There has been much chatter over the years on what the government might do to save itself should we here in the United States undergo any type of future financial crisis or repeat of the 2008 financial turmoil we experienced. This topic is especially of interest now with the recent proposal in the country of Cyprus to tax existing bank deposits as part of a rescue package put forth by a German led group of creditor countries. Isn’t this a form of confiscation?
From Business Insider;
Meanwhile, reports indicate that plane tickets from Moscow to Cyprus are sold out. This could indicate that Russians using the Cypriot banking system as an offshore tax haven are scrambling to get their cash. We have already seen lines at ATMs this week in Cyprus as local depositors try to pull whatever they can out of their accounts.
Cyprus has a rising Debt to GDP issue they are dealing with, which is the focus of those who are looking for solutions for the tiny island off Greece, which has been affected by the Greek crisis. We have seen the Debt to GDP ratio rise in many countries over the last decade. Japan, for example, leads the world in Debt to GDP ratio at over 200%.This is why you have seen the price of gold rise 10.5% the last 6 months priced in Yen.
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Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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