"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Monday, March 25, 2013

Dutch Finance Minister Loves Raiding Savings Accounts

Reuters is reporting this morning comments from the Dutch Finance Minister, Jeroen Dijsselbloem, who by the way heads up the group of European Finance Ministers, to the effect that the "solution" in Cypress is a "new template" to address future banking problems in the Euro area.

I want you readers, particularly those of you in the Eurozone,  to wrap your heads around this and consider the brazen audacity displayed by these people. What he is saying is that bank savings deposits no longer effectively belong to you the savers. They belong to the state and the state will confiscate them whenever it is deemed to be in that state's best interests.

If this does not send shock waves throughout the system and instill fear in individuals throughout the Eurozone, then there is no hope for any such people. Normal, rational, sane, thinking individuals will immediately recognize this for what it is; a complete reversal of the traditional role of banking in which banks makes loans to depositors and other individuals. Now, depositors are in effect making loans to banks. Yet even that is not an apt comparison for in the case of a loan, one usually expects to receive back the amount loaned plus interest. In this case, the depositors are having their money forcibly extracted from them with no hope of ever seeing it again and having that money used to bail out the banks instead! I never believed I would EVER witness this in my life and yet here it is. What is even worse is the blasé attitude displayed by the monetary authorities. Just who in the hell do these people think that they are?

These pestilential parasites, who sit in ivory towers and can glibly utter such rapacious comments, are literally undermining the entire banking system in their shortsighted idiocy.

Do these fools really believe that those citizens who have money in Eurozone banks, particularly high net worth individuals, are going to merely sit by and calmly observe this situation and do absolutely nothing? I cannot think of a better way to start a run on the banks. If individuals believe that the state now believes it has the right to raid their hard earned wealth at any time why would they feel the least bit secure about putting that wealth in harm's way?

As far as the price action in both gold and in the euro goes, Gold was down rather sharply early in the session as the safe havens were thrown out once a "deal" was announced. The Euro was down but not by much considering the backdrop. Once those Dutch official's comments hit the wires, the bottom fell out of the Euro and gold began working off its lows.

Gold in Euro terms shot sharply higher and is up nearly 1% as I type these comments. If it can push past the 1250 euro mark, it looks like it has room to make a run to 1280.

I am still thunderstruck as I contemplate those comments uttered by Mr. Bloem. This is like something out of fictional novel and yet it is happening right before our eyes.


  1. In all financial history, that is the most unbelievable comment ever.The gold shorts know they will be dead as soon as the money starts moving.

  2. Dan,
    As a french, I can tell you that Christine Lagarde is likely the reincarnation of Marie Antoinette, condemned to live all over again the same Karma, as she can't get rid, life after life, of her main sin : arrogance.
    All those people are so damn arrogant that you have to integrate this to understand their decisions and their speech.
    There is a US document movie made about Lehman Brothers & co, I don't remember the title, but it was quite a success. So just watch our national Christine's 2 minutes interview when she says that she knew Bernanke was making a terrible mistake and she tried to tell him but he wouldn't listen, etc, etc... all this with a motherly contemptuous tone, like talking about a bad child.

    This woman is pure arrogance which adds up to incompetence.
    Each of them think they are better than anyone else.

    As Nicolas Sarkozy liked to say about himself : "When I watch myself, I get worried, but when I watch the others, I feel better."

    From the throne of this arrogance, which is not a french attribute anymore, be sure of it, they see the populace with utter contempt.
    The sheeple, the lemmings will NEVER wake up before it's too late.
    They will be herded the way we want.
    That's their 100% certainty and the lemmings include upper middle class with more than 100K€ in their bank accounts.
    The lemmings will not move before it happens to them.
    The lemmings think that Cyprus is a banana republic of russian gangsters and mafia who should be punished for laundering the money somewhere in Russia.
    The think it won't happen to them.
    Cyprus is not France, nor is it even Italy, is it?
    To make sure they don't wake up, let's keep using the media and put the story everywhere : did the ex french president's wife call the new president a Pinguin in her new song? Was it him? Now, that's a fascinating subject of conversation of utmost importance for the french shheple, is it not?
    Oh and let's strike a bit the gold prices to show that Cyprus was really a non-event.
    With any luck, they'll get away with this one as well, and people will keep ignoring the foreshocks of the Big One which is coming, just as Pompeï's villagers watched their beautiful volcano smoke instead of flying far, far away!
    Waiting for the earthquake, qu'ils mangent de la brioche!

    1. Hubert;

      Very insightful stuff especially coming from someone on the Continent. It is very much appreciated!


    2. It is you who must be thanked every day for all this stuff you are sharing with all of us!
      My renewed thanks for this great blog.

  3. Dan,

    To steal from a church makes it an even lower than low CRIME.


  4. Dan,
    Everything we believed our government was about that we were taught in school has turned out to be a fantasy.

    Whatever horrible, atrocious thing your mind can conceive of them doing could now come true, even mass world wide genocide.

    I actually expect that to begin soon here as soon as the food riots begin.


    1. Goldtrader;

      It used to be that common decency, a sense of honor and shame served to keep the baser traits of leaders in check. Nowadays, there is nothing as uncommon as common decency, with perhaps that elusive virtue known as common sense. As for honor, these men have none. and as for Shame, it takes a person with an active conscience to experience that.

  5. Thank you Dan. As long as there is QE here, we in the USA probably will never have to deal with this I hope. I guess this is why the dollar is up today as capital flows into the safe haven dollar.

  6. It looks like what was said earler doesn't count now. hehe.


  7. Hi Dan. Well written and I note your frustration! Here in New Zealand, our illustrious Reserve Bank will be bringing in a tool called the Open Bank Resolution policy (don't you love these names that crooks come up with) to respond to future bank failures. It works the same as the Cyprus theft of deposit[rs funds. But get this PR spin. It is for OUR good as it enables the banks to keep open for trading in the event of a failure. Oh how happy we are.

    1. Andrew- don't you feel better now that the officials are working in "your" best interests? I am sure that you are sleeping more soundly, your stress levels are normal and your blood pressure is perfect!

      Seriously, we used to read about this sort of thing in the novel, "1984" and such. We are now living it!

  8. Please stop being educated right now. Here is news hot off the MSM press. First the report. BOA says all miners will be worthless if Gold Drops to $1000/oz. Is there another Executive order out there I do not know about. Here is the person that wrote it. http://www.linkedin.com/pub/tatyana-shumsky/11/310/578

  9. It has been downplayed it seems..


    This guy is a complete, leftist, arrogant and liberal idiot.. Like all of them politicians here in Holland..

  10. This time I do not agree.
    Without intervention most of the Cypriot banks would be bancrupt.
    If a bank goes bancrupt, it means the money of all savers, shareholders and bondholders is lost in a free market economy.

    With deposit insurance the smaller savers can keep their savings, while the bigger ones lose money.

    If now a government decides that it wants to prevent banks from collapsing and therefore protects the money of all savers, which IMO is not good, it is simply a matter of minimal justice to make sure, that the bigger savers lose some money insteadof losing everything if the banks go bancrupt.

    This has nothing to do with expropriation, in fact it is the opposite: it rescues savers at the cost of every taxpayer.

  11. You are missing the point, Endzeit. The banking sector is based on trust that once you deposit money to a bank, you will get it out. Take that trust out and all you will be left with eventually is a big cloud of dust.

    1. rob beijer,
      no, the point is, that banks are private companys and if money is given to private companys it is at risk.

      What I don't understand is if people, who are against any form of regulation, suddenly cry out loud, that money being lost, that was placed in private banks.

      Fact is, without state intervention, ALL money in Cypriot banks would have been be lost. Because of state intervention deposits below 100k are saved and the higher ones see a haircut.

      Therefore the only honest argumentation of liberatarians should be to demand that the Cypriot banking system letting fail and demanding that all idiotic savers, who put money into these banks, should lose it.

  12. It was written in stone a long time back.

    “We are living in a highly organized state of socialism. The state is all; the individual is of importance only as he contributes to the welfare of the state. His property is only his as the state does not need it. He must hold his life and his possessions at the call of the state.” (Bernard M. Baruch, The Knickerbocker Press, Albany, N.Y. August 8, 1918)

  13. Israelite;

    Thank you very much for providing what is simply an astonishing accurate quotation written nearly a century ago. More true words cannot be spoken.

    You could pin that on the lapels of the European finance ministers as it describes them to a "t".

  14. Dan,
    Great post today as usual, I hope you do not mind but I shared it on my blog this evening.

  15. I knew about dutch investment, its system is good from other investor.I am pleased to see the above all information about the finance in this site.

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