Ron Paul: The Great Cyprus Bank Robbery

by Ron Paul

The dramatic recent events in Cyprus have highlighted the fundamental weakness in the European banking system and the extreme fragility of fractional reserve banking. Cypriot banks invested heavily in Greek sovereign debt, and last summer’s Greek debt restructuring resulted in losses equivalent to more than 25 percent of Cyprus’ GDP. These banks then took their bad investments to the government, demanding a bailout from an already beleaguered Cypriot treasury. The government of Cyprus then turned to the European Union (EU) for a bailout.

The terms insisted upon by the troika (European Commission, European Central Bank, International Monetary Fund) before funding the bailout were nothing short of highway robbery. While bank depositors have traditionally been protected in the event of bankruptcy or liquidation, the troika insisted that all bank depositors pay a tax of between 6.75 and 10 percent of their total deposits to help fund the bailout.

While one can sympathize with EU taxpayers not wanting to fund yet another bailout of a poorly-managed banking system, forcing the Cypriot people to pay for the foolish risks taken by their government and bankers is also criminal. In their desire to punish a “tax haven” catering supposedly to Russian oligarchs, the EU elites ensured that ordinary citizens would suffer just as much as foreign depositors. Imagine the reaction if in September 2008, the US government had financed its $700 billion bank bailout by directly looting American taxpayers’ bank accounts!

While the Cypriot parliament rejected that first proposal, they will have no say in the final proposal delivered by the EU and IMF: deposits over 100,000 euros are likely to see losses of at least 40 percent and possibly as much as 80 percent. “Temporary” capital controls that were supposed to last for days will now last at least a month and might remain in effect for years.

Especially affected have been the elderly, who were unable to use ATMs or to transfer money electronically. Despite the fact that ATMs severely limited the size of withdrawals during the two week-long bank closure, reports indicated that account holders who had access to Cypriot bank branches in London and Athens were able to withdraw most of their funds, leading to speculation that there would be no money available when banks finally opened up again. In other words, the supposed Russian oligarch money may well be already gone.

Remember that under a fractional reserve banking system only a small percentage of deposits is kept on hand for dispersal to depositors. The rest of the money is loaned out. Not only are many of the loans made by these banks going bad, but the reserve requirement in Euro-system countries is only one percent! If just one euro out of every hundred is withdrawn from banks, the bank reserves would be completely exhausted and the whole system would collapse. Is it any wonder, then, that the EU fears a major bank run and has shipped billions of euros to Cyprus?

The elites in the EU and IMF failed to learn their lesson from the popular backlash to these tax proposals, and have openly talked about using Cyprus as a template for future bank bailouts. This raises the prospect of raids on bank accounts, pension funds, and any investments the government can get its hands on. In other words, no one’s money is safe in any financial institution in Europe. Bank runs are now a certainty in future crises, as the people realize that they do not really own the money in their accounts. How long before bureaucrat and banker try that here?

Unfortunately, all of this is the predictable result of a fiat paper money system combined with fractional reserve banking. When governments and banks collude to monopolize the monetary system so that they can create money out of thin air, the result is a business cycle that wreaks havoc on the economy. Pyramiding more and more loans on top of a tiny base of money will create an economic house of cards just waiting to collapse. The situation in Cyprus should be both a lesson and a warning to the United States. We need to end the Federal Reserve, stay away from propping up the euro, and return to a sound monetary system.

  • robin

    French Canadian, I just came across this. Also, saw the piece by Bill O’Reilly who attacked AJ with his co=host. Bill is a psychopath…Can’t believe how many people watch him and believe everything that comes out of his lying mouth.,0,1322244.story

  • robin

    French Canadian, Also came across this today for a little history lesson to share with others about the FBI and false flag attacks.!

  • robin

    French Canadian, Waiting to hear what AJ’s investigators come up with on those photos. First, the guy that had both is legs blown off should have died of blood loss, yet they have a photo of him being wheeled down the street. They didn’t take him to an ambulance that was much closer which is bizarre, but what is more bizarre is someone posted a picture of a veteran who is a double amputee that looks exactly like him. Hope someone does a facial recognition on this. The photo of him on the ground shows very little blood which was a red flag to us and the fact that someone with this kind of injury would be in shock and die within minutes. Then they claim he woke up at the hospital and was writing that he looked at the bomber face-to-face. It really sounds to us like it was staged, but this is the smoking gun. If this guy is a fake, then we know it was staged. I hope AJ looks into this one. Look also at the backpacks of these two Chechans. Not big enough to hold the kind of bomb that they say as used, but then you look at the backpacks that those Blackwater guys were wearing. What is also bizarre is you see three of them just standing around talking while people were running around. Never went to help anyone and also that they were at the scene of the bomb blast, but suddenly left before it exploded and then returned to the same place later. Just so many things about this that are ear marks of a false flag..

  • French Canadian

    Hi Robin, I’ve been out of town for a while. I just saw all of your comments today on this thread. Keep up the good work. As for Ben Swann, I don’t know.. it seems a bit bizarre. I agree with your husband that the CIA might be controlling North Korea.

    What do you think of the Boston Bombing? Alex is on that since it happens. He did a fantastic job on it. Five hours straight on the 14 April Show and six hours on the 15, plus more on the Nightly News. He created a FREE link for everyone to watch. It is at the right top of (LIVE streaming coverage TUNE IN Boston explosion). I believe it was staged, just one more false flag from the usual suspects. You will be seing the TSA everywhere on your streets now. This is a crucial time for everyone. If people don’t wake-up now, it will be all over.
    The government will have control on all the bullets, guns and arms, they will also have control on all the information on the Internet with the CISPA bill comming.

    Today April 18, Max Keiser is on the Show, discussing the drastic fall of gold and silver prices and what that means for the dollar and world economies in the long run.


    • robin

      French Canadian, I figured you were out of town. Good for you. My liberty friends are stepping up the posts and commentary on my FB. They voted on CISPA, but didn’t hear the results. That is the only issue that our two liberal senators are consistent on to keep their progressive constituent base happy. Never mind how they vote on foreign policy issues. They are what I call “fake liberals”. Not like Cynthia McKinney who stands up for civil liberties consistently and our empire building and perpetual wars. That’s why we respect her, although we don’t agree on everything, we do on these issues. I’ll post more comments later about the bombing. Of course, the timing with CISPA is uncanny and no accident of course. Definitely keeping a close eye on the information that comes out. We saw the logo on the backpacks and hats=Blackwater=mercenary group that hires veteran Navy Seals. Now what in the world were they doing there and all those man on the rooftops. Then how convenient that an 8 year old boy is at the finish line just as the bomb goes off and they have the Newtown people there as well. They will capitalize on that. He will be the new poster boy to push their agenda. The evil that goes on just sickens me and my heart goes out to those who died, who were injured and had to endure this insanity. I’m going to do what I can for Ben because he looked into C… which no one else is willing to do. He knows it’s not a conspiracy theory, but that’s all I’ll share publicly. I told Ben why we would not fill out that survey because the questions were irrelevant and it felt more like pumping for information to sell. I learned that someone on the other Ron Paul site said he wrote the survey. I told him we both will support him as long as he exposes the truth and not to have some brand. After the C… issue, I have even more respect for him as most people won’t go there. I told him to watch his back on this one…

  • robin

    French Canadian, Ben got back to me, so I understand things much better now that he can not share publicly. I appreciated the fact he values my opinion as someone who has been an ardent supporter the past two years. Working on a bill right now that escaped my attention in our own back yard. If this passes, it will set a dangerous precedent about taking away local control of sustainable agriculture, and our senator where I live is a co=sponsor. I called and left my concerns and the legislative assistant seemed in shock. I have told everyone I know to spread the word as it goes to a vote next week. I sent a letter to all the committee members as well. There is also another bill in the house, so tomorrow I will deal with that branch. We have a much better chance to change things at the local and state level. As my husband said, these reps. are a different breed. This bill will affect the organic farming industry and prevent counties and cities from banning GMO’s which one of our counties just did. This bill is the reaction to it, so I suggested if they feel that the state needs to be in control, then pass a bill that protects the citizens from bio=tech companies like Monsanto.

    • robin

      French Canadian, I watched the interview on the AJ show with BS. Wanted to see what he would say about the autonomy that his station gave him. I know he can not say things publicly. I also suspect that what is happening in North Korea is a back door to invading Iran. What Ben doesn’t seem to realize is we create a problem-Rumsfeld and Bush administration gave them the nuclear capability, and then we come back to provide the solution and then we rinse and repeat. It’s a great excuse to bring back our presence in that part of the world. So, the question is who really controls North Korea? I know that there were many angry Cincinatti residents who felt that Ben was catering to the liberty movement to further his career and that he was not addressing local and state issues. One black man I talked to off line felt he was not balanced and always attacking the administration, but I said it’s the media’s job to make sure the current administration is accountable to the people. I shared some things he did not want to hear, although he said he was an independent and did not agree with a lot of what Obama was doing. It was just too much for him because he was so tied into the MSM. I also tell everyone I talk to don’t take anyone’s word on anything do you own thinking and verify it. I recently got blasted by some liberty folks for questioning a few things that Ben was doing. When you put anyone on a pedestal, you stop thinking critically. I see the same thing happening with Ben as I saw with Ron Paul. A “cult” following and when anyone disagrees they act exactly the way they say they can’t stand about people that support the MSM or political candidates. Become drones…I’m sure you are frustrated responding as it takes days and days. My last post took 1 day, my two previous took 4 days. Not sure what the goal is of this site. So, I will post from time to time and see if you do the same. Watching the market as it has hit the magic 15,000 that they said would be when it would be manipulated to collapse. We still can’t believe it went from 8,000 to 15,000. CAFR is huge, but no one wants to go there. Bigger than the Federal Reserve. Still working on this one at the local/state level.

  • John

    See for articles by ELLEN BROWN about this subject.

  • robin

    French Canadian, Let me know what you think of this survey that Ben Swann is asking his supporters to fill out. We will not be one of them. It was a real turn off for us and others I have spoken with. I asked him what the purpose of this is, so we’ll see if he responds. This is absolutely not necessary and when you see something like this you have to ask who is going to profit from this information? Capitalize on a new movement…I also am very disappointed that he said he was working on the CAFR story and never followed through. I do not believe in putting anyone on a pedestal and I’ve seen many that have become like a “cult” following and think he is next to GOD. I saw the same thing happen with many who were Ron Paul supporters. You can not keep an open mind if you think someone has all the answers. You will have to go here to get to the survey…

  • French Canadian

    Jim Rogers: “I Suspect They’ll Take The Pension Plans Next”

    US Government To Decide How Much Is Enough For Your Retirement

  • yes, i couldn’t believe it when my friend told me about this site. and i can tell u, i really didn’t expect that this site would send me a check of $240 for doing some surveys. i got it from here. you can also try it:

  • French Canadian
  • French Canadian

    Robin, I know you wonder about North Korea. Well, Friday and today (Sunday), Dr Steve Piecenik, who is an expert on North Korea, is giving Alex live information, since he is right now in Korea’s DMZ. He will also be on the show tomorrow. Here are the two first interviews which are very informatives:

    – Friday:

    Infowars Frontline Report from Korea’s DMZ

    – Sunday: The interview starts at: 1:07:16

    Alex Jones Show: Sunday (4-7-13) Dr. Steve Pieczenik

    • robin

      French Canadian,
      Thank you . This program was worthy of my time. I was glad to see Alex be a good listener. He brought some very important points, but what we see is North Korea is playing right into our hands to start WW111. The conflict in the Middle East has not worked as we thought it would, so better to move somewhere else that more people will support.

    • robin

      French Canadian, A few more points about this program. I had my husband listen to it and what did bother me was that this guy has a huge ego. That he was responsible for the collapse of the Soviet Union, etc. My husband was not impressed. Said he did not bring any new insights and when AJ pressed him to expand on what this meant, he said the same thing. My husband mentioned that some believe our CIA controls North Korea and are using them for a ??? reason=could be many reasons for it. My husband said he found what AJ had to say more insightful.


  • Your feed basicly posts that you copy and paste the same trolling comments in every Ron Paul related video.

    Either your a troll, or a paul supporter just trying to piss people off.

  • Your feed basicly posts that you copy and paste the same trolling comments in every Ron Paul related video.

    Either your a troll, or a paul supporter just trying to piss people off.

  • Ron Paul is a fucking jackass

  • French Canadian

    Robin, I saw your new comments on the other thread. But I will repeat here, it could interest many people. Here it is:

    Hi Robin. Good for Ben Swann, he will have more freedom if he leaves Fox 19. He could start a show of his own like Alex Jones or join him or go with Ron Paul or Lew Rockwell. All these people are on the same side, they are fighting the same war and work hard to wake-up people in the infowars. The more of them, the better!

    About North Korea, it was a big subject on today’s Show. Alex thinks that we must take the threat seriously. The new kid running North Korea is a real despot, worse than his father. I will put a link to the Show at the bottom of my comment.

    I’m glad you are I’m working on self=sufficiency skills right now and procuring the necessary tools to do that, because on today’s show, that was another huge subject. Two brilliant guests came on and talked about sufficiency skills. Both guests got their site crashed today by the infowar listeners who were deeply interested in what they were saying. It was very interesting and you will be glad to learn easy brilliant skills. In fact, the whole show was really fantastic and quite educating. Here is a résumé of the Show:

    “On the Thursday, April 4 edition of the Alex Jones Show, Mike Adams guest hosts and Alex rides shotgun. Mike covers the escalating tensions between North Korea and the United States as the supreme leader of North Korea, Kim Jong-un, threatens to nuke the U.S. On today’s show, Mike talks with Troy Smith and Rob Nash in-studio. Smith is the owner of Brite Ideas in Austin, Texas, and Nash is the founder of Mike’s guests will talk about aquaponics, a sustainable food production system that combines a traditional aquaculture with hydroponics. Dane Wigington will break down the latest on geoengineering, weather control, chemtrails and related topics”.

    Alex Jones Show: Thursday (4-4-13) Dane Wigington, Troy Smith and Rob Nash

    Oh, and another thing: You remember when you thought that Sandy Hook didn’t really happened? Well it turns out that Dr. Steve Pieczenik, thinks like you. He believes that the Aurora shooting was real and not staged but that the Sandy Hook wasn’t real. Alex on the other side believes that Aurora was staged and that Sandy Hook was real but also staged.

    Here is the interview:

    Dr. Steve Pieczenik:
    Crisis Actors Used at Sandy Hook! Special Report

    • robin

      Hi French Canadian. We are going to continue to provoke North Korea to start WW111. This situation makes it even easier to do what the global elites want=start another war. I am very interested now in any sites for self=sufficiency you recommend. I get that Off the Grid Newsletter you recommended. This is my focus now to prepare our family because if we go off the Grid most people will not survive. Fortunately, we have many people here who are resourceful. Have boats for fishing, know how to hunt, preserve, can, are Ham radio operators, have weapons, have first aid knowledge, etc. I’m thankful that my husband is a self-reliant person and has lots of practical skills that he could barter with if necessary. He comes from a family of survivors and it is in his DNA. We are looking at land to buy and start a fresh produce business, which is something we’ve talked about for years. The time seems right now as this will be even more important. Lots to learn because I grew up with all the modern conveniences.

  • in other words the rich were able to take thier money while most others failed.

  • in other words the rich were able to take thier money while most others failed.

  • er-duh fractionnal banking may be problem.. cite past 200yrs

  • Yes –true –I must say that all borrowing has some kind of fractional reserve or it would make it excessively difficult to work.
    Even the earliest notoriously cautious golddmiths gave promissory notes -the total of which if presented simultaneously would exceed their total gold holdings.
    I think it is just the degree he disagrees with whether it should be 10% or as in Cyprus 1%.
    I don’t see an end to fractional reserve anytime soon