“Of course, everybody should have been worried a lot sooner than last week because the basic operating system of global banking is accounting fraud, and has become that stealthily, insidiously, for about fifteen years now. Nothing is what it appears to be anymore. Compound interest has not really been working since 2008 because the world can't increase its energy production enough to generate the additional surplus wealth needed to cover the aggregate interest due all around the world.
What remains are games of musical chairs, Ponzi schemes, frauds, swindles, stonewalls, ruses, ploys, scams, dodges, bluffs, subterfuges, QE martingales, interventions, rehypothecations, pretenses and other modes of evading or disguising reality. The reality is that there is not enough real wealth to go around, certainly not enough to cover the giant web of obligations that masquerades as "money."
So, now whenever somebody or some company or government or entity is called upon to put up or shut up, the danger arises that the whole web will disintegrate, since all the participants are broke. You want "your" money? Wait three days. Make that four days. Check that, let's say next week. How about two months from now? Oh, forget about it....
No wonder folks are spooked.
This is really getting out of hand. That's why the ills of the poor, untoward, tiny crypto-nation of Cyprus have got everyone's knickers in a twist. Cyprus is everybody writ small. Cyprus ran out of pretense. It's banks are toast. It can't take care of itself. It is too poor to be a "modern" economy. It failed trying to be a money laundromat for the brigands of Russia and the dope merchants of the Eastern Mediterranean. The tourists and retirees may even have to pack up and leave now because there will be no access to ready cash for day-to-day living.”
"Games of musical chairs, Ponzi schemes, frauds, swindles, stonewalls, ruses, ploys, scams, dodges, bluffs, subterfuges, QE martingales, interventions, rehypothecations, pretenses and other modes of evading or disguising reality"