What would you do if you woke up and read in the news that the government decided to take 10% of the first $100,000 in your savings account next week?
That is exactly what is happening in Cypress.
Last week, the Euro Zone and Cypriot government came to an agreement that had the effect of freezing 10% of everyone’s savings account in anticipation of the Cypriot parliament ratifying the agreement.
So, the question is could this happen in the US?
Our eminent domain laws have been liberalized to allow government to seize real estate if they have a use that will create more tax revenues than what you are doing with your land. Civil forfeiture laws allow police to take and sell property without attaining a criminal conviction. Property includes the contents of your bank account. Obamacare forces you to buy health insurance. In the end, all of these are precedents that make it easier for the government to take you money and property from you.
If a treaty was negotiated that required every American to fork over 10% of their savings and congress ratified it, I have little faith that the courts would stop what is certainly an unprecedented, if not unreasonable seizure.