That decision, like the onerous bailout package for Cyprus announced early Monday, was sealed in Brussels in secretive emergency sessions in the dead of night in late October 2011. That was when the European Union, then struggling to contain a debt crisis in Greece, effectively planted a time bomb that would blow a big hole in Cyprus’s banking system — and set off a chain reaction of unintended and ever-escalating ugly consequences.

“It was 3 o’clock in the morning,” recalled Kikis Kazamias, Cyprus’s finance minister at the time. “I was not happy. Nobody was happy, but what could we do?” He was in Brussels as European leaders and the International Monetary Fund engineered a 50 percent write-down of Greek government bonds. This meant that those holding the bonds — notably the then-cash-rich banks of the Greek-speaking Republic of Cyprus — would lose at least half the money they thought they had. Eventual losses came close to 75 percent of the bonds’ face value.

The action had an anodyne name — private-sector involvement, or PSI — and, it seemed at the time, a worthy goal: forcing private investors to share some of the burden of shoring up Greece’s crumbling finances. “We Europeans showed tonight that we reached the right conclusions,” Chancellor Angela Merkel of Germany announced at the time. For Cypriot banks, particularly Laiki Bank, at the center of the current storm, however, these conclusions foretold a disaster: Altogether, they lost more than four billion euros, a huge amount in a country with a gross domestic product of just 18 billion euros. Laiki, also known as Cyprus Popular Bank, alone took a hit of 2.3 billion euros, according to its 2011 annual report.

“We are looking at a very grim future for Cyprus,” said Michael Olympios, chairman of the Cyprus Investor Association, a lobbying group. “Even firm believers in the European project like myself see now that it was a bad idea and that we should have at least stayed out of the euro.”

It's not just gold that governments can confiscate – pension assets can be in the firing line, although usually only in emerging markets and in extreme circumstances. In recent years, private pension schemes have been nationalised in Argentina and Hungary.

Could such a scenario happen today? It seems unlikely. In the Thirties, the dollar was pegged to gold and confiscation was simply quantitative easing by another name, while gold investment today is a global phenomenon, so policing any enforcement could be an onerous task.

The appeal of gold as a safe haven remains intact – we hold gold in some of our portfolios. It still plays an important role, given continuing currency devaluation, near-zero interest rates in developed economies and inflation risks. What's more, investors benefit from governments finding it easier to tax income on bonds and equities, rather than gold.

Dutch Finance Minister Jeroen Dijsselbloem is the president of the Eurogroup - an organization of eurozone finance ministers that was instrumental in putting together the Cyprus "deal" - and he has said publicly that what has just happened in Cyprus will serve as a blueprint for future bank bailouts.

What that means is that when the chips are down, they are going to come after YOUR money. So why should anyone put a large amount of money in the bank at this point? Perhaps you can make one or two percent on your money if you shop around for a really good deal, but there is also a chance that 40 percent (or more) of your money will be confiscated if the bank fails. And considering the fact that there are vast numbers of banks all over the United States and Europe that are teetering on the verge of insolvency, why would anyone want to take such a risk?

What the global elite have done is that they have messed around with the fundamental trust that people have in the banking system. In order for any financial system to work, people must have faith in the safety and security of that financial system. People put their money in the bank because they think that it will be safe there. If you take away that feeling of safety, you jeopardize the entire system.

The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy.

The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, told the FT and Reuters that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe. "If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?'," he said.

"If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders." Ditching a three-year-old policy of protecting senior bondholders and large depositors, over €100,000, in banks, Mr Dijsselbloem argued that the lack of market contagion surrounding Cyprus showed that private investors could now be hit to pay for bad banking debts.

It is nothing of the sort. The deal to secure a €10 billion German bailout of the bankrupt Mediterranean island is one of the nastiest and most immoral political acts of modern times. It has struck fear into the hearts of hundreds of millions of European citizens, because it establishes a dire precedent. If democratically elected governments are willing to impose outright confiscation of up to 40 per cent of balances over €100,000 upon depositors in Cyprus, then why not another such hit tomorrow — in Spain, Italy or, most plausibly, Greece?

This is the most brutal display since 2008 of how far the euro-committed nations are willing to go to save the tottering single currency. It shows that the zone’s crisis will run and run, to the grievous disadvantage of almost everyone except the Germans. Berlin insisted upon a harsh line towards the Cypriots because they inhabit a small island with no political clout. Cypriot bankers have behaved with fantastic irresponsibility. They lent huge sums to Greece, and offered high interest rates to dirty money, with no questions asked.

Months ago, the Germans made it clear that they baulked at providing a cash lifeline to the Russian gangsters who have tried to take over Cyprus with a nod from their friends in the Kremlin. But hundreds of thousands of honest, decent citizens, including British residents, also had money in the island’s banks. They took it for granted that if Cyprus’s financial system was deemed worthy to be part of the eurozone, it must be as safe as the Bundesbank.

The Germans, who effectively control and bankroll the whole single-currency system, acted recklessly by signing on Cyprus — and Greece, Italy, Portugal, Spain and Ireland. None of these countries had economic convergence with northern Europe. But Berlin chose to pretend that they did, because it thus became enormously profitable for Germany to trade with them in an undervalued common currency rather than a sky-high Deutschmark. It always appeared absurd for the Germans, who — like the British — obey rules, pay taxes and tell the truth in financial documents, to form a financial union with the southern Europeans, who do none of those things, and are never likely to.

The advisers, known in Germany as the 'wise men', predicted the economy would almost grind to a halt this year, growing just 0.3 per cent compared to 0.7 per cent in 2012. In October they had forecast Europe's largest economy to expand 0.8 per cent in 2013, but data has since shown that it shrank by 0.6 per cent in the last three months of 2012.

Foreign trade, traditionally the main driver of German growth, would subtract 0.3 percentage points from German gross domestic product (GDP) this year, the advisers said. Demand for Germany's goods has weakened as austerity measures and recession take their toll on demand in other members of the euro zone, where Germany sends 40 per cent of its shipments. The advisers said investment was unlikely to make any significant contribution to growth in the first half of 2013.

The cash-strapped island nation needs a 10 billion euro (£8.5 billion) rescue package to recapitalise its ailing lenders and keep the government afloat. But savers with more than £85,000 in its banks will lose up to 40 per cent of their cash as one of several draconian measures imposed by Brussels to stop the country going bust. Russian investors have around 20 billion euros in Cyprus, and would be particularly hard hit, prompting speculation they could pull out their money.

'In my view, the stealing of what has already been stolen continues,' furious Russian Prime Minister Dmitry Medvedev was quoted by news agencies as telling a meeting of government officials. The Kremlin warned it could retaliate by ‘punishing’ European businesses if the EU imposes a bank levy. Andrew Nekrassov, a former government adviser, added: ‘There are a number of large German companies operating in Russia. You could look at freezing assets.’

Under the Bank of England’s worst-case estimate, lenders need to raise something in the order of £60 billion, more than three times the amount required to bail out Cyprus, which gives some idea of the scale of the problems officials think the industry faces.

This week, the Bank of England’s Financial Policy Committee, the most powerful body overseeing macro-economic stability, will reveal its decision on how to tackle any capital shortfall. Banks are braced for grim news on the strength of their balance sheets. Arguments over bank capital have raged since November when the FPC came out with its demand for regulators to begin a detailed examination of the books of the country’s banks. The FPC’s statement crystallised the nagging worry many banking experts have that lenders have not come close to admitting the scale of the losses they face.

“Under-recognition of expected losses would imply that the banking book valuations of banks’ assets were overstated,” said the FPC in its financial stability report. “Given the number of conduct issues, and the potential for associated legal challenges, it seemed likely that banks could face additional sizeable costs as a result of this factor.”

The “Notice of Charges” against Ryan Rotela is contrary to a statement the university released late Friday night saying no one had been disciplined as a result of the classroom activity. “We can confirm that no student has been expelled, suspended or disciplined by the university as a result of any activity that took place during this class,” the university said in a prepared statement.

However, according to a letter written by Associate Dean Rozalia Williams, Rotela is facing a litany of charges – including an alleged violation of the student code of conduct, acts of verbal, written or physical abuse, threats, intimidation, harassment, coercion or other conduct which threaten the health, safety or welfare of any person.”

“We believe the university punished him in retaliation for him exposing the class assignment to the public,” Hiram Sasser, director of litigation at the Liberty Institute, told Fox News. “Sadly, it is a testimony to the indoctrination that some of the public schools and universities are engaging in – to demonize anything that was valuable in the culture. He’s being punished because he told the professor to never do the assignment again because it’s offensive and that he was going to complain to the university,” he said. Rotela, a devout Mormon, ran afoul of the university after he refused to participate in a classroom assignment that involved writing the name “Jesus” on a piece of paper – and then stomping on it.

The university initially defended the Christ-bashing lesson which is included in the textbook titled, “Intercultural Communication: A Contextual Approach, 5th Edition.” “Have the students write the name JESUS in big letters on a piece of paper,” the lesson reads. “Ask the students to stand up and put the paper on the floor in front of them with the name facing up. Ask the students to think about it for a moment. After a brief period of silence instruct them to step on the paper. Most will hesitate. Ask why they can’t step on the paper. Discuss the importance of symbols in culture.”

Sasser said Rotela’s case has generated national outrage and a number of high-profile attorneys have offered to volunteer their services. “The textbook reveals the agenda,” he said. “So-called intellectual enlightenment is stomping on everything that has held western civilization together for the past 2,000 years.”

The European Central Bank had set a deadline of Monday for a deal. Laiki will be split into "good" and "bad" banks, with its good assets eventually merged into Bank of Cyprus. The president of the Eurogroup of eurozone finance ministers, Jeroen Dijsselbloem, told a press conference in Brussels the deal had "put an end to the uncertainty" around Cyprus's economy.

In another development on Sunday, Bank of Cyprus - the island's biggest lender - further limited cash machine withdrawals to 120 euros a day. With queues growing outside cash machines across the island, the second biggest lender, Laiki, also lowered its daily limit to 100 euros, Cyprus News Agency reported. The bank's previous limit had been 260 euros per day. Banks have been closed since last Monday and many businesses are only taking payment in cash.

Correspondents say Germany has pushed hard for a levy on investors who have benefited from high interest rates in recent years, rejecting a Cypriot plan to use money from pension funds.

Back then — a long, long week ago — Cypriot president Nicos Anastasiades stood firm: there was no way he would allow uninsured depositors to lose more than 10% of their money. What a difference a week makes: now, if your uninsured deposits are at the Bank of Cyprus, you’re probably going to lose about 40%. And if they’re at Laiki, you’re going to lose everything.

The agreement between the Cypriot government and the Troika of the EU, IMF, and ECB is a bold and brutal geopolitical power-play. There might be language in the official communiqué about how “The Eurogroup looks forward to an agreement between Cyprus and the Russian Federation on a financial contribution”, but given the billions of euros that Russians are being forced to contribute unwillingly, the chances that they’ll happily throw a bit more money into the pot have to be tiny.

Much more importantly, the two main vectors of contagion — hitting insured deposits, and exiting the euro — have been avoided. And most elegantly of all, from the Troika’s point of view, the whole thing has been constructed under existing bank-resolution authorities, which means that no vote needs to be put to the Cypriot parliament, and therefore no amount of Russian pressure can veto the deal in Nicosia. And 800,000 Cypriots will for years to come be paying the price of what Mohamed El-Erian elegantly calls “bailout fatigue”.

A pre-emptive ‘defensive’ nuclear attack on Iran using tactical nuclear weapons was envisaged to annihilate the Islamic Republic's non-existent nuclear weapons program. So-called ‘mini nukes’ were identified as the ‘ideal weapon’ to conduct a pre-emptive nuclear attack.

In 2003, the mini nukes, consisting of bunker-buster bombs with nuclear warheads, were re-categorized by the US Senate as bona fide conventional weapons. The new definition of a nuclear warhead has blurred the distinction between conventional and nuclear weapons.

Senator Edward Kennedy, at the time, accused the Bush Administration for having developed “a generation of more useable nuclear weapons.” Through a propaganda campaign which enlisted the support of ‘authoritative’ nuclear scientists, the mini-nukes were upheld as an instrument of peace rather than war.