On Friday March 15, 2013–just over three years ago–people across the entire nation of Cyprus went to bed believing that everything was OK.
The next morning they woke up to a different reality.
It turned out that their banking system was totally broke. After suffering enormous losses, banks no longer had sufficient liquidity or capital to maintain customer account balances.
And we should expect more of it. Because three years later, much of the West looks like Cyprus did back then.
Western banking systems are extremely illiquid, and many banks are very thinly capitalized with minimal reserves.
Deposit insurance funds are woefully undercapitalized and lack the financial capacity to guarantee the system.
It’s not some wild conspiracy theory to suggest that the governments of the United States, Japan, and most of Western Europe are totally bankrupt.
These are facts. And each government publishes its own financial statements attesting to its insolvency.