Over the weekend, Cyprus announced a vote on taking money from insured bank accounts. Now New Zealand is considering a similar action. This is outright theft by government.
Current monetary systems are based on fractional reserve lending. If the depositors withdraw their money, to avoid it being stolen by the government, it will reduce the amount of available lending capacity. This could become a serious problem for the worldwide banking system.
National planning Cyprus-style solution for New Zealand
The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.
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