Monday, March 18, 2013



This weekend's events have a significance far beyond the utterly immaterial problems of Cyprus.

Economically it is tiny and the entire funding required is equivalent of one weeks deficit in the US, so why is it so  important?

For many months the EU elites aided and abetted by the ECB have practiced financial repression against savers, the backbone of the economy, by imposing zero interest rates, depriving savers of income on their cash; supporting corrupt and bankrupt banks, who are given virtually a licence to steal  to reconstitute their capital, lost on speculative ventures and massive unjustified bonuses. In addition, QE or money printing, destroys the value of existing cash by driving inflation. Add to this rising taxes and we have the proven Marxist model for destruction of the middle classes.

As if this were not enough, if the proposals are approved, we are witnessing straight forward theft, from existing private bank accounts, by way of a "tax" in direct violation of EU laws and treaties.

One of the most chilling documents I read in my lifetime, was a letter sent to the parents of a Jewish friend, who owned an apartment in Paris during the last War. It simply said as of next week you will move out and a certain German army officer will take over the apartment. Their wealth expropriated by the Nazi regime they were left destitute in the street and with a tragic future.

This Cyprus expropriation is potentially the thin end of a very large wedge, and who is to say where it stops, a 10% wealth tax, and next time 20%. Will the PIIGS Government desperate to save themselves try the same thing; will there be a property tax next; or a wealth tax; or will they simply rob your pension plan; and when some person cannot or refuses to pay, will their fate be like that of my friend's parents.

Make no mistake, this is a test case masked in a veil of breathtaking  incompetence, but the intentions have never been clearer, and anyone who does not see this for what it is, will live to regret it.

We must all confront and strongly oppose this tyrannical oppression now before it is too late. I know many will say this is gross exaggeration how could this possibly happen. My answer would be, don't you mean ...AGAIN?
While I do not give investment advice, if I personally were  either a citizen of, or resident in, a PIIGS country I would be moving all surplus liquid assets out of the EU entirely. If enough people do so, it could trigger a bank run and an economic collapse. Is it not better that this happens before all your assets have been stripped from you?
 I quote the famous words of a Holocaust survivor:

First they came for the Socialists, and I did not speak out--

Because I was not a Socialist.
Then they came for the Trade Unionists, and I did not speak out--
Because I was not a Trade Unionist.
Then they came for the Jews, and I did not speak out--
Because I was not a Jew.
Then they came for me--and there was no one left to speak for me.

1 comment:

  1. David,
    The below 'poem' has undergone many transformations since it first appeared in the seventies. It was put into the public domain by Sybil Niemoeller the second wife of the Rev. Martin Niemoeller. Sybil by all accounts came across a 1946 American radio recording of her husband where he established the context of Nazi
    repression. First they came for the communists, 2 the socialists, 3 the trade unionists, 4, the Jews and finally himself. It must be remembered that Martin was a supporter of the Nazi regime up and until his imprisonment by them. In 1980 4 years before his death he stated he had gone from being an ultra conservative to being a revolutionary communist.

    First they came for the communists, I was not a communist, I did not speak out

    Next they came for the socialists, nor was I a socialist; again I stayed quite.

    Now they came for the trade unionists, I was not a trade unionist; I looked the other way

    Then they came for the Jews, thank God I wasn't a Jew; again I failed to speak out.

    Today, today they came for me!