Greek Government Starts Seizing Assets Extra Judicially – Bank Deposits Fall

The Tour De Force of unintended consequences continues in Greece.

We have said at the beginning of the year that tax debts are going to become so widespread the government will start bypassing the legal system in order to speed up the repayment process without thought for the debtor.

The burden of having to prove that people are willingly not paying their taxes would become too much.

And now it is happening.

The first stories appeared last week and this is the latest example.

So why is this a Tour De Force of unintended consequences?

A number of reasons

The first is related to personal assets.

The Greek government is making a big song and dance about how people are not declaring everything they own. How this is reducing the potential tax revenue yadda yadda yadda.

So to solve this issue they have decided to start seizing the assets that people do declare without giving debtors legal recourse.

By-passing the legal system means the government does not care if the debtor has a legitimate reason for not paying. The debtor does not have money to feed his children for example.

The only thing the government cares about is getting their money by seizing declared assets. And they want people to be truthful about the assets they declare?

The situation is absurd with the biggest victims being those that are most honest.

The second reason is bank deposits.

Since 2008 people around the world have been told that banks need to build up their balance sheets. That banks need to recapitalise so they have more money for a rainy day so to speak.

And the story has been no different in Greece with 16 of the main banks being merged into 4 as of today. And despite the consolidation the four major banks in Greece still have a beggars cup in their hand and are receiving billions in Euros from Greek and EU taxpayers.

So on the one hand we have the mainstream media, banks and government claiming banks needs money and on the other hand we have Greeks who have put money in Greek banks in the form of savings, seeing that their government will raid those deposits when it feels it needs to.

This is how the Greek government encourages Greek to put their money back into the banks? By saying they will raid those banks accounts at will?

So this is the paradox and the complete insanity of the Greek government’s crisis.

Saying one thing, doing the exact opposite.

The Greek government claims it wants a more effective tax collection system and yet it is taking measures which force the population to not declare their true assets as they fear the extra judicial action that the government might take against them.

Again, as time goes on the complete insanity of the Greek government’s actions become more and more obvious.


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