The government of Cyprus has agreed to an EU demand that it, in effect, confiscate between 6.7 and 9.9% of all bank deposits in order to receive a “bailout” package. At the same time restrictions were put in place to ensure that the owners of the deposits could not shift their money to avoid the confiscation.
In one of the article’s accompanying pictures, a large piece of earth moving equipment is shown parked on the sidewalk in front of a bank in protest. It evades me why it wasn’t used to open up the bank instead.
Expect to see further bank runs (which will also be kept as quiet as possible) in most other troubled EU countries. This ill-advised action will only accelerate the eventual collapse of the PIIGS as the holders of bank accounts in those countries take a look at this and loudly say “Oh HELL no, you don’t!” I think you can also expect to see some interesting large-scale capital flows in the coming days as money moves from areas where this could happen to areas perceived as “safer”. Face it, rich folks generally don’t get to be or stay rich by being stupid. While they may say one thing in public, in private it will be a totally different conversation.
Of course, the EU Masters of the Universe, if one can believe the article, don’t think that any of this is going to happen. I’m hoping that it not only does, but that they get to see the Cypriot government fall in the bargain. I’m convinced that the EU may well be the most evil government on the face of the planet. Bad Things need to happen to it, and soon, or Europe will be lost–likely taking us all with it.
I’ve been taking certain actions to protect my assets for some time, and I think it may well be time to take those to the next level. I suggest you look at your situation and do what you can, as well. At the very least, the opportunity costs of holding cash are damn small these days, and if you’re careful, it’s hard to track.. Take what measures you can now–I think I feel the breeze on my face picking up.