Cyprus Deposit Tax: Could This Start A Rush To Hard Assets?

Logically you would think yes. But in this totally controlled paper metals market doubt you will see much bump, as the banksters will use their naked shorts to hold the price down. If it creates a run on banks globally, then there should be a sustained upward price movement in the metals.

The Cypriot Government is trying to catch the rich people, not the poor ones. You can't get much money out of poor people, they haven't got much to pay out.

What happened in Greece is that the rich people moved their investments to anywhere outside Greece so as to avoid the risk of loosing some of them, either by leglislation opr market downturn. That indirectly put even more stress on Greek Government debt.

Most of the richest people in Cyprus own accommodation of one sort or another outside Cyprus, so they just moove out, taking their investment assets with them. A lot of those rich people are not even Cypriot.

What you WILL find, though, will be an immediate downturn (hopefully temporary), on World stockmarkets of about 1% to 2%.

In the early 1950's, the top tax rate for the very rich in France and the U.K. was 95%. In other words, most of what they had in income was paid out in tax.

It has obviously dropped a long way since then, but the very rich did have a major part to do with preventing the French and the U.K. economies sinking into oblivion, as did that of Germany after WW1.

I have heard a professional economic opinion that the the very rich in the U.S. have underpaid on tax for decades, and with the National debt now at a record level, perhaps they should pay a lot more.

The Australian economy is a lot less egalitarian than it used to be. It has often been said in public economic commentary that Australia has a 'two speed' economy.

By the definition of the very rich, that means an income of more than $1 million per year.

Exactly, if anything raise sales taxes on certain goods not penalize people for being responsible.




No one should ever have to pay those levels they paid in france or should even half to pay half of what they earn yet they do. The miniscule amount we could raise hiking up taxes would do nothing for the debt, we could take every penny from everyone in the country and still not pay off the debt and everyone would be left with nothing. We just spend way to much and waste to much money

The very rich may well be those that have an income of over a million a year. I've never made a 10th of that on a consistant annual basis. I'm not going to get into a discussion of what my net assets are other than to say the only reason I have any is because I saved.

Let's put this into perspective. Everyone here has a coin collection that could be considered an asset. Every coin purchase was only possible because you didn't spend the money elsewhere. If you had a relatively modest income but really worked at building your collection to the exclusion of other pursuits for long enough you might even have enough coins that some people might believe you are "rich". How would you feel if the government suddenly decided that you need to give up 6.5-10% of your collection?

It's a very interesting story. I have been wondering about whether or not a select few had advanced notice ever since the story broke. I assume the friends and immediate family of whoever was involved had a heads up, but beyond that . . . we need WIKIleaks type action to get any real answers I fear.

What? If you shoot your milk cow for meat, you won't have any more milk? Geniuses

All your comments are spot on.
What a reality shattering moment to
realize the trust between your bank and
your wealth is now broken for ever. As one
reporter wrote;"this is a beta-test" and even
though the parliament voted down the bank robbery,
the seed is now planted in the mind of depositors
world wide and I suspect Italians,Spaniards and others
will slowly but surely empty out their accounts.
As for the Russians, well they'll make an offer Cyprus
will NOT refuse.Frigates can be a convincing tool