Hungarian Central Bank Arms Itself

February 18th, 2016 by

handgun-pistol-bulletsThe bewildering story of the Hungarian Central Bank took another turn recently when it was revealed that it had gone out and purchased 112 nine-millimeter pistols and 200,000 round of 9x19mm Parabellum ammunition. The purchase, which was made in December, was apparently kept secret until a member of the Hungarian Parliament asked about it. The head of the central bank cited terrorism and migrant concerns among the reasons for the purchase, as well as an increase in properties under its control.

Properties like an 18th century estate converted into a four star hotel, as a private retreat for bank employees.

This is far from the first brush with controversy for the bank and its head, Gyorgy Matolcsy, who is operating

Matolcsy is using the profits flowing into the bank due to the devaluation of the national currency, the forint, to fund these purchases. He defended his actions, saying the profits of the central bank were for its own use.

In addition to militarizing the central bank, just a few of the other purchases include:

Just in 2014, real estate purchases by the Hungarian Central Bank totaled $1.1 billion — more than 1% of Hungary’s GDP. And according to critics, the bank grossly overpaid for every one of its purchases, including the works of art (except for maybe the pistols.)

While Matolcsy comes under increasing fire from opposition politicians, who maintain the money spent on these things should have been paid into the national treasury, the patronage he enjoys from Hungarian Prime Minister Viktor Orban has protected him. Should the central bank’s profits turn to losses, though, the Hungarian people will tapped to cover them.

 

 

 

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5 thoughts on “Hungarian Central Bank Arms Itself

    1. Steven Cochran Post author

      This purchase is in addition to its regular security, to protect all the fine art and real estate it’s been buying. They have set aside 100 million euros just for buying artwork.

  1. astroturfwarriors

    I hope their depositors don’t need any BIG cash in a hurry….unless it is his own money he is using..in which I would question since bank bosses don’t get paid all that much. Or his momma gave him the money

    1. Steven Cochran Post author

      He says that the central bank (i.e. him) gets to spend the profits the bank has seen from the devaluation of their currency as he sees fit. Central banks usually (always?) send profits into the national funds, because if the central bank starts losing money, the taxpayers have to make up the difference. If you dig deeper on this Hungarian Central Bank thing, it seems that they’ve been buying from buddies of the Prime Minister, at least in some cases, and overpaying on everything. Sounds like looting the national treasury, doesn’t it?

  2. Colonel Clink

    Well, we were looted a long time ago ourselves by the Feds and accomplices. What is in Fort Knox besides Tanks and other Military hardware and staff? Not even an IOU in the “Depository. The Dollar is no longer backed by anything except by the people’ ignorance of the largest government fraud in USA history.

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