Cyprus Banking Money Grab: Greece, Italy, France, Spain, Next?
Stock-Markets / Eurozone Debt Crisis Mar 18, 2013 - 07:39 AM GMTBy: Bob_Kirtley
The Eurozone finance ministers have signaled their intentions as their latest idea to bailout Cyprus included savers having to surrender up to 9.9% of their deposits in return for a $13 billion bailout.
The decision shocked Cypriots and caused a run on ATMs, most of which were depleted of funds within hours.
We now understand that Cyprus's parliament has delayed until Monday, a meeting to vote on this levy on bank deposits following indications from lawmakers that they might block this surprise move.
This proposed action gives us an insight into just how the political masters of the Eurozone are thinking. The possibility of having your savings raided by the government has just reared its ugly head.
Now just try and imagine if you were Greek, Italian, French, Spanish or anyone with savings in the Eurozone, what would you be thinking? Dead right, it could be me next; therefore maybe it’s time to move my savings to a safer place. It will be interesting to observe the reactions of the general public across the Eurozone when the business day gets started. As we see it no amount of reassurance from the authorities will prevent some people from wanting to withdraw at least some of their funds immediately, as a precautionary measure.
We are gold and silver bugs what’s this got to do with us you ask?
Well, if you are domicile in Cyprus your physical stash of gold and silver hasn’t been subjected to a politically motivated surprise haircut. However, this is not a time to rest on our laurels as we do not know what the politicians will target next. If they target a depositor’s total wealth then gold could be classified under such an umbrella and be subject to some form of confiscation. Our investment strategy has always included holding some physical gold and silver, preferably in your very own hands and certainly not within the banking system. We are not saying that the authorities will never demand it, but it would be an arduous process, whereas deposits in a bank are instantly recognizable and given today’s proposals, they could be instantly reduced.
In conclusion we are surprised at this move as we see it sending a shock wave through the banking system which is fragile at best and on tax payer’s life support at worst. It has also alerted the populous as to their intentions and should the masses move to defend their wealth the situation could get a lot worse.
We are heeding this proposal as a warning shot and considering the possible ramifications for our future well-being. May we politely suggest that you sit up and take an interest in these matters as they could affect you in the not too distant future.
Take care.
Bob Kirtley
Email:bob@gold-prices.biz
URL: www.silver-prices.net
URL: www.skoptionstrading.com
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