EU new low, theft, plain and simple.

[skyhuck]

Tony is quite right - though he didn't bother to explain himself very well. So is the other guy who mentioned quantitative easing.

 

If Cyprus take, say, 10% from depositors' accounts is is clear what is going on.

 

On the other hand, we live in a country that spends significantly more than its income (about 9% each year in the UK at present) and they raise part of that money by literally creating new money. As a result interest rates are lower (definitely) and inflation higher (probably) than it would otherwise be because they don't actually have to give people (creditors) enough interest to actually persuade them to fund their borrowing.

 

So, if the interest rate on your savings is, say 1%, rather than the 5% if the government didn't create money, then the government is 'taking' 4% (for example) from the value of your deposit each year. But they are doing it quietly, in a way that most people don't understand. This has happened and is continuing to happen in the UK. So we're no better.

 

The big difference here in the UK is choice, we know about QE and can take our money out of the bank. In Cyprus the banks were locked down, no money could be moved, until they had decided how much cash they were going to steal:thumbdown:

[TimberCutterDartmoor]

agreed Gentlemen...UKIP or EUSSR!

 

EUSSR don't even go there, oh my!

[easy-lift guy]

Bitcoin anyone?

 

Can you say Bernie Madoff?, how about a Ponzi scheme? If one wishes to go back to a mercantile form of exchange so be it. On the other hand 1 million of something that is not actually real is still only worth what someone else is willing to pay for it:sneaky2:. Being able to access a value to something based on the number of people willing to buy into the concept is all well and good, PT Barnum had a name for these folks, Suckers and according to him one was born every minute:sneaky2:.

easy-lift guy