by John Galt
March 20, 2013 22:00 ET
In August of 2011 this blogger observed the following in an article titled “The Most Dangerous Stock Market in the World is now down over 90%“:
In the nation of Cyprus, divided for decades between Turks and Greeks. Orthodox Christian and Muslim, the danger is real and somewhat buried in the back pages as other more pressing issues which impact geopolitics surpassed the region in importance. With the nation divided at gunpoint and distrust at all time highs, the last thing the people need there is a spark and the already charged activities of the Islamist minded leader of Turkey in addition to a deterioration in the economic conditions on Cyprus and in Greece are the perfect formula for disaster.
The stock market chart which I embedded in the article told a tale of woe as the markets had crashed so severely then, that doubts about the viability of the Cypriot financial system were obvious 2 years ago:
Last Friday, the same index opened at a new low of 98.91, indicating a total loss since the peak in 2007 of 98.3% of its total value. Today the discussion on talk radio and throughout the blogosphere has been the proposed seizure of bank deposits from Cypriot citizens and select foreigners keeping deposits in those banks as a “tax” to complete an ECB/IMF ordered bail-in as opposed to borrowing the money from their printing presses and diluting the value of the fiat funny money known as the Euro even further. There is this belief permeating the commentary that I have been listening to and reading that this is a play by the banksters to seize control of the financial system in Cyprus by forcing a new, popular government to capitulate to their demands.
Taking all of the commentary into account, I think that this obviously is not what it seems. Let’s review what is happening in the past which has led to this point and the dramatic attempt to usurp a country’s sovereignty over the weekend. The following are entries from this blog which ties the real reason, in my opinion, behind the attempt to destroy the Cypriot government and install a crony which is more accommodating to the European Central Bank and the various institutions allied with our Federal Reserve involved in a new world cabal designed to erase national borders and rights to that nation’s natural resources:
March 13, 2012:
May 7, 2012:
May 10, 2012:
July 8, 2012:
At that point in time, almost a year ago, the Russians realized that Assad was in grave trouble and began making inquiries to the nation of Turkey about locating a naval base on Turkish territory either in Anatolia or on the island of Cyprus. The price was going to be a bailout for the government of Cyprus and guarantees that the Israeli pipeline project would be halted and all pipelines from Southern Russia to transit via the nation of Turkey itself. Needless to say the Greek Cypriots were enraged which put a halt to this idea yet no one has paid attention tot he headline above where Israel is quietly building a military base to protect the natural gas transfer station for the Israeli pipeline and Cypriot pipelines from their respective natural gas platforms in the Eastern Mediterranean.
In April of 2012, the hedge fund/financial advisory group in Cyprus issued a presentation pointing out the advantages to Southern Europe for completing an Israel-Cyprus-Greece natural gas pipeline in the presentation linked here and below:
The presentation points out the obvious:
- Russia is an unreliable partner willing to exploit the European Union for hydrocarbon energy supplies
- The North African region of existing pipelines is both unstable and potentially unreliable for consistent pricing and supply
- Turkey can not be trusted once the Russian supply transits through their nation to ensure consistent supply at a reasonable price
- Israel and Cyprus are obvious partners to the poor sisters (my words, not theirs) of Southern Europe needing a ready, secure, cheap supply of natural gas
The proposed supply of natural gas from Israeli and Cypriot fields not only endangers the virtual monopoly that Russia holds at this time with Gazprom, but also could alter the financial landscape of the continent by removing the dependency of the Southern European nations on the dictates of the financial centers in France, Germany, the Netherlands, and United Kingdom. This eradication of the dependency on Russia provides a degree of independence not just from the mafia like influence of the Putin regime but destabilizes the traditional new world financiers who wish to impose political control using manufacture shortages and financial crises to force the population to ascribe to their viewpoint on world affairs. Greece has already surrendered to the re-invasion of Germany’s financial Illuminati, yet Cyprus’ population took a moment and paused this week to refuse to submit.
This decision has crucial consequences as the truth behind what is happening in Cyprus is not the minute amount of Euros the hedge funds of the European and Federal Reserve banksters are poised to lose, but control of the Eastern Mediterranean natural resources without dependency on the Russian Bear or the insanity of the “Arab Spring.” At this moment, one has to visualize the reality of the situation as displayed in the map below:
(Map from the Pytheas presentation linked above)
The fields from the Eastern Med are projected to have over 1 trillion cubic feet of natural gas and well over 20 billion barrels of oil according to independent estimates. The question is who would object to a cheap supply of petroleum products to the Southern European debtor economies (the proverbial PIIGS) who need cheap energy the most? Try this list on for size:
- Russia – Losing its monopoly and ability to manipulate political events in Europe and the Middle East
- OPEC – The Arab nations fear losing their influence on Europe and the ability to manage prices and deprive Israel of not just energy independence but financial freedom from Europe and the United States; it is quite possible that the Arabs are pressuring Russia to threaten the European Union to prevent completion of this pipeline complex in favor of their supply via Turkish territory
- The Fed/ECB banking cartel – Without the ability to control natural resources and the independence of economies in North America and Europe, regardless of size, their ability to profit from advances or misery within the economies disappears and the independence which results weakens their geopolitical influence
The results of this week’s abandonment of the deposit tax which was a blatant attempt to remove sovereignty from the Greek Cypriot population has now shifted with the news tonight from the Cyprus Times:
Russia appears more than willing to bail out the Cypriot banking system in exchange for an obscene raping of their control of the natural resources within their grasp and being developed now. From the article:
Finance minister Michalis Sarris flew out to Moscow some 24 hours before initially announced.
The economy chief’s mission, informed sources said, was to sell the Russians the latest idea geared at preventing the flight of billions of euros from the island’s already hammered banks.
They said the finance minister’s trip to Moscow was moved forward to give Sarris the chance of striking a deal with the Russians as it was a foregone conclusion that the Cyprus parliament would reject the bank levy as it stood yesterday.
The cornerstone of Sarris’ proposal to the Russians, the same sources said, is for deposits over €100,000 to be guaranteed at 100 per cent of the cash they would lose via the bank tax. The collateral guarantee would come in the form of bank shares backed up by future state revenues from the sale of Cyprus gas.
The proposal is an improvement on a previous one, where only 50 per cent of the taxed amount was guaranteed.
The guarantee was targeted at Russian investors with over €100,000, to dissuade them from pulling their money out of Cyprus – or to at least contain the phenomenon as far as possible.
Issued jointly by the government and the state hydrocarbons company, the guarantee would be activated provided depositors kept their money in Cyprus for a period of two years.
In other words, the wealthy and average persons are guaranteed financial security if they surrender their natural resources, or control thereof, to the Russian Bear instead of the ever reliable British Petroleum, Royal Dutch Shell, Total Fina, etc. which are working with the ECB banking cartel. This trade off is reflected by the fury of the IMF and ECB in the actions of the Cypriot parliament yet the rest of the world is under the perception that the banking crisis in Cyprus is self-inflicted. Sadly, it is much more than it seems. The Greek and Cypriot banks which are in trouble acted as fronts for the European banking cartel’s hedge funds which speculate in Cypriot real estate which eventually led to this crisis. The bankers have demanded, much like within the United States, that the citizens of Cyprus absorb losses for overseas investors and bypass the democratic processes to protect their principle.
If the people of Cyprus are wise, they will absorb a period of short term financial and economic misery where they remove themselves from the European Union and central banking cartel and re-introduce the Cypriot Pound at a 10:1 or 100:1 ratio to the Euro. As the Israeli-Cypriot-Southern European pipeline realizes production and viability in the next three years, total economic independence would be realize and the ability to repay its Euro denominated debts concluded in a very short time period, unlike the true default of Iceland. The people of Cyprus are not in the midst of an economic crisis but a geopolitical one, which could decide if national sovereignty is more important than the globalist economic system.
Let us hope the people of that island nation are brave enough to endure the firestorm that is on their doorstep and make the right choices in the weeks to come.