Federal Reserve

Here's more evidence that the law is for serfs, not our thieving rulers.

"Under European Union treaties, restricting the free movement of capital is normally forbidden. But the European Commission issued a statement Thursday morning that the unprecedented imposition of capital controls in the euro area in Cyprus was legal. "

This is pseudo-legalized corruption. I hope this opens people's eyes. Government exists for the sole purpose of stealing our money.

"Meanwhile, in the halls of power, Parliament was scheduled to vote later Thursday on a resolution demanding the resignation of Cyprus’s central bank chief, Panicos Demetriades.

The Cypriot president, Nicos Anastasiades, has sought to blame Mr. Demetriades for implementing measures required by Cyprus’s lenders that will lead to the closure of Laiki Bank, the nation’s most troubled. The move raised questions about maintaining the independence of the central bank."

The independence of all central banks is an illusion. The government creates them, the government appoints bank officers, and the government ultimately controls them.

"One of the customers lined up at a Bank of Cyprus branch, a 27-year-old businessman who would give only his first name, Miltos, shook the stack of papers in his hand. It represented nearly €40,000 of bills he owed the suppliers of his small telecommunications company.

The long bank closure had damaged his business “terribly,” said Miltos, standing under a warm sun. Unless he could persuade Bank of Cyprus to let him transfer more than the €5,000 limit for the month that the government has decreed, he said he feared he might soon go out of business. “I'm trying to hold on by tooth and nail,” he said."

They don't care about any business but the fraudulent fractional reserve banks.

"When the European Commission issued its statement Thursday stating that the imposition of capital controls by Cyprus was legal, if unprecedented, it stressed that the measures should be rescinded as soon as possible."

They lie. I doubt they'll be rescinded any time soon. More on the lies.

"The rich pol who runs Cyprus, in cahoots with the banksters and the EU, had promised that capital controls would be lifted in a few days, then a week, now about a month. But that is all eyewash. The controls will last for years. Why? Because the Cypriot banks, like all fractiona;-reserve banks, are bankrupt, and it takes only a relatively small number of people withdrawing their money to put them out of business."

Picture of a business' bank account balance in Cyprus. Nearly all of its funds are blocked.

Legendary investor Jim Rogers is taking his money out of banks and advocates everybody else do the same. Bank runs and the collapse of the fractional reserve banks was always inevitable, but the hard part is figuring out when. It seems when is sooner instead of later.

Peter Schiff wonders why anybody leaves money in the bank.

"Schiff predicts, “There’s no question . . . banks will fail. The question is will government do the right thing and allow depositors to lose money. Or, do the wrong thing and bailout depositors by printing a bunch of money which, in the long run, means deposits will lose even more value.” The FDIC has just $33 billion to insure more than $10.8 trillion in deposits. Schiff is not expecting bank runs anytime soon. “Don’t expect an immediate stampede on the banks because I don’t think most people are smart enough to realize what the danger is,” says Schiff. What’s the best way to protect yourself? Schiff says, “Why would you leave any extra money in a bank to get zero percent interest. . . . I think pull your money out, put it into some kind of investment. . . . anything other than a piece of paper that’s going to lose value.”"

Even though there's a bubble in treasuries, the government won't raid them.

But the best bet is gold.

Article claims the actions in Cyprus are lawless and exceptional for an outpost of great empire like the US. I'm skeptical. Government as we know it is always about stealing money. Furthermore, I've always claimed that laws are for serfs, never rulers. It's been that way since before human history began. The theft perpetrated by Cyprus and EU officials regarding Cyprus is perfectly in line with that observation. Maybe the details are new, but the principle behind the actions - theft - is universal.

Accounting example of fractional reserve banking.