muses of the moment

March 21, 2013

Cyprus…do not miss this

Whether Cyprus happens as announced or not, it doesn’t matter. Don’t worry, they will get the depositor’s money one way or another. New Zealand and Spain are now on the bandwagon, too. Passing laws to make it legal to take bank depositors money to save the banking system.

Cyprus Banks now reopening next Tuesday. I wonder how people are surviving without cash or access to debit cards/ATMs for a week?

This is THE SHIFT to the next step in keeping the current system afloat, instead of letting it fail, during this global debt collapse. Pay attention!! Quantitative easing is over for bailing out banks. Taking cash to banks is IN. QE will be used for other things.

Ann Barnhardt and Martin Armstrong (and groovygirl) have made the direct connection between MF Global crime scene and this latest move in Cyprus. IT IS THE SAME THING. Your money in banks and brokerage funds is not safe. The current crisis is in Europe, so those in the US can plainly see what is coming their way after Europe is plundered and the system is still collapsing.

Need a refresher on MF Global. Eighteen months later, bankruptcy court may get customers 93% whole. Woo-hoo. Click here. This link includes details of how JP Morgan got MF Global customer money out of the country in seconds flat. That’s how fast you could lose your money!

If you do not have access to 100% of your money 100% of the time, it is NOT your money. If you have to wait for it to be returned, it is not your money. If you get a bond instead of cash, it is not your money.

Side musing: some details that gg would like to know on that settlement: is this just for customers that had cash in accounts or their trading accounts, too? What about those open positions that they couldn’t close for a week? No recoup for interest or investment return loss during the last 18 months, I am sure. What cut of that is for lawyers? And when do they get the money? Will the government tax that money as “income”? That would just be the icing on the cake!

Groovygirl can not repeat this warning enough times.

What to do? Some suggestions. Groovygirl would never suggest just doing one of these, but several. And don’t worry about taking all of your savings out of the system, just take some steps to secure some of it.

  • Have some cash in your possession.
  • If you feel comfortable, internet alternative currencies.
  • Stocks, but take possession of the certificates.
  • Food storage. (But buy things you normally eat and rotate out or you will just lose money.)
  • Physical gold and silver in your possession or stored outside the banking system.
  • Land. (This is for people with large cash amounts hanging around that don’t need a real liquid savings option.)

What savings you do leave in the system, spread over 2-4 banks/brokerages.

Pensions are next, then 401ks. In the US, those could be first, converted to treasuries for your “safety”, then the bank savings.

This is going to happen in the US in some form. Do not be fooled. It is a matter of time.



  1. Nice post gg. Unfortunately for those of us that have most of our money in retirement accounts like 401Ks, IRAs, etc – taking possession of the stock certificates is the same as taking a distribution according to the IRS. Another option would be to ‘cash out’ of all retirement accounts ( basically a 50% hit ). BTW, I have a report for you on Jim Sinclair, and if you can give me a discreet way to email you, I will be glad to share it.

    Comment by A.J. — March 22, 2013 @ 10:18 am

  2. A. J.

    My email is I would appreciate hearing anything you have to say on the meeting.


    Comment by totallygroovygirlfriday — March 22, 2013 @ 10:54 am

  3. Yes, read that post. Very good and too true.


    Comment by totallygroovygirlfriday — March 22, 2013 @ 11:01 am

  4. GG,

    So the question is … take th 50% hit now and have cash in hand or gamble and wait to see if the govt take it 100%?

    Comment by MikePhila — March 23, 2013 @ 12:59 pm

  5. Yes, that is the question.

    Groovygirl doesn’t mention it a lot, but learning new skills is also an excellent use of time, energy, and resources. Most everything is free to learn on the internet now.


    Comment by totallygroovygirlfriday — March 23, 2013 @ 3:57 pm

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