The Fat Lady has Started to Sing - in CyprusSubmitted by TommyPaine on Sun, 03/17/2013 - 13:38
This story in Cyprus is much bigger than most people realize. This just might be the beginning of the end of world government having any credibility at all.
Progressives live by the saying, "Never let a crisis go to waste." Well, defenders of liberty can play that game, too. This Cyprus story is not being told in the American Propaganda Media for a reason -- because it would wake people up to the reality of the nature of government.
But we can take advantage of this by promoting liberty. There are already cracks in the status quo. Rand Paul's filibuster, talk radio talking heads bashing the GOP leadership, and states fighting back with legislation to put a stop to progressive tyranny.
And now, Cyprus.
First off, everyone should understand what has happened there, and why it makes NO DIFFERENCE whether or not they go through with it. Cyprus is part of the EU, and all EU banks have "depositor insurance" similar to the FDIC in the USA. Depositor insurance is SUPPOSED to protect depositors' money in the event of bank defaults (if the bank itself becomes insolvent due to poor management, the depositors are supposed to be made whole on their bank accounts, even if investors and creditors of the bank go bust).
In Cyprus, all bank accounts are "officially" protected up to 100,000 Euros on deposit (about US$130,000). The Cyprus government knows that two of its largest banks are on the verge of insolvency, so they went to the Eurozone "government" for a bailout, just as Greece, Spain, Ireland, etc. had done before.
But this time, the Eurozone approved a bailout on the condition that the Cyprus government must STEAL some of the people's bank deposits. In other words, they IGNORED the depositor insurance protection of 100,000 Euros.
The WHOLE POINT of depositor insurance is that people will not put money into a bank if they think their money is not safe. Rather than let the free market regulate this financial function, the governments around the world say they will do it. But they lie. No government has the money to protect ALL deposits. They rely on people being confident in banks.
Bernanke often refers to "confidence" as a primary factor in the financial markets. Without confidence, people will take actions to protect their assets.
Now that the EU "government" has taken the most draconian step any government can in the financial realm -- the outright theft of people's assets (freezing all bank accounts until the funds are paid to the government) -- people have NO MORE REASON to have any confidence in banks.
They won't have confidence in Cyprus banks, or in weak European banks. They will then start thinking about ALL banks worldwide and there will be a mass exodus out of Europe and into other places in the world. While some of that money might go to the US at first, those who know what they are doing are more likely to send their money to Asian banks, where it really can be safe (relative to the corrupt governments elsewhere in the world).
What we in the liberty movement can do is to make sure people know what is going on in Cyprus and that it was a European Union decision, not "just some little island country over there." This was a decision reached by the EU and the IMF. You can bet the Federal Reserve will have influence in this, and that the US will become part of the "bailout" on some level.
This will lead to a flight of capital out of European banks and that will lead to the next economic crisis. We must make sure people understand it was the POLITICIANS who did this. It is not the "evil bankers" because they could not get bailouts without the evil politicians.
There is already an undercurrent going on where people are starting to wake up to the idea that "something is not right" in the world and that government/politics/media is not quite what it seems.
We need to continue educating them that EVIL POLITICIANS are the ones who cause all these problems -- and in the end they WILL steal your money outright to solve the problems they have created.
Here is a good article on the implications of the Cyprus deal (and it does not matter at this point whether the Cyprus legislature puts a stop to it or not, because the Fat Lady has already started singing that first note now that the EU politicians have revealed themselves for the dirty sociopaths that they really are):