This past weekend, there was a major financial occurrence in Cyprus. On the surface this looks like it will help the country and politicians, but no so so fast!

It also does not appear on the surface to have any bearing on cars, but when the government seizes and removes €5.8 billion from the people, this eliminates this as money that could be used to stimulate the economy through purchases of — CARS homes and other goods and services.

Also it opens the door and establishes a precedent for other countries to follow suit. This is not a good thing for the economy or the people. And lets not forget that when the IMF ‘loans’ money they get collateral. That collateral is usually the natural resources of the country and IF the country doesn’t pay off the loan, the IMF seizes those natural resources.

Not a good situation by any  reckoning!  Here is Larry Levin’s ( a commodities trader in America) take on it. Please have a read.

“If you need to injure someone, do it in such a way that you do not have to fear their vengeance.” – Machiavelli

The politicians and banksters of Cyprus may need to fear the vengeance of the people of Cyprus.  Well after the market was closed Friday (of course only when the market is closed, right?) a bombshell hit the news wires Saturday morning: banking thugs and profligate spending politicians were bailed out by directly stealing from bank deposits.  The bailout actually came from the unelected nannycrats of the Eurozone, but it was only finalized when Cypriot officials agreed to steal ~10% from banking accounts across the country.

The Wall Street Journal reported the following BRUSSELS—Depositors in Cypriot banks will be hit with a one-off tax on their savings, as part of a €10 billion ($12.96 billion) bailout for the Mediterranean island from the euro zone and the International Monetary Fund.

The deal, announced early Saturday, marks the first time in the euro zone’s five-year-old financial crisis that depositors in bloc’s banks will lose money. Accounts with more than €100,000 will be taxed at 9.9%, those with less at 6.75%, raising an expected €5.8 billion for the near-bankrupt nation.

It is sickening enough to see one ridiculous program after another where the government claims it is going to bailout the scum-sucking bankers, knowing full well that we will pay for it in the distant future somehow, but this is so brazen it is stunning.  To hell with the people’s savings accounts – politicians and banksters need bailouts.

If this happened a few hundred years ago, maybe much less, heads would literally roll for such a thing.  Moreover, it may not actually be a “one-off event” as it was initially reported.  In a CNBC report we read “Cypriot officials insisted no levy on smaller depositors was impossible. One senior Cypriot official involved in the talks said that because about 35 percent of all deposits are below the threshold, exempting them would mean a rate so high for the rest that it would no longer be viewed as a tax.

“’If this is successful then it will be used in the future,” said the dejected official, predicting Spanish and Italian banks could face similar levies. “If this is not successful then who cares about Cyprus.’”

Banks will be closed in Cyprus until at least Wednesday, so if you’re reading this and assuming you would close an account and keep all of your money – you can’t.  The government has seized all assets in said accounts and is stealing their money as we speak.  When they are done, what remains may be withdrawn when the banks open.

From what I understand there is deposit insurance in the EU, similar to that of the FDIC.  But when it gets right down to it, it simply doesn’t matter to a broke politician.  To hell with the insurance – just take the money and screw the little guy.  After all, the bankers are paying for the political re-election campaigns and such so why would they care.

“If this is successful, it will be used in the future” the official said.  So perhaps this will happen in Spain, and Portugal, and Ireland, and Italy, or even France – right?  The market thinks it’s possible and that there may be bank runs all over Europe Monday morning.  The ES is down more than 1% and falling.

But that could never happen here in the USSA…oh no, our scumbag politicians never lie.  Our money is safe with the FDIC for sure.  Right?  After all, $17,000,000,000,000.00 debts and ~$150trillion UNFUNDED debt is no big deal for us because we’re the USSA: we can do anything we want, whenever we want because financial reality ends at our shores.

Inside the shoreline of the USSA we can just pretend that spending $1TRILLION every year beyond our tax revenue is normal.  No worries.  “OUR” politicians would never lie to us, and our banking system is rock *cough* solid *cough.*