The financial crisis in Cypress is a precursor to what can happen in Europe and even here in America. The confiscation of Cypriot bank deposits is a new tactic to enhance tax revenues. By freezing the bank accounts, citizens cannot access their money, nor can they transfer it out of the country. The financial blitzkrieg worked because it happened without warning. Overnight, Cypriots lost access to all of their bank accounts. The Russian Mafia, which is a large depositor in Cypriot banks, also lost access to their money. It will be interesting to see if there are any ramifications for the confiscation of their funds.
Governments in Europe can no longer depend on collecting all of the taxes due. Higher taxes forced European businesses, including those in Cypress, to under report their income and pay less taxes. The Cypriot government wants their cut so they are willing to take extreme measures to collect the taxes they need to pay their corrupt politicians and civil servants. The best way to get it is to freeze bank accounts so that the citizens do not have access to cash. After a few weeks, they will submit to confiscation of part of their money, as they need access to the rest of their savings to feed their families.
As I write this, the amount of the Cypriot confiscation is expected to be 80 percent of the funds over 100,000 € (Euros). The banks will open for a few hours a day later this week and will permit customers to withdraw up to 300 € a day. The rest of their money will be held hostage by the government.
This could happen again here in the United States. It happened under President Franklin D. Roosevelt in April of 1933. I'll bet that President Obama is reviewing the situation in Cypress and Roosevelt's Executive Order 6102. Most Americans keep their money in bank and brokerage accounts. I'm sure that a few people really do keep money under their mattresses. Twenty-eight percent of Americans do not have bank accounts. They live in a cash only society. If they are paid by check, they use a check cashing service and pay a fee rather than open a bank account. They are part of what is known here as the "under banked" class. I expect that after the Cypriot asset confiscation many Europeans and even some Americans will remove their money from financial institutions and join the "under banked" class.
I doubt that our government would actually confiscate assets from our accounts. If they need money, they will tax us and we will pay the taxes. (Exception, The State of California: http://pandodaily.com/2013/03/25/because-of-asset-seizures-i-am-starting...). If taxes become exorbitant, there will be a tax revolt just like the revolt that brought Reagan to power in 1980. That said, under the Obama administration, asset confiscation is a real risk. We The People recognize this and many have taken action. Gun sales are at record highs. Ammunition shortages are rampant throughout the United States as the Obama administration bought up 1.6 billion rounds of ammunition. Americans are buying up the remaining ammunition in anticipation of new gun and ammunition controls.
Americans are starting to move their assets into commodities like gold and silver. Some are buying up gold coins as they can be easily stored and exchanged for goods and services. Others are buying up 10 ounce and 32.15-ounce gold bullion bars. The ads for these commodities are flooding television and talk radio programs. Gold and silver is being hoarded. Could the people believe that monetary assets are no longer safe in our banks? Could they be worried that inflation will decimate their savings?
I believe that the people do not trust the government and, under the Obama administration, the government does not trust the people. The government is buying up bullets and over 1,700 light tanks for domestic use. Are they expecting the Second American Revolution? Meanwhile, the people are arming themselves like never before. What are they expecting? Government Brown Shirts and troops invading their homes to confiscate their weapons and valuables? (http://www.infowars.com/homeland-security-graduates-first-corps-of-obama...). It is a sad state of affairs when the American government is arming to fight their own citizens and American citizens are arming themselves to protect themselves from the government.
So what should we, the average people, do? I believe in being prepared and self- sufficient. Spring is here. It is time to plant our gardens to grow our own food. When the harvest comes in, can your vegetables and fruit. (We are still eating our canned food from the fall. The peaches and cherries are my favorites). Freeze some extra meat every week. The goal is to have enough food to last at least six months. This will ensure you can provide for your family in the event of a serious breakdown of our society.
It is also important to ensure that you contact your congressional representatives frequently. Make sure they know that We the People are watching them. We will not let them use their light tanks and bullets against law-abiding citizens. Also let them know that we will not let the government confiscate our assets as is happening now in Cypress and possibly Italy and Spain in the next few months.
We also need to seek out people who believe in the Constitution and the American way of life. The Tea Party Patriots and the various 9/12 groups are a good place to start. I have been to their meetings and know some of the members. They are dedicated citizens who want to preserve the American Way of Life and our American values.
The events in Cypress are a warning shot across our bow. Obama and his cronies know that they can safely confiscate some of our assets. There are over 7,000 banks in the United States with many trillions of dollars in deposits. See the list for yourself at http://www.usbanklocations.com/bank-rank/total-deposits.html. The administration knows where this money is and can take some or all of it with the stroke of a pen. Despite the Fifth Amendment to the Constitution, which protects us from the confiscation of our property, the government confiscated money from We The People in 1933 and they can do it again.
Our government is on a never-ending spending spree and it must be financed. Cypress style asset confiscation is one way for the administration to fund the government. The Obama administration will have no problem emptying the bank accounts of the middle class to fund the president's wealth redistribution program. If we object to strongly, expect to see Obama's private Brown Shirt Army and his light tanks on the streets to assist in the theft of our property and our savings.
© 2013 Gordon Smith
- All Rights Reserved.