Could the government take personal savings?

drc

There was a thread on here a while ago in which someone mentioned the possibility that peoples personal savings could be taken by the government in a worst case scenario. Is this at all likely or even possible? Or is this extremely unlikely to ever happen? Sounds like something that would happen in Argentina or Zimbabwe, not the UK but could it happen here?

Really2

Less likely than a burglar doing it. So I would stick with a bank if I was you otherwise you would have to invest it in an asset if it was a real worry.

BlondeHeadOn

I sincerely hope not!

Mind you, it would be a hell of a rumour to start, which might just work on the "getting people spending again" front. If I thought the governemnet were going to get anywhere near my savings, I would be stocking up on provisions ofr the next 2 years, and paying off my mortgage at an even faster rate of knots!

domcastro

That was part of the reason I bought my house. I knew it wasn't the best time - but I'm "enjoying" the recession a lot more now my 100k is in bricks and mortar. It was a lot more concerning when I had money and no house.

I got really paranoid about government IOUs

Really2

domcastro wrote: »

That was part of the reason I bought my house. I knew it wasn't the best time - but I'm "enjoying" the recession a lot more now my 100k is in bricks and mortar. It was a lot more concerning when I had money and no house.

I got really paranoid about government IOUs

And bank failures.;)

mbga9pgf

you think the armed forces and police would stand back and let them?

purch

Sounds like something that would happen in Argentina or Zimbabwe

Only after the eagerly anticipated Hyper-Inflation arrives !!!! :eek:

Old_Slaphead

Don't think even "Comrade Bob" (Mugabe) impounded personal savings - just rendered them virtually worthless due to hyperinflation.

It's not unfeasible that the UK government could erode the value of savings -as did happed in the era of high inflation in 80s - but actually nicking your dosh....I don't think so.

Maybe they could convert them to low coupon Government stock (ie War Loan?)......oooops, better not give Clown any ideas.

1echidna

Brown has burnt the rule book concerning the 'golden rule' on public borrowing I expect the BoE rule to set interest rates to counter inflation will be the next rule to go. Printing money will, depending on how much is printed, sooner or later raise inflation and I expect interest rates will stay low to 'protect the economy'. Savers will effectively be robbed, if it is not already happening.

baileysbattlebus

drc wrote: »

There was a thread on here a while ago in which someone mentioned the possibility that peoples personal savings could be taken by the government in a worst case scenario. Is this at all likely or even possible? Or is this extremely unlikely to ever happen? Sounds like something that would happen in Argentina or Zimbabwe, not the UK but could it happen here?

The government in Argentina nationalised private pensions at the end of last year.

Before that they offered bonds in exchange for savings in 2002/3 redeemable after 3/5/10 years

And they converted savings held in $'s or other hard currency to the peso - in 2002/3

So never say never.

mbga9pgf

And I say again, do you think the Police and armed forces would let them get away with it? There was nearly a coup in this country in the 70's for much less.