Bank Failures: Will New Zealand be Cyprussed?
The big news this week has of course been all about Cyprus. And funnily enough it has put New Zealand on the map too with the RBNZ’s Open Bank Resolution gaining some press across the globe (and at long last at home too!). So this week our feature article is focussed on this topic and titled:
We look at how NZ’s bank failure plans compare to Cyprus and what various opinions of the reserve banks plans are – including our own.
Gold has reacted to the Cyprus debacle more than silver. In US dollar terms it has broken above and held the key $1600 level. And with the kiwi dollar weakening a bit gold in NZ dollars is up above last week’s price of $1933, currently sitting at NZ$1955. Whereas silver is actually down on a week ago at NZ$34.90 versus NZ$35.45.
You can see in the chart below that gold is again trying to sneak above the 50 day moving average.
Meanwhile silver is just still hanging around the same level it has done all month but remains above long terms support lines.
Why We’ve All Been Cyprus’d Already
Also on the topic of Cyprus we have a video from J.S. Kim entitled:
Jim SInclair’s Big Calls Continue
Jim Sinclair has been very vocal of late with many interviews on King World News. Firstly he was calling for US$1600 in gold to be broken soon and that when this occurred, it would be the last time we would see that price in our lifetimes. It seemed a bold call at the time since there was plenty of talk of lower prices ahead. Following the Cyprus debacle, $1600 was breached and has held – so far anyway. So it will be very interesting to see if he is correct in the long run.
Sinclair has also had much to say since the Cyprus news broke over the weekend.
Here’s links to a couple of very insightful comments he made that soon gained more traction, in case you hadn’t seen them:
One of the most important events in world history & gold
Also more from Sinclair who has from the start had a different take on the Cyprus “bail in”. Discussing how it is mainly Russian money that is deposited in Cyprus, not Cypriot money.
All hell is breaking loose after Cyprus catastrophe
But we think his comments in an email to subscribers on his website was of most interest…
“The most important take away from the Cyprus situation is the following sentence from my interview with King World News;
“Because of that, any attempt to shift the weight of bank solvency to depositors has failed. This was the grand experiment which was to be the defining event where the financial shift from the onus of insolvency was to be placed on the shoulders of depositors rather than on quantitative easing.”
This now wrong cause was the reason why gold had three major blocks thrown at it by the hedge funds at $1775 to $1800 as it was about to break into new high ground.”
As we discuss in this week’s feature article this is exactly what the NZ Reserve Bank has planned for New Zealand in the case of a bank failure. So it will be interesting if a major bank failure occurred here would they follow through on these plans? As Jim points out the IMF/EU and Co. have failed in their attempt to shift to depositors the weight of any bailout. So it will now have to be done via currency printing (Quantitative Easing).
Given New Zealand’s banking system is so concentrated we wonder if the government backed out of the OBR “Haircut” scheme, could it afford a tax payer funded bailout or in fact would people even swallow it? If they don’t then here too the final option is via currency printing only.
Sinclair went on to say:
“Information was given to this financial clique [the hedge funds mentioned above] that QE would be reduced as bailouts turned to bail-ins, shifting the pressure of holding the Western world financial system together to the depositors and away from central banks. The enormous short by hedge funds was based on the now impossible-to-continue retreat of the central banks to make the depositors the source of bailout funds.
Therefore the reason why gold has been so heavily shorted in the paper market is NOT valid, and shorts in the paper market must cover. Bravely, these short are taking a gutsy position by trying to make gold’s move above $1600 look weak, but it is not.
The shorts major position of all time was based on what is NOT TRUE. They were totally convinced that they had us and certain gold writers supported their view. Now they do not have us, but on the contrary QE to infinity has its foundation solidly set in cement.”
So gold remains above US$1600 as we write. Sinclair has been uncannily accurate during this entire gold bull market. So we pay more heed to him given his history than just about anyone.
Although the initial Cyprus “bail in” was voted down, odds favour that the cronies will join hands and cobble together some sort of “solution” that keeps the house of cards that is the global monetary system together for a while longer yet. However as the old saying goes “Better a year early than a day late” when it comes to insurance. So if you want some physical gold or silver insurance then get in contact:
1. Email: firstname.lastname@example.org
2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
3. or Online order form with indicative pricing
Have a golden week!
This Weeks Articles:
|Gold in NZ Dollars: We Have Been Here Before|
This Week: Here’s Why Not to Believe the NZ Government’s Inflation Statistics. Comparing Money Supply, Government Inflation Statistics, Property Prices, and Gold Prices for the Last 10 Years. Gold Confiscation infographic […]
|Bank Failures: Will New Zealand be Cyprussed?|
Unless you’ve been under a rock (or without broadband and TV for 3 days like me!) you will have no doubt heard about the “bail in” of banks via bank depositors in the small island nation of Cyprus. The proposal (which has since been voted down) was to tax – a.k.a. steal funds – up […]
|Why We’ve All Been Cyprus’d Already How We Can Stop Being Cyprus’d in the Future|
We’ve followed J.S. Kim’s writing for a while. Here’s a timely video of his on the bank deposit theft being discussed in Cyprus and how we’ve all been suffering theft – it is merely a lot more subtle… With all the scorn and indignation over the IMF and ECB’s attempt to steal anywhere from 9.9% […]
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