Cyprus Wealth Tax...pretty damn crazy

You guys catch this? It's pretty shocking. In order to bailout the banks in Cypress the technocrats took a one-time withdrawal from everyone's savings accounts...6.75% on balances up to 100,000 Euro and 9.9% on balances 100,000+ Euro.

I know it's only Cypress, but this is some pretty bad precedent. The Cypriots are probably lab rats for the rest of the EU. Thoughts?

http://www.bloomberg.com/news/2013-03-16/euro-area-takes-aim-at-deposit…

 
bulge4lyf:
Only a matter of time before this happens in the US. Most likely to 401k's.

This actually is a big fear of mine. Anyone have an suggestions on how to mitigate this?

This is disastrous for the EU.

 
Best Response
TNA:
bulge4lyf:
Only a matter of time before this happens in the US. Most likely to 401k's.

This actually is a big fear of mine. Anyone have an suggestions on how to mitigate this?

This is disastrous for the EU.

A lot of the doom and gloom crowd says physical precious metals maybe...10-15% or so.

But honestly if this savings haircut thing "needs" to happen in the US, I think we will have much bigger problems. Again, not to sound like a doomsday prepper, but I think you'd want some food, water, firearms, meds etc....rather than the optimal portfolio balance. Also, this...

Please don't quote Patrick Bateman.
 
TNA:
bulge4lyf:
Only a matter of time before this happens in the US. Most likely to 401k's.

This actually is a big fear of mine. Anyone have an suggestions on how to mitigate this?

This is disastrous for the EU.

Mitigate what? The US can print USD. Cyprus can't print Euros. That is the root of the problem. This doesn't apply to the US in the slightest.

A lot of overreaction on this issue... interestingly, if anything, tax haven countries with bad economics are less appealing; this will help return capital to where it can be taxed.

 

^^^ Yeah man, thanks for posting this. Of course that treasonous piece of shit Roosevelt did that.

If this country ever did pull a haircut on 401(k)'s I think the best thing to do would be to withdraw everything, take the hit and simply leave this country.

The USA was once a great nation. No longer.

 
TNA:
^^^ Yeah man, thanks for posting this. Of course that treasonous piece of shit Roosevelt did that.

If this country ever did pull a haircut on 401(k)'s I think the best thing to do would be to withdraw everything, take the hit and simply leave this country.

The USA was once a great nation. No longer.

You should check this guy out, Jim Rickards. He's sharp, good credentials, and has his finger on the pulse on the macro situation. He wrote an awesome book too called. "Currency Wars"

https://twitter.com/jamesgrickards

Please don't quote Patrick Bateman.
 
bulge4lyf:
Just leave your deposits in offshore accounts. It's reasonably easy to open up a swiss bank account (this is not illegal).

Most foreign banks won't take American clients now, including almost all of the Swiss ones. The IRS bent over UBS and made them their bitch. No one wants to be next. It's too costly for them to do business with Americans now. Maybe Singapore? I think the Caymans are following the Swiss' lead. Also, a foreign account almost guarantees an audit. You have to disclose all non-US accounts on your tax forms.

Please don't quote Patrick Bateman.
 
DBCooper:
bulge4lyf:
Just leave your deposits in offshore accounts. It's reasonably easy to open up a swiss bank account (this is not illegal).

Most foreign banks won't take American clients now, including almost all of the Swiss ones. The IRS bent over UBS and made them their bitch. No one wants to be next. It's too costly for them to do business with Americans now. Maybe Singapore? I think the Caymans are following the Swiss' lead. Also, a foreign account almost guarantees an audit. You have to disclose all non-US accounts on your tax forms.

The folks who have it best are clearly the brits. They have access to use both Jersey, Cayman and Bermudan banks. And they don't have this bullshit long-arm tax law.

 

Thanks, I will check it out. As for Switzerland, the US has effectively bullied them and Switzerland has bent to their will. I think other countries are much more secretive.

Real scary stuff man.

 

I am really starting to think that becoming an EU citizen might be the way to go. Or Canadian. Better benefits for the tax dollars they take from you and more rights than in the US.

I don't know people. Such a shame that we are even thinking about this. As we swirl around in the toilet bowl.

 
TNA:
I am really starting to think that becoming an EU citizen might be the way to go. Or Canadian. Better benefits for the tax dollars they take from you and more rights than in the US.

I don't know people. Such a shame that we are even thinking about this. As we swirl around in the toilet bowl.

Screw that, go for Swiss citizenship.
"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

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