Just as savers in Cyprus have been fleeced by their government a few years back, and made to pay for the incapability and mistakes by bureaucrats and economic mis-allocation beyond the control the individual. Even though, it is individuals throughout the country who were footing the bill.
Cyprus is seen as a “model” for “solving” crises like that. And crises there are. Not only throughout all of Europe — including “rich” countries in the north and Britain having their very own demographic train wrecks coming up — but also in the U. S., Russia, and many other parts of the world. Ageing populations are not the problem, but limitless spending and business-as-usual in light of well-known facts while ignoring them is. Politicians want to get or keep their jobs by making even more outrageous promises while not caring about what happens when their terms end. Politicians are the ones to blame, not senior citizens or other recipients in systems that were designed by politicians (and not the elderly).
One of the politicians formerly responsible, German finance minister Wolfgang Schaeuble, even went as far as openly saying that Cyprus-style “bank holidays” needed to be scheduled on weekends to give bureaucrats a head start of two additional days, thereby openly admitting that “bail-ins” like in Cyprus will happen elsewhere.
Russia confiscated pension plans to convert funds to government bonds of dubious value only two months ago.
In the U. S., dictator Obama made it clear during his latest State-of-the-Union address in January that he always does what he wants without regard for any rules, other people or the constitution. He added that if he’d think it fit to add yet another Obamacare-style program he would do so by presidential decree and without even bothering to ask congress or follow some similarly “bothersome” constitutional rules. He also has a track record to not care about the overall economic consequences of his actions either.
The ongoing discussion about retirement funds, the alleged safety of pension plans, as well as recent events in the banking as well as retirement sectors themselves make it more than clear that confiscation of life savings is the new name of the game — be it in pension funds, plundering of savings, or other seizure of valuables such as real estate or similar.
Surprisingly, the game is still on, and nothing has really (visibly) blown up yet. Even the SBV and Credit-Suisse pre-quakes have been swepped under the carpet (so far). It’s only a matter of time, but it will happen sooner or later.
In light of these developments, it is not only obvious that “Savers Are Losers” but that everyone needs to re-think all pecuniary and financial matters before greedy governments are taking it all.