Why Cyprus is Important

Steven LeBlanc

Most people in America have little interest in the tiny Island nation of Cyprus—they should be very interested—here’s why:

People all over Europe are asking could this happen in our country? Cyprus sent jitters through the financial markets earlier this week as it spoke of imposing a tax on bank accounts as part of an agreement to be bailed out by the German led European Union. The thought is that those who have under 100,000 euros in their accounts will be taxed 6.75%, while those above that figure will be taxed almost 10%.

Fear and outrage spread through the economically weak nations of Europe. If you were to lose 10% of all your bank savings because your government had to be bailed out by foreigners you would be worried as well, wouldn’t you?

There are 3 reasons what happens in Cyprus is important:

1. Weaker European nations [Italy, Spain, Portugal & Greece] citizens are thinking, “could this happen to our deposits where we live”—possibly sending a panic through Europe as people could rush to draw out money from their banks.
2. The “tax the depositors” initiative is blamed on Germany—increasingly you see Europeans blaming Angela Merkel—German Chancellor for austerity measures that are seen as being harmful—imposed upon them by the Germany led EU.
3. Cyprus has a massive natural gas field off its coast—Russia is angry with Germany and is moving to secure its position as Europe’s biggest energy power—a very powerful position to be in when dealing with the European Union. Europe is heavily dependent upon Russian natural gas. Russia is posing as “friend rescuer” of Cyprus.

Also, Russians keep tens of billions of dollars in the Cypriot banks. Though the tax has just been rejected in Cyprus’ parliament, Russia and its leader Vladimir Putin are angry by this attempt [as he sees it] of the European Union to punish Russian bank holders.

Gazprom [Russian owned energy company] – the world’s largest producer of natural gas – has offered to bail out the Bank of Cyprus in exchange for exploration rights of a natural gas field off the coast of Cyprus—one of the largest natural gas deposits in the world. There is up to US$400-billion worth of gas to be tapped under Cypriot waters, according to experts interviewed by Reuters.

So strange that such a small country can have a potentially drastic impact on the world’s financial markets.

Most Americans are not that interested in Europe—that is a tragic mistake because one day the entire world will be astounded when it sees a revived European centered Roman Empire dominate Europe and much of the world. “And I saw one of his heads as if it had been mortally wounded, and his deadly wound was healed. And all the world marveled and followed the beast.” Its power will affect the whole earth—Revelation 13:3

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