Is the EU thinking about confiscating personal savings?

You didn't make that money, so we're taking it back

You didn’t make that money, so we’re taking it back

That’s what Zero Hedge reports, and by golly yes, it appears that it’s planning to do just that. In the world of unsustainable promises, “considering” is merely a prelude to acting. What might be of interest to American readers is this: “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.”

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:

4 Comments

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4 responses to “Is the EU thinking about confiscating personal savings?

  1. another starbucks 4 me

    No wonder the GBP’s been on a roll. Trust the Tories not the socialists in Brussels.

  2. Riverside Dog Walker

    Retirement savings accounts in the US contain about $5 trillion. This is too tempting a pot for a government $17 trillion in debt and which has created $6 trillion in new govt debt in the past 6 years.

    If you can’t see the trial balloons being floated you are not paying attention. Cyprus depositors take a haircut on deposits to bail out their bank. Because this is Russian mob money, there is no outrage. HSBC in the UK was not letting depositors make moderate cash withdrawals, asking them what was the money for. This caused an uproar, so this was a misunderstanding and reversed. For now. Have you deposited cash to your Chase acct recently? You have to produce an ID and they enter your info into their computer. The Obama myRA program. This is just too obvious.

    Unless you want to wake up some morning and find that your 401(k) now contains a bunch of govt bonds that you didn’t buy, for your own protection of course, my advice is to cash out, pay the tax, and find something to do with this money.

    • Joey

      and buy an suv and move to a mountain top in Mexico. But make sure you bring a 1000 cans of baked beans, a water purfier…….. and don’t forget the Xanax.