Once trust is lost it is very slow to recover. For now, much of Europe is acting as if it believes Cyprus is a "one time" thing? But isn't that what we heard about Greece? Who is next? Italy?
In essence, the system is one giant Ponzi scheme (not just in the US but everywhere), kept afloat by wizards willing to ramp money supply every time big banks get into trouble.
The European Union's $13 billion bailout plan for Cyprus has nothing to do with socialism but rather with much greater stakes. This is the EU attempting to outmaneuver an uncharacteristically flat-footed Vladimir Putin and Russia in a key battleground, over long-festering issues: transparency, corruption, and support of Syria and Iran.
With liberal ideas firmly in the saddle, civilizing us, so to speak, we no longer applaud Depression-era bank robbers. Instead, today, we send them to Congress, or parliament, or the legislature, where governments try to achieve folk hero status by robbing banks and depositors alike.
All depositors in Cyprus will see the government reaching into their bank accounts to fund a bailout for the country. The idea is so bad. . . You would almost think it was hatched in California.
It doesn’t create a lot of confidence in Europe that tiny little Cyprus, with a GDP less than Vermont, is now causing immense turmoil.
Via Executive Order 6102, the government confiscated all gold and gold certificates, exchanging them for paper. Consequently, if you didn’t surrender your gold, you went to jail. The price of gold was set at $20.67 per ounce.
You were shocked - SHOCKED, you say - at the very idea that the government of Cyprus would order banks to seize 10% of every bank account and hand the money over the government?
As I mentioned in Friday's Mullings I was in Marietta, Ohio 45750 to participate in the groundbreaking for the home of SP4 Kyle Hockenberry who lost both legs and his left arm in an IED attack in Afghanistan.