“All Fiat Currencies Are Being Debased And Devalued And They Are Losing Value Over Time”

Monday, March 25, 2013
By Paul Martin

by GoldCore

Importantly, Cypriots and other Eurozone citizens who own gold saw the value of their holdings rise 2% in euro terms.

While the risk of financial meltdown in Cyprus has been averted, the risk of contagion in the Eurozone remains. Wealthy individuals, businesses and corporations will likely begin moving some of their deposits from banks in Spain and Italy thereby deepening the crisis in these countries and the Eurozone.

Burning senior bond holders could create contagion again in European debt markets and now in addition to that bureaucrats have managed to make depositors in periphery nations nervous about their deposits in banks. This could precipitate bank runs in Greece, Spain and Italy with obvious negative ramifications for the entire EU banking and financial system.

Cyprus is a little domino which has fallen and may knock the larger more important dominos of Spain and Italy thereby creating contagion in the Eurozone. Especially as the political backlash against the EU and Troika is likely to be substantial and could lead to more power being gained by parties and movements that advocate leaving the European Monetary Union and indeed the European Union.

The cost of averting a Troika induced financial meltdown may condemn Cyprus to becoming an economic basket case with a vastly diminished financial sector and dependence again on agriculture and tourism.

The Rest…HERE

Comments are closed.

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter