The situation in Cyprus reminds me of watching the Iron Curtain fall in Berlin. The collapse of the Soviet Union, 9/11, the Gulf War, or the earthquake in Japan also kept us mesmerized as we watched and wondered how this will impact our lives. The people in Cyprus are not really being considered: the world is wondering what the impact will be on them. The unfortunate truth is that there will be an impact as the Euro and the European Union collapses.
What should you do personally? You already should have pulled your money out of the banks and stock markets (including retirement accounts). Whoever bet $900 million on the collapse of the Euro within two weeks:
- Either has foolproof knowledge of its collapse.
- Or is manipulating its collapse.
Individuals will have no input on what is about to happen. But that is no reason not to prepare. Since ammunition is not an option, food and gasoline are looking good.
David DeGerolamo
Cyprus Officially Passes Capital Controls Into Law
While it is unknown if the Cypriot parliament will agree to, and enact into law, the Troika-demanded deposit haircuts, after the shocking vote of mutiny against Merkel earlier this week that saw not one politician vote for the Europe suggested deposit tax levy (and even the ruling party abstained), a vote which will once more take place tomorrow, moments ago Cyprus became the first Eurozone country to officially implement governmental capital controls into legislation. At this point it had no choice: whatever happens with the deposit haircut, or with everything else, it is now inevitable that the local Cypriots will do all they can to pull as much money from domestic banking system as possible following the complete loss of faith and trust in banks, which is why the government had no choice but to intervene with its own “controls.” Sadly, this marks a milestone in the development of the Eurozone – it’s all downhill, and accelerating, from here.
[…] It’s all downhill, and accelerating, from here […]