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Behind the veneer of “all is well” being promoted by both world
Governments and the Mainstream Media, the political elite have begun
implementing legislation that will permit them to freeze accounts and use
your savings to prop up insolvent banks.
This is not conspiracy theory or some kind of doom and gloom. It’s basic
fact.
In the last 24 months, Canada, Cyprus, New Zealand, the US, the UK, and
now Germany have all implemented legislation that would allow them to first
FREEZE and then SEIZE bank assets during the next crisis.
With that in mind, I want to devote some time to what has come out
concerning the Cyprus “bail-in” and its implications. The reason for this is
that this tiny country has provided the world with a template of what is
eventually going to be a global phenomenon.
The quick timeline for Cyprus is as follows:
· June 25, 2012: Cyprus formally requests a
bailout from the EU.
· November 24, 2012: Cyprus announces it has
reached an agreement with the EU the bailout process once Cyprus banks are
examined by EU officials (ballpark estimate of capital needed is €17.5
billion).
· February 25, 2013: Democratic Rally
candidate Nicos Anastasiades wins Cypriot election defeating his opponent, an
anti-austerity Communist.
· March 16 2013: Cyprus announces the terms
of its bail-in: a 6.75% confiscation of accounts under €100,000 and 9.9% for
accounts larger than €100,000… a bank holiday is announced.
· March 17 2013: emergency session of
Parliament to vote on bailout/bail-in is postponed.
· March 18 2013: Bank holiday extended until
March 21 2013.
· March 19 2013: Cyprus parliament rejects
bail-in bill.
· March 20 2013: Bank holiday extended until
March 26 2013.
· March 24 2013: Cash limits of €100 in
withdrawals begin for largest banks in Cyprus.
· March 25 2013: Bail-in deal agreed upon.
Those depositors with over €100,000 either lose 40% of their money (Bank of
Cyprus) or lose 60% (Laiki).
The most important thing I want you to focus on is the speed of
these events.
Cypriot banks formally requested a bailout back in June 2012. The bailout
talks took months to perform. And then the entire system came unhinged in
one weekend.
One weekend. The process was not gradual. It was sudden and it was total:
once it began in earnest, the banks were closed and you couldn’t get your
money out (more on this in a moment).
There were no warnings that this was coming because everyone at the top of
the financial food chain are highly incentivized to keep quiet about this.
Central Banks, Bank CEOs, politicians… all of these people are focused
primarily on maintaining CONFIDENCE in the system, NOT on fixing the system’s
problems. Indeed, they cannot even openly discuss the system’s problems
because it would quickly reveal that they are a primary cause of them.
For that reason, you will never and I repeat NEVER see a Central banker,
Bank CEO, or politician admit openly what is happening in the financial
system. Even middle managers and lower level employees won’t talk about it
because A) they don’t know the truth concerning their institutions or B) they
could be fired for warning others.
Please take a few minutes to digest what I’m telling you here. You will
not be warned of the risks to your wealth by anyone in a position of
power in the political financial hierarchy (with the exception of folks like
Ron Paul who are usually marginalized by the media).
With that in mind, now is a good time to prepare for systemic
risk. I cannot forecast precisely when things will get as ugly as they did in
Cyprus for the financial system as a whole (no one can).
However, the clear signals are clear that the Feds are preparing for
something big. The Treasury Department has ordered survival kits for the Big
Banks’ employees… and the NY Fed is expanding its satellite office in Chicago
in case something major happens that forces the market to collapse.
We’ve put together a FREE Special Report outlining the new legislation
that permits the Feds to seize bank accounts… as well as how to protect your
wealth from it.
You can pick up a FREE copy at:
http://phoenixcapitalmarketing.com/GWG.html
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