CEO: Cyprus Bank Account Looting Could Blow Up Europe
Bailout tax could lead to civil unrest
Paul Joseph Watson
March 18, 2013
Pimco CEO Mohamed El-Erian told CNBC today that the decision to loot the bank accounts of Cypriot savers could blow up Europe and lead to civil unrest across the continent.
El-Erian said that the European Union had lit two sticks of dynamite in backing a proposal that could see bank accounts raided for up to 15% of their value in what has ludicrously been described as a “wealth tax” yet amounts to nothing less than an act of wanton financial plunder.
“By including small depositors, they are risking social unrest, political disorder, and potentially an exit from the eurozone,” said El-Erian, referring to people with under 100,000 euros who will still be hit by a levy of 6.75% under current proposals. Savers with 500,000 euros in the bank face losing as much as 75,000 euros.
“The worst outcome is that you get complete political breakdown, social unrest, and then Cyprus is forced to exit,” said El-Erian, adding that the move had accelerated the journey to disorder which could lead to more countries exiting the eurozone.