Stealing for the common good?

Consider Cyprus.

The country, part of the European Union, is bankrupt.

Its banks are failing. In fact, they have been closed for over a week. The second largest has been shut down forever.

Although a small country, Cyprus became a haven for international money. The banking sector itself exceeded the rest of the country’s economy many times over.

Banks in Cyprus held billions in international money. Some was legal money, stashed there to avoid taxes and instability in other countries. Some may be illegal, sent to Cyprus for laundering.

Also using the country’s banks were the citizens. The innocents in all this.

Recently, Cyprus called upon the European Union for a bailout. The terms were tough. Part of the deal was that many large accounts have been frozen with assets going to the government. Part of the deal was that the government can take a portion of smaller accounts. Unlike earlier plans, small depositors and insured depositors will be excluded from the takeover.

Nevertheless, Cypriots as well as international investors are faced with having their savings impressed into the service of the country.

Some might call this stealing. Cypriots certainly did when they went to the streets to protest.

It is unsettling. Governments now have a new precedent-setting tool at their disposal to solve their financial woes. They can simply take private money, virtually unannounced, and apply it to their own needs. More unsettling is that all this is with the blessings and under the guidelines of the European Union.

Taxes are one thing. Debates about the needs of government are legitimate, but simply absconding with money for government needs is something altogether different.

It makes all the uncertainty caused by America’s financial woes look like child’s play.

Gordon Forgey

Publisher