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Why You Should Be Terrified Of What Just Happened in Cyprus
Why You Should Be Terrified Of What Just Happened in Cyprus
The markets are staging a bounce today based on:
- The ECB surfacing to say it will provide liquidity to help with the Cyprus situation.
- Bernanke’s speech today and the Fed’s FOMC (stocks tend to rally going into FOMC meetings).
This is once again the markets praying and hoping for divine guidance from the Central Bankers. However, the fact remains that every sensible investor in the world should be absolutely horrified by what was proposed in Cyprus.
Forget Bernanke forget Mario Draghi forget all of that. None of it matters as much as what was proposed in Cyprus.
The simple fact remains that politicians proposed stealing savings deposits from the people in order to fund a bank bailout. You can dress this idea up however you like, calling it a “levy” or “tax” but taking someone’s personal property without their permission is theft plain and simple.
The idea was amended to focus on punishing the wealthy (those with over €100,000 in deposits) leaving those with less than €20,000 in deposits unscathed. The Cyprus parliament voted against this proposal, but the mere fact it was EVEN suggested (and that Germany and the IMF wanted to take 40% of deposits) should leave everyone terrified.
Again, political leaders proposed simply TAKING money from the people to fund a bank bailout… not the people as in the public’s balance sheet for a sovereign nation, but actual savings deposits sitting in banks.
This idea should never have been even brought to the table. Savings are personal property. Declaring a bank holiday so people cannot get their money out and then trying to simply TAKE their money is STEALING. This violates the very basis of personal property at its core.
The fact this idea was even brought up indicates that the political and financial elite are growing truly desperate.
Cyprus will not be the end of this… NO, this idea will be likely spreading in the future. Both New Zealand and Spain have already hinted at adopting similar policies. These ideas will be sold to the public as “well, we can take 7% and the bank remains afloat OR you can lose everything.” And during an extreme enough crisis, people will go along with it.
But get ready because this will be coming to a country near you. Are YOUR savings safe?
If you are not prepared for this… prepared for potential systemic collapse brought about by Europe…YOU NEED TO ACT NOW.
We have produced a FREE Special Report available to all investors titled What Europe’s Collapse Means For You and Your Savings.
This report features ten pages of material outlining our independent analysis real debt situation in Europe (numbers far worse than is publicly admitted), the true nature of the EU banking system, and the systemic risks Europe poses to investors around the world.
It also outlines a number of investments to profit from this; investments that anyone can use to take advantage of the European Debt Crisis.
Best of all, this report is 100% FREE. You can pick up a copy today at:
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"The simple fact remains that politicians proposed stealing savings deposits from the people in order to fund a bank bailout. You can dress this idea up however you like, calling it a “levy” or “tax” but taking someone’s personal property without their permission is theft plain and simple."
You miss the key point that the politicians involved were not the elected Cypriot politicians. They have no legal authority to do this. This was an attempted high tech bank robbery. Not really any difference from hackers in Russia stealing electronic funds from banks in the US.
Who do they think they are? Obama?
I see criminal violations of the foreign corrupt practices act, conspiracy, collusion, racketeering, bribery, fraud, theft, some US entities and individuals are financially backing* this attempted theft.
*Backstopping a bribe is more accurate than "backing", and its not a "loan" either, its only a "loan" if they can pay it back and in this case they can't so its basically stolen money from US citizens used to bribe officials of a foreign government to steal private assets to shield foreign investors from another country.
This is a mega criminal act on par with NAZI Germany and should be prosecuted as such.
Even if Cyprus goes with confiscating deposits, it still will not reach a sustainable debt load.
http://dareconomics.wordpress.com/2013/03/16/cypriot-debt-will-not-be-su...
alright already, I'm acting, I'm acting...
.. now what do I do?
let's see,
1. build a root cellar
2. make ponds, more hugels & swales.
3. buy a hand pump for my well
4. have a local bank to pay bills, check.
5.
No, Mr. Graham, we should not be terrified of anything. I've known prisoners, severely disabled people, and people facing their final weeks, who were not terrified of their dire conditions. Those of us not in such extreme conditions can certainly deal with a few bankers screwing around with goofy proposals for the small island of Cyprus.
My 'savings' are fairly safe I think....mostly all in PM's and ammo.
dont forget the beans and booze
taking someone’s personal property without their permission is theft plain and simple" IRS does it every year.
and everyone lets them.
I don't think hope has anything to do with it, I think it's the FED stomping on the accelerator and saying make this POS green while I spew bullshit. If it crashed tomorrow I had nothing to do with it.
LOL, terrified? Calmly vigilant, buy hardly terrified. Thanks to my local Riverbed Financial Services LLC, I sleep like a baby... ;)
+100 for the Riverbed.
The people who should be terrified have no idea what's coming so they sleep like babies, until they don't. The people who know what's coming hit the snooze button a few times.
Nothing happened in Cyprus. The bank account tax was voted down.
WHAT do you mean "nothing happened in Cyprus".......AREN'T THE BANKS STILL CLOSED!!!!!!!
What the dumb scumbag doesn't grasp is the deposits are kaput, gone, not going to be recovered for those with no deposit insurance, and only up to 100k for those who do.
Yeah, sure, nothing happened in Cyprus. Go drink some koolaide jerk.
"The bank account tax was voted down."
You do realize this was actually an escalation of the situation? European contagion risk was just upgraded several notches.
Oye! A sexy tyrant is coming, he is me.
There's no such thing as 'confiscation' when talking about money that you stole yourself! Ah, esta bien. It's not like you didn't know what was coming. You have to dig into your savings (the gringos call it 'capital' but its really debt) to live? Me siento. I thought you were a luchador, act like one. Are you gettin' self-conscious because some self-righteous preacher out in the 30th row is calling you 'a parasite on the system'? Chinga! Recuerdo... this wealth me luchador is as illusory as your hard-on after 2 botttles of mescal. You earned your stash on the back of my in ring performance, my slaughter, my luchador thievery from the rest of the world, my running of drugas for other wrestlers, and my dinero laundering. These were my efforts...fucking ingrates. you should be thanking me for throwing the party. You knew I was slipping mickeys into the punch pendejos. Smug cabrones, thinking that the value created and put in your pantalones pocket, that really was stolen from the labor of others, is yours to keep without a fight!
Now, there's nothing wrong with our system, or our methods. The only problema is you've forgotten how to entertain humanity, put the world in a headlock, and use the guillotina in the ring. What the hell is your problem paisanos? I am your Lord and Saviour Luchador, so listen up. All you see is me best estudiantes, the IMFighters, EUnuchs and ECBlaster luchadors who actually admit they are Luchadors - and they are winning the fight, whether they appear to win or not. These are kick ass students of mine. You can do it too! Learn from them.
Now that we have made our intenciones clear as running sweat, only a small part of the audience will protect themselves. This is un opportunidad grande for us. The audience will never change, they will keep their dinero in our bancos, they have that desire to feel your hot moist sex parts swell as they kneel before El Luchador! They mean nada to us, but energy to be stolen. As we dial up the angst, the chihuahua and caballo show, we solidify the temporal realm. Have you forgotten that it's more than their dinero we're after? Los rulachos, chompin on their nachos will never get their money out of the bank, o get out of the arena. This is how we generate low vibrations for us to use to insure the lucha libre fighting ring always exists.
Luchadors, you think when the slam down comes that the F-DICk insurers are gonna cover you? Ha! no one's dinero is safe. Why..because it's not their dinero! Do you safely store someone elses money in someone else's bank? After all, that guy who was stabbed by Brutus, his money had his face on it. Aye aye aye. The audience were suckers from the get go, and you are not the audience. All this talk about 'their' dinero is like a jumping beetle in a bean screaming its their bean. This is debt money, created from the thin flatulence that comes from our nalgas, and soaked in blood that you may have attachments to. Lose the attachment, we will create more. Creations upon creations y illusions upon illusions. Savers are to be spanked in public for their belief in dos illusions. The most basic one being that their currency, their unit of value, their storage of wealth was more than a debt note! You deserve what you get, if you let yourself get into a rear naked choke. The second mistake of the audience, me luchadors, is that they thought the very platform that this 'money' trades on has substance... it doesn't! I love it when I see the great learning experiences available to all the baby nino luchadors here. This is a great time to grow from your Los Minis size. Si... when you're that small, it smarts to be kicked in the huevos, but no more painful than the trick I have up my briefs. And no worries, because you'll be able to teach su ninos how to reboot the system (depends on the seating chart). Some of you are thinking my world will breakdown into a anarchistic combate with the audience y los luchadors all brawling. Others think that the top luchador will come out and be one hell of a mean tyrant. Callate, this is how Im going to work it out... primero, I'm gonna have lots of carnage, then, I'm coming back as the messiah to save you all. Dressed as 'je' Zeus... I'm going to use the duality principle to lock you, su ninos, your esposas y abuelas fiat souls into a temporal reality that is never escaped from.
You lose a few fights and you start wimpering and crying like a puta barata, a cheap whore.
Oh jes, you're all so surprised. you've been here the whole time. so lets get something straight.. how do you join me fiesta? How does your fiat soul strive for eternity? Oye, me and you... we're gonna rule the world!
They don't call me Chumba 'Cruz' por nada!
http://askchumba.com/2013/03/05/patsies-and-expendable-cucarachas/
With the possible exception of Krasting the whole header contributor line at ZH has become a pain in the butt. They should relegate it down to the Philipino titties area.
What's the difference between Cyprus and TARP? only the name. TARP was also a "theft" of people's money to fund a bailout. But, instead of taking it directly from our bank accounts they simply provided interest free loans, and have since jammed us with even more low loan rates, while jacking us with inflation. It's the same fucking thing, just a little more discreet.
Imagine what will happen to Americans if they ever allow themselves to be disarmed.
WHEN. not IF
No need to imagine- well be there soon.
why is this any different than any tax? All this talk about sanctity of private property that supposedly has been broken here -- it is a tax imposed on those who have the money. How is this different than any other tax. It is passed by a vote (which failed). Voters can vote politicians out at the next election. Same thing as any other tax.
fatman51: I think you're right! It's just a tax like any other. The government of Cyprus is effectively bankrupt, so extreme measures are called for. The two classic options are 1) default, ie taking money from bondholders/creditors and 2) some kind of extreme taxation. The interesting twist in the current scenario is that the bulk of the money would have come from Russian oligarchs. Wow, what a great idea, if you can get away with it! But it looks like the majority of Cypriots do not understand the beauty of the solution proposed to them, and will end up paying for it one way or another.
The real question here is: what percentage of US bank deposits would the US govt have to tax away to repay its debts? And if it did so, would it really be the end of the world? Methinks not!
"why is this any different than any tax?"
Because money in the bank has already been taxed or will be taxed in a different form--eg income tax (if you have underpaid your taxes and still owe when tax time comes). It would really be a RETROACTIVE tax. How can any individual or company function knowing that someday in the future they might have to pay ever MOAR taxes, when they thought they had everything paid?
Simple answer to ALL of this is QUIT SPENDING MORE MONEY THAN YOU HAVE!! Our goverments are like the wife who keeps buying shoes, and the husband has to get a second and then a third job to pay for it all. Eventually they both can't make enough money to pay the credit card bill. Printing money delays the inevitable, but sooner or later the S is going to HTF.
Lots of countries have wealth taxes ... which do exactly that as well.
PS. interestingly enough that bastion of freedom which is Switzerland has a wealth tax.
1. Assuming Cyprus has a tax structure like the rest of Europe, the money was already taxed once.
2. What people seem to not notice is that public sector union members' pensions were to be kept intact, which is one of the main drivers of the problem.
3. The idea that the bondholders would be made whole, despite the risk they knew going in, while bystanders are forced to socialize the losses is opposed to every historical legal precedent (at least until the past couple of years of bizarre activity).
4. I can understand Germans not wanting to work until age 80 to pay taxes to support union pensions of those who can retire at 50, but they picked the wrong target. Those public sector union members are the ones with an unsustainable lifestyle that must be pared back.
There is no reason bond holders should escape scott free, but the losses aren't really being socialized in the way you mean either. Lets just look at the >100K depositors for a moment, do you believe for one second these people would/will get more of their money back in a bankruptcy?
I still wonder if all this Russian tycoons had there money sitting on simple savings account. More they used Cyprus Banks as platform to move on more sophisticated investment instruments.
I agree with your premise, but to answer your question... This is different because it does not tax equally or fairly. The reason this could happen is because the money was sitting there in the - possession- of the banks, even though the owners of the accounts held ownership, they did not have possession. Anybody who avoids putting savings in the banks also avoids th tax. What a hell of a way to discourage banking.
Of course cities and counties in California, and still find investors to buy their bonds. ( I know it is all CALPERS money, but STILL)
The sheep are addicted to torture.... Who are we to deny them their next "hit" ?????
Boiled down to one sentence:
Your trust in the bank was greater than the actual credibility of the bank- you lose.
And conversely:
You don't trust the bank- you win ( by not losing).
Again, the whole Cyprus situation explained in a short video by Quentin Tarentino and Guy Ritchie...
http://www.youtube.com/watch?v=neQ-VyQAa9s&feature=youtu.be
jim sinclair made some very interesting comments on this affair, casting it as a russia vs the imf contest. i think the characterization is apt.....as long as the russians do not enter cyprus to bailout the banks it is a massive victory for russia....if russia falls for the bait, imf wins big....
in any event, anyone having anything more than bill paying money in a bank is a fucktard....this cyprus episode is a microcosm of europe and the usa.....there are scores of insolvent zombie banks....the day of reckoning is arriving this year - mrs o'leary's cow just kicked the lamp.....
At this point why would Russia take the bait? The Cypriot Government has proven to the Russians that they cannot be trusted. Why throw good money after bad money?
The IMF just painted themselves into a corner. The best move for Russia to make is total removal of their remaining assets after the Banks reopen. Really. What would you do? (I will wager that the Russians are thinking of parking that money in Physical Gold as NO Banks are safe.)
Then the Eurocrats will see what Bank Insolvency really means. Everybody else left will take a 100% Haircut.
How will the "geniuses" at the IMF and ECB handle that?
Hey Tom,
Is it true that IMF funding is from all other bankrupt countries, e.g. US, Japan, Europe.
I don't even understand why IMF is still in existence.
Here Russia comes in...
we'll see at this point how much leverage russia really has. if the banks fail or have a self funded haircut, not much. if they're bailed out with a nice fat IMF package, some.
i can imagine the cypriot MP's got a call in the wee hours from someone with a thick accent that left them tossing and turning, just waitiing for the chance to join their cohorts with the gallows grins and vote a big, fat buck passing NO.
the tale continues, but i doubt this is a fizzle - more expecting elevations in the buck passing - so stay tuned...
So when our money gets confiscated next month in the US, do we call it being Corzined or Cyprused?
I think we ought to settle this.
Thats a little like asking am I getting fucked, or am I getting screwed. Poteytooo Potato
EXCELLENT statement, well said!!!!!!!!!!!!!!!!!!!!!!!!
You're getting fuckin' screwed.
Next up:
"Why You Should Be Terrified of Idiots Pumping Newsletters on ZH"
ZIRP = Cyprus
Many of us are energised to view this week's events in Cyprus, tho regretting the way common working Cypriots are suffering
The EU has been fully exposed for what it really is ... and the Cyprus Parliament has given a big fat historic NO to the EU dictators, like no one else has done ... bringing the brutal euro-zone much closer to its needed break-up
Really I hope Cyprus makes a terrific deal with Russia, Russian military base and offshore gas and oil and Cyprus leaving the EU
Just the kick in the arse the EU needs ... Cyprus & Greece joining with Russia, yes !
Cyprus will be the Guinea pig for the EUR crisis management including for the first time Moscow..
dear phoenix,
maybe you should research a bit and have something insightful, with a bit of depth before pasting your informercial here.
maybe start with:
http://sultanknish.blogspot.com/
signed,
not impressed, ever