Max
Keiser comments on Cyprus
The
debt bomb just got bigger
Max
Keiser
The
amount of debt worldwide is more than all of the bank accounts in the
world, and the current financial situation in Cyprus is the
inevitable next phase: Confiscation.
RT,
18
March, 2013
All
pretense is now gone that central or global bankers can 'securitize'
growth by packaging and repackaging debt; by hypothicating and
rehypothicating debt; by regulating and rergulating debt. Since the
bond market rally began in the early 1980s (yes, it's that old) each
crisis has been met by central and global bankers – the IMF, EU and
ECB, to name a few – and their Wall St. and City of London brethren
with an increase in debt, and an extension of the debt's maturity.
The
result has been – as of 2007 – the biggest mountain of on-balance
sheet and off-balance sheet debt in history: A staggering $220
trillion in debt in America's $14-trillion economy alone (when you
include all public, private and contingent liabilities of unfunded
entitlement programs). Deals in the global debt derivatives market
now stand in excess of $1 quadrillion, riding above a global GDP of
approximately $60 trillion.
But
starting in 2007, and then becoming spectacularly apparent in 2008
with the Lehman collapse, the ability of the world's taxpayers to pay
either the interest or principal on this debt has hit a brick wall.
And for several years now, governments around the world have tried
the same old tricks of 'extend and pretend.' Repackage and extend the
maturity, and pray that tax receipts start picking up enough to pay
some of the debt off. It didn't work. The debt bomb just got bigger.
Now in Cyprus we see the inevitable next phase: Confiscation.
To
pay off the debts that were incurred to finance the biggest wealth
grab in history, we see in Cyprus, as well as central and global
banking institutions around the world, a trend to just reach in and
grab people's money from their 'insured' bank accounts. We should
have figured out this was coming when JP Morgan (read: Jamie Dimon)
reached in and illegally stepped ahead of customers at MF Global and
grabbed over $1 billion, with the help of his crony pal Jon Corzine.
Have
we learned our lesson yet? They have more debts to pay than there is
money in all the bank accounts in the world. This means that chances
are, you – whoever you are, and whatever country you live in –
will have a sizable percent of your savings stolen by banksters.
Since
the crisis hit (and for several years leading up to it) we've been
recommending on ‘Keiser Report’ to put as much money as you can
in gold and silver. Our advice then and now is: The only money you
should keep in a bank is money you're willing to lose.
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