An avalanche is headed our way.
In his interview with The Doc last week, Jim Willie stated that THE COLLAPSE IS ON OUR DOORSTEP! and made the case that the great financial reset will begin with a small trigger in Europe.
The Cypriot depositor haircut to bailout the Cypriot banking system is beginning to look like it could be just that trigger, as the situation has turned from bad to worse.
With the general public in an uproar, the ratification vote by the Cypriot Parliament on the depositor haircut/ daylight robbery has been delayed until 4pm local time Monday as the vote reportedly had lost sufficient support to pass! Ahead of today’s scheduled vote, the plan was 9 votes short in a 56 seat legislature!
In response, Cypriot President Nicos Anastasiades threatened that if the depositor haircut is not passed, the entire Cypriot banking system will collapse, and former Central Bank President Afxentis Afxentiou claimed that if the bill is not passed, Cyprus opens the road to chaos, and that Cyprus will turn into Libya!
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The problem is that even if enough arms can be twisted by 4pm Monday, the European markets open in 16 hours, with no official agreement in place regarding the Cypriot bailout, and the rest of the southern Eurozone’s population likely headed to their local bank to empty their account first thing Monday am.
David, Do you know what the US exposure is on this one?
Last I saw, Japan is expected to open down 500 points. Gold and silver have broken through major resistance level of $1600 and $29. The damage is done. No one will trust banks at this point no matter what the Cypriot Parliament decides.
I expect bank runs across Europe when they open. What will happen? That is easy: do you feel your money is safe in a bank?
1’s and 0’s are no longer secure.
the entire Cypriot banking system will collapse
Good, why delay the ending?
from what I’ve been seeing this morning, yes, when the banks open back up in cyprus, there will likely be a run, contagion could be an issue in Europe and we could be impacted from the stance of import/export losses. However, the Fed still has the ability to print money, so I think that card will be played to circumvent any immediate danger to US deposits…in other words, all we have to worry about right now, is increased inflation, and probably another market correction, over the next few months. You still have time to finish up your preparations, IMHO before the Fed start seizing our bank and retirement accounts.
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