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Cyprus bailout bill fails, but the consequences continue

Mar 19, 2013

Last Saturday the announcement was made in Cyprus that people's savings would be taxed before the banks opened on Tuesday. The tax was supposed to be effective on Monday, March 18, during a holiday. But then the howl of protests caused a frightened Parliament to start backing down. The tax would be imposed on Tuesday, and the banks would not reopen until Thursday. Finally, Parliament voted down their own bill. Now what?


The problem is that the proposed tax on people's savings has destroyed confidence in banks, at least in Cyprus. People in Italy, Spain, and Portugal are nervous, too. They have to calculate whether or not they trust their governments to keep their hands off other people's money, money that has already been taxed and is left over for savings.

The global banking system has taken an enormous hit over this. Just how much of a hit will be seen when the banks reopen in Cyprus. Will the people punish the banks and the government by taking their money out of the banks? Will the banks fight back by freezing everyone's accounts? The banks are already on the verge of collapse, so it would not take much of a run to close their doors once again.

Watch this carefully, because if this goes badly in Cyprus, there is no doubt that the anxiety will spread to other European countries, and if Europe has a sudden bank crisis, it will spread to America. There are already some who are advocating that people take their money out of the banks now. While such drastic action might yet be premature, we should recognize that the financial world has crossed the threshold into very dangerous territory, and if the wizards of oz don't figure out something within a few days, the unraveling could become irreversible.

Cyprus may be the final chess move before the check mate of Babylon.

Jim Sinclair, an economist who worked under Fed Chairman Paul Volker back in the 1980's, understands that the Cyprus situation was a poke in the eye for wealthy Russians who literally have trillions of dollars in Cyprus. Those depositors stood to lose $99 billion for ever Trillion on deposit. They are not happy with Parliament in Cyprus, nor with the IMF which demanded this unholy tax. I suspect that these Russians, including President Putin, are taking this IMF action as a personal attack upon them. Russia has decided to assign a fleet of ships to the Mediterranean to protect their economic interests--not only in Cyprus, but also in Syria.


Part of the result of this is the Russian elite will now move heavily out of currencies and into gold. Going forward, the Russian sovereign entity will now support the price of gold and it will be for the benefit of the Russian oligarchy.

This will also serve to bring Russian and Chinese financial interests closer together, and, in time, will finally result in freeing the gold market from Western price manipulation and influence.

This IMF catastrophe in Cyprus is literally a landmark event in history, and the single most important event in the entire history of the gold market. I full expect that the key point I have now made, that this concerns much more money than has been reported, will now be cloned in the mainstream media as well."

Wow. And to think that our prayer campaign ended on March 18, the same day that this savings tax was supposed to be implemented in Cyprus. Sinclair calls it "literally a landmark event in history." We knew that this prayer campaign would affect the financial system, as we had two major signs of it. Recall that on December 19, 2012 Union bank of Switzerland (UBS) was forced to pay $1.53 billion in fines for its role in the Libor interest-fixing scandal. Then in February (the 11th, I think), a water pipe broke in St. Paul, sending a flood down WALL STREET (in downtown St. Paul).

You may want to reread the updates around those dates.

The prayer campaign fell within the larger context of the two 76-day cleansing cycles in the new Prophetic Year.

October 29 to January 13
January 13 to March 30

I suspect that this bank situation will unravel until we reach another climactic event on March 30. We should also watch March 22-24, as these were important dates in the overthrow of the red dragon back in 2001.

Stay tuned. This is getting interesting.


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Category: Financial

Dr. Stephen Jones

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