The fly in the ointment is Europe, or I should say Europe’s “structure”. The fact that Spain, Italy, Portugal and the rest cannot “print” their way to pay debt service and issue new debt is the detonation device. It is only a matter of time before another …only bigger, MUCH BIGGER!
Bix Weir joins the SGTReport to talk about the coming collapse of the Western banking system. Bix says the overt criminality we’ve seen in Cyprus is just a sign of the bad things that will be unfolding EVERYWHERE soon. We also discuss the New World Order and the Elite’s plan for a one world government – a CRIMINAL world government led by the same criminal Banksters who are destroying the financial system and who are hell bent on ending the sovereignty of every nation on earth. We also talk about the awakening of the patriots who stand opposed to their evil plan.
To describe the events in Cyprus and their relevance to gold, we can start with the analogy of a peaceful, self-satisfied Western investor asleep in a dark room. He has had trouble sleeping lately because he is starting to become more concerned about the safety of his personal wealth. He is unaware that he is sharing his room with three large elephants. They come each night, but remain hidden by the darkness. He awakens for a moment and lights a candle. Suddenly the room is illuminated and he sees the three beasts. The vision terrifies him, so he races to blow out the candle hoping to forget what he saw. Of course, once the light shines on truth it is difficult to return to a state of ignorance.
The events in Cyprus had the effect of turning on the lights, if only for a moment, before the financial media and the world’s central bankers began a blitzkrieg campaign of denying the truth that was briefly exposed.
Saxo Capital Markets has released an infographic detailing the Cyprus depositor bail-in from start to finish.
The infographic also looks at the debts of Spain, Italy, Greece, Ireland, and Portugal in comparison, and makes the case that the Cyprus template (per DieselBOOM) is a major game changer for the Western banking system.
Full Cyprus bail-in infographic is below:
Submitted by Bill Holter:
Imagine that 2 weeks ago you were a Cypriot and faced losing some or all of your bank balances, what would you have thought? I ask you this question because chances are…you are not a Cypriot and you haven’t had your life savings “locked up”…yet. You see, whether you know it or want to believe it, we will “all be Cypriots” sooner or later. Pooh pooh me, stick your head in the sand or send me nasty e-mails, MATHEMATICALLY the entire world WILL become Cyprus sooner or later. Mathematically we are on a crash course with a global debt/currency crisis of epic proportions.
The Golden Jackass Jim Willie has finally given his long anticipated first public thoughts on Cyprus.
Willie states that Cyprus is the long awaited FLASH POINT the metals community has been anticipating, and it will in time invoke a great awakening as to the reality of today’s Western financial system by the public, and will result in a massive shift into physical gold and silver.
Willie states that Cyprus was Russia’s back door banking gateway into the Western financial system, and that the true numbers of Russian wealth hidden in the Cypriot banking system is not $20 billion as is being reported by the Western press, but $trillions!
The Golden Jackass states that mind-numbing hundreds of $billions have been fleeing Cyprus for Dubai, Hong Kong, and Singapore over the past 9 months, and that the depositor outflows will devolve into contagion and full-scale bank-runs throughout Italy, Spain, Portugal, Ireland, & Greece.
The tipping point is coming, and those who don’t remove their funds proactively will be slaughtered!
Jim Willie’s full MUST LISTEN interview on the implications of Cyprus is below:
Face it folks, the die is cast. Bankers have shown their true colors. They are no different that robber barons of days past. They will steal your money through interest, fees, penalties, foreclosures and if those fail, they will steal your assets because you are a convenient and conveniently foolish cash sheep waiting to be fleeced.
The modern financial system has become a Currency Roach Motel. Your money checks in but it doesn’t check out.
*BREAKING SD ALERT
Just as DieselBOOM accidentally admitted Monday, it appears that the Cypriot bail-in is anything but a one-off event, and is in fact the new collapse template for the entire Western banking system, and not just the ECB/ Eurozone!
SD has been alerted to an alarming provision that has been buried deep inside the official 2013 Canadian Budget that will result in depositor haircut bail-ins jumping to this side of the pond during the next bank crisis!
Titled ECONOMIC ACTION PLAN 2013 and tabled in the House of Commons by Minster of Finance James Flaherty on March 21st, the official 2013 Canadian budget contains an explicit provision that Canada will pursue the bail-in model for systemically important banks for future bank failures!
Cyprus’ Finance Minster has now officially confirmed that Laiki depositors with over 100,000 euros in Cypriot banks face at least 80% haircuts, and stated that realistically, very little will be returned.
Now that news has circulated that Russian oligarchs were able to withdrawn billions over the past week when Cypriot banks were closed, we suspect Cypriots are not likely to take this latest news of 80% + haircuts for Laiki customers well.
BrotherJohnF discusses silver’s technicals as well as the rapidly escalating fall-out from the Cyprus bail-in fiasco in his latest Silver Update:
The Cypriot case is all over the place, in all types of media. However, it is amazing how the following simple facts remain underexposed. It is one thing to look at the news; it is another thing to look at the learning that comes out of the news.
For those who are willing to see, here is what Cyprus is teaching the whole world about money, the debt crisis and gold.
In this interview with Ellis Martin, David Morgan reviews a prediction he made a month ago to subscribers of The Morgan Report. “Not to belabor Banking 101, but our quote from Eric Sprott is correct. From a legal and financial accounting standpoint, the term “deposit” is used by the banking industry in financial statements to describe the liability owed by the bank to its depositor, and not the funds that the bank holds as a result of the deposit, which are shown as an asset of the bank. (It is now the bank’s money, not yours.)”
The iceberg commeth in Europe and Cypress is just the tip of this Titanic ride.
*Updated: In response, a bomb has just been detonated at the Limassol branch of the Bank of Cyprus
Multiple breaking reports indicate that in an early Monday meeting with Lagarde, Draghi, & Von Rompuy, Cyprus’ President Anastasiades has agreed to a Cypriot bank restructuring/ depositor haircut deal in exchange for €10 billion in emergency loans from the ECB.
The deal reportedly will avoid the necessity for any vote by the Greek Parliament, and is far, far, far worse for Cypriot citizens and depositors than the one the Cypriot legislature voted down on Thursday, as the ECB will reportedly be handing out 40% haircuts for depositors with over €100,000 on deposit in the Bank of Cyprus, and deposits over €100,000 at Cyprus Popular bank will be WIPED OUT!!!
Forget haircuts, the Cypriots have just been scalped alive by the ECB & IMF!
Burning senior bond holders could create contagion again in European debt markets and now in addition to that bureaucrats have managed to make depositors in periphery nations nervous about their deposits in banks. This could precipitate bank runs in Greece, Spain and Italy with obvious negative ramifications for the entire EU banking and financial system.
Cyprus is a little domino which has fallen and may knock the larger more important dominos of Spain and Italy thereby creating contagion in the Eurozone. Especially as the political backlash against the EU and Troika is likely to be substantial and could lead to more power being gained by parties and movements that advocate leaving the European Monetary Union and indeed the European Union.
RT reports that Cyprus & Troika officials have agreed to a 20% haircut on all deposits over €100,000 at Bank of Cyprus, and 4% on deposits at other Cypriot banks…
Which essentially means nothing until the measure is passed by the Cypriot Parliament.
With the ECB/IMF threatening (bluffing) to kick Cyprus out of the Eurozone unless €5.8 billion is raised/ stolen from Cypriot depositors by Monday, the next 24 hours should be quite interesting as we see whether Cyprus holds its ground and follows in the footsteps of Iceland, or kowtows to the ECB bureaucrats and agrees to a 20% theft of it’s wealthiest citizens. (particularly following yesterday’s report that insiders tipped off the majority of wealthy Russians in the days leading up to last Friday’s announcement, meaning Russian wealth is already looong gone)
The dollar gold price hovered just below $1610 an ounce Thursday morning, while stocks and commodities fell along with Euro as disappointing economic data was added to news that Cyprus’s banks will remain closed until next Tuesday.
“We forecast the gold price to have dropped to below $1400 by year-end and for it to continue to trend lower next year,” says a note from SocieteGenerale.
SocGen has cut its average gold price forecast for this year to $1500 an ounce, with the per ounce averages for 2014 and 2015 cut to $1400 and $1300 respectively.
Dr. Ron Paul was interviewed by Fox after the U.S. Federal Reserve confirmed it will continue its QE program highlights the importance of gold as money.
On July 13, 2011, when Dr. Paul was a U.S. Congressman he asked U.S. Fed Chairman, Ben Bernanke, “Do you think gold is money?” and Bernanke replied, “No, it’s a precious metal.” Dr. Paul countered, “Even though it’s been used for 6,000 years?” But Bernanke denied gold was money and said, “No, it’s an asset. Just like T-Bill’s are not money.”
The Fox News interviewer then commented, “Cyprus has taught us that governments can confiscate money that you’ve earned or even paid taxes on. Rampant quantitative easing and price fixing by governments may prop up the stock markets but it doesn’t keep unemployment down. The U.S. Fed is going to continue its QE program which is good for gold.”
At this afternoon’s FOMC Press Conference in response to a question posed as to whether the Fed would ever impose depositor haircuts as was attempted this week in Cyprus, Fed Chairman Ben Bernanke confirmed that Cyprus style depositor haircut wealth confiscation is possible here in the US if the Cyprus event or another event in Europe were to become contagious and the people lose confidence in the US dollar.
BrotherJohnF discusses the impending bank run looming when Cyprus’ banks are finally re-opened, and the Pandora’s Box that has been opened as a result of the ECB’s botched Cypriot/ Russian oligarch bank heist in his latest Silver Update:
Depositor haircut wealth confiscations have just gone from a one-off in Cyprus to the new thing in 2013.
The New Zealand government is reportedly pursuing a policy of Cyprus style depositor haircuts for all future bank failures!
The plan would not limit the haircuts to any percentage, but would steal whatever is necessary from depositors to prop up the failing bank institution: Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.
The rule of law in the entire Western financial world is apparently vaporizing faster than the spent fuel at Fukushima.
Reuters headlines are reporting that the Eurozone finance bureaucrats were looking at the same chart we were this afternoon, and are ready to back down regarding the Cypriot depositor haircut- at least as it pertains to ordinary Cypriots with deposits under €100,000 and make sure they remain whole. Astoundingly, the ECB continues to demand that the entire €5.8 billion deposit wealth confiscation level must still be achieved.
As to those unfortunate to have saved more than €100,000 in a Cypriot banking institution (i.e. all Russian oligarchs), the ECB proposes now a 15.6% wealth confiscation!
As news leaks that Cypriot depositors will receive 9.9% haircuts on bank deposits (latest reports per the WSJ indicate that the IMF is currently attempting to renegotiate the level for savers with over €100,000 from 9.9% to as high as 13%), Hitler reacts to the news that his savings have just been forcibly converted into Cypriot banking shares.