Cyprus is the Next Problem

Cyprus is a small island nation off the coast of Turkey.  They too are a bankrupt member of the European Union.  The government is going to default on its debt payments unless the EU comes up with some sort of bail out and gives them a bunch of cash.

So Cyprus came up with an idea of how it can come up with some money....THEY WILL TAKE IT FROM PEOPLE'S SAVINGS ACCOUNTS.

Yep!  It is being proposed by legislators that they could take as much as 10% of any body's savings on deposit at the bank.

Of course when the people got wind of this they rushed to the bank to take out cash...but then the nation declared a "bank holiday" and shut the banks.

Wow...history does repeat itself.

Banks will remain closed on Tuesday and Wednesday to avoid a run on deposits in the absence of the necessary legislation.

The Cyprus banking crisis has rattled money and stock markets along the Far East and Europe. Stock market loses up to 2 percent and the euro slipped both against the dollar and the yen.

In a move to sway opposition deputies, President Anastasiades has promised that compensation in the form of bank stock to be given to savers who will have their deposits slashed will be secured by government bonds tied to future gains from natural gas development.

Here;  http://news.xinhuanet.com/english/world/2013-03/19/c_132243575.htm

Did you catch that??  The government has promised to give paper IOU's to the people whose savings accounts they have raided.

So they take the REAL MONEY today and exchange it for a paper promise from a bankrupt government who has promised to tie the paper to an event that has yet to happen....GOT IT?

Remember friends, our own U.S. government TOOK ALL THE GOLD from its citizens in 1933 to prevent collapse.  If they have done it once...it will be very easy to do it again.