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Europe Considers Wholesale Savings Confiscation, Enforced Redistribution

Tyler Durden's picture


At first we thought Reuters had been punk'd in its article titled "EU executive sees personal savings used to plug long-term financing gap" which disclosed the latest leaked proposal by the European Commission, but after several hours without a retraction, we realized that the story is sadly true. Sadly, because everything that we warned about in "There May Be Only Painful Ways Out Of The Crisis" back in September of 2011, and everything that the depositors and citizens of Cyprus had to live through, seems on the verge of going continental. In a nutshell, and in Reuters' own words, "the savings of the European Union's 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis, an EU document says." What is left unsaid is that the "usage" will be on a purely involuntary basis, at the discretion of the "union", and can thus best be described as confiscation.

The source of this stunner is a document seen be Reuters, which describes how the EU is looking for ways to "wean" the 28-country bloc from its heavy reliance on bank financing and find other means of funding small companies, infrastructure projects and other investment. So as Europe finally admits that the ECB has failed to unclog its broken monetary pipelines for the past five years - something we highlight every month (most recently in No Waking From Draghi's Monetary Nightmare: Eurozone Credit Creation Tumbles To New All Time Low), the commissions report finally admits that "the economic and financial crisis has impaired the ability of the financial sector to channel funds to the real economy, in particular long-term investment."

The solution? "The Commission will ask the bloc's insurance watchdog in the second half of this year for advice on a possible draft law "to mobilize more personal pension savings for long-term financing", the document said."

Mobilize, once again, is a more palatable word than, say, confiscate.

And yet this is precisely what Europe is contemplating:

Banks have complained they are hindered from lending to the economy by post-crisis rules forcing them to hold much larger safety cushions of capital and liquidity.


The document said the "appropriateness" of the EU capital and liquidity rules for long-term financing will be reviewed over the next two years, a process likely to be scrutinized in the United States and elsewhere to head off any risk of EU banks gaining an unfair advantage.

But wait: there's more!

Inspired by the recently introduced "no risk, guaranteed return" collectivized savings instrument in the US better known as MyRA, Europe will also complete a study by the end of this year on the feasibility of introducing an EU savings account, open to individuals whose funds could be pooled and invested in small companies.

Because when corporations refuse to invest money in Capex, who will invest? Why you, dear Europeans. Whether you like it or not.

But wait, there is still more!

Additionally, Europe is seeking to restore the primary reason why Europe's banks are as insolvent as they are: securitizations, which the persuasive salesmen and sexy saleswomen of Goldman et al sold to idiot European bankers, who in turn invested the money or widows and orphans only to see all of it disappear.

It is also seeking to revive the securitization market, which pools loans like mortgages into bonds that banks can sell to raise funding for themselves or companies. The market was tarnished by the financial crisis when bonds linked to U.S. home loans began defaulting in 2007, sparking the broader global markets meltdown over the ensuing two years.


The document says the Commission will "take into account possible future increases in the liquidity of a number of securitization products" when it comes to finalizing a new rule on what assets banks can place in their new liquidity buffers. This signals a possible loosening of the definition of eligible assets from the bloc's banking watchdog.

Because there is nothing quite like securitizing feta cheese-backed securities and selling it to a whole new batch of widows and orphans.

And topping it all off is a proposal to address a global change in accounting principles that will make sure that an accurate representation of any bank's balance sheet becomes a distant memory:

More controversially, the Commission will consider whether the use of fair value or pricing assets at the going rate in a new globally agreed accounting rule "is appropriate, in particular regarding long-term investing business models".

To summarize: forced savings "mobilization", the introduction of a collective and involuntary CapEx funding "savings" account, the return and expansion of securitization, and finally, tying it all together, is a change to accounting rules that will make the entire inevitable catastrophe smells like roses until it all comes crashing down.

So, aside from all this, Europe is "fixed."

The only remaining question is: why leak this now? Perhaps it's simply because the reallocation of "cash on the savings account sidelines" in the aftermath of the Cyprus deposit confiscation, into risk assets was not foreceful enough? What better way to give it a much needed boost than to leak that everyone's cash savings are suddenly fair game in Europe's next great wealth redistribution strategy.


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Thu, 02/13/2014 - 04:03 | 4431484 AuEagleNest
AuEagleNest's picture



" RE: Ayn Rand - There is much in her writing that is original and profound, but the bits that are original aren't profound, and the bits that are profound aren't original. - Johnny Cocknballs"

I may have to use that as my new email sig.


Thu, 02/13/2014 - 06:38 | 4431592 Johnny Cocknballs
Johnny Cocknballs's picture

Basically stolen from a quip Samuel Johnson is usually credited with.

I almost went with some variation on the idea of a girl at a bar who is 'good from far but far from good' but the other one seemed easier to toss in.

Thu, 02/13/2014 - 04:32 | 4431504 monad
monad's picture

You have to do better than answering your own question with an ad hominem logical fallacy.

Thu, 02/13/2014 - 06:34 | 4431584 Johnny Cocknballs
Johnny Cocknballs's picture

No, I don't.  Ayn Rand fanboys are very largely people who haven't read any other philosophy.  That's neither ad hominem nor untrue.  

People who studied economics or political science come across it and think they've gotten a seminar in western philosophy. Objectivists and Randbots are particularly tedious because they are in essence religious zealots - unaware of much outside the one sacred text they believe is Truth.

Many thinkers for thousands of years have addressed the topics Rand has.  One of the benefits of studying philosophy, or at least reading about different philosophers (history of and summary books are eminently more readable and forgivable shortcuts to, say, trudging through Being and Time) is having a lot of ideas regarding a topic with which to compare other ideas.  Not smarter but wiser.  A broader intellectual repertoire from which to draw.

What I'm telling you is Rand's most vocal and tedious and zealous fans tend to be people who read fuckall else.



I'm familiar with Rand's thinking already, hence I'm not sitting through half an hour of her philosophizing; but are you familiar with, as recent example, Chris Hitchens?  Who ironically turns up in the related videos to your link, but wasn't a fan of Rand's pharasaical worldview? 

Hitchens Destroys the Cult of Ayn Rand


Or if you think this girl is prepared to engage in a thorough discussion of Hume because she read Atlas Shrugged, you are welcome to join her channel and tell each other how the rest of us "don't get it."


As always, it's your choice. But I've already wasted too much time on this.


For fuck's sake, at least read "The Ego and Its Own" if you cherish this sort of ontological solipsism in your thought. At very least it will put another god in heaven for you and maybe remove a little of the power of the Randian cult from your psyche.

As to a more scientific debunking of the Randian theory of mind/rationality, which is largely cribbed from Descartes, not Aristotle  {have you read Aristotle?} off the top - check out "Descartes' Error" by Demasio.  Easy, fun read.  You might also check out stuff by Oliver Sacks to get a better sense of how fragile "rationality" is.



Thu, 02/13/2014 - 08:39 | 4431716 Lebensphilosoph
Lebensphilosoph's picture

That's all well and good, but it's just a little ironic seeing a criticism of Ayn Rand invoking Christopher Hitchens and the absurdities of the materialistic monism of neuroscientific philosophastry.

Thu, 02/13/2014 - 09:25 | 4431790 falak pema
falak pema's picture

When you've wrapped your tongue around more of those aphorisms cum sophims you wil be ready to drown your emptyness in a glass of good chardonnay. 

Thu, 02/13/2014 - 12:41 | 4432545 monad
Thu, 02/13/2014 - 08:36 | 4431707 Lebensphilosoph
Lebensphilosoph's picture

Who is Noone?

Thu, 02/13/2014 - 09:47 | 4431841 shovelhead
shovelhead's picture

Herman's Hermits.

Peter Noone.

How could anyone discuss philosophy without knowledge of Herman's Hermits?

Thu, 02/13/2014 - 03:01 | 4431420 22winmag
22winmag's picture

While Europe burns, the U.S. cartel will force it's citizens into UST... which is 'confiscation lite'.


Hundreds of millions of rifles in circulation tell anyone who is listening that the America Spring has yet to come.

Thu, 02/13/2014 - 05:15 | 4431533 Mr. I-N-The Sky
Mr. I-N-The Sky's picture

AMERICAN SPRING? Yea right! How many millions of Americans are numb from pharmaceuticals? How many millions need a drink to function? Forget the coke/dope/etc.

The American spring went about as far as the occupy movement. Tailgating for white kids with dread locks.

The U.S. gov. fears an American spring about as much as it fears a military invasion from the Peruvian navy.

Thu, 02/13/2014 - 05:58 | 4431564 Apostate2
Apostate2's picture

How many accounts do you need to think you have credibility? Fail. Keep trying you POS.

Thu, 02/13/2014 - 03:01 | 4431422 slightlyskeptical
slightlyskeptical's picture

The answer is pretty simple. Eliminate the Central banks, fractional reserve banking, and leave the money creation to the Treasuries. Back the currencies with each nation's productivity. Set exchange rates between all currencies and adjust them periodically using a formula of productivity versus currency outstanding.

To start with each country simply pays off what is owed with newly printed Treasury currency, with the exception that central bank owned debt just gets cancelled.  Pay off all consumer debt as well. Once fractional reserve banking is eliminated, the economy will need a huge infusion of cash, and these actions will provide it. It will also push investors to apply that cash into productive endeavors.

 With the elimination of the debt and the associated interest, the governments would be running surpluses at the current levels of taxation. A choice could be made to eliminate much of that taxation and just have them print as is needed. If we eliminated taxation we would need strict limits on currency growth instituted. Force any spending above a certian point to be appoved by national referendum and a tax to keep balances under control and talso o keep us from making bad spending decisions.

Also open a national bank to perform lending functions but also let private bankers lend half their deposits as well. Social security and the pension programs could also take over some of the future lending burden and earn a return not dependent on taxation.

Bottom line is that we cannot let banks be money creators or control exchange rates between currencies. We can not force our countries into debt in order to provide the constantly needed ongoing currency expansion. We need to end it swiftly and start getting on with a saner system.


Thu, 02/13/2014 - 03:12 | 4431439 Johnny Cocknballs
Johnny Cocknballs's picture

Excellent post.

Thu, 02/13/2014 - 06:39 | 4431591 GetZeeGold
GetZeeGold's picture



ALL wars are bankers wars....

Thu, 02/13/2014 - 08:29 | 4431688 tahoe996
tahoe996's picture

What a great idea. A grand reset. Must do it quickly before the "elite" can game the new system can be implemented.

Thu, 02/13/2014 - 09:10 | 4431752 Ckierst1
Ckierst1's picture

No, you haven't backed the currencies with convertibility to gold and silver.  No backing, no dice!

Thu, 02/13/2014 - 09:38 | 4431806 falak pema
falak pema's picture

Sounds like cooperative capitalism to me. 

Have craft guilds who print their own money and specialise their own entrepreneurs amongst themselves via internal cooperation (or competition) based on guild rules.

That was the Dutch method of the middle ages but the money came from Italian banks/merchants and the wool from England.

Now we have the Internet and worldwide entrepreneurial angels of innovation (via venture funds) and maybe, maybe, encrypted money based on products promoted by the guilds gone international.

This scheme will hit the asymptote when the International or national guild goes protectionist or -- Oligarchy controlled by a few big boys. Thats history. We keep going to oligarchy plays as greed dominates "general good" principles. 

Its a bitch to walk away from a centralised form of government. Patch works never work for long. 


Fri, 02/14/2014 - 03:12 | 4435628 trader1
trader1's picture


what are your thoughts on the Political Aesthetics of Postcapitalism?

Thu, 02/13/2014 - 09:45 | 4431828 aleph0
aleph0's picture



Great post ... it really is pretty simple.

OTOH , the IMF+WB+UN have other plans it seems  ...

.... shows Lagard making a 45 minute presentation "in a Church" of all places ... to a large audience of Prominent Guests like Mark Carney and others.

Just amazing.



Thu, 02/13/2014 - 03:02 | 4431426 DeliciousSteak
DeliciousSteak's picture

The great thing about western Europe is that they go absolutely batshit crazy at least once every century. Can't wait to see how they kick off the 21st century.

Thu, 02/13/2014 - 03:48 | 4431474 Manic by Proxy
Manic by Proxy's picture

In a tangential news item, German manufacturer Bosch announces a new premier gas oven. Company spokesman Terd Nurdlinger gave details regarding the high end appliance. "We are pleased to say that this oven exemplifies our dedication to providing products to enhance customers' cooking experience. These new ovens have state-of-art electronic controls and tunable gas jetting. The Reich model comfortably sleeps a family of 4".

Thu, 02/13/2014 - 08:11 | 4431665 lakecity55
lakecity55's picture

Long poison gas stocks.

But, will we be here to coup the profits?

Thu, 02/13/2014 - 08:58 | 4431744 Ckierst1
Ckierst1's picture

We're certain that your heirs and assigns will be delighted with your contribution to their contribution to the banksters'/politics slush fund!

Thu, 02/13/2014 - 03:49 | 4431475 devo
devo's picture

Bearish for everything.

Thu, 02/13/2014 - 04:17 | 4431493 Remnant_Army
Remnant_Army's picture

Much of what humanity takes for granted will be turned upside down and inside out, but this is necessary.


Relax, it is under control.

Thu, 02/13/2014 - 04:20 | 4431495 redwater
redwater's picture

Hanging: too good for them.

Guillotine: too quick.

Crucifiction: very ironic. Considering that long-haired dudes beef with the money changers, and all.

Thu, 02/13/2014 - 04:24 | 4431498 Fíréan
Fíréan's picture

Did the author of this article see the original "document" or only responding to the short (edited) interpretation by a Reuters correspondent  ? Certainly there is reason for concern within that which is rreported, but I would like to read the original "document" before i made a conclusion from secondhand information and concluded with the word "confiscate" .

Thu, 02/13/2014 - 08:16 | 4431671 smacker
smacker's picture

Reading the orignal EU document may not be of much use. It's like reading The Daily Slime.

The EU is well known to use language that means very little to anybody, except themselves and lawyers.

I've tried reading some of the official garbage from the EU about Single Bank Resolution, it just gave me a headache. The Lisbon Treaty (aka EU Constitution by another name) is another.

Thu, 02/13/2014 - 09:08 | 4431755 forwardho
forwardho's picture

It would depend on definition of "mobilize"

If volentary, you have a point.

Thu, 02/13/2014 - 10:20 | 4431960 Legolas
Legolas's picture

Crap like this always starts out as "voluntary". 

Thu, 02/13/2014 - 05:16 | 4431535 gann1212
gann1212's picture

this sounds like a great opportunity !! where do i sign up. i mean really what could possibly go wrong this will be run by the government and the banks right. that makes me feel all warm and fuzzy

Thu, 02/13/2014 - 07:17 | 4431619 Accounting101
Accounting101's picture

No, not run by the government. Perhaps legislated by the government to make the theft legal, but not run by the government. By now, we should all know who is charge.

Thu, 02/13/2014 - 06:07 | 4431568 Mitzibitzi
Mitzibitzi's picture

".....feasibility of introducing an EU savings account, open to individuals whose funds could be pooled and invested in small companies."

Those would be the same companies that have about a 1 in 10 chance of making enough profit (in order to pay for the legion of tarriffs, licences, permits, fees and regulatory compliance measures that they have to follow) to avoid going bankrupt in their first 2 years, would they?

Same ones?

Thought so!

When government gets out of the way and lets new business start-ups actually have a realistic chance of success, then maybe I'd consider investing in a fund to help them out. Once start-ups are freed of all the bullshit, there's a pretty good chance you'd get a decent return on such an investment. Lot of bright people out there, with good business ideas, given the opportunity.

But since it's obviously far more profitable (for the 'elite', anyway, especially in the short term) to mire a small business in unpayable debts, force them to go bankrupt and walk away with their assets, ideas and intellectual property pretty much for free - whilst also stealing one hundred percent of the money any sucker was stoopid enough to put in the 'EU savings fund' - THEN sell the aforementioned assets, ideas and IP to your corporate buddies for pennies on the dollar..... I won't hold my breath!

Thu, 02/13/2014 - 06:21 | 4431573 NuYawkFrankie
NuYawkFrankie's picture

'Savings Confiscation' Macht Frei

- über Banksters

Thu, 02/13/2014 - 06:32 | 4431587 falak pema
falak pema's picture

Well lets hope they start the confiscation with the oligarchs, the financial sharks. 

Mathematics say to fill the socialised "debt" hole created on the collective balance sheets of nations there is ONLY ONE WAY TO DO IT : Go after those who have the money in their private and corporate accounts.

NO OTHER WAY as its the Math, stupid !

About time we enforced "debt jubilee" on these wankers.

This apexed financial redistribution based on "market" forces of TBTF/ US crony Oligarchy capitalism, under the Reaganista-Thatcherist gun over thirty years,  is a sinister farce of unimaginable dimensions.

Clean out those Augean stables one way or the other! 


Thu, 02/13/2014 - 07:44 | 4431643 Singelguy
Singelguy's picture

They may very well try to do that but just like in Cyprus, the oligarchs will be forewarned about a week before it is announced, giving them ample time to move their cash beyond the reach of the government thieves. The tax havens will welcome it with open arms.

Thu, 02/13/2014 - 09:01 | 4431749 forwardho
forwardho's picture

Does that mean that this article is the "notice" to the peons?

Or to the oligarchs,

Thu, 02/13/2014 - 07:04 | 4431607 payment expert
payment expert's picture

China 2.0

Thu, 02/13/2014 - 07:09 | 4431614 GetZeeGold
GetZeeGold's picture



Internet WILL logon.

Thu, 02/13/2014 - 07:25 | 4431623 Mareka
Mareka's picture

The suggestion above is from un-elected EU bureaucrats so they don't have to worry about the next election.

Savings confiscation???  We've been living with it for 5+ years in the USA!

ZIRP has been grabbing about 7% per year from every saver.

3 to 4% per year in lost interest via artificially supressed rates and 3 to 4% per year in lost purchasing power via inflation.

It stacks to about 50% loss in 7 years... almost there.

Bernanke, yefekya.

Thu, 02/13/2014 - 09:20 | 4431742 forwardho
forwardho's picture

Yes, but the possibility of outright confiscation of  funds is slightly different.

!. What will the average EU citizen do when they realize their money could soon  be "our"money?

2. What will they turn to in order to preserve some control over their savings?

Right now they/We are getting less than nothing to keep their/Our savings in bank.

100% risk with no possibility of gain, who would take that deal? Should enough people figure out this simple fact...

Thu, 02/13/2014 - 07:35 | 4431637 GetZeeGold
GetZeeGold's picture



GOP Senator Apologizes for McCain Tantrum


We'd appreciate it if the GOP could control their progessive members.....thanks in advance.

Thu, 02/13/2014 - 18:53 | 4434192 jtg
jtg's picture

Why apologize for that s**t McCain that loves jihadis that are raping and killing Christians and also Muslims that say No to the seventh century?

Thu, 02/13/2014 - 08:03 | 4431654 Franktastic
Franktastic's picture

should they take (any) money i left, then why would i donate any more labor\or investment my time in the future?

how to kill a good working buzz.

people will move underground, the Roman tax takers have chased the people from their system in is happening again. Gee i wonder how this will end?

Thu, 02/13/2014 - 08:03 | 4431656 MathWins
MathWins's picture

And the bankers will find some way to line their pockets off of this.

Thu, 02/13/2014 - 08:22 | 4431678 insanelysane
insanelysane's picture

They will charge the government and the depositor a confiscation transaction fee of 3 1/2%.

Thu, 02/13/2014 - 08:08 | 4431664 lakecity55
lakecity55's picture

"Holy Mao, Batman! It's a plan for World Communism!"
"Yes, Robin. We must stop the Jewker!"

Thu, 02/13/2014 - 08:28 | 4431692 muleskinner
muleskinner's picture

If you have a savings account and receive one percent interest, you are just plain stupid to have your money in a bank anywhere. That is, if you can save a single dime, but that's another story.

Cash not in the bank is what you need.

154 95 percent copper pennies equals about one pound, so if you have copper pennies saved, you have doubled your fiat money.

I agree, nickels are about the best you can do if you can't save any silver or gold.

The only way to save is to own pms.

Thu, 02/13/2014 - 08:34 | 4431706 Doom and Dust
Doom and Dust's picture

Where exactly does it say these types of alternative funding for European SMEs businesses will be involuntary? Even if practically any ROI will mean outperforming a savings account. 

Would love to be indignant too but prefer a factual basis.

Thu, 02/13/2014 - 08:51 | 4431736 ShrNfr
ShrNfr's picture

"A picture illustration taken with the multiple exposure function of the camera shows a one Euro coin and a map of Europe, January 9, 2013." Thank heavens, and here I thought at first that the "Great Euro From Space" as about to squash most of europe. Note to Reuters, learn about potatoeslop.

Thu, 02/13/2014 - 09:20 | 4431782 ZeroPoint
ZeroPoint's picture

This will end the banking system as we know it. Even if the public knows nothing about the fragility of the banking system, once they confiscate, the public won't trust banks again for another 100 years. I see a Greek like, decentralized. cash-and-carry future for the whole world.



Thu, 02/13/2014 - 09:33 | 4431802 smacker
smacker's picture


You may be right. But it looks to me like this evil EU confiscation plan is intended (at least superficially) to fund state-controlled lending to SMEs precisely because the banks are failing to do it.

I can't see how it will reduce trust in the banks.

Thu, 02/13/2014 - 09:57 | 4431866 ZeroPoint
ZeroPoint's picture

Did you read the article? People will not use banks if their account balances are stolen.

Thu, 02/13/2014 - 10:26 | 4431957 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

If collect a pension you have no choice now do you. Your pension is automatically in the system whether you like it or not. They aren't going after the private savings (not yet anyways and not below the depositor's insurance limit either since they learned their lesson over that one with Cyprus). Anything not guaranteed private wise is going to be fair game which is exactly what one would expect as the system goes through it's death throes desperately trying get one more gasp of air before expiring.


Anyone sponging off the EU collecting a pension state or otherwise is going to forced to bail in the EU first which is actually how it should be. The plebs are going to get fucked no matter what but they benefit the least so as such should be lower on the food chain to bail in.

Bail out assumes remove from the system, Bail in means the opposite. If it is layered you bail in from next layer first then so on and so forth.

Thu, 02/13/2014 - 20:10 | 4434460 smacker
smacker's picture

Will that reduce trust and confidence in banks? or government? Perhaps both. hhmmm.

Thu, 02/13/2014 - 09:40 | 4431819 semperfi
semperfi's picture

The banking system as we know it ended in 2008.  They've just been printing up a shitload of fiat since then to mask that fact.  Its been over for 6 years now, the smartest people knew it back then, and its just now starting to become obvious to the next level of aware people.  The sheep know something isn't quite right but they have yet to figure it out.

Fri, 02/14/2014 - 05:32 | 4435757 smacker
smacker's picture

"The banking system as we know it ended in 2008"

This is very profound, but essentially true.

The problem is that the elites and their fraudulent bankster cronies have no idea how to deal with the aftermath of a debt crises that they created. It's been clear to me for a long while that the only people with any money left are savers and pension investors etc. IE: the ordinary man in the street trying to look after his future well being.

This is the money the criminal elites are now focussed on stealing without realising that it will exacerbate the crises and likely cause further economic collapse, leading to civil unrest and probably war to divert attention away from multiple domestic crises.

The evidence that political elites are the cause of problems, not the solution could not be clearer.

Thu, 02/13/2014 - 09:27 | 4431794 smacker
smacker's picture

With pension fund confiscation and bank bail-ins, at this rate we'll all be penniless and dependent on the state.

Next will come a ban on criticism of our Dear Leaders.

Welcome to the fascist EU of Barroso, Rompuy and 27 member states.


This madness will only end when we start noticing the elites hanging from lamp posts.

Thu, 02/13/2014 - 09:37 | 4431805 d edwards
d edwards's picture

It sounds like the Euro version of MyRA. Guess all f-ing socialists DO think alike.

Thu, 02/13/2014 - 09:38 | 4431809 semperfi
semperfi's picture

The confiscations will continue until morale improves.

Thu, 02/13/2014 - 09:44 | 4431835 semperfi
semperfi's picture

Its time to take the tax hit and cash out of your 401K, your IRA, ETrade account, etc,  and buy hard assets that are not an entry in a computer.  Anything stored on a flashdrive or hard disk will be taken with a few keystrokes.

Thu, 02/13/2014 - 10:57 | 4432084 samsara
samsara's picture

No, The TIME to cash out and take the tax hit was 2004 when Au/Ag were $400/$7 an oz.

Some of us saw it earlier.

Thu, 02/13/2014 - 18:50 | 4434178 jtg
jtg's picture

There is already a self imposed MSM ban on criticism of Obama.

Fri, 02/14/2014 - 01:41 | 4435531 monad
monad's picture

The Hanging Man by PKD
a cautionary tale of lamposts

Thu, 02/13/2014 - 09:38 | 4431807 zippy_uk
zippy_uk's picture

We know a song from Witney Houston about this don't we:

YOUR cash is MY cash and

MY debt is YOUR debt



Thu, 02/13/2014 - 09:40 | 4431812 sbenard
sbenard's picture

Coveting and stealing on a societal scale. This is a recipe for capital flight unprecedented in human history. The consequences will be calamitous. I know that inspiration source. It is NOT a divine one!

And rest assured that this mentality is coming to America also! In fact, it's already here! Negative interest rates, endorsed by Janet Yellen, reflect the same disregard for the property of others!

Thu, 02/13/2014 - 09:41 | 4431821 sudzee
Thu, 02/13/2014 - 09:46 | 4431833 Last of the Mid...
Last of the Middle Class's picture

Coming soon to your 401K.

Thu, 02/13/2014 - 09:52 | 4431852 gaoptimize
gaoptimize's picture

This is where the 10% and 1% are told they are no longer part of the club.

Thu, 02/13/2014 - 11:26 | 4432214 Carl Popper
Carl Popper's picture

Lmao!   So true

Thu, 02/13/2014 - 09:55 | 4431865 Peace is the x-axis
Peace is the x-axis's picture

It's not just EU looking to steal its citizens' savings.

"(Australian) Treasurer Hockey says government can't fund projects so workers' savings should be used" -

Thu, 02/13/2014 - 10:34 | 4432009 JiminGA
JiminGA's picture

Obama wants to do the same thing with MyRA.  And just like he nationalized student loans his next step will be to do the same with 401K's and IRA's, "investing" those funds in T-Bills, aka confiscation.

Thu, 02/13/2014 - 18:49 | 4434168 jtg
jtg's picture

Obama doesn't have the Constitutional authority to implement law that requires an act of Congress, but based on the unConstitutional acts he has already taken it's possible. Let him try it, and start a real revolution to run him and his sociopathic elitist friends out of the country.

Thu, 02/13/2014 - 10:37 | 4432016 JiminGA
JiminGA's picture

Obama wants to do the same thing with MyRA.  And just like he nationalized student loans his next step will be to do the same with 401K's and IRA's, "investing" those funds in T-Bills, aka confiscation.

Thu, 02/13/2014 - 10:45 | 4432042 moonstears
moonstears's picture

In 2008/9 the US Senate punted around an idea about 401Ks morphing to guarenteed annuities for your protection. Is the MyRA they discuss the infancy of this? This is not JUST Europe. JMO 

edit: I see Jim an I are on the same page whn reading this.

Thu, 02/13/2014 - 10:56 | 4432079 superdave
superdave's picture

I had a 79 year old friend from Switzerland tell me that on January 2nd of this year he got a notice from the Swiss government concerning his pension. They told him that they had "overpaid" him for the past 19 years and would be deducting 40% of his pension to "correct" this mistake.

Coming to the USSA soon!  

Thu, 02/13/2014 - 12:25 | 4432467 Watchingtheweasels
Watchingtheweasels's picture

They're already doing that here.  They call it "means testing" for Medicare and deduct premiums from your social security check based on it.  When that doesn't yield enough, they'll eventually start saddling retirees with Medicare deductibles.  The number of regulatory ways that a theft-minded federal government can get to your assets is almost unlimited.

Thu, 02/13/2014 - 11:00 | 4432088 OldE_Ant
OldE_Ant's picture

lol Sounds like a great recipe for bank runs.

Should they decide to go after retirement savings.  I suspect even the 1% will be happy to buy a few guillotines to lynch the .1%.

Nothing short of banker and politician lynchings will ever stop any of this.


The great civil war of the citizens against governments is going to be bloody and violent as hell.   The longer we the people sit on our asses and take it, the worse it's going to get.

Currently the amount of debt being piled on worldwide basically equates to at least 50% slavery.  In the US it's quickly approaching 100%.   At some point there will be nothing left to take.  It will be at that point that manditory rationing, work allocations and other EMERGENCY measures will be put in force.

This isn't just an EU problem but a worldwide problem and there will be no place on this planet anyone will be able to successfully survive and hide.  There is no NEW frontier to run to this time.


Thu, 02/13/2014 - 11:09 | 4432136 SubjectivObject
SubjectivObject's picture

New capital mobilization for the peedons.

Old capital stabilization for the peeingons.

What's up with that?


Thu, 02/13/2014 - 11:24 | 4432208 Carl Popper
Carl Popper's picture

I proly wouldn't mind wealth confiscation of the 0.01 percent. They got a bailout instead.

The collapse of the banks is the usual once every 70 year wealth redistribution.

Thu, 02/13/2014 - 11:19 | 4432169 Georgia_Boy
Georgia_Boy's picture

This is where I can see the benefit of having savings in real assets that you have physical possession of. The socialist looters will happily nationalize your IRA, blow it on more welfare, and at the same time look down their noses at you and lecture you about your white privilege. But have the IRS go to old people's houses with guns and take your gold coins, and arrest you for resisting? That just looks bad on Youtube. Sure, they'll issue another Executive Order 6102, but there are people whom they enforce it on and people they'll leave alone, they have to keep up appearances.

Thu, 02/13/2014 - 11:21 | 4432177 RWR
RWR's picture

Now you know why their buying ll the bullets

Thu, 02/13/2014 - 19:32 | 4434304 Buzz Hacksaw
Buzz Hacksaw's picture

Armed Robbery!

Thu, 02/13/2014 - 11:22 | 4432199 NoTTD
NoTTD's picture

Worst aspect:  Leftist heads thoughout the West are nodding in approval.  Especially our Left.

Thu, 02/13/2014 - 11:35 | 4432257 FreeNewEnergy
FreeNewEnergy's picture

There are simple solutions, though not everybody is capable of making the proper moves.

Cases in point:

1. Negotiated a lease on 2 acres of farmland for $500. Lady said cash, in advance, no checks. No problemo, says I. Always happy to exchange non-traceable fiat bucks for income producing acreage.

2. Another lady had 2 of her 9 acres available for sale. Wanted $5K down and $18 total. Told her, cash lease, renewable, you keep the property. Also, since I want to put a camper there, which I could not according to zoning laws if I purchased the land (McMansions only, ya know), it's better for me, because the lady is allowed to have one camper on her property. Since mine will be the only one, this works, but it begs the larger question:

Aren't there too many laws and regulations standing in the way of commerce? Basically, the lady with the 2 acres for sale had to raise the price so high because the costs of redrawing the tax map lines (survey, etc.) were expensive (in the $3-4K range), and, of course, there's the capital gains taxes on that sale, with no "wash" because she's not buying anything else.

Bottom line, both of these property owners see the value in undercutting the "middlemen" those being the town, county, state, feds, who just want a cut of any transaction, in favor of a simple agreement - almost a handshake - between rational people.

These ladies will get even more than they bargained for because I am a pretty decent vegetable farmer and will give them some of the produce at no cost, just the way I am, and the way to keep "partners" happy. The government and the bankers get NOTHING. As it should be.

Also, check your city - if you live near or in a good-sized one with many vacant properties and empty lots. Here in Rochester, NY, they have a garden lot program, where the city allows you an 8-month lease on the land at NO COST, provided you maintain it, grow flowers or food crops and don't become a nuisance. I opted for three adjacent lots (total of 150 x130) in a fairly commercial section of the city (kind of out of the slum). Anyhow, waiting on approval, but I know I'll be spending a good deal of money on fences this spring and summer - to keep the deer, rabbits and other critters out in my country locales, and the inner city "foodies" (read: FSA) in the city. May be getting a big dog or two, also.

Best bets going forward, either own enough land to produce almost all of your own food, or lease some at cash prices. Anything you have left over, buy useful tools, vehicles, gold, silver, bullets. You know the drill.

Thu, 02/13/2014 - 11:46 | 4432305 moonman
moonman's picture

Yeah I am sure the terms of your "leases" will be upheld when TSHTF. Good luck with that

Thu, 02/13/2014 - 18:07 | 4434027 joego1
joego1's picture

Let me see, the hoards are comming and I have someone growing me food on my land that can help defend it. Whats my true problem here?

Fri, 02/14/2014 - 14:25 | 4436655 monad
monad's picture

numerical superiority

Fri, 02/14/2014 - 09:25 | 4436041 CJHames
CJHames's picture

A brilliant post, Free, thank you, and it gave me some ideas.  We've recently purchased two adjoining 5-acre plots here in NE TX, and me and my son built bult a 1600 sq ft house on the first five acres.  The first 5 cost $9800.  The second we had to give $13,500 for it (seller wanted $18,500, told him he was nuts). The house, paid for as we went with cash, cost us around $37,000 total, which included $2400 just to have power lines run to it, and septic and well costs, etc.  We now own a free and clear house.  We're allowed two resideces per lot, so we will build four total, one for each of our kids and their families.  

We're trying to buy the 10 acres (two 5-acre lots) directly behind us, which will give us a nice, sqaure 20-acre block, but we're about out of cash for now.  I like your leasing idea.  I just may try it for the additional land.

Also, I recently read about a man who leased right-of-ways from utility companies and muni's.  Areas such as the small buffer strips between major county roads and where property lines start (under power lines, for example).  He makes a very good living farming those strips, and it even gives him an area to set up road-side prduce stands right next to his mini-fields.  He pays a very paltry sum for the land because he is maintaing it for them.  Sometimes as little as $150-$200 per yr.  The land goes unused, and needs chem spraying for weed control, etc., so he's doing them a favor and making bank at the same time.


Thu, 02/13/2014 - 11:41 | 4432274 royal
royal's picture

War is coming...


Long Golden Dawn and Jobbik

Thu, 02/13/2014 - 11:43 | 4432277 therevolutionwas
therevolutionwas's picture

I still cannot see the confiscation of IRAs and 401Ks as practical.  What happens to all the companies that the IRAs and 401Ks were invested in?  How would that work?  It would be easier for the FED to just print.

Fri, 02/14/2014 - 00:55 | 4435419 The Wedge
The Wedge's picture

Or trick you into giving it to them through MYRA. But the answer is they will do both. You are going to pay one way and another and another and another.

Thu, 02/13/2014 - 11:51 | 4432313 One World Mafia
One World Mafia's picture

Scare into stocks

Crash the market

Scare into MyRA

Thu, 02/13/2014 - 12:22 | 4432448 Watchingtheweasels
Watchingtheweasels's picture

The Euro maintains its 52 week trading range of 1.2749 - 1.3882.

How an economic bloc can essentially openly (1) confiscate savings in one of its member countries and (2) admit to the rest of the world that they are going to do it again without crashing their currency and losing all credibility on the world stage is beyond me.

Thu, 02/13/2014 - 19:28 | 4434294 SmittyinLA
SmittyinLA's picture

Their currency is crashing, in sync with ours we're seeing huge inflation in portable commodities right now, and it will be sustained inflation for years with crashing wages. 

Thu, 02/13/2014 - 15:32 | 4433374 ArrestBobRubin
ArrestBobRubin's picture

This is a BOHICA deal:







Thu, 02/13/2014 - 17:53 | 4433952 abatis
abatis's picture

I wonder if the same people who drone children will torture for a Bitcoin wallet?

Thu, 02/13/2014 - 17:52 | 4433958 Racer
Racer's picture

Not confiscate

STEAL or ROB is much more appropriate

Robber Banksters

Thu, 02/13/2014 - 17:55 | 4433972 css1971
css1971's picture

It's quite clear that anyone with a large amount of money sitting in a bank account should very seriously think about taking it out as currency. Otherwise it will simply vanish and be turned into "preferred stock" in the institution.

The bigger the amount the more you have to lose.

Fri, 02/14/2014 - 03:16 | 4435629 Lore
Lore's picture

I once had a long conversation with a Russian woman who described childhood memories of her parents allowing her to play with piles of worthless Tsarist banknotes. Just sayin.'

Fri, 02/14/2014 - 09:02 | 4435991 CJHames
CJHames's picture

Bank runs, anyone? 

Thu, 02/13/2014 - 18:07 | 4434003 Pee Wee
Pee Wee's picture

First sovereignty was monetized and stolen through fraud, now individualism is next to be looted.

WW3 is fast approaching.  Dead bankers everywhere.

Fascism = globalism.

Thu, 02/13/2014 - 18:22 | 4434078 NOTaREALmerican
NOTaREALmerican's picture

Come on..   With guys like you running around how who we have EVER invented Teflon and the quantum computer?

Are you trying to tell me that Big-Gov investing in our children's future hasn't led to wonderous results?

Fri, 02/14/2014 - 00:52 | 4435409 The Wedge
The Wedge's picture

Whee, rhetorical merry go round. Whoa, I feel dizzy.

Thu, 02/13/2014 - 18:47 | 4434152 FlowerofLife
FlowerofLife's picture

Finally, some common sense.

And I'm not being sarcastic.

Thu, 02/13/2014 - 19:05 | 4434232 El Hosel
El Hosel's picture

Why would this not cause an immediate run on the banks?

Thu, 02/13/2014 - 22:16 | 4434960 jomama
jomama's picture

normalcy bias.

Thu, 02/13/2014 - 19:23 | 4434285 NemoDeNovo
NemoDeNovo's picture

I know this is OT, but is even Bit[shit]coin safe??????

So bit coin can be hacked, thought it was Bullet Proof............

Pagin fonestar

Thu, 02/13/2014 - 22:15 | 4434942 jomama
jomama's picture


Thu, 02/13/2014 - 23:45 | 4435228 jmp esp
jmp esp's picture

You clearly do not understand what you're talking about. In the future, please refrain.

Fri, 02/14/2014 - 04:06 | 4435677 JustUsChickensHere
JustUsChickensHere's picture

if you ADD counter party risk to bitcoin by storing your coins under some elses control you are definitely engaging in 'unsafe money'.  Try keeping your bitcoins in offline or cold storage. No counter party risk then. Just physical security issues like Au or Ag.

Or even offline, in a 'brain wallet' ... not even physical security issues then  ... the only risk then is your own memory ... which is also dubious in the long run :-)

Thu, 02/13/2014 - 19:39 | 4434341 goldenbuddha454
goldenbuddha454's picture

At some point the thought of not spending what they don't have might come in handy instead of confiscating other people's money to Fill The GAP!

Thu, 02/13/2014 - 19:58 | 4434418 Manipuflation
Manipuflation's picture

Why don't they just come out and say "We own it all and we will give you what we feel you need"?  Not just in Europe either.  No thanks MyRA.  Let's get shit rolling for fucks sakes.  We have been bitching about these assholes for years and I'm not getting any younger here.  I know we don't want to be the ones to start it but something has to give here pretty soon don't you think?

Fri, 02/14/2014 - 00:44 | 4435387 The Wedge
The Wedge's picture

As I have said in the past...don't you love the politician speak. Anyway, I see this as a slow train wreck politically, socially and economically. I's all unraveling. And speeding up right at the end. Kinda like the new movie effects were it go's super slo-mo and then speeds up. I suspect that will be the time of great change. When the old crumbles you will see a structure that has already been put into place like, health care, militarization of the police, loss of economic freedom etc.. They just turn the key at that point. As that time nears and comes to pass the best chance we have is to snatch the keys away before they can turn the switch. They need the old to crumble and this will be the opportunity for real truth. Real freedom. That will be their weakest moments. If you're ready to "roll" now you'll become a terrorist in the eyes of the dumb masses. It's already happening. Plus uncle erNSA will know before it starts. This must be handled politically and socially. From a chess perspective we are in check very close to mate. Just my 2 cents.

Fri, 02/14/2014 - 08:57 | 4435988 CJHames
CJHames's picture

Manipuflation ... I coulda swore I wrote your post, word for word.  I'm 52 now, still in reasonably good shape and ready for a fight, but those days are quickly slipping by.

Fri, 02/14/2014 - 00:20 | 4435329 The Wedge
The Wedge's picture

"to mobilize more personal pension savings for long-term financing"

Love the wording. Language games should be a new Olympic sport. So many possible competitors.

"we have to pass the bill to see whats in it" Nancy Pelosie

"poor people aren't necessarily killers" George W Bush

"raising the debt ceiling doesn't increase our debt" Barry Soterro AKA Barrack Obama

And one of my favorites: "if you own a business, you didn't build that" Barry 'strikes again' Soterro

"we don't know what we don't know" Donald Rumsfeld

And the word trickery gold medal winner is.....

Fri, 02/14/2014 - 04:58 | 4435725 smacker
smacker's picture

And in the UK, by far the most popular cliche used by the political elites and their armies of 'jobs-for-the-boys' apparatchiks when they screw something up beyond belief and waste billions of taxpayers money:

  "lessons will be learned".

Sadly, they NEVER learn any lessons because the consequences are invariably caused directly by policy.

This cliche is in full flow (pun) at the moment after widespread flooding in the West of England due to the Environmental Agency policy of not building flood defences or carrying out river dredging.

Fri, 02/14/2014 - 00:55 | 4435415 Randoom Thought
Randoom Thought's picture

They should probably confiscate corporate and hedge fund cash first.

Fri, 02/14/2014 - 01:03 | 4435433 Atomizer
Atomizer's picture

Great posts ZH members. Keep up the great work! Some days, I feel like a needle in a haystack. Great job tonight!! Whether you knew for years or just catching on. This has been the uphill battle regarding the Banking establishment creating the Venus Project. I have no desire to live in a government controlled utopia environment.

Fri, 02/14/2014 - 07:26 | 4435798 falak pema
falak pema's picture

Charybdis and Scylla...

And may I add I have no desire to live in a neo-feudal, neo-liberal, neo-con environment run by Oligarchs who consider people as expendable and dronable variables on their global, dystopian chessboards; all apexed towards personal monetary gains using monopoly controlled markets to pump the fruit of labour out of each wretched soul on the planet. 

Government is their tinsel screen of legal respectability to hang the chad and proclaim Patriot Act as the solution to world wide terrorism of their own concoction. 

Know reality from fiction to claim the legacy of all those who died for freedom on earth.

Fri, 02/14/2014 - 04:42 | 4435705 resurger
resurger's picture



Fri, 02/14/2014 - 05:48 | 4435767 PR Guy
PR Guy's picture


They've already basically started using peoples' pensions funds to plug gaps in government finances in Ireland.

Anyway, what do you expect in Europe when this is what they do for fun in France??


Fri, 02/14/2014 - 06:27 | 4435783 Apostate2
Apostate2's picture

But, But, Growth in Germany, France and the Netherlands beat economists’ estimates in the fourth quarter and Italy resumed expansion in a sign the fragile euro-area recovery is gaining traction.

Having a laugh. Must be why the banks and RE guys keep calling up.

Fri, 02/14/2014 - 07:44 | 4435873 GrinandBearit
GrinandBearit's picture

Bitcoin $310 (LOL!) 

Gold $1315


Fri, 02/14/2014 - 09:06 | 4436001 paint it red ca...
paint it red call it hell's picture

Dad was 9 yrs old in 1929 when, for his birthday, he was given a little bankbook for an account in his name with $40 that had been saved for him.

When his bank closed then reopened in late 1932 he withdrew the entire remaining balance. He had never touched the original balance himself but withdrew the $6 remaining.

By summer FDR had revalued gold, his $6 was worth roughly 30% less. He had bought a 22 rifle from a Sears catalog for $6 early that spring.

Nothing new under the sun, at least to those who history was not hidden from or revised for.

Fri, 02/14/2014 - 13:00 | 4436714 resurger
resurger's picture

Basel III!

The biggest fraud with LCR and NSFR

Do NOT follow this link or you will be banned from the site!