Submitted by Bill Holter
They can’t undo this one!
Yesterday we heard that the amounts of “theft” from Cypriot depositors may be different than originally announced. It now appears that the Cypriot Parliament will not approve the wealth confiscation of their citizens. 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 Would you suppose that some 90++% of deposits might be withdrawn by Friday’s close?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 (bank run panic) is pregnant, not just “a little bit” mind you but ready to deliver pregnant.
One thing that I know for a fact that this will do is increase demand for Gold and Silver.
It will be very difficult to keep the lid on contagion and panic spreading from this incident. It will be difficult because when a fire breaks out within a theater, people don’t stop to go to the restroom, 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 “ignorant” as a fraud!
2013 Gold Eagles As Low As $74.99 Over Spot At SDBullion.com!
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 that this will do is 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 theater, people don’t stop to go to the restroom, 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“?
Regards, Bill H.