Cyprus Deposit Tax: Could This Start A Rush To Hard Assets?

If you live in the US, Cyprus is probably not a big deal. If you live in a country that is a member of the EU, then it is a big deal.

Growing pains? The EU has been around since 1992 when the Maastricht Treaty was signed. 20 years is a long time to have growing pains.

I would hold off parking money in Germany....remember they will be having elections in September of this year and Merkel is trying to get relected. One of the reasons that Cyprus was treated differently. How would she explain to the German public that they bailed out Russians?

Looks like attention is back on Portugal since the courts here have blocked cuts.

In the UK, folks are still not happy that the public did not get a vote on the Lisbon Treaty and with David Cameron regarding his on/off/on again EU referendum promises. By the way, I have met Nigel Farage (even have a photo of him and me).

The US Senate recently blocked an $65 million increase of funding to the IMF.

Ken

20 years and the first real financial crisis. Europe is totally going through the growing pains of understanding what they did and the weaknesses within.

ummm most of you miss the point.. if things were seriously bad about this,, the credit spreads would widen. I wasnt talking about credit.. for the love of god... many of you are clueless :/

Heres another,,, why Cyprus doesn't matter... things are humming along fine with the aid of CB's whether you like it or not. You can go on and on and on and on and speculate till you are blue in the face about this or that. But guess what, markets dont care.

Dream on if you are of the thought that Cyprus means anything

Look my friends-

why do I blow off or ignore this Cyprus news? Why am I so stubborn and wont budge? Is it that I want to stick my head in the sand? Is it I am overly positive and see things via a rose colored tint with fuzzy rabbits and babies and candy canes? Is it I want to instigate problems or cause problems?

Let me state one thing before I proceed- I trade commods, currency and stocks from any country. I wish to only follow a trend. When it comes to gold and silver, I will follow the trend. ... and dont get me wrong. I feel EVERYONE SHOULD own for the long term and add when the prices are right, gold, silver to their savings accounts. By no means am I saying these hard assets arent good.. they are, so long as you buy right and dont go overboard. Ok now we got that out of the way-

my dear dear fellow coin fiens and collectors of shiny silver and gold- the biggest reason is the strong hand of central banks. One cannot beat them. They have the ability to flood the markets with enough liquidity that fear and panic are slowly but surely flushed out.

They have the power and the authority to weaken credit spreads,,, bond yields and more to bring calm and order. As you all have seen, they have the power and exert great influence to knock down their own currencies. Betting, or going contrary to the CBs is very costly and they will break the back of anyone attempting to front run them. It cant be done. ... and please dont forget they ALL work together.

Secondly, my friends.... there is a point where assets fall enough, hard enough, swift enough,,, where the markets decide they have value and are ready to, in a aense to start from scratch as a recovery starts. These hedge funds, funds, banks, theres no, zero, zilch, zippo, nada,,, gain for them for a scenario where everything gets smashed to zero. They will stop, and start to snap up all these assets.

This also includes the debt of all these countries that are having trouble. For pennies, dimes, on the dollar, all this debt by these countries, will be repacked, sold and someone will take advantage of debt buying it for pennies on the dollar and in time turn around and flip the debt for a huge gain.

Lastly- no matter what and how much free money CBs inject into the system, they will find or invent a program to suck up the free money. Trust me, they will find a way.... and YES.... I do think they print it, circulate it, and in the end, they buy it and mop it up themselves and put it away in some spot.. until the next time. .. and yes, I said that.

I understand how you all are very spectical of what the CBs do. But in the end... if you look closely and are in the thick of this,, can see that no matter what,,, the mighty hand of the CBs is always present and it is something you cant fight nor think will disappear from being around.

I certainly hope you can now understand why I adhere to the stubborn line that Cyprus is not a big deal.

- Oh to the contrary,in reality, no-one(private investors) is buying debt,they(member banks) are creating even more exponential-debt and crisis to root out and bleed to death all those holding hard assets(real money).

7676

Correct me if I am wrong but I believe The Fed contributes about $85 billion annually to the Federal Government from the profits on its investments. That may be a pre expense figure.

ummm...i dont have much time to break this done but lets be clear what I mean by "Debt" in my post in this thread.

I am referring to eurozone debt, I am talking about all these countries that have done bond offerings, thats the debt, it is sold and repackaged as bonds. It pays a yield....

so lets stick to my forum thread... I was addressing Cyprus, Greece, Spain, Port, It, etc.

I KNOW FOR A FACT the debt IS being bought.... these are bond offerings. SO please lets stay on course.

We can get into a discussion of other debt if you wish, at another time and place.