Say you have some cash. and they want your cash. well they can take or ask for it. either way they can enforce it. say you have some cash and they all of it. now its a bit tricky. you have to give them some thing in return for it. Or sell them something. but the thing you sell should have great mark up and perceived value. But still most people tend to use budgets and do not spend or invest all their money on worthless things. So the easy way to take their money is by using commodities that are not controlled too much. So we take tress and sell it to people but we break it in to thin slices and stamp a brand name on them. Naturally, like rats people line up to buy this printed paper. now the banks have all the money. and you have a piece of paper. which has the value the money or the branded paper? Well the public decide, and since they have the branded paper they say it has value. The money is worthless and given to the bank. People line up to buy branded paper. Sorry, let me re word it correctly. People line up to give the bank all the money they have been saving for and using for years on end. They give all. Next day they find some money and say to them selves, Gosh darn I forgot to give them this coin in my couch, how un communist of me. they quickly run back to the bank and explain that they found some money and if it is not too late can you please take it. The banker looks at them and says, look we cant have this. I want you to go home and check every where for evey penny and bring it to me tommorow, if after that you find more, im sorry but i dont think we will take it. so every penny is given. and the giver feels peace. Oh on a side note they have some branded paper. well then one day banks see something is wrong. they have all the money but there is no demand for it . people were trading with tress (or branded paper). Luckily people placed their branded paper in the banks. the banks says gosh darn we have all the money and the digital money. with some branded paper. lets freeze the branded paper in the name of what ever conspiracy is mentioned in this thread. Well then it will be untrusted. Gee I wonder what happens next ? Or, maybe we can assume that taking paper from people will actually make the bank money. wait a sec they have all the money so they cant make more. I don't know maybe the euros are really soft and good to use in bathrooms in rolls ? Anyways, lets just look at russia and this and that. Oh wait, there is yet another scenario... if people accepted the paper as money , lets take that paper. how though hmmmm.. how can we get people to line up at our banks and give us their money again? hmmm lets freeze take, de credit the money and have them line up to give it to us yet again. great now what ? we have all the money we have all the papper now what ? well lets do that again, heck every time we do it they give it to us, and they do not want us to print creating inflation or what ever. So the people lined up to give money. imagine if they came to take money...... oh no.. they would not allow that. it is a one way door. it is a run to banks. well we have doubled out money supply and maybe we can triple it or quadruple it. branding is fun !!!! rules ? nah we got rid of those. elected states men? nah they have no say. Look its not that bad. they are just taking your papper when you have enough to give them. Maybe not enough to pay their debt. debt.... hmmm, break rules, want more, hmm government has debt they can never pay. so do people. I think we should abolish debt or something kinda along those lines... hmmm I bet you have a nice house. papers all signed all legal work is perfect. maybe you have money owing or maybe you do not. either way its a pretty nice house. the money and papper you gave us were great, but you have been holding out on us. your house is great. Oh right it is protected by law and common sence. it is yours according to your elected statesman who foolishly lets him self be governed by the law. tuff for him i guess. he cant have it. But we here at the paper processing center... if you hand it to us and sign it to us. we will take it . I mean common, do you really trust your bank ? give it to us or there will be no one to take it. hurry. if you regret it, just remember we will kick you ass in just like we tried in the riots. but now we have better aim cause your face book lets us know where your hole is (thanks for tweeting about your bowel movements) . Hungry ? ill sell you some Monsanto apples. mmmm mmm good
We will be very lucky if end up with a 55% recovery (45% haircut) on PFG Best accounts in the USA. So far, we have only 30% recovery (70% hairvut). I believe that a number of small banks have gone under in the USA with little or no recovery of amounts above the FDIC insurance amount. So this is nothing new........
Cyprus and PFG are two different cases. PFG was fraud, there was no fraud in Cyprus, just nationalistic arrogance ( desire to help Greece out despite the facts), incompetence ( most basic rule of investing is diversification) and desire to make Germans pay i.e. Greek Cypriots doubled down on Greece knowing recovery was highly unlikely, this was done on the assumption that Germans will pay to bail Cyprus out when Germans caught a whiff of this thus the "Cyprus event".
I agree that these are two different cases but to say there was no fraud in Cyprus is at best premature and probably naive. Once a Russian enters the room fraud is likely. If there are two of them it becomes a near certainty.
Russians did not own the Cypriot banks, were not the Central Bankers or the minister of Finance in Cyprus. The fraud Russians committed were laundering money through Cypriot banks and which did not cause their failure just the opposite it helped Cyprus and its banks flourish.
Maybe there is no problem? I have been doing a bit of learning, tus out that debt it not really a big deal. It makes sence of why there is no inflation in the USA either. It is possible that peoples perception of debt is the problem. Because of the perception countries find it hard to print money. Actually money it self really is not much. Japan has been trying so hard to bring in inflation and it just cant! It prints and prints, nothing happens. They export, yet nothing. US imports as much as they can. the doors are open. they take from countries and give paper. We get stuff they get money. In essence "They" are our slaves working 10 hours a day so we can have our spoils. I know it must be more complex. but they say that the USA (and any country) can pay off its debt simply by wiping out every ones saving. the amount saved is equal to the debt to the dollar. I dont understand it completely (as money goes out?) but that is it take all the finnacial holdings of US citizens and it should equale the debt. The USA does not take a loan from any country in reality. other countries invest in our loan at their risk. printing is good. that is why the USA does it. They just need to print more. Either that or people need to let go of savings. A tax holiday with the printing press one would solve our problems. but the people do not allow it . That is where the EU comes in, they all agreed to give up the power to print. this means that printing is no longer controlled by the people (they have no say) Problem solved ? not quite, you gota slow your way in to it a bit to make people think you are doing a better job then the old system to make sure the people have faith in the currency as they are misinformed. Also some balancing of the countries makes people feel like things are fair before the bail outs comes. The bail outs should be done in a way that the USA does and not so much by country. governments can they start highering and creating jobs and then create sales. Every dollar printed stays in the economy and nothing is really lost. Its goods that have value, importers make money. Chine exports but they also import and try to store commodities. so they are importers and exporters. Africa exports so they loose as always. the greedy make money. Just for a second imagine that a country can print whatever it wanted to and it would have no effect but make its citizens richer. Inflation is not an issue as we see . this new idea may be catching on. inflation is not an issue, we were scared of something and never questioned if it was there. interest is so low, printing so high. no big change. wars, housing bubbles ect. price stays relatively steady. Now as people learn this they may say, wait a sec, that means that the gold price is not up cause of inflation,. it is just demand. gold is not as interesting to people who now see. (assuming that this is new knowledge) Gold stagnates. It is still a commodity, and importing anything is good as you bring wealth through products. The euro just needs to turn on the machine once it is sure that the currency is accepted. Actually it is said that when people pay taxes the government just deletes the money. they don't need it, it is just paper. If they cant print, they try to decrease taxes. friction again. so they try interest rates. the alternative is to get money out of peoples accounts. what would you try to do if the banks failed? youd try to withdraw. Oh but you cant ! hmmm now you are really worried, how will i get the money out you ask ? there is not enough cash. Heck no time to think, just do whatever buy a car, you can resell it down the line. just get your money out of the bank... that has the same effect as printing. it creates sales that create jobs. That would mean all this commotion is just because people don't understand the simplicity of the situation!! Try to explain it to them and they think Bernake is pulling our leg. Ron Paul made him look like fool! well yeah sure, that is because it is just so simple that you dont have to really know much. printing has done nothing but brought us happiness. Reversing that is has brought us problems. But since people wanted a conspiracy, they had to give them one. They create a problem that is so big that printing wont be looked down on so much. Kinda like tHE USA does with war. Individuals are limited, they cant print, the rules are not the same. the casino can make as many chips as it wishes nothing really changes. Think about it, say you have a bunch of money. another guy spends it all and buys land cars a food supply a farm a cow. whos rich? Why else would they join the EURO ? to make trade easier ? was it hard ? government hiring is frowned upon unless there is war. so the people make it hard and force war upon them selves. I wonder about sanctions. in Iran and North korea. Do the sanction limit imports or exports. Im sure iran sells oil. but they cant import. why would they want iran to continue to export ? 80 % of exports are oil. so they can only limit imports. under the old system this would make them rich. It would be better to do nothing and allow imports to stop. But the new system says money is worthless "it is no obhect" so they can only export tangibles. there reserves of oil goes down. So why is the gold holding a secret ? cause they sold the gold as it is better for the economy. (some how)(basically everything is opposite) And then the Germans ask for their gold back... they want it back at a slow rate. this should force the US to try to print more. but they will have friction. Germanys demand back is kinda of slowing the economy. Assuming the germans asked for their gold without aby previous discusions with USA (a bit unlikely) that would make germany the enemy. If it was like many think, one countries loss would be the others gain. but whos change in rate of growth added to the USA's rate of growth equals 0? IS there a winner? No country wins. the people just have too much saved. pensions, tax shelters 401 what ever. If we do not let them print, we force them to rob us so we can have jobs. How much debt is too much ? Seems like the consensus is that we should stop whenever we hear numbers that have an extra digit. billions we are used to but trillions is bit hard.. that must be where it all breaks down we think. but we can print our way out of it forever. They dont care about currency, or money. Inflation maybe a bit, but it is another story that is not as related. They just want to make sure people have jobs. Or money even if it is free money. Then the people are happy. Now thorugh all of this there will be personal corruption where people place themselves in lucrative situation. But they do not have to "bakrupt the country" to be in such positions. It is as easy as to place your self in the right market trying to help the country (just reverse your position) We are forcing them to merge in a way that laws are bent and broken so that the politicians are no longer linked to the stigma of printing money. They getting bored of finding ways to lie and do dumb things and to do the right thing in order to some how get you to vote them in again. Why the dont do infrastructure? i dont know. cause it is a corrupt system? Or possibly because it is a long term effort. and when things start to move they need to lay off fast to keep optimum levels. They feared inflation. it was not there. now may be they are a bit worried about negative unemployment. not cause it is bad but it is unknown. So they higher people to do stupid things out of sight. They tell them to go and site in the DMZ and stare at people staring at one another. Id like to think that some one in china buying the USD complicates things and will put things in a new perspective. but I dont thing that may happen. It just so may be that money is simply worthless. food may be worth more. People may catch on, Hence the monsato alliance. Maybe the banks were not in control the government just wanted to use them to make money. the NWO os about hard assets. All of a sudden monsato is in the back pocket of the GOV. lobbying ? sure but which way? Goldman sachs sitc in the government. we assume that they control the government. maybe just maybe the government said to goldman ;; look if you let us mess with your heads and work with us we will give you a nice coucheny retirement package and all you need to do is show up and give tthe impression you you work here on big days. Now everything is opposite. EIther way it is just a story. the idea is to get an idea of what happens next . More drama untill the flood gates of infinity printing can be opened without too much outcry done through distractions. If it dont work, buy buy north korea. The wars may be our fault? If any one knows what I am talking about, I would be interested to know what this all means for gold. It may actually mean that buying gold is a deterent on the economy. China may of needed its growth slowed so they may have bought gold.?
When you launder the money typically moves on to a safer jurisdiction. You have to bet that is what the Russians did here. What they are losing is the proverbial tip of the iceberg. The Cypriots have lost a country. Do you think the Russians may have bribed an official or two?
90 % of my clients are from Russia and all and I mean all of them have money in Cyprus. 40% haircut seems low -now it is much higher amount. Crazy World !