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Conservatives Must Build a 'Bite Me' Coalition

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Comment by Gordon Ray Kissinger on March 19, 2013 at 2:58pm

DHS Insider Update: It Has Begun

Photo Credit: Canada Free Press

Much like my high-level source within the U.S. Department of Homeland Security outlined in a series of interviews beginning last year, the orchestrated collapse of the U.S. dollar and the entire world’s economic system has begun. The first shots in a global economic take-over were fired in Cyprus as my esteemed colleague and founding editor of Canada Free Press, Judi McLeod laid out in frank detail in her column yesterday and her follow up today.

Please read it and heed her advice, or suffer the consequences of your own normalcy bias that such an event will not happen in the United States, Canada, or from wherever you might be reading this. It will, and the plan appears to be on schedule for a shot across the bow later this spring here in the West, with a more aggressive take-over starting sometime this fall, according to my source.

The Plan
To those needing a quick refresher, the plan is quite simple and can be summarized by the Clinton-era quip attributed to political strategist James Carville, “the economy, stupid” and the June 9, 2010 statement by former Obama czar Van Jones, Socialist extraordinaire, “top down, bottom up, inside out.” It is a plan for a one world Communist economy where the “middle class” will be wiped out through a series of events that will have the same ultimate effect as we are seeing in present day Cyprus.

Based on the events in Cyprus, it should be quite clear to even the most vocal critic of the legitimacy of the information provided to me by my source within the DHS as published on this web site is no longer at issue. The U.S. dollar, the backbone of world currencies and the proverbial firewall preventing the erosion of our national sovereignty, is the ultimate target of a takedown by the global banking interests controlled by a handful of banks and families of the “royal elite.”

Read more from this story HERE.


Read more: http://joemiller.us/2013/03/dhs-insider-update-it-has-begun/#ixzz2O...

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Could Cyprus bank runs happen here?

Proposal would take money right out of depositors' accounts

By Garth Kant

With the Mediterranean island nation of Cyprus about to impose a confiscatory tax – up to 9.9 percent – on all bank accounts, resulting in a run on Cypriot banks, the rest of the world is watching anxiously and asking the obvious question: “Could it happen here?”

The economy of Cyprus is the third-smallest in the Eurozone, and its government is heavily in debt. Over the weekend, a group of European finance ministers came up with a $13 billion em...

The government of Cyprus would have to raise $7.5 billion through a tax on Cypriot bank depositors.

Under the most recent terms discussed, depositors with more than 100,000 euros, or about $130,000, would get 9.9 percent immediately deducted from their accounts. Smaller deposits would suffer a deduction of 6.75 percent.

It’s being called a “onetime” deduction, or tax.

Even though some economists say Cyprus is a special case and the “contagion” of taxing bank accounts is unlikely to spread, until now bank accounts worldwide, no matter how dire the government’s financial woes, have been held sacrosanct.

Now the government in at least one nation is poised to simply take money out of depositors’ accounts. That’s a first.

Could it happen in the U.S.?

Some experts say probably not – at least not in the same way as in Cyprus.

Economist, speaker and author Jerry Robinson, who runs Follow the Money Daily and is a featured columnist at WND, assessed the crisis in Cyprus.

“It has a lot to do with politics, Angela Merkel’s reelection bid and also a few others trying to stay in power,” he said.

Robinson said it’s interesting to observe that such powers are playing tough with a tiny nation like Cyprus, while bigger nations with worse economies, such as Italy and Spain, have not been attacked in the same way.

But he said the plans are drastic.

“This is nuclear war on the banking [industry],” he said.

Robinson said while the “tax” has yet to occur, he’s concerned by such actions.

Some analysts point out that in the U.S., government is already “taxing” Americans’ bank accounts by other, less obvious and more long-term means than the naked cash-grab playing out in Cyprus.

For instance, interest rates in the U.S. are near zero, so depositors aren’t getting paid for the use of their funds, effectively “loaning” their hard-earned money to banks. Then, thanks to inflation, their deposits become worth progressively less and less.

The real-world inflation rate – as measured by the actual rise in prices of essentials, including food and fuel – is far higher in the U.S. than the official 2 percent. But even using the 2 percent figure, over the next few years the buying power of American depositors’ bank accounts will be just as diminished as that of Cyprus bank-account holders.

But this new and unsettling form of “tax” isn’t the only concern. The immediate concern for many is that the crisis in Cyprus will spread, causing bank runs in other troubled European Union countries such as Greece, Italy, Spain and Portugal. A European financial crisis of that magnitude would undoubtedly hurt the U.S. economy.

Most American depositors take comfort in the fact that their savings accounts in banks and credit unions are federally guaranteed up $250,000. However, those government funds are designed to bail out very infrequent bank failures. They in no way could cover all depositors’ accounts in the case of a widespread run on U.S. banks, as is occurring now in Cyprus.

Respected hard-money proponent James Turk says bank runs in Europe are a wake-up call to all bank depositors aroun...

“Bank insurance means nothing these days when bureaucrats and politicians are looking for wealth to grab,” Turk said.

“To me this proposed bailout is outright theft, and theft cannot be justified, but the central planners are trying to do that anyway,” he added.

“The events in Cyprus are obviously a scary message that the Greeks, Spaniards, Italians and others are taking seriously, because they see that their money in the bank is at risk, too. But the less obvious message is that all money in banks is at risk. Not only are bank assets impaired, but all the banks are interlinked because they lend to one another and own a lot of debt of insolvent countries,” concluded Turk.

Not surprisingly, bank shares tumbled in Europe today. The latest shock comes as European banks are still struggling to recoup losses from the financial crisis.

Cyprus is particularly vulnerable to instability in the banking sector. The country’s banking assets are about eight times the size of the .... And foreign investors hold almost half of the 70 billion Euros deposited in Cyprus. Moody’s estimates $19 billion of those deposits are owned by Russian corporations. Many suspect the Russian mafia uses banks in Cyprus to launder money.

Russian officials had been considering reducing the interest and extending the maturity of a 2.5 billion Euro loan to Cyprus. Now, the Russians say they are reconsidering because the EU did not include them in bailout talks.

The European finance ministers are also reconsidering. The Eurogroup, as they are known, held an emergency meeting today to try to calm fears over the Cypru...

The Eurogroup now recommends that depositors with less than 100,000 euros be protected.

The finance ministers also have decided to give Cyprus more flexibility over the bank tax, but the country would still need to raise 5.8 billion euros from the tax.

A vote on the plan by the Cyprus parliament has been delayed until tomorrow.

The U.S. Treasury Department issued a statement: “The Treasury Department is monitoring the situation in Cyprus closely, and Secretary Jacob Lew has been speaking with his European counterparts. It is important that Cyprus and its euro-area partners work to resolve the situation in a way that is responsible and fair and ensures financial stability.”

But the damage may be already done to confidence in the European banking system. This is the first time a national bailout has proposed to impose losses on bank depositors. Some call that a dangerous precedent.

http://www.wnd.com/2013/03/could-cyprus-bank-runs-happen-here/

Comment by PHILIP SCHNEIDER on March 19, 2013 at 1:21pm

It's easy to dismiss the FED policy of printing (B)illions of new dollars because the immediate result (inflation) is difficult to discern AND the liberal progressive radical democrats are good at covering up the damage.
Take an average meal at McDonald's . . . . can you buy a burger and fries with a drink for under $5.00 bucks anymore? Or even more meaningful is the amount of empty space in all those boxes of cereal or other dry food products you have to buy for your kids breakfast, the price goes up but the amount of product goes down.
Those government economy experts are slowly killing us by squeezing the life blood out of our wallets.
`

Comment by Gordon Ray Kissinger on March 19, 2013 at 12:49pm

This is what's coming our way from their liberal agenda -

Former US Treasury official warns of system-wide collapse

Outspoken, controversial former Assistant of the US Treasury Paul Craig Roberts spoke yesterday about the problems that Western policy-makers face and the inevitability of the current financial system ending in ruin.

There are no economic policy solutions. You can’t deal with [the excessive money printing] by cutting spending because you already have high unemployment. How are you (the Fed) going to contain the inflation? Are you going to jack interest rates up and wreck what little is left of the economy? 

The whole thing is a disaster waiting to happen. And they (mainstream media and government officials) avoid it. There is no talk about it. It’s so obvious. How can you not see it? And yet they never mention it. So I just feel compelled. It’s my responsibility to mention it. Roberts claims that the game of printing money cannot last and that there are already early warning signs that the US dollar is slipping in its role as the global reserve currency.

Eric Sprott of Sprott Asset Management continued with the same theme yesterday in response to Roberts’ comments: They play games, and they manipulate things (such as gold and silver). They are so lucky because they get to borrow money at zero (percent) and lend it to people. They are given this right to make money, and then they turn around and lever it up, and throw derivatives on top of that. I totally agree that someday it will just fall apart and we will find out that none of the counterparties can pay. I’ve never been hopeful for the financial system. 

Ever since the 2008 financial crisis all we’ve had is printing of money and backstopping of banks. The one thing which has happened since Lehman, Lehman was a liquidation, and there has never been a liquidation allowed since. Nothing is allowed to liquidate, whether it’s Fannie, Freddie, various banks, nobody is allowed to liquidate, and I know exactly why they are not allowed to liquidate, because if they liquidated the first domino falls. And once the first domino falls, everyone starts worrying about counterparties and the whole system fails.

That’s why they need to keep propping it up week after week. Somebody is always getting bailed out.  It’s just ongoing and anybody who has any common sense at all knows it will end in ruination.

http://yourtubenews.ning.com/forum/topic/show?id=3181219%3ATopic%3A...

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