Jim Sinclair’s Commentary [on Cyprus]
The funds withdrawn in Cyprus by depositors via the use of ATM machines this weekend already had 10% deducted from the cash balance in the account by the banks.
The ATM use was a "run on the system" and not a trick to avoid the 10% confiscation.
Could, and would are two different things. Maybe a call from Russia has had an impact on Cyprus’ leadership.
Revenge can be a bitch when it is Russian style. LaGarde has made the mistake of her career. Central banks everywhere have put $4 trillion into the system to save it from the effects of the OTC derivative meltdown and the flushing of Lehman. $10 billion is about to blow that all up.
The greatest conspiracy in history may well end up being stupidity and hubris. It might be Europe’s consideration of Russian money as too Russian to care about.
The Fed will be swapping the hell out of the dollar from 11pm tonight forward.