Cypress Bank Shut Until Thursday – FT.com
Now we hear that the amounts of “theft” from Cypriot depositors may be different than originally announced. Their Parliament also must vote to ratify the proposed theft… but wait, what if they don’t? What a strange thought. Can you imagine if this bank heist doesn’t go through? If they said, “Aw shucks, we were just kidding?” Can you imagine the bank runs? Would you suppose that some 90++% of deposits might be withdrawn by Friday’s close? No, this puppy is pregnant, not just “a little bit” mind you but ready to deliver pregnant.
I still find it hard to believe that any sane person would have proposed this in the first place because in essence it says “Ready, set… run the banks.” If the “deal” wasn’t set in stone which it obviously is/was not, why announce it? Is this just a trial balloon to see if it really will start a bank run? Do they want to find out if there is rioting over this and think it is a contained experiment because Cyprus is only 1 million people? Is this intentional and a way to create total chaos where the solution is “save us.” What about “deposit insurance?” Does it even have any meaning now? The rule of law? etc. etc. So many questions and not any logical answers because this move has no logic behind it… or maybe it does and I am too stupid to see it yet.
One thing that I know for a fact is that this will increase demand for gold and silver. Think about it, if you had money in the bank and saw the balances of your neighbor get raped (remember MF Global), would you hang around waiting for your turn? Where do you go with the balance? Another bank with “super duper” deposit insurance? While pondering this problem you might think about just hiding your balance physically at “the bank of Serta” but then you have to wonder if the cash might not go the way of Confederate or Zimbabwe Dollars. This ill advised theft will surely add new and quite large demand toward the precious metals which are already in tight supply.
Will it happen fast? Slow? Who knows? I don’t, but this time around it will be very difficult to keep the lid on. It will be difficult because when a fire breaks out within a theatre, people don’t stop to go to the restroom (ETF’s), people will want OUT… ALL THE WAY OUT! “Out” as in physical, non-tungstened, real physical gold IN their hands and out of the system which is now known to even the most blind, mentally deficient, head in the sand “ignorants” as a fraud! Like I said in my earlier piece, “Why, for such an insignificant amount of money would they do this?” It makes no sense logically. Maybe this can be chalked up to “desperate people do desperate things?”
most times I assign some motive or plot behind the moves govts make but they could be just plain stupid. I’m starting to lean more that way.
This is a very tough one to handicap, is it stupidity or an intended bank run? Hard to know but I guess when all is said and done it will not matter as the result will ultimately be the same.
Russians to Cypriot bankers:
“You have meddled with the forces of nature Mr. Beale
and YOU WILL ATONE.!!!!
funny! but not really because we will soon see what “ruthless” is
I just came across this article that may answer your question regarding why this is happening.
http://www.infowars.com/banking-chief-calls-for-15-looting-of-italians-savings/
“As respected investigative reporter Greg Palast exposed in 2001, the global banking elite, namely the World Bank and the IMF, have honed a technique that has allowed them to asset-strip numerous other countries in the past – that technique has come to be known as the “IMF riot.”
In April 2001, Palast obtained leaked World Bank documents that outlined a four step process on how to loot nations of their wealth and infrastructure, placing control of resources into the hands of the banking elite.
One of the final steps of the process, the “IMF riot,” detailed how the elite would plan for mass civil unrest ahead of time that would have the effect of scaring off investors and causing government bankruptcies.
“This economic arson has its bright side – for foreigners, who can then pick off remaining assets at fire sale prices,” writes Palast, adding, “A pattern emerges. There are lots of losers but the clear winners seem to be the western banks and US Treasury.”
Latest is they say its Finland which brought in the cuts for savers, as they would never get the bailout “clearance” from the domestic politicalopinion, they play a high stake game here as we know. The last years has put all kind of swan events more knit together. In Finland due to the 2008/9 crash as a result out from there, you now have a party which would act on the Finn’s own interrests over the EU norm..
Is it planned? Could be, maybe they wanna have the oportunity to blame all financial turbulence in EU-zone as they wanna call it, to new political populistic partys influence’s. Thats one guess… Then point the fingers at Italy and say something like: hey, look what just happened. Peppe brillo is a huge threat, elections in Germany can also be a threat.
You sir, are one of the best in the business with great insights and wisdom. That ain’t flattery, but reality!! Keep up the good work. Those crazies look like they want to push silver down to 26.00 in light of this horrific news. Wow. I’m ready to buy a few hundred oz. bring it on. 🙂
Thank you for the wonderful compliment. A $26 Silver price will bring about a shortage worse than any we’ve seen so far in my opinion.