The International Monetary Fund published a working paper [http://www.imf.org/external/pubs/cat/longres.aspx?sk=41173.0] on the Sovereign Debt Crisis.

A non-trivial paper [http://www.imf.org/external/pubs/ft/wp/2013/wp13266.pdf] that actually makes very scary reading.

Recall in 2013, during the Cypriot Banking Crisis, where people with over €100,000 on deposits last substantial savings, (the term haircut) was used. They lost over 40% of their money from savings above €100,000. It is effectively ripping off savers.

Or to be polite, an enforced deduction, effectively a savings tax on the ones who have saved hard.

The IMF paper is referring to a similar way for governments to pay back these massive debts that they have taken on since 1997 when  the financial crisis began

By reading this one cane make some deductions:

The sheer size of the Western debt pile is just so vast that wealthier countries will need  haircuts, and with higher inflation and financial repression which really means a tax on diligent savers. This has been used in countless IMF rescues for emerging markets.

It seems that savers are getting a bad deal in general. With Quantative Easing it is savers who are being punished, with near zero interest rates with their money on instant access deposit.

If one looks at what happened in Cyprus, then savers were effectively ripped off by having their life savings taken if they had over €100,000. Anything over €100,000 was effectively taxed at over 40%.

There is something very wrong with what has happened, and the school of thought of taxing people for saving is a worrying thought.