Cyprus and Trust
It’s too late. Had Cyprus immediately backed off on the haircut proposed for its depositors, the banking sector might have survived. But, no matter what, as of this Thursday, when the ‘bank holiday’ is over there will be a run on the banks over there.
The issue is that this deal to impose a tax on deposits was cut between the powers that be in the EU and the ruling party on Cyprus. No matter what is said now, trust no longer exists. Maybe it didn’t happen today, but the idea is out there. The idea was on the way to being implemented and no one had the sense to say ‘stop.’ As a result, the rift in trust will take a long time to heal.
Which in a broader sense is one of the failings of socialism. The concept that you may use the force of government to take from one and give to another for whatever rationale you want to give. That the individual will, for whatever whim of some self-appointed elite or philosopher king, give up his rights for whatever the greater good may be.
This trust is being violated all over the world. Things that once stood as settled; things that were reaching a democratic consensus are being up-ended. All in the name of social good.
It’s happening here. No, not deposits. Though the trillions of dollars in peoples retirement plans haven’t gone un-noticed by certain elements in Washington D.C. who think that money could be used to continue the current binge of spending and programs.
No, the recent surge of gun-control is our stalking horse. Legislation is still moving forward that would pave the way for confiscation. In fact, outright confiscation was mentioned in some of the proposals for New York State’s latest gun control act passed last January.
The real example of a violation of trust is actually in Colorado. There was actually a settled consensus of a package of gun laws, passed in the aftermath of the Columbine murders that to most people’s satisfaction struck a balance between measures to better control the flow of firearms to the wrong hands while allow further liberalization of gun regulations for law-abiding citizens to protect themselves. This all is going up in smoke as the Democrat controlled legislature and governor are in the process of passing new laws including a limitation on magazine capacity. And, even the so-called pro-business governor, will sign this law and lose some 800 jobs when Magpul moves out of the state.
The net effect will further cause a rift between the governed and the elite that seeks to govern. The shortages of semi-automatic rifles and ammunition will not abate for a long time since there is no trust that the strenuous objections that led to the demise Senator Feinstein’s latest ‘assault’ weapons ban won’t be the last of that. She waited 20 years to get this ban up and running again; and, she and her fellow travelers will be waiting, like the wolf in the woods to strike yet again. Gun owners aren’t going to get burned again. Prepping has gone mainstream. Folks, as they swing by to pick up the laundry and get a gallon of milk, are going to also stop at the sporting goods store to pick up some ammunitions as will. For a long time.
To get back to Europe, I doubt, unless you’re one of the elite, that there is going to be a truly viable banking industry for a long time. Switzerland is going to be the only place to bank. Not only because they take the issue of trust seriously. But, because those banks are nestled in a heavily armed civilian population in a well defended mountainous country that will make any forceable confiscation of property a very bloody proposition to those who wish to steal other people’s property.