Cyprus and Spain steal billions from depositors.

Cyprus and Spain agreed with the troika to steal 40% of deposits in Cyprus (from deposits larger than 100K Euros) and at least that much in Spain. The thefts are profoundly disturbing on several levels. First, the thefts are justified on the grounds that this is not a tax and, therefore, no authorization is needed other than the OK of the governments involved. The moves bring into question the contracts between Depositors and the banks. You simply can not trust them. Only gold and silver in the hand can be regarded as safe from govt confiscation.

While, the stock markets of Europe are reacting positively for now, the moves are inherently deflationary and disruptive. What next? More of the same in Italy and eventually in the United States?