Wonder what would happen when “IT” begins? Wonder how “the authorities” will behave in an economic collapse? Ever think which route Governments would take?
Well, today, we got the answer for you.
Euro zone finance ministers want Cyprus savers to forfeit a portion of their deposits in return for a 10 billion euro ($13 billion) bailout for the island, which has been financially crippled by its exposure to neighboring Greece.
The decision, announced on Saturday morning, stunned Cypriots and caused a run on cash points, most of which were depleted within hours. Electronic transfers were stopped.
Why it matters:
The move to take a percentage of deposits, which could raise almost 6 billion euros, must be ratified by parliament, where no party has a majority. If it fails to do so, President Nicos Anastasiades has warned, Cyprus’s two largest banks will collapse.
One bank, the Cyprus Popular Bank, could have its emergency liquidity assistance (ELA) funding from the European Central Bank cut by March 21.
A default in Cyprus could unravel investor confidence in the euro zone, undoing the improvements fostered by the European Central Bank’s promise last year to do whatever it takes to shore up the currency bloc.
Euro/US Dollar FX Spot Rate (EUR= :Exchange)
Now ask yourself what a Euro Zone collapse will do to us. There is a reason why the banksters of Europe are pulling this heist in Cyprus. It’s an island, and this is but a trial run.
This is looking like one of those John Galt short stories!
Asia-Pacific is taking a hit too!