Is Cyprus Paving the Way For a Global Currency?

Sure, right now, the clear winner from the Cyprus crisis is the US dollar, which stands to benefit from public and private flows after the euro's reserve currency takes another hit. Today, the euro fell to its lowest against the US dollar in four months and the dollar came in just below its 52 week high. However, don't get too complacent because Cyprus is the canary in the coal mine, a petri dish, but unlike a petri dish, it will not be contained. It will affect the European markets and extend into the U.S.becoming the new model for bank bailouts, where money is directly confiscated from our bank accounts, not to mention, the fundamental breach in the public trust on which money relies.

From Economic Collapse blog:

"As it stands now, nowhere in Cyprus accepts credit or debit cards anymore for fear of not being paid, it is CASH ONLY. Businesses have stopped functioning because they cannot pay employees OR pay for the stock they receive because the banks are closed. If the banks remain closed, the economy will be destroyed and STOP COMPLETELY. Looting, robberies and theft are already on the rise. If the banks open now, there will be a massive run on the bank, and the banks will FAIL loosing all of its deposits, also causing an economic crash. TONIGHT there are demonstrations at most street corners and especially at the parliament building (just 2 miles from me).

Many are thinking that the ECB and EU are allowing Cyprus to fail as a test ground for new financial standards.

Just wanted all you guys to know the real story of whats going on here. Prayers are appreciated (although this is very interesting to watch) many of my local friends have lots of money in the banks.

You see, the entire western banking model is built on the dollar. So with the crisis in Europe, the flight to the dollar and flight to U.S. treasuries, makes the dollar the last safe haven.  However, once everyone’s on board this “lifeboat” full of holes will be pushed out to sea and sunk. Then, what do we do? Why, bring on the global currency, of course.

What leads me and others far more knowledgeable than me to this dreadful conclusion?

Well, it's not just Cyprus, it's what lies beneath Cyprus, and practically every economy in the world: the toxicity of the $1.2 quadrillion derivatives market. Eventually,   the cascading domino destruction of global economies will occur largely due to this monstrosity that's rarely mentioned.  The Eurozone is over leveraged on a tremendous amount of American sub-prime mortgages, a ton of derivative debt – collateralized debt obligations (cdo), credit default swaps—sold throughout the world via Wall Street.

Keep in mind, the Bank for International Settlements in Europe acts as an umbrella for all the central banks world-wide. But beware, the BIS downplays the total notional value of the global derivatives market, although, even at $600 trillion, that's much larger than the global economy by far. Anyway, nobody really knows the real amount, but when this derivatives bubble finally bursts there is not going to be nearly enough money on the entire planet to fix things.

Links:

A Secretive Banking Elite Rules Trading in Derivatives