bank panicSubmitted 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  Would you suppose that some 90++% of deposits might be withdrawn by Friday’s close?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! 

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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.

    • It felt good this am to take what little bit I had in accts and apply to my visa – so I have nothing in bank!  Hoping everyone else does the same…
      I prefer a cash world anyway so easy for me to transition : )  lol  Pity the women who buy purses and shoes on their debit card worth more then my truck!  not!!!

  1. 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
     
    So lets see a breakout to $50.00 an ounce Silver and $2,000 an ounce Gold and beyond…They are suppressing the price so they can purchase as much Physical Gold & Silver and then let it skyrocket..

    • Wonder where the Ruskies are gonna put their dough now? Find another bank? Krugs in the vault, Im guessing.
      You can understand the Ruskies assuming their dirty dough was safe in a bank, after HSBC’s drug dealers got the green light for their drug money deposits.

    • Mammoth you would think this would skyrocket in price. I am currently watching CNBC closing bell in Hawaii. They had an interview with a reporter in Greece. He stated that when the banks open on Friday there will be a massive run on the banks. Think about all those Russian deposits gone and from the citizens of Cyprus..It will be incredible. 
      Like, I have been saying for the last week. Has anyone or can anyone remember where the metals are trading just below a certain mark for over 8 days straight. It has just been sitting below $29.00 an ounce. 

  2. I don’t think it takes a lot of research to understand that there is no putting the genie back in the bottle.
     The price suppression mechanisms are about to see their hardest test yet.
     No doubt, physical demand will start  setting records, but I do not think that will affect the price until there is no more metal available.
     The powers that be probably believe they can still hold this thing together, or we would have seen some price movement by now.
     The other shoe is about to drop, not sure what it is, but I’m thinking in terms of a truly epic diversion.
     They desperately need an event that will make everyone forget Cyprus ever existed.
     Que the nukes.

    • If I was to guess Mr. Fix the other shoe(s) about to drop  would be:
      Left Shoe–US Mint announces another temporary  “Sold Out”  of ASE’s.
      Followed by:
      Right Shoe– ASE premiums jump to +$10.oo per coin.

  3. Most will just keep physical paper cash money, maybe a few will convert paper into gold and silver. 
    They are going to stop bank runs, they will use QE to do bailouts, this is just the excuse to print money.
    They can undo this is a matter of a day, they can state that the ECB and IMF will fund any bank bailout, (via QE), problem solved at least in the short term.

  4. Bill Holter works for Miles Franklin.  He seems like a nice guy.  Sometimes he has some nice ideas.  Right now he is just trying to build up the hype.  Gold and silver are not being allowed to respond to this crisis. According to Bill, silver and gold should be going thru the roof.  What a goof ball.  Gold and silver will go thru the roof when the system collapses.  Until then, the crooks got control of this show.  Get a life Bill.

    • @Pollokeeper:  Yeah, Holter is biased.  So?  I think you’re being a bit harsh.  Would you write like that if you were using your real name and were accountable for your words?  The cartel loss of control over the precious metals market is a process, not a singular event that will happen within a specific 24 hour period.  Right now, physical is being sucked-up all around the world at a faster rate given the Cypriot fiasco.  That lessening of physical is the mechanism by which the cartel is forced to retreat to higher prices from which to start the defense anew.  This is the pattern of the last 12 years — a stair-step upward climb, with the cartel drawing new defense thresholds at higher prices after the defense of previous levels proves untenable. 

      Pollokeeper, I’m not sure if the following applies to you because I haven’t read enough of your stuff yet to know.  But generally speaking, people need to stop making arguments that give the cartel too much credit and too much power.  Yes, we don’t call them part of the Powers The Be for nothing.  Heck, Blythe Masters probably could kick the butts of half of the guys posting here just by flashing one of her dirty looks   But the cartel is not all powerful.  They are executing a managed retreat and they will not win the war.  It’s possible everything will crash and burn and, in effect, no one will be the “winner” of this war given the potential state of society following the next global financial crash.  But make no mistake, at least with respect to having the power to control precious metals prices at will, their power is an illusion. 

      – Eric Dubin, aka Flying Wombat

  5. These idiots on CNBC stated that Cyprus was just an anomaly and not a big deal for the markets in the United States. Are these fools smoking their own excrement? There will be bank runs. Putin put the ECB, IMF, EU on notice and his move to a check mate! Better believe they (in Cyprus) are in fear for their lives. Those in the loop are pissed that this did not go through..Run…Run….Run….to the banks and take all your currency out and buy Silver, Gold & other precious metals.

    • no surprise, the 3 modern branches of government are the royal elite, the military skull crackers and the ministry of propaganda.
       
      I would not trust any MSM outlet to tell me the date in a calendar factory.

  6. Gold is already over $1,600/oz this week, responding to the Cyprus catastrophe.  Silver has already tried to break $29/oz, but it seems more pressure is being put on Silver than Gold right now.  Perhaps Silver’s role as an industrial commodity is what is holding it back.  Has anyone paid attention to Copper prices lately?  Considering all things, Silver is reacting to the Cyprus events appropriately.  It’s only a matter of time before enough momentum is gained, and Silver goes along for the ride with Gold.  Silver is forcefully re-asserting its role as a monetary precious metal.
     
    And it must be repeated again, the buying of physical Silver and Gold does not reflect immediately in the ‘spot’ prices of Silver and Gold as seen on the electronic charts, which are determined by trading in paper Silver and paper Gold.  For all we know, the demand for physical Silver and Gold could have increased by leaps and bounds because of the Cyprus events, but there will be no evidence of this until paper prices ‘catch up’ to the reality of physical supply and demand…  This, unfortunately, is the result of allowing futures trading of Silver and Gold, instead of allowing the physical markets to dictate prices.

    • Technically, you’re both right.  In the last couple of weeks some hedge funds have periodically been opening up a spread trade of going long gold and shorting silver.  The cartel loves to shape the perceptions of hedge fund managers (and computer-driven funds).  The cartel often set-up market conditions with direct actions, only to have the hedge funds and other specs come in to do the rest of the dirty work.

      The cartel is likely acting directly on both gold and silver.  They always step-up actions when a world crisis hits the headlines.  But they still have help from hedge funds shorting silver right now.

      Last month, the cartel was able to get the hedge fund community to put on considerable shorts on both gold and silver following the initial cartel “painting of the tape.”  That game is pretty much over for the time being and that’s part of the reason why it was possible to call a bottom earlier this month — the cartel appeard to be covering, and the wash, rinse, and repeat cycle had run its course.

    • The price of gold in terms of the British Pound is only about 8 percent away from a new all time high.  Get a few more days like today and gold will print a new all time high. Gold is about 20% off its all time spot basis high of $1923.70 in US Dollar terms.

      We’ve seen rotation as countries take turns devaluing their currencies.  The UK is only a few months ahead of the US.  Gold and silver in US Dollar terms will follow soon enough.

  7. It doesn’t matter if they back track on this, create money out of thin air or whatever, hopefully this little exercise will show people to what level we are dealing with. The true colours of the so called capitalist world will stoop to, to save the Fiat pyramid scheme. 
     
    Most annoyingly they know that Fiat goes against sound financial Austrian school economics. They know that you can’t mix an artificial system based on socialist theories of money, detached from all sense of reality, with a real system such as capitalism which has never been invented to solve a problem, but something which emerged from selfish basic human need to exchange. 
     
     
     
     
      

  8. I believe there won’t be any significant bank run, at least not yet. Why? Because people are STUPID MOTHERFCUKING IDIOTS, that’s why. They deserve to be confiscated 100%. Fcuk the moronic sheeple!

  9.  
    Please Help Me Understand – “OUT…ALL THE WAY OUT!”
     
    90% of my assets is in physical gold, silver and numismatics. I always tried staying ‘out’ of the system, but start wondering if there is really such thing. The powers and control of governments and bank over the price of gold and silver is obvious. So for now, even when fully investing in physical metal we are all exposed to their paper game. What’s next, I wonder. If the paper money evaporates from this world and the PM’s becomes money, as a legal tender, they’ll still be under control of the system. There will be no paper to influence the price but I am sure these guys are creative enough to find another weapon for manipulation. Can we really be out?

    • @silverholic  These times that we are in are horrible.  You are doing the best you can.  Don’t expect that PM will save you or make you rich.  They are good to have now as an insurance policy against disaster.  They aren’t going to go up in a line like a certificate of deposit.  These are cruel times.  Not times for the average person to prosper like in the good ole days.  You have gambled that the system will break down.  When, and if, it does, you should be fine.  For the time being it will seem like you have made a mistake.  Well, until the system breaks down it will seem so.  Cheer up.  If you can.  I am in the same boat.  My investments in gold and silver are underwater.  Making me feel at times like I have made a mistake.  It is a shame, that we need others to fail in order for our decisions to bear fruit.  It is going to take nuts of steel to get thru this.  If we are wrong we gotta accept the consequences of that as well.  

    • I do not speak out of desperation. I trade some bullion and numismatics along the way so the price decline is not an issue. Since we are in a down trend since silver hit $50, I sell on rallies and buy on dips. Until the trend changes I will keep doing so. This helped me accumulate a significant amount of metal and cover any losses I had.
      My real issue is… if PM’s become money, what will really chance? these guys will find other ways to manipulate and control the price. Is there a really a way out of their hands?

    • @Silverholic
       
      In free world Capitalism there will always be a form of interaction where prices are decided by the whole not the individual. PM’s are finite and can’t be faked. Either you have them, or you don’t. This is the draw for me. I like things that are real and can’t be faked.
       
      This current system we are in is about Fiat currency and Fractional banking, basically making money out of paper, at will.
      Gold will never become money. What PM’s are is the truth. They form the natural law of barter and operate outside of Fiat currencies.
       
      I sell silver. I buy gold. One is a means to an end, the other is a store of wealth. Silver to me is currency, is money. Gold is a commodity. I have to every now and again, spend money in “the real world” converting some silver into Fiat, but I keep all my wealth in PM’s
       
      As long as your not using Credit to pay for your PM’s then all your really doing is converting one form of currency into another. Let them control Fiat, but I tell you, even though silver isn’t legal tender in the free world, it can still buy you stuff. :)

      Just think of it as FX trading, where we are holding a really strong currency and converting it to a weaker one.

  10. The Cypriot legislature voted down the confiscation attempt.  Which means that the C banks could fail, default, collapse.  Use whatever phrase you want to prefer.  The bank’s liquidity and solvency will be sorely tested within a few days once the banks reopen.  If Gasprom moves in to bail out the banks for natural gas and hydrocarbon rights, it may buy some time and possible prevent the wholesale collapse of the banks.  This is a terrrible situation for the people of Cyprus.  Caught between to very powerfal factions, the IMF and ECB trying to steal their funds and the potential of a tremendous bank run in Cyprus, this is plain old and simple a wretched situation.  Silvermail, please keep us in the loop.

  11. maybe the question of gold price may be set by the determination of the Cypriot people. How much more would you pay for gold if you knew that to just be able to remove your funds from a bank sans 15% haircut?  Would you pay $2,000 for gold knowing it is a safe harbor and can’t be arbitrarily confiscated by a supra national facist bankster elite.

  12. They can put PMs on sale and cause massive buying and the cap holds. They can create trillions in fiat and the cap holds. They can destroy economies and the cap holds. They can put the mines out of business and the cap holds. They can create panic in international banking and finance and the cap holds. What will it take to crack these rat B@st@&!s?

  13. I dont beleive that there will be a panic or bank run. They will find a way to appease the public and let this blow over until the next one. its all perception and as long as they can remain calm and show that everything is under control it will blow over for a period of time.

  14. just remember ‘When money dies’ the producers become all powerful, you go for gas you give the man two silver eagles you get gas, you go to the farmer you give him gold or silver you get food, you burn paper to keep warm. Hang on!

  15. The Cyprus people who are now buying physical gold and silver are very lucky right now with these incredibly low prices given by the cartel. Even with that, it is still amazing that the prices are that low for that long! 

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