What Would America Look Like After ‘Getting Cyprused’?
March 28th, 2013
Andy Sutton: There is little doubt that the past two weeks have brought about dramatic changes in most circles regarding the way people look at banks, bank deposits, and the monetary situation in general. This year’s ‘Ides of March’ will no doubt go down in history as a pivotal period where once again our world changed forever. One would be right in stating that there have been many such watershed events in the past decade and a half and that alone should be even more persuasive to those who believe we still live in the bull market of the 1980s. This is not your father’s market, nor his country, nor his world.
So what exactly happened in Cyprus that changed everything? The goal here is to provide something of a post mortem on the situation – with the recognition that it is still ongoing. However, some of the major decisions have been made and, fallout notwithstanding, are somewhat set in stone.
The Parallels with 2008 (And Before)
Make no mistake about it; ‘The Great Cypriot Train Robbery’ adhered closely to the now accepted methodology of conquest by fear used successfully in America in 2008 when the banksters wanted their $750 billion bailout from Congress.
While the purpose of this piece is not to relive that experience, it is critical that people see the progression in place just over the past 5 years. I must point out that all of these situations are able to happen because banks have outlived their usefulness in our society – at least in their present form. The whole purpose of having banks (of the Savings & Loan variety) in the first place was to solve one of the primary challenges facing a direct exchange economy – that of coincidence of wants. Or, to use more commonly accepted vernacular, to bring together those with savings and those with a demand for that savings. It allowed the saver to indirectly ‘invest’ in the commercial activities of the borrower. The bank acted as a conduit, charging interest to the borrower and paying interest to the saver – all at rates that made it economically feasible for all parties to engage in the transaction.