5 votes

Ripple Effect: What the unprecedented Cyprus bank confiscation means for Europe & gold

The term is called "contagion." The trigger was pulled with Cyprus.
Saxo Bank CEO: "This Is Full-Blown Socialism And I Still Can't Believe It Happened" 3-16-13
Authored by Lars Seier Christensen, CEO Saxo Bank

It is difficult to describe the weekend bailout package to Cyprus in any other way. The confiscation of 6.75 percent of small depositors' money and 9.9 percent of big depositors' funds is without precedence that I can think of in a supposedly civilised and democratic society. But maybe the European Union (EU) is no longer a civilised democracy?

I heard rumours about this when I visited Limassol last week, but dismissed them as completely outlandish. And yet, here we are. The consequences are unpredictable, but we are clearly looking at a significant paradigm shift.

This is a breach of fundamental property rights, dictated to a small country by foreign powers and it must make every bank depositor in Europe shiver. Although the representatives at the bailout press conference tried to present this as a one-off, they were not willing to rule out similar measures elsewhere - not that it would have mattered much as the trust is gone anyway. It is now difficult to expect any kind of limitation to what measures the Troika and EU might take when the crisis really starts to bite.

If you can do this once, you can do it again. if you can confiscate 10 percent of a bank customer's money, you can confiscate 25, 50 or even 100 percent.
More at:

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Yeah people are going to

Yeah people are going to start withdrawing all funds except what is needed to pay bills.

We still have a lot of dreamers that still think something like this could never happen in America either...

End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

Should be an interesting week

Bernanke may have to crank up his printing press to Warp 5.

SteveMT's picture

What happens when Scotty says to Bernanke?:

"the engines are buckling, captain!

I guess that we will find out. Thanks.