Cypriot officials had colluded with euro-zone Kleptocrats in order to raid individual savings accounts in their country to pay for their profligacy.
If the little guy did this—you or I—we’d be in the big house.
Other than that it is theft, seizing private property to pay for “public” debt punishes the economically righteous, who squirreled away for a rainy day (RETIREMENT). Observe how state policies, in addition to generally being immoral, invariably help invert conventional morality.
The right of private property notwithstanding, why should savers pay for spenders?
However, ask yourself this:
WHY is state-sanctioned theft from Cypriot savers any different to your paycheck being docked for statutory payroll tax deductions?
WHY is state-sanctioned theft from Cypriot savers any different in principle to the statutory theft called the income tax; and, in particular, from the progressive income tax, where the rich (“savers”) are penalized for the sins of the rest?
As to taxes on assets: Property taxes, taxes on investments—why are these seizures of private property any different in principle to the lunge on Cypriot savings accounts the bankers and bureaucrats of Europe have made?
You’d think the US doesn’t tax assets. It does. And how are the taxes above different in principle from a bank deposit levy?
UPDATE (3/20): From Vox Day:
One of the many unintended consequences of the Cyprus situation is that many people are finally beginning to understand that money they deposit into a bank is no longer their money. It’s one thing to have some vague notion of what a fractional reserve system is, it’s another to realize that with every deposit, you are making what amounts to an interest-free loan to some of the shadiest and shakiest entities on the planet.