I disagree with the premise below “that the authorities would rather you withdrew it, and injected it into the economy, in a desperate attempt to raise the velocity of money”. If that was the case, they could declare a bank holiday and get the same effect. Taxing bank accounts in the middle of the night or offering negative interest rates has the same end result: the banks get your money. If the premise below was true, that would mean any money withdrawn from a bank would automatically be spent to continue to drive a consumer economy away from the inevitable economic collapse.
But this is only common sense. You only have to ask yourself what benefits you have by keeping your wealth in accounts outside of your control.
Moments ago we got news that the same kind of “depositor repression” aka wealth tax just implemented in Cyprus over the weekend, may spread to other stability and deposit havens. Such as Switzerland. Just before 7 am Eastern, the SNB’s Moder, who is an alternative board member, said on the wires that the SNB will not exclude negative interest rates, which followed earlier comments from the IMF that the SNB should have negative rates if there is a renewed surge in the Swissie, and a plunge in the EURCHF, as has happened as the Euro has tumbled. Sure enough, the EURCHF soared on news that even Europe’s last remaining deposit bastion is about to be impaired, because all negative rates are is an ongoing deposit confiscation, instead of a one-time “levy” as per Cyprus.
Bottom line: it is becoming increasingly clear that “your” money is not welcome anywhere, and that the authorities would rather you withdrew it, and injected it into the economy, in a desperate attempt to raise the velocity of money.