Cyprus Financial Crisis

I'm writing this report about Cyprus because I got many emails about my opinion on the Financial Crisis that hit Cyprus. 

Well as we all know this is very devastating to the entire world. It cause a shock wave thru the entire financial system. The world is not the same as it was before when it came to economics. We are all connected now. For example if they let Cyprus fail that would affect the EU and than the U.S has many investments in that zone and than that would affect the U.S financial system even though the countries are not even near each other. Before when a financial crisis hit that particular country that country alone would be in trouble but now with all the banks and economies connected one falls the entire deck of cards will fall. 

So take this as a major learning lesson for future events that can happen when banks get into trouble.  And the financial problem globally hasn't even came come close to fixing itself no matter what anyone says. Obviously we keep seeing them tell us for many years everything is alright, we have control over the matter but the truth of the matter is they have no idea. They keep guessing and playing experiments globally on economies. Like Cyprus was a major experiment if you look at it, they wanted to see how would the people and the globe react to such an action. Imagine it's friday and your finishing your work week and cashing your paycheck  and when you wske up Monday morning all of your cash inside of the bank was frozen. So naturally everyone will rush to the bank and ATM machines. But the bank has put a restriction on how much money you can withdraw daily. Your credit cards,wires, any transaction is blocked. Also meaning businesses were very limited to what they can do. Here we can say all the bad things on how bad this was, or how wrong it was. The truth about it is they can legally do this because we as the people have trusted them to keep our money safe inside THEIR banks and they can loan and leverage your money as much as they want, called fractional reserve banking. Now take a look at this, your putting your money into a bank account that's not making any money for you or very small interest and there are banks penalizing people that save there money in the bank. They charge you a monthly maintenance  fee for them to keep your OWN money in THEIR bank. Your money is sitting their doing nothing but you FEEL safe that no one can get to it but you forget,  thats a deposit to the bank. Once you hand over the money it's there's they give you an IOU a piece of paper stating you have this much money in your account and you have this much available balance ect. So if that bank messes up and becomes very risky means now your money is at MAJOR risk and that they can do whatever with the money to save there bank from collapsing. 

 

People of the Globe should be waking up to financial education after this because if we don't know how banks are run and how economics works we will always be exposed to unlimited financial risk all of our lives. I was reading Russians were withdrawing from there bank accounts way before the crisis hit. Now there blaming those people had an advantage for pulling out there money before anything happened and it's wrong the rest of the people couldnt withdraw it. 

Well the reality is they gave hints they were heading for problems and that this could happen but majority of people not being financially educated didn't see it coming and they got completely blind sided by this. So what is this telling us? We should be studying and learning financial education more in our lives cause the further along this world goes the more riskier it will become to those that don't know. We have access to information for a reason. I can understand during medieval times ect where we were kept from information,reading,writing ect and that disabled us to see anything coming and they could do whatever they wanted with no interruptions. Now we have the internet and information quicker than we've ever had it in history at our finger tips, There should be no reason to why we keep getting blind sided by things. The information is there if you want it, if you get harmed by financial matters its YOUR OWN FAULT nobody elses. Take control of your future!

 

One thing there not telling the world about this is that in the country of Cyprus while this financial melt down was playing out and everything frozen and restricted. People with precious metals could use the metals as legal tender during the hard times. Why are they not telling us that if something happens in a financial crisis you can use gold and silver as legal tender to buy goods and pay bills ect? Something to ask yourself about. Whoever prepared before this crisis hit with precious metals as a back up and hedge against inflation are doing ok during these times. They can pay there bills no problem, buy food, travel ect while the rest of the people are waiting and praying for the banks to release some money so they can buy there basic necessities,medicines ect. Look up how many U.S states are accepting Gold and Silver now is legal tender and how many are moving in that direction because they don't trust the U.S dollar. That'll be my next article I write about discussing that matter.  If you anyone has any other matters or questions they would like me to write about please feel free to email me at MarkLikarevic@hotmail.com