CYPRUS, RUSSIAN RE-STRUCTURING, AND GOLD
April 17, 2013 By
Russia to restructure €2.5bn loan to Cyprus
Cyprus to finance bailout by selling €400mn of gold reserves
Now, let’s indulge in our usual high octane speculation:
- Note that President Putin made the announcement at a joint press conference with German Chancellorin Angela Merkel. Message: Russia and Germany are in solidarity on the crisis, and determined to hold the EU together. Corollary message: Europe and Germany are not going to be subservient actors to London and New York. This message has also been strongly suggested by the German effort to repatriate its gold from the US Federal Reserve. In a word: there is a geopolitical realignment occurring right in this announcement itself. And it’s a huge realignment, a realignment that British geopolitics had long tried to prevent: that of Germany, and Russia.
- Cyprus, in order to gain a bailout more favorable to it appears to have bowed to pressure to sell some of its gold reserves, and we can guess, in the context, who the ultimate buyers behind the scenes will be: Germany, and Russia. Message: we have no confidence in the western system of finance (and that means the euro, folks), but we’ll play the game a little bit longer until we have other pieces where we want them.
If the indicator we mentioned yesterday, a high Italian magistrate, is any signal of the future, this movement is only going to grow.
And watch for Germany and Russia to be quietly moving behind it.
Read more: CYPRUS, RUSSIAN RE-STRUCTURING, AND GOLD
No comments:
Post a Comment