Today James Turk told King World News that the Cyprus crisis has now worsened as fear and panic reign in the once quiet Mediterranean country. Turk also stated, “… the rule of law is being eroded everywhere. Private property is under threat.” With a worried world watching closely after the attempted the Cyprus theft, here is what Turk had to say in this exclusive interview:
“The banking crisis in Cyprus is worsening, Eric. The banks there remain shut as the Cypriot politicians scramble for a solution to bailout that country’s banks. The banks were supposed to re-open this past Tuesday after a 3-day weekend from a national holiday. Then they were supposed to open today, but they remain shut. Now the authorities say they will open on Tuesday. But who knows? They could remain closed for days or even weeks, given their dire financial condition.
In fact, the EU authorities say that the Cypriot banks are insolvent….
“In other words, the liabilities of these banks, which are mainly the money it owes to depositors, are far greater than the value of the banks’ assets, even after accounting for bank equity and any reserves. This insolvency of course did not happen overnight. It has been going on for months – actually years and took a turn for the worse when Greece fell over because the banks in these two countries are so closely interlinked. One has to ask why this insolvency was allowed to happen?
The answer isn’t pretty. Cypriot politicians and the bankers themselves conspired with the European Central Bank, with the blessing of EU politicians, Brussels eurocrats and IMF bureaucrats, to try to sweep under the rug the reality of the situation. I guess they were hoping that by pretending that all was well, the problem would go away – or someone else in the future could deal with it when they were no longer in office..