Good Luck With That: Do Our World Leaders Have A Clue?

There are several different takes on the Cyprus banking issue. Some, like Ben Bernanke (consider the source) want us to think that this is just some insignificant country whose deposits clearly don’t matter– or, that people should gladly hand over 10% of their deposits for the greater good. You know, because we are all on this together, right? All in this together with the other kleptocrats out there who can always jump off the burning platform with their golden parachutes courtesy of central banks and global tax payers.. Yeah well, on second thought, maybe not so much.

But I digress.

In terms of geo-politics, the other issue that is sometimes buried in the Cyprus story is the Russian angle. It is their money afterall – perhaps ill gotten, but hey – Anglo-American banks are not nearly as pure as some claim. The Russians may have to take a “haircut,” but then what happens to the Cypriot banking system when they pull their money out and, I don’t know, start buying gold? I know, I’m getting ahead of myself here. But I think this story has legs, and I just can’t trust the same old voices (like for example on CNBC) who want me to believe that there is nothing to see here….

I don’t recommend or buy precious metals to try to scare people (I know it may be hard to believe some times.) Still, there are those moments when I am reminded that the people who think they run the world really have no clue and they seem to underestimate the consequences of their actions. Or, they are trying to float a trial balloon for even larger confiscations in the years ahead.

After all, since so few people are savers anyway, shouldn’t they feel lucky that they have any capital at all? And shouldn’t they be glad to chip in for the greater good of the global economy?

Because, in the end, we’re all in this together….. right??