What Hong Kong should learn from Cyprus

I’m sure everyone knows by now that Cyprus is stealing 40% of private deposits and seizing entire accounts. This theft of private bank accounts is being hailed by the IMF as a "fully financed solution." Yeah, fully financed by stealing private deposits and sending the money to the banksters:

So instead of 10% being stolen from most accounts, as was originally proposed, the new deal is that 40% will be stolen from selected accounts, but not from accounts holding less than 100,000 Euros.

Why the 100,000 threshold for having your money stolen by the banking system? It’s because all EU bank accounts are insured up to 100,000 Euros. So the banksters figured they could just steal anything over 100,000.

Needless to say that Hong Kong banks are strong and unique, but not bullet-prove due to Federal Reserve’s mandatory guidelines. Hence, HKD will be my preferred currency over the greenback if I have to choose. Of course RMB is my top choice, you’ll understand why if you have read my last article.

Will US banks follow suit? I personally don’t think the Cyprus scenario will have any direct implications toward their banking system; their banking system is already socialistic. Besides, they have the printing press, they have the reserve currency, and they have Fed Chairman Ben Bernanke, who will print as much money as he feels is required at any time.

But, but…their reserve currency status is numbered. Their petro-dollar will come to an end and their printing machines will be just souvenirs. Their spiral is heading toward a royal flush…full speed ahead!

Insolvent commercial banks are backed up by insolvent government insurance agencies, funded by central banks that conjure money out of thin air. Take Bank of America, for example, holds $1.1 trillion in deposits. Against that, it holds $457 billion in liquid assets – a $643 billion shortfall. Withdrawal requests are instantaneous…

It would take the bank much longer to actually sell those assets in order to meet withdrawals. And should that situation occur, the value of the assets it's liquidating would be impaired.

It’s time to bank at strong institutions like in Singapore (which has NEVER had a banking failure), Hong Kong and China.

Bottom line, be very cautious where you park your money and in what currency… anywhere that has a significant debt burden they will print, they will inflate and they will confiscate!

Inflation is a slow, steady theft of people's purchasing power. Taxation is outright theft masquerading as patriotism.

You ask whether the Fed and ECB will stop the total collapse, or kill the currency; Judging by the way they are behaving, we might get both; so enjoy the party, but mingle very close to the door. And load up on physical gold… I emphasize again, physical gold.

After the German government announced its intention to repatriate their gold holdings from the US back to Germany, a Swiss political party is pushing for a vote to do the same. Time to look out for tungsten gold!

Meanwhile back on Wall Street, US stock market is at an all-time high; however, this flim-flam adjustment for inflation is "some distance from the high..."

Here’s a thought; extreme successful businessmen are driven by greed. Their math is always “they win-you lose” but why can’t these accomplished wealthy men figure out that they have only less than 1% chance of winning a casino or the stock market?

Speaking of math, do you know that head-honchos of these billion dollar outfits hire top mathematicians from Harvard or Princeton to calculate everyone of their games to wipe you out?

I know I was one of Harrah’s Asia marketing directors. I was the only executive able to get Tang Siu Kin and his friends to visit Harrah… and yes I told him the secret… after all he was 坚叔. And I will tell it to you here; “frequency times duration divided by the amount” with extreme discipline.

Nevertheless, most of my wealthy friends are smart all their lives but stupid twice a month. 精得一世, 每個月笨两次.

“Inside” jobs are no secret with Wall Street as is no different than casinos “eyes in the sky” WYO meetings. I repeat charts are made while you’re asleep.

Please be smart and stay well.