The heist on european savers (Cypriot) has begun.

[PatrickC]

Quite astonishing decision by the European Commission and a possible view of the future.

"Under the currently agreed terms, depositors with less than 100,000 euros in Cyprus accounts would have to pay a one-time tax of 6.75%. Those with sums over that threshold would pay 9.9%.

Under the bailout's current terms, depositors will be compensated with the equivalent amount in shares in their banks, and Mr Anastasiades promised that those who kept deposits in Cypriot banks for the next two years would be given bonds linked to revenues from natural gas"

http://www.bbc.co.uk/news/world-europe-21825981

[Libertus]

Yes... and the Austrian Economists can already foretell what the next step of escalation would be: control of capital flow, basically it will be forbidden to get your money the hell out of the eurozone.

 

[PatrickC]

Yes... and the Austrian Economists can already foretell what the next step of escalation would be: control of capital flow, basically it will be forbidden to get your money the hell out of the eurozone.

Mind you, where the hell would you put it outside the eurozone? A good reason to throw all of ones capital into gold and commodities I suspect. Not that I particularly would like to throw 100% of my investment capital into one product. But with vultures like this we may not have any choice I guess.

[Existing Alternatives]

There are very bright minds in government that are getting paid handsomely for figuring out ways to get ahold of your money, so, nothing is off limits. Gold is a good alternative, but it too can be taxed, levied or otherwise expropriated (there are too many historic precedents).

I see Cyprus affair itself as inconsequential – it barely represents 0.2% of Eurozone economy.  All Russian money will leave tomorrow for Latvia or whatever next offshore centre is still in business and their banking system will simply implode. What’s more important, in my view, is that they seem to be using Cyprus as a testing ground for similar actions on a bigger stage. Notice, that the levy is 9.9% instead of 10%, single digits would be better received than double. If there is not much calamity, this thing will be implemented on grander scale someplace else, Spain, perhaps.

 

Mind you, where the hell would you put it outside the eurozone?

 

There are plenty of places to keep your money outside of Eurozone. Switzerland and Liechtenstein, for one. Feel more exotic – Singapore, Hong Kong, Mauritius, entire Caribbean. The key here is to diversify, you should not keep all your savings in only one country or same currency zone or highly correlated economies.