Mar 24

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Cyprus, the Domino Effect and Us

by  Joe Cherry

The Island of Cyprus is in trouble, big financial trouble.  The economy there is typical of any other nation economy with it’s history of monetary “bubbles”.  Tourism and casinos are the resource batteries that keep this country afloat.  There have been housing booms and market booms, just like other nations and just like other nations, this one is in trouble.

Cyprus’ overgrown banking sector has been crippled by exposure to crisis-hit Greece, and the EU says the east Mediterranean island must raise 5.8 billion euros on its own before it can receive a 10 billion euro bailout.

Without a deal by the end of Monday, the ECB says it will cut off emergency funds to Cypriot banks, spelling certain collapse and potentially pushing the country out of the euro zone.  (Reuters) Sun Mar 24, 2013 9:39am EDT

So, in the eternal wisdom of politicians, they decide to put a levy of cyprus bank lines10% on all bank deposits over 100,000 euros.  That went over as well as a screen door in a submarine, the result being a run on the banks to which is still going on and will continue because the trust in the banking system and government has been breached.

Well, after riots in the streets and protests from Russia and Germany, (big depositors in Cypriot banks) the powers at be decided to rescind the levy.  With Monday being the deadline to raise 5.8 Billion euros and the lines at the ATM’s continuing, we are witnessing the breakdown of an economy.  As it is now, stores and pharmacies are not accepting debit cards……  cash or credit card, and will continue to decline until Cyprus is off the Euro.  That means that the island Country will have to create it’s own monetary system.

I wonder if I could place a bet in a Cyprus casino on the economy surviving and I also wonder what they lay the odds at.  Weird and almost out of a Twilight Zone tale.  But as I mentioned in earlier articles of the domino effect, this small Republic is at the mercy of the on going problems of Greece.

Greece, Ireland, Portugal, Spain and Italy are facing similar economic problems with high unemployment and unprecedented social dependence.  It is just a matter of time before the dominos start to fall.

 Meanwhile, back at the good old USA, we continue to see the stock market at all time highs while manufacturing is low, major cities at facing bankruptcy and unemployment is staggering if you consider all those who aren’t working.  Look up housing starts for the last year and also Google average salary for public and private sector jobs.  Then look at unemployment figures for the last 3 years then ask yourself, “why is the stock market so high?”   It doesn’t take a rocket scientist to figure out that the market is “propped up” with bonds.  Bonds.  Good diet when there is no money left.taxpayer-screwed

And all the while, state Governors and Washington politicians are scrambling to find ways to tax us more and more to pay for their corrupted ways of doing business.  Democrats just passed a budget after 4 years of denial which incorporates a 1 trillion dollar tax increase over the next 10 years and no budget cuts.  Only 4 democrats voted against the deal because it’s too close to re-election for them.  What a bunch of phony cowards!.

All the while in figuring ways of stealing our money they send Billions in dollars in aid, tanks and F-16s to Egypt’s Muslim Brotherhood.  They are enemies of Israel and the west. Doesn’t anyone question why money and resources like this are thrown away?  Does anyone question the lavish and expensive vacations our President and First Lady take while people here sleep in the streets?  Is anyone questioning the proposed changes to our Constitution?gun ban cartoon

Folks, they will push and push, they will squeeze the lemon for all the juice and then some.  They will try to enforce their wills and agendas on the common man and continue to push until there is no more to push on.   Then they will shove.

Wake up folks and look around.  Ask the hard questions and seek answers, if not for you….. your children and your grandchildren.  

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1 comment

  1. Tanya

    I completely agree with you. I think that the world as we know it will come to an end. But I don’t think the world itself will. Obama seems to be doing whatever he wants and nobody does anything about it. Its like nobody even realizes it. Something else to check out is Click Here!

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