Three week the investing public was awarded a brief glimpse into the mysterious world of central banking through events in Cyprus.
Despite the official assurances by IMF head Christine Lagarde that this was an anomaly, a one time expropriation of investor savings, it is now clear that the situation is far more serious than originally acknowledged and that the Cyprus style “bailin” will likely be used as a template for other distressed banks. News soon circulated that Cyprus’s gold reserves will be seized as part of the plan. Rumours rapidly spread that other troubled countries would also be forced to sell their gold. Central banking has always been a highly secretive, subterranean affair that has led to many con...
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