When Liquidity Dies..................from Rico

Remember Cyprus?

- It was the template for "bail-in" [read: steal depositor money] that replaced the former "bail-out" [read: steal taxpayer money] response to saving spendthrift governments and irresponsible banks that has since been adopted and written into law by virtually all Western financial systems.

 

Pay attention to Greece!

- It is the template for capital controls. When sovereign liquidity dies, this is the governmental response.

1. Raid pension funds.

2. Confiscate local government cash.

3. Tax cash withdrawals from deposits.

4. Restrict FX trading.

5. ........there WILL be more to come.

 

This distills down to the TWO STEPS every bankrupt government has always taken, and will always take.

1. Find where everyone's money is.

2. Take it