When future history notes that financial collapse marked the early years of both the 20th and 21st centuries, the “Rape of Cyprus” may serve to model what followed 2013; at least some highly qualified observers have predicted it. Cyprus reports the latest of these predictions, prophesying exact;y that. Adding gravitas to this prediction is an earlier report quoting the Chairman of the Eurozone saying essentially the same thing, as we have reported.
For those who missed our earlier report; the government of Cyprus simply grabbed the funds Cypriots had deposited in the island’s failing banks in what is likely the largest robbery the place has ever seen. The government first proposed to take ten percent of those funds; the resulting fuss led to exemption of up to $100,000 euros with forty percent of the rest forfeit. That became sixty percent and the final ‘haircut’ remains uncertain. Cyprus has been impoverished overnight, by its own government.
This little island economy will come to be seen as the first formal economic collapse in what will be a historic, world-wide chain of depression that will dwarf the 1930’s. As our two linked prophets have provided, it will be the poster-impoverishment for what will follow. No one confined to this planet will avoid a share in the economic readjustment and political fallout that we see coming. Politicians, (who created the collapse in the first place) will try to exempt themselves; some will succeed. The super-rich will hide behind their wealth as they have always done. Everybody else will pay for allowing the swindlers to sell their grift for so many decades by regularly reelecting them in the hope of something for nothing.
What can citizens do to protect themselves? Not very much; can you take on your government? This is first, about bank failures, including your bank. So you might want some money that isn’t in the bank. People’s mattresses used to be popular for that; I’m sure you can do better than that. Keep it quiet though, when things hit the fan, folks may come looking for it. You’ll be wise to hold some silver or gold coins too, in case paper money becomes a problem via sudden inflation or a bank freeze. You might want to keep a bit more of immediate necessities on hand in case shopping is a problem for a while. The Cyprus banks were closed for nearly a week; U.S. banks were closed longer than that in the Great Depression.
Investments need some thought, too. Bank savings of substantial amounts seem a target. Debt (bonds, notes etc.) can be confiscated too and are inflation targets. Property–stocks, real estate, etc.–is likely overvalued at the moment and will be worth less as things proceed. Money is among the most risky forms of wealth at times like these; Venezuela just devalued its currency forty percent and you remember that President Roosevelt, a model for President Obama, devalued the dollar forty percent in the Great Depression. The best advice seems to be: don’t rely on any single refuge to store purchasing power; use as many as you can.
All this probably sounds extreme, tinfoil-hat territory. After all, few alive today recall anything like this; perhaps it won’t happen. Sorry, but whistling Dixie as some used to say, won’t alter the facts and those are in place. You have little to lose by being as ready as you can, and much to gain.
Oh, yeah: guns and ammunition? Sorry, nearly forgot. They’re likely to be hard to get and to retain value; a decent investment. Will you need them? Well, the government is investing heavily in both guns and ammunition of many types, if that’s any model. The government has built prison camps and is training the military for controlling civilians, too. You may decide for yourself whatever that means…
So, will the ‘rape of Cyprus’ be playing soon in your neighborhood? I dunno–do you?