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10%... 40%... Now An 80% Confiscation Scheme?

Phoenix Capital Research's picture




 

 

The news coming out of Cyprus only gets worse.

 

It was bad enough that the political class even promoted the idea of STEALING depositors’ savings. But now we’re finding out that they lied time and again about how much they’d take.

 

Initially the plan in Cyprus was the following:

 

  • Simply TAKING 6.75% of ALL savings accounts up to the official insurance limit of €100,000
  • A 9.9% levy (THEFT) on all deposits above the official insurance limit of €100,000.

 

The idea was put to a vote by the Cyprus Government, which rejected it. However, the facts remain that this idea WAS suggested. In fact, the original proposal from Germany and IMF was even more dramatic:

 

Cyprus state broadcaster CyBC reported on Saturday that German Finance Minister actually entered the Eurogroup meeting on Friday proposing a 40 percent haircut on Cypriot bank accounts. Sarris stated on Saturday that this had also been the proposal of the International Monetary Fund.

 

Sarris stated in Brussels that in view of the threat from the European Central Bank for banks in Cyprus to shut down and chaos to ensue, the increase in interest taxation and the haircut to bank accounts became necessary. “A disorderly default, that was a genuine possibility, has been averted,” he said.

 

http://ekathimerini.com/4dcgi/_w_articles_wsite2_1_16/03/2013_488169

 

Please reread that first paragraph: Germany and the IMF wanted to take 40% of all depositors’ accounts. Imagine nearly half of your savings being simply TAKEN one day to bail out a bank. That’s what Germany and the IMF proposed.

 

And we now find out that it could be far worse than even that:

 

Cyprus's finance minister said Tuesday that large deposit holders at Cyprus Popular Bank PCL (CPB.CP), the island's second biggest lender, could face losses of as much as 80% on their deposits as the government moves to wind down its operations.

 

Speaking in a television interview with state broadcaster RIC, Michalis Sarris indicated that it could also take years before those depositors see any of their money returned.

 

"Realistically, very little will be returned," Mr. Sarris said.

 

 

http://www.foxbusiness.com/news/2013/03/26/cyprus-finance-minister-uninsured-laiki-depositors-could-face-80-haircut/#ixzz2OqctR6pb

 

So… first it’s 10% on savings about €100,000… then we find out actually 40% was proposed… and NOW they reveal that realistically it could be as much as 80%.

 

As a quick aside, anyone who believes this could never happen in the US should consider that John Corzine stole over $1 billion worth of client funds during MF Global’s collapse in the US. Corzine is not in jail and in fact remains one of the most connected financial elites in the US. Indeed, NO ONE went to jail for MF Global’s theft.

 

There can be little doubt that European elites took note of the MF Global case and believed a similar idea could be foisted upon the European public during extreme times of Crisis. The only difference between MF Global and Cyprus is that in the former case the funds that were stolen were invested in commodity futures and other securities whereas in Cyprus they were savings.

 

Investors take note: a major development is at hand. As bankrupt nations and banks continue to spiral downward there will be more and more desperate attempts to plug the holes in their balance sheets by any means necessary.  And it will be a LOT more than they claim,

 

The idea of confiscating savings is now on the table. And under an extreme enough crisis, this idea could indeed be implemented: the proposal will likely be “you, the people of this nation can choose…we can take 7% of your savings and your bank remains afloat or you lose everything.” Be prepared for this.

 

If you’re an individual investor worried about what Europe’s Crisis really means for your portfolio, we’ve published a FREE Special Report outlining exactly that. It’s titled, What Europe Means For You and Your Savings.

 

In this report, we outline the risks Europe’s banking crisis holds not only for those in Europe, but for savers around the world. We also explain how this crisis will most likely unfold, including which areas are most at risk in the financial system. And we cap it off by listing multiple backdoor plays on Europe that investors can use to profit from Europe’s Crisis.

 

You can pick up a FREE copy here:

 

http://gainspainscapital.com/what-europes-collapse-means-for-your-savings/

 

Thank you for reading!

 

Graham Summers

 

 

 

 

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Thu, 03/28/2013 - 19:51 | 3387232 The Second Rule
The Second Rule's picture

This aint no Argentina. This is bankster country.

Thu, 03/28/2013 - 19:58 | 3387253 The Second Rule
The Second Rule's picture

"I could never properly explain myself in this climate."

Hunter S. Thompson

Thu, 03/28/2013 - 15:57 | 3386494 dontgoforit
dontgoforit's picture

The apple 'de-cored.'

Thu, 03/28/2013 - 14:00 | 3386006 Sudden Debt
Sudden Debt's picture

I wonder how many bonuses the bankers will get this year....
And next year, after confiscation... the money eft will also be used to pay hard earned multi million euro bonuses...

AND HOW MUCH DO THOSE BANKERS HAVE ON THEIR ACCOUNTS?!?!?

HOW MANY DID THEY LOSE?!?

DID THEY MOVE THEIR MONEY IN TIME?!?!?

AND WHAT ABOUT POLITICIANS?!?!?

HOW MUCH DID THEY LOSE?!?

HOW MUCH DID THEY ALREADY MOVE?!?!?

Fri, 03/29/2013 - 06:20 | 3387993 Seer
Seer's picture

And after you hear the answers you'd have to be killed...

Thu, 03/28/2013 - 13:51 | 3385971 Buck Johnson
Buck Johnson's picture

It will be worse, much worse than Argentina.  Cyprus is dead and will be like that for a few decades.

Fri, 03/29/2013 - 06:19 | 3387992 Seer
Seer's picture

Maybe, but, just maybe not.  I still think that this was a big play for the NG.  I'm not thinking that TPTB are quite yet in to necrophilia.

Thu, 03/28/2013 - 12:46 | 3385758 Imminent Crucible
Imminent Crucible's picture

There is, but trading remains halted until.....whenever.

Thu, 03/28/2013 - 13:17 | 3385854 SafelyGraze
SafelyGraze's picture

the "haircut" term is so 2012

is now known as "internal recap"

http://www.budget.gc.ca/2013/doc/plan/budget2013-fra.pdf

page 160, sentence #1

c'est a dire "recapitalisation interne"

c'est a dire "deposit bukkake"

depositakke

Thu, 03/28/2013 - 14:31 | 3386103 Anusocracy
Anusocracy's picture

Government - steals your wealth when you create it, steals your wealth when you save it, steals your wealth when you spend it, and steals your wealth after you die.

All so it can do things that are inherently anti-freedom, anti-peace, and anti-civilization.

Of course the 99% that are meat puppets are incapable of understanding or resisting it.

People just don't understand how much of their lives they waste doing government's biddings.

Thu, 03/28/2013 - 15:02 | 3386250 BigJim
BigJim's picture

Can someone explain to me what the deal is when people in Cyprus need to transfer rather more than €300 a day, like if they buy a house? Are the capital controls only for actual cash?

Thu, 03/28/2013 - 15:21 | 3386321 NoTTD
NoTTD's picture

Short answer:  In that case, you're fucked.

Thu, 03/28/2013 - 21:25 | 3387486 CompassionateFascist
CompassionateFascist's picture

The "connected" will do just fine. Cf. that "Russian Oligarch" money that somehow escaped. 

Thu, 03/28/2013 - 23:54 | 3387754 knukles
knukles's picture

Withdrew through the City of London branches to find its way to City of London banks.
The City never Sleeps

Thu, 03/28/2013 - 14:18 | 3386061 Dick Buttkiss
Dick Buttkiss's picture

When you get a haircut, your hair grows back. What we're talking about here, however, is getting scalped. And it's only just beginning.

Thu, 03/28/2013 - 17:33 | 3386860 TyrannoSoros Wrecks
TyrannoSoros Wrecks's picture

More like decapitation. You know, what the muslimes are good at.
Bank and head decapitations coming to Obamastan soon.

Thu, 03/28/2013 - 22:47 | 3387653 JR
JR's picture

Decapitation is “so 2012.”

Giora Katz, vice-president of Israel’s Rafael’s remote-controlled military hardware, says Spot and Shoot is the face of the future and expects that within a decade at least a third of the “machines” used by the Israeli army to control land, air and sea will be unmanned.

Spot and Shoot - played by women serving in the Israeli army. Operators sit in front of a TV monitor from which they can control the action with a PlayStation-style joystick.

The aim: to kill Palestinians in Gaza with the press of a button on the joystick. The female soldiers, located far away in an operations room, aim and fire remote-controlled machine-guns mounted on watch-towers every few hundred meters along an electronic fence that surrounds Gaza. 

Audio sensors on the towers mean that the women hear the thud as it kills the target.

Fri, 03/29/2013 - 14:26 | 3388992 tango
tango's picture

Yeah, I guess this proves Israel is the only nation in the world working on military technology  

Thu, 03/28/2013 - 21:19 | 3387475 Boris Alatovkrap
Boris Alatovkrap's picture

Maybe is idea form to cut off head of beast... or seven.

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