In the aftermath of the disaster in Cyprus and escalating fears from investors around the world that their savings will be confiscated, today King World News spoke with Michael Pento to ask him what people should expect going forward. Pento spoke candidly about the frightening situation the West faces going forward.
Eric King: “Obviously (after Cyprus) people are worried that governments are going to go in and start to steal money right out of their bank accounts.”
Pento: “This is the truth. Governments follow something called, ‘The Rule of Law.’ But it is also true, Eric, that the rule of law is mutable. By that I mean the rule of law changes with the whims of politicians. In normal times what the government will do is they will steel the purchasing power of your currency surreptitiously. In other words they will just print money and steal the purchasing power of your money without your permission.
What’s happened now in Cyprus is they have actually taken a more honest step, a more overt means of taking away your money. They are taxing your deposits in the bank. Now, when you have an insolvent bank, and you have an insolvent nation, the only thing you can do is to go into the private sector and take their money.
Normally that is done via money printing, but now the governments are getting aggressively in the business of stealing your money directly. ...