Tuesday, 4 June 2013
Concerns over wealth confiscation world wide
Many are worried about the possibility that governments will confiscate wealth as they face a deepening financial crisis. This fear was heightened recently with the actions in Cyprus. Technically, the Cypriot banking grab was described as a means of bringing solvency to banks in trouble. This can be seen in the way things concluded, seemingly in line with what our own FDIC would do in the case of a failed bank. Deposits up to a set threshold were protected and those above that level were forcibly exchanged into bank shares. The problem is that early discussions suggested a much more direct approach, simply taking a percentage of all deposits. The Italians are also considering confiscation as suggested by the CEO of Italy’s largest bank. Portugal is considering paying workers in Treasury Bills rather than cash. On the heels of all of that, some of Germany’s top economists are boldly pushing for further wealth confiscation.