Digital Dollars Leave Cyprus
I should have anticipated that the Cyprus government would try to limit the flow of citizens and money leaving the island nation when I wrote about it here. Now it has happened. Cyprus said preople can’t take their paper money out of the country. Citizens find a way.
http://www.cnbc.com/id/100597242 “Bitcoins operate on a network that, at least on the surface, resembles a typical exchange on the capital markets. Buyers can exchange their paper currencies for bitcoins and use them wherever they are accepted. Sellers can exchange their bitcoins back for their original currency.”
Alternatively, “Why would anyone trust an electronic form of money that could get hacked and then diluted into oblivion?” said Michael Pento, president of Pento Portfolio Strategies. “We already have a form of money that is indestructible and whose supply cannot be increased by any government or individual decree. It’s called gold.”
The “Cyprus banking crisis” is a play by a failing zombie government desperate to grab cash. It has little to do with banking. Let the corrupt banks fail.