New Zealand Government Now Planning A Cyprus-Style Confiscation To Fund Bank Bailout

New Zealand Government Now Planning a Cyprus-Style Confiscation to Fund Bank Bail Out (IntelliHub, march 20, 2013):

Many people around the world were relieved to learn yesterday that a proposed measure to fund a bailout in Cyprus was not approved by the local government.

The proposed plan would tax every single person in the country with a bank account, forcing them to fund a bank bailout that shouldnt even be happening in the first place.

However, fears that other governments may take similar measures have now been proven to be well founded, as the New Zealand government is considering a similar approach.

According to Scoop:

“The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.  Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.”

“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.

“The Reserve Bank is in the final stages of implementing a system of managing bank failure called Open Bank Resolution. The scheme will put all bank depositors on the hook for bailing out their bank.”

He also said that:

“Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.  While the details are still to be finalised, nearly all depositors will see their savings reduced by the same proportions.  Bill English is wrong to assume everyday people are able to judge the soundness of their bank. Not even sophisticated investors like Merrill Lynch saw the global financial crisis coming.  If he insists on pushing through this unfair scheme, small depositors can be protected ahead of time with a notified savings threshold below which their savings will be safe from any interference.”

A very interesting point in light of all this was brought up by writers at Activist Post, who noticed that Bitcoin surged in value when the bank raid in Cyprus was first announced.  It is highly likely that Bitcoin has become one of the safest currencies on the planet at this point.  However, for people looking to hedge their bets in these difficult times, it is smart to diversify your assets into many different areas, including Bitcoin, precious metals and home agriculture.

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