What is counterparty risk? It is the risk to each party of a contract that the counterparty will not live up to its contractual obligations. Counterparty risk is a risk to both parties and should be considered when evaluating a contract.
Are you involved in a counterparty risk contract? If you have a bank account you are. When you signed your signature card, you entered a contract with the bank. When you deposit money in the bank, it becomes a liability of the bank, they owe you money. Until you have all the money from the bank in your hand, there is counterparty risk. But wait, I have FDIC insurance to protect me from the insolvency of my bank. For those with less than $250,000 in the bank (that is most of us), this statement is true. However, the FDIC is grossly underfunded and if there were a major banking solvency event, you are at risk just like the big boys.
The powers that be have moved us away from currency in our pockets to digital forms of money they can control. The convenience of credit and debit cards has lulled us into a position of greater risk… and control. As things get dicey with the greed running rampant through the financial system over the last few decades, we will find out who really trusts Our Heavenly Father when the fragility of the current banking system is fully exposed. Corporations and other large depositors are at notable risk. We are living at a time where there is no past example of deliverance of such a system. Those in charge are more interested in their personal survival than the good of the people.
The only long-term solution to problem of this size and complexity lies with Our Heavenly Father. No man walking the earth has enough wisdom, understanding, knowledge, and skill to bring forth a successful conclusion to the epic events that lie ahead. It would appear the Love has exposed and initiated this sequence of events. Cyprus means Love in Scripture. How appropriate that the counterparty risks of simple bank deposits would be exposed in such a fashion!