to go into a negative capital situation. Despite this mandate in the law the FDIC has repeatedly, in virtually every case, shown an actual loss when it has closed a bank during these years — a loss that, if the law is followed, can’t happen.
It is simply a matter of time given the endemic corruption and fraud throughout the system before a large institution — or set of institutions — is exposed as actually having negative capital and a run occurs which the FDIC and Treasury cannot cover. This is exactly what happened in Cyprus and it will come here, because you have failed to demand that those who committed these offenses be removed from office when they are politicians and go to prison when they are “connected” business “leaders.”
You still tolerate and in fact rally behind people like John “I can’t tell the truth” Boehner and Lyin’ Ryan, and pack places like CPAC instead of drumming these liars out of the room and demanding that they cut that crap out now or leave office. And if you’re on the left you pay attention to people like Krugman, Pelosi and Bloomberg who continually declare that these fiscal issues — a matter of arithmetic — are “phony”, instead of de-funding MIT and other places that house folks like Simon Johnson and ejecting from office those on both the left and right who refuse to accede to the reality that 2 + 2 = 4, not 6.
Your money is going to get stolen — MF Global or Bernie Madoff anyone?
It just takes a keystroke by your government to steal 10% of everything you have in any of your accounts anywhere, and the fact that you have repeatedly failed to stand and demand this crap stop is exactly why it’s going to happen not just in Cyprus but right here in America.
Are you awake now?
Oh, and if you’re not, this was just said on CNBC:
“This (ed: what Cyprus did) open up enormous possibilities for the Administration”
Yeah, that was tongue-in-cheek — or was it?