"The establishment of the principle that a government can, and at times of economic strain must, help itself to your savings, and that this is a legitimate tool of statecraft, ought to provoke riots. I am amazed at the tranquillity with which it has been accepted so far."Perhaps there aren't any riots yet because everybody is right now busy sprinting to the ATMs. Hell, I would! Once folks figure out that they can't get to their money, then I'll expect panic to turn into rage.
Hey, remember all that crazy talk about how cash-strapped governments might start raiding people's retirement accounts? Doesn't sound so crazy now, does it? Meanwhile, all those jokes that the Cine-Sib and I used to make about putting your money into your mattress instead of a bank ("Haha, I'm sure my Sealy Posturepedic can give me a better interest rate") now aren't so funny anymore.
Anyway, the thought occurs to me as I watch Cyprus: the leadership in the euro zone could scarcely do a better job of crashing that country if they were trying to do so. I mean, look at what's been done in the name of "saving it." When you spark panicked bank runs in the name of saving anything, I think it's fairly safe to say that you've screwed the proverbial pooch.
PS: Interesting (and prescient) anecdote.