Early Saturday morning, the EU authorities decide to give Cyprus: a €10bn rescue package in return for a series of unusually harsh conditions. In a shock to everyone, including admittedly Open Europe, the deal included a “tax” on depositors: 6.75 per cent for anyone with less than €100,000 in a Cypriot bank account, 9.9 per cent for anyone with more than that. See: http://blogs.telegraph.co.uk/finance/matspersson/100023412/tomorrow-cyprus-could-vote-to-leave-the-euro-this-is-political-dynamite/
The Russians have a lot of money in Cyprus. It is said that Putin is one of many former KGB officers who has a substantial account there. If so, the fireworks are about to happen. The moment you start messing around with someone’s personal money, there is “hell” to pay. How would you like to simply have 10% less cash today than yesterday? How would you like to have your life saving slashed on a Saturday morning without your knowledge or prior notice?
If the EU will do it, who else will? With other countries moving down the black hole of major debt issues, all of them will be watching to monitor the fallout. Will the bank runs jump the ocean to the U.S.? Both gold and silver may be the immediate beneficiaries of this bold move. The rule of law just went out the window in Cyprus. the innocent are paying for the guilty once again. Be vigilant, it may get ugly fast.