I am writing from a very fearful Spain. The looming Banking crisis in Cypress has nearly everyone in Spain concerned. When the story first broke nearly ten days ago, the Spanish Stock Market dropped, and the price of interest on Spanish Bonds doubled in one day. The Troika (as they are being called), the IMF, the EU, and the ECB, calmed fears somewhat by saying it was only a one-off decision in relation to Cypress. But is it really?
The Euro Group formed by the Troika from a group of European Finance Ministers has made a new demand in face of the opposition to the initial orders, which failed to pass the Parliament in Cypress. They now demand 20% of deposits over 100,000 Euros and the closing of the second largest bank in Cypress. This stipulated because deposits up to 100,000 Euros are insured, and deposits over that amount are not.
All of this works as planned in Europe. The bankers will expect to recoup as much as 10 billion from this so-called “Haircut” on account holders. But wasn’t it the bankers who did the bad investments with the depositors’ money? Why do the depositors who have saved and are receiving virtually no return on their savings currently, due to low interest rates, now have to bear the cost of bailing out the bankers who lost the money in the first place? Think about it. It is because they can. There are strict gun laws in nearly all of Europe. Of course, the people demonstrate; of course, there will be demonstrations against this action. But as people in Cypress are now restricted to a mere 100 Euro per day as a withdrawal limit, what can they possibly do?
Think for a moment what would happen in the USA if the people were restricted to a mere $100 limited withdrawal per day and the banks were closed on Bank Holiday for 10 days. Would there be animosity towards the Bankers, demonstrations, or worse?
Could this be why the 2700 armored vehicles have been purchased for DHS, along with an estimated 1.5 billion rounds of hollow point jacketed ammunitions. The question hangs as a hammer over why Janet Napolitano refuses to answer questions surrounding this subject.
As recently as March 18, 2013, a train was sighted near Peach Springs, Arizona carrying well over 100 of these vehicles along with many other types of support vehicles of a military type (and what appeared to be cases containing unknown material, possibly ammunition.) This was caught on tape by chance. How many of these trains are active in the USA? What is their purpose? Where are they headed for? These are all questions to be put to representatives of the people at all levels. What person can trust a government that carries out such operations without any legislative sanctions?
Personally, I find it difficult to trust an administration that proclaimed it would be the most transparent in history and then refuses to answer honest questions asked in a direct and simple manner. Reminds me of coming home to find that the children have misbehaved and getting the “I don’t know what you mean” answer when asked what happened.
Photo credit: Sumi-l (Creative Commons)