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Europe Does It Again: Cyprus Depositor Haircut "Bailout" Turns Into Saver "Panic", Frozen Assets, Bank Runs, Broken ATMs
Europe has done it again.
Late last night, after markets closed for the weekend, following an extended discussion the European finance ministers announced their "bailout" solution for Russian oligarch depositor-haven Cyprus: a €13 billion bailout (Europe's fifth) with a huge twist: the implementation of what has been the biggest taboo in European bailouts to date - the impairment of depositors, and a fresh, full blown escalation in the status quo's war against savers everywhere.
Specifically, Cyprus will impose a levy of 6.75% on deposits of less than €100,000 - the ceiling for European Union account insurance, which is now effectively gone following this case study - and 9.9% above that. The measures will raise €5.8 billion, Dutch Finance Minister Jeroen Dijsselbloem, who leads the group of euro-area ministers, said.
But it doesn't stop there: a partial "bail-in" of junior bondholders is also possible, as for the first time ever the entire liability structure of a European bank - even if it is a Cypriot bank - is open season for impairments. The logical question: why here, and why now? And what happens when the Cypriot bank run that has taken the country by storm this morning spreads everywhere else, now that the scab over Europe's biggest festering wound is torn throughout the periphery as all the other PIIGS realize they too are expendable on the altar of mollifying voters and investors in the other countries that make up Europe's disunion.
Bloomberg's take on the sacrifice of Cyprus' savers:
Officials have struggled to find an agreement that would rescue Cyprus, which accounts for just half of a percent of the euro region’s economy, without unsettling investors in larger countries and sparking a new round of market contagion. Policy makers began meeting at 5 p.m. yesterday in a hastily convened gathering, seeking to overcome differences on bondholder losses while financial markets were closed.
“Further measures concern the increase of the withholding tax on capital income, a restructuring and recapitalisation of banks, an increase of the statutory corporate income tax rate and a bail-in of junior bondholders,” according to a communique released by ministers after the talks. It didn’t specify whether bank or sovereign bond holders could be affected.
The European Central Bank will use its existing facilities to make funds available to Cypriot banks as needed to counter potential bank runs. Depositors will receive bank equity as compensation.
Finance Minister Michael Sarris said the plan was the “least onerous” of the options Cyprus faced to stay afloat.
“It’s not a pleasant outcome, especially of course for the people involved,” said Sarris. The Cypriot parliament will convene tomorrow to vote on legislation needed for the bailout.
Needless to say, the locals are delighted:
In the coastal town of Larnaca, where irate depositors queued early to withdraw money from cash machines, co-op credit societies that are normally open on Saturdays stayed closed.
"I'm extremely angry. I worked years and years to get it together and now I am losing it on the say-so of the Dutch and the Germans," said British-Cypriot Andy Georgiou, 54, who returned to Cyprus in mid-2012 with his savings.
"They call Sicily the island of the mafia. It's not Sicily, it's Cyprus. This is theft, pure and simple," said a pensioner.
For the real response, look to Russia:
The island's bailout had repeatedly been delayed amid concerns from other EU states that its close business relations with Russia, and a banking system flush with Russian cash, made it a conduit for money-laundering.
"My understanding is that the Russian government is ready to make a contribution with an extension of the loan and a reduction of the interest rate," said the EU's top economic official, Olli Rehn.
Almost half of [Cyprus'] depositors are believed to be non-resident Russians, but most of those queuing on Saturday at automatic teller machines to pull out cash appeared to be Cypriots.
While "saving", pardon the pun, yet another insolvent country merely has the intent of keeping it in the Eurozone, and thus preserving Europe's doomed monetary block and bank equity for a little longer, this idiotic plan will achieve two things: i) infuriate not just Russians but very wealthy, and very trigger-happy Russians. The revenge of Gazpromia will be short and swift, and we certainly would not want to be Europeans next winter when the average heating level of Western European will depend on the whims of Russian natural gas pipeline traffic; ii) start a wave of bank runs first in Cyprus and soon everywhere else that has the potential of being the next Cyrpus.
Sure enough, here come the bank runs:
While the tax on deposits will hurt wealthy Russians with money in Cypriot banks, it will also sting ordinary citizens. Some ATMs in the country have run out of cash, Erotokritos Chlorakiotis, general manager of the Cooperative Central Bank, told state-run CYBC.
Forzen assets and "national bank holidays" are baaaaack:
Funds to pay the levy were frozen in accounts immediately, ECB Executive Board Member Joerg Asmussen said. The levy will be assessed before Cypriot banks reopen on March 19 after a March 18 national holiday. Sarris said electronic transfers will also be limited until then.
Europe's response: this is a unique situation. Just like the Greek bailout was unique; just like the Irish and Portuguese bailouts were unique; just like the bailout of Spanish banks was unique.
“As it is a contribution to the financial stability of Cyprus, it seems just to ask a contribution of all deposit holders,” Dijsselbloem said, noting the country’s financial industry was five times the size of its economy. The plan includes “unique measures” that address the “exceptional nature” of Cyprus and show “inflexible commitment to financial stability and the integrity of the euro area.”
Curiously, even everyone's favorite liar, former Eurogroup president, Jean-Claude Juncker, has a warning that this "bailout" is the worst thing Europe could have done:
Skeptics including Luxembourg’s Jean-Claude Juncker had said that imposing investor losses in Cyprus risked reigniting the financial crisis that has so far pushed five of the euro zone’s 17 members to seek aid. Last year, the euro area took what officials called a unique step to ask Greek bondholders to absorb losses.
But fear not: Europe has promised this absolute resolution taboo won't repeat itself...
When asked if a deposit assessment could be ruled out for future rescues, Rehn said in an interview: “It can and there is no concrete case where it should be considered.”
... Until it does repeat itself of course - after all the fundamental problem for Europe has never been resolved: the continent is still broke, and it still is running out of good, unencumbered assets (which as being repledged by the banking oligarchy) with every passing day.
Now the only thing unknown is Russia's response:
Corporate tax rates in Cyprus will rise to 12.5 percent to 10 percent as part of the deal, Dijsselbloem said. Rehn told reporters that Russia, whose banks have loaned as much as $40 billion to Cypriot companies of Russian origin, would ease terms on its existing loans to Cyprus as the rescue unfolds. Cyprus’s finance minister is scheduled to fly to Moscow on March 20.
What is known, however is that Cypriots have taken the news in stride.... and to their local ATM machine, which sadly is showing the following message: "Your transaction has been cancelled due to a technical issue. This ATM cannot complete withdrawals at this time" (courtesy of Yannis Mouzakis).
It didn't take long before the Cyrpus Cooperative bank issued a statement saying "some ATMs run out of cash" - by some they likely mean all as the entire country is now gripped in a full force depositor run.
Some other snapshots of what is currently happening in Cyrpus, where locals are using excavators if not to force the ATMs into "compliance" then to block bank entrances out of blind fury. From Philenews:
Indignant citizen who has the testimony of the Cooperative Credit Society Kyperoundas, cut the morning the entrance of the branch of the SEA, located on Avenue Nikos and Despina Pattichi in Limassol.
He said he believes that deceived by the assurances that the relevant deposits are insured citizens and decided how to express his protest, parking the excavator outside the entrance of the branch of SEA
And more from iefimeirda:
With the first light of day after the unprecedented decision to the Eurogroup on the terms of the Memorandum of Agreement and the taxation of savings, hundreds of people flocked to Cyprus stores credit cooperatives Larnaca to withdraw their deposits.
With the opening of stores found they could not withdraw all their money, because the electronic system of credit cooperatives was not working. And when it became possible, writes the Daily Cyprus, the system seemed to finally hit the appropriate amount of the new tax, which provoked strong reactions. Even after the government ordered the stores eventually closed.
At the same time, according to information or ATMs of banks give no money so that there is a huge inconvenience.
After lunch return to Cyprus President Papadopoulos Nikos Anastasiadis from Brussels in the morning reached political agreement on the rescue of the economy, while in the meantime the Presidential prepares emergency meeting of ministers of the government.
According to all the information, will this weekend be submitted and voted on bills in the form of urgency, before the banks opened Tuesday morning.
In the text of the agreement, with the characteristic title "We caught napping," the website says Sigma Live Nicosia agreed terms "under threat of closing banks." painful Describing the agreement, Sigma relies on sources from Brussels you speak of night thriller and roll jams, and the Cypriot delegation warned even withdrawal from the negotiations.
Congratulations Cyprus savers - you were just betrayed by both your politicians, and by Europe - sorry, but you are the "creeping impairments" in the game known as European bankruptcy. And so is anywhere between 6.75% and 9.9% of your money, which you were foolish enough to keep with your banks (where at least you were compensated with a savings yield of... 0%).
More importantly, as of this morning Europe has finally grasped that there is a 6.75% to 9.9% premium to holding physical cash in your mattress rather than having it stored with your local friendly insolvent bank.
Luckily Cyrpus is so "small" what just happened there will never happen anywhere else: after all in Europe nobody has ever heard of "setting an example". Or so the thinking among Europe's unthinking political elite goes.
And congratulations Europe: just when people almost believed you things are "fixed" you go ahead and prove to the world that you are as disunified (because size doesn't matter in a true union), as confused, as stupid and as broke as ever.
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Pay dat man his money!
~~~
http://www.youtube.com/watch?v=RwEIjbfOHD0
Russian oligarchs don't put their money in deposit accounts..
btw, check out the interest rates offered by Cypriot banks...
http://old.privatbank.ua/files/d6_30_2_15dse.pdf
No more interest for you!
Hell....at least their banks are/were paying interest. Not so much here in ZIRP land.
Trololo so you deposit 150,000 euros for 5 years to get 7.25% interest, and then you get a 6.75% fee.
Thats almost a 10 % fee BuckWheat...
At 150k, you get 9.9% fee, so, no profit.
Man without, how do they pay that kind of interest, upwards of 10%. They have to be loaning it out to someone and getting a much higher rate somewhere for that money.
Can you spell Ponzi?
Elvis,
What I don't understand why Russians would put their stolen money in Cyprus.
Switzerland or London maybe. As far as I know Putin is not chasing Russian money overseas.
Because they can control those banks. Who's to say that it is not the "Russian oligarchs" that aren't demanding this "bailout". They just looted billions of Euros.
your theory
unlikely because, as per tyler:
*cough*Tax haven*cough* Also, western, so, "certified trustworthy" (oh, well...), and shares religion with Russia, so, culturally related (although many of those kleptocrats are actually Jews).
You mean it's Russian oligarchs bailing out (fattening!) EU oligarchs (who own the banks). It's like an episode of Dallas.
Meh ~ More like 'Falcon's Ridge'...
No its not, only 37% of deposits are foreign. Who do you work for?
a man without q, you deserve a quick kick in the nuts ..think those who tax to pay bankster debt have any right to just confiscate anyone's wealth..you fucktard.
ever more clear why a desperate elite needs to dis arm all tax units and soon..at some point the crimes they intend to commit will be obvious to all those with eyes wide shut..and then .gov panic and see revolt and lawlessness in every dark street then the common people get shot.
@ A Man
Corruption is what people allow. Me either re tears for Cyprus.
Let this be a lesson instead. Anyone have assets at risk? Of course you do! Then start fixing the holes in your financial ark. Yesterday...
According to the FT, there is €68 billion of deposits in Cypriot banks, which is over 400% of GDP. Even though half is owned by foreigners, how the fuck does a bankrupt country have 200% of GDP in deposits?
The view that the hard working decent people of Cyprus are suffering is utter bullshit if you have any understanding of how Cyprus functions.
It is an utterly corrupt country and if the majority are decent and hardworking, then they need to elect new leaders..
I do not know Cyprus, but I do have have experience with corruption...
ok the main things you have in Cyprus are
politicians buying land, then getting the state to pay crazy prices to purchase the land to build roads. They've made hundreds of millions out of this.
property developers borrowing money to build houses (using land titles as collateral), then selling the property to buyers but not repaying the loan when the corrupt lawyers and banks don't check the fact the land is already pledged and getting bank loans to buy the house (this one is massive and is still to hit)
Russians having deposits and loans, but with different entities, then defaulting on the loans.
Cyprus is without parallel as a route for money laundering and tax evasion in the EU. The reason they have €30 billion of foreign deposits is because so many use it as a place to hide cash.
The Cypriot government tried to pull a fast one and say they needed bailout funds because of losses on Greek government debt, but when they ran the numbers, it was clear they were hiding a lot more.
Do chen, they should have started over 4 years ago right after the election. I have watched this slow train wreck and tried to stay a step ahead but when you read something like this, it's in your face time.
Proof that it is time to repatriate the maximum amount of cash from your Bank accounts NOW!
Can't believe they seem to be taking it so well .
Maybe they can write the 6.75% "fee" off of their taxes. Tax deduction baby !!
Well, it wasn't you that earned that money. The government did it for you. :)
Maybe they can write the 6.75% "fee" off of their taxes. Tax deduction baby !!
Canary in the coal mine. The first of many many more to come.
Can you imagine the insiders and cronies who got their money out just in time. I'm sure Goldman's clan coincidently moved their money last week.
Those with first access to new fiat get first access to new information.
This fuckin sucks for the responsible savers but looked at another way it is no different than the bullshit property taxes we have to pay here.
You own your fuckin land outright and govt fuckheads come along each year to get "their" share of it. Substitute savings for property and it is the same thing - AN ASSRAPE.
Amen to that Sir Smegley.
Your possesion are all belong to me.
Try explaining that to most people though and they get all glassy eyed.
And when, over time, all the land ends up in the hands of the elites and the peasants live in poverty, will you still be complaining about the "fuckin" taxes? Have you been paying attention to the growth of inequality in this country? What "fuckin" solution do you offer for that?
http://www.dailyfinance.com/on/Wealth-Inequality-in-America-viral-video-...
Put a fork in it, and call it done.
"What...solution do you offer for that?"
Get a job?
Hey Hugo, I thought you were dead.
Well, no one anywhere is making any sort of move to reduce any taxes of any kind, and yet your link seems to suggest that wealth inequality is actually increasing. What was your point again?
Sort of like paying the King?
We have come full circle.
America died in 1913, 100yrs of the federal reserve and we are a colony of a private banking cartel. That cunt queen of england is a share holder too. Funny how they bought America back, they destroyed its money and have us borrow it from their private Bank which they are all shareholders of.
The Royals of old Europe and their banksters are the enemy. Revolutions have been fought and won but the money makers always buy it back.
The UK worships that welfare cunt queen and her inbred family when she should be hanging upside down with her brood like Mussolini. But the British are cowards, it is the 21st century and they still worship and pay that cunt for nothing but breathing.
The British have to be easily the best controlled people on the planet and us dumb ass Americans are following them.
No thanks to our traitorous leaders who enjoy the payments from the owners.
Reality is a bitch
It is different. It is an overnight surprise decision by the government and those outside the national government to impose an instantaneous tax. In that it is a tax on wealth, I fully agree with you.
Depositors are lender to banks just like bond holders. No reason they should be exempt from haircuts.
Bullish gold btw.
Actually loans create deposits, NOT deposits create loans.
Flat wrong. Depositors are bailors, not lenders.
Stop surfing the internet, Jamie, and focus on crafting your testimony.
This state theft from private bank accounts will surely destroy whatever trust is left in the government and banking system. A guaranteed way of ensuring growth and economic activity will grind to a halt. It should cause a widespread refusal to pay taxes and large numbers on the streets. Let's see.
They've trying to steal it thru inflation but it's been a bitch, won't move over 3%... This is much better.
Okay, let's hope for the worst!
P.S.
I think my recent purchases might start appreciating very soon. In fact in 40 or so hours I expect them to be in green...
There are many of us who are likely to see green in their yellow holdings soon...
man i hope so, id love to dump my paper Ag
the state is not taking ANYTHING from the banks, but rather they are refusing to give money to cover the losses the banks have made through bad lending. And since the Cyprus government will not give it, why should anyone else?
It won't last the summer....
wake up and get serious...
flush out the honest guy with the mafia; albeit the honest guys loses more than the mafia shill. Small medicine for organised crime, tuff shit for the local investor.
The underlying implication is : there are no INNOCENT investors in Cyprus!
They should apply THAT medicine to themselves, the German high command.
Bank runs like naked nuns ruinning in the streets are one off situations; "we promise you that"; small consolation.
I'll take the femen any day.
Tits couldn't fix the Italian election, what makes you think they can fix balance sheets
dirty sheets ...tits like mops sucking up loose bits...nothing like a nun to clean the floor of mafia rodents. Hey, Gods work be done it was a Templar stronghold.
Venus was born in Cyprus. I met her avatar on mount Troodos. Never was the same after drinking Commanderia wine!
And they say it can't happen here...
We have a deposit guarantee, Europe doesn't. So, yeah.
https://www.kitcomm.com/showthread.php?t=107272
Nope. I look forward to your tripe.
The EU has it too.
Not up to 100pct, obviously, but still..
For what it's worth, my bac atm card stopped working yesterday. Went to the bank to get it straight and was informed by the manager that 100% of bac atm cards were compromised.
Lesson. Cash on the barrelhead, troops!
My wife works in IT and this has gotten amped up considerably in even the past couple months.
Professorlocknload
I will test my BAC ATM card in just a little bit and report back. Ominous.
EDIT:
BAC ATM card worked OK for a cash withdrawal, approx. 1:45 PM US ET.
Called the Fraud department and they confirmed. They will Fed Ex me a new card Monday. I'm still not sure if it was a regional or national breach, but wife's and daughter's cards were also compromised.
''Cyprus’s finance minister is scheduled to fly to Moscow on March 20.''
…and impact next to the stain left by Polish President Leck Kaczynski I'm assuming?
Russian planes are very reliable: most of the time. Check the WW2 records. Another Polish general did not make it in Russian plane.
This is a Lehman moment. The whole basis of confidence in depositor guarantees has just been blown away. People over over Club Med must be looking at Cyprus and thinking "when does this happen to my bank?". In the meantime it would be very interesting to know just what has been happening to the cash deposits of Cypriot politicians and their friends and families in the days since this decision was taken.
Financial cannibalism.
New Eurospeak phrase for stealing “an upfront one-off stability levy”
http://theuglytruth.wordpress.com/
The Pandora box is open.
Any depositor in any other indebted country (Portugal, Spain, Italy etc) will start to cut down on deposits and brokerage accounts that can be taxed...
It is goingto happen even here in the USA with IRA acounts...eventually they will be taxed (just one time ofcourse...)
I know I would.....
And the American bank executives all had bright lightbulbs appear above thier heads.
It doesn't stop there. The IRS knows how much you make. Your credit report shows how mich goes out in bills. Just wait until the 10% tax on money you don't spend.
Just think of the economic growth is everyone is forced to spend every penny they make. If fact why not pass a law that you must add 10% of your gross income on credit every month. Debt doesn't matter, Krugman said so.
I think this is Nobel Prize stuff here.
If Krugman can get one for Keynesian garbage, this deserves two.
one of the Fed special tools is placing a time strip inside money, making it a perishable commodity. use it or lose it
Nifty. So, if you don't keep it in circulation (to reset the countdown), it expires after so many months? Devilishly clever... they seem to afford all the smart but devious guys.
Then we'll become like prisoners trading cigarettes. If not smoked they become stale and worthless.
The time strip is often referred to as inflation...
adr,
CC companies have better skills and methods. They check if you pay your utilities on time. If you cancel your cable service they put you on a special watch list. Because only insane people would not watch TV.
How many repeats of the same unique situation will it take for people to realise the seriousness of the situation ?
many.
Didn't Putin try to freeze all cash leaving Russia recently? He know this was coming.
When asked if a deposit assessment could be ruled out for future rescues, Rehn said in an interview: “It can and there is no concrete case where it should be considered.”
Olli Rehn has been using some of that special Deep Water Horizon cement on his well heads too
+ 1, and nice seeing you around.
Anything can happen now. Prepare immediately.
Funny how the MSM telly coverage doesn't mention the haircuts (aka SheepleShearings). Guess they don't want to be reponsible for sheeple-tramplings around Euro-ATMs.
Apparently cash ain't King after all. Aside from inflation risk, this is just way too easy, like shooting fish in a barrel. I believe that governments around the world will be watching very carefully. The question is whether the people take note and act. Weekly or Monthly trips to the coin shop may be in order.
Banks ripping people off? Bitcoin users unaffected!
Downvoters can go fuck themselves. Those with an irrational reaction to rational currency are as idiotic as any fool sitting in a Federal Reserve boardroom.
The last bitcoin crash was way worse than a 10% haircut. Get a clue, bozo.
Bitcoin has ALWAYS recovered after a crash, just as any healthy market entity does. If it's not worth anything, it wouldn't recover.
You seem smart enough to learn how to use an ATM. Good luck with that.
Relentless bitcon pumping from you day after day. That is all you're capable of talking about here. You never post about anything else... never. Obvious bitcon shill.
My early history here was all "Fuck the Bankers" until I found a way to fuck the bankers AND the Feds. So sorry if you're not bright enough to know how to do it.
Bitcoin: The currency of Trolls.
Bitcoin is still a little too young and vulnerable. I think it is likely to go through another mania/bust over the next several months.
> Bitcoin is still a little too young and vulnerable.
That's an improvement over "Buttcoin is for luzers" that is the usual fare here. Thanks for your civility, though I disagree with your assessment. Bitcoin is tougher than any bank in Cyprus.
Call me when the Saudi's trade their Oil for bitcoins............
You feel confident that bitcoin will not go through a drop > 10%? On the upside, given a long enough timeline, bitcoin will likely recover from major pullbacks.
Bitcoin is volitile and will continue to be so for some time. And I mean 90% plunges and 300% gains all within 12 months volitile.
Bitcoin is a good concept but what happens when the Web goes down (and it will) or the Electrical grid goes down (and it will) ?
Bitcoin has nothing to do with the web.
The electricity would have to go out all over the world at the same time to affect Bitcoin or the internet in general. If that happens, we'd probably have even bigger problems that the fact that none of our money, Bitcoin or otherwise, is available.
I thought it was traded over the web?
You can trade it over the phone or face to face. You don't necessarily need the web.
you need to contact trusted bitcoin ledger holders to check if the bitcoin you get paid with was not used in any of the recent transactions. You definetly need internet for that
Wrong. You'd better read up on how bitcoin works. You can't make a bitcoin transaction without the web. And you might want to read up about "deep packet inspection" gear being used at ISPs....
> You can't make a bitcoin transaction without the web.
Are you one of those people that thinks that the web = the internet?
If you are, you need to rethink what you think you know about reality because you're operating under a delusion. Since that provable flaw exists in your thinking, the rest of your "suppositions" are equally suspect.
I'bve had my share of semantic arguments, but seriously, distinguising 'The World Wide Web" and "The Internet" is really, really nitpicky. You know they mean The Internet when they say The Web.
On the other hand, I could see in the future something like bitcoin mixed with Ripple, with a local full reserve physical currency element, so that when an area is cut off from the rest of the system, you could use local trust networks to maintain credits and debits until the node is reconnected to the main network, without having splits in the blockchain.
Hey bitcoin shit heads... what happens to your useless numbers when the banks are told to stop accepting transfers to/from BC dealers? Ooooooh, didn't think of that did you?
Now stop trolling you useless asshole.
Suddenly the cost of installing a home vault is not looking so onerous.
Yes you can do it, but you will be missing out on the 0.01% APR from your friendly neighborhood banking cartel.
Suddenly the cost of installing a home vault is not looking so onerous
Why?, I thought the same thing,until I realized I was just as unprotected with one at home, as in the Banks.
The door breakdown at 2:30 a.m., and 20 armed ObaMao Troopers take possession of ALL your home, vault included.
IF a felony has been committed you LOSE 100% of your assets........problem is there are so many new laws, you never know IF you have broken one.( AND the burden of proof is on YOU!,can't fight it in court w/out money.
And since they have taken possession of it,your DEAD MEAT.
Long PVC, and GPS devices.
Fill the home safe with bricks. Makes a great diversion, and buys a lot of time. Any petty thief is going to zero in on it, and won't generally consider anyone who owns one would put valuables anywhere else.
the problem here was that wealthy Russians were using Cyprus to do their offshore banking (take note if you're a depositor in any caribbean bank with assets ten times your demographic asset base - and we all know Obama should have cleaned up that mess, because the Bush economy was just an excuse to steal a trillion from UST and move it offshore) so now the question is will it spread, and is it such a bad thing (well sure it is if every american credit union saver gets dunned in order to make the 1% get off their cash) but that probably won't happen here. and most certainly this should make Bernanke rub his hands together and grin, because you make an example of a few savers, and they all get nervous and buy stocks because we know the NYSE has 100% backing of the USG. ah yes its a good day to be Fed chief.
Good diagnosis. You do your moniker justice, Dr. H.
This was a German ultimatum to the Russian Mafia via their Cypriot bankers :
REPORT: Germany Told Cyprus They Could Tax Their Depositors, Or Leave The Eurozone - Business Insider
The banking system is crooked as Jamie Diamond. Novelty is : Germany said : your depositers are all mafioso!
brutal, but they can keep 90% instead of losing it all if their banks went belly up!
unbelievable
I would be furious
you will be when banksters take your fiat from the bank account that you still maintain
The cypriot pound started life at a par with gbp. It stayed stable as the gbp weakened, making it, the maltese pound and various arab dinars which had also started their lives as £££ all ended up being worth more than a pound. When they joinrd the euro their pound was worth nearly 2 €. The gbp is worth €1.15 now and europe is bloody expensive.
I'm saying this as a kind of schadenfreude as their currency is brought back down to our level.
Well OF COURSE the resident Cypriots are the ones at the ATMs -- the "nonresident Russians" ARE IN RUSSIA!!!!
... and their ATMs in Moscow are flashing the message, 'Transaction denied.'
Good for tourism.
Asset Allocation: Diversify! If you did, you still have Cash, PM, Bitcoin.
I'm diversified: gold, silver, PM miners.
You'd think people like Joe Weisenthal and Keith McCullough would be bigger fans of gold now, but it has only made them more bullish on US stocks.
Nothing like playing Dominoes. Love to watch them fall onto one another.
A stupid non-solution. Cyprus banks are losing scads of money. So, close the banks, have the incompetents return to a job that better fits their skill set, like goat herding? No, I've got it, let's impair the solvency and reliability of deposits in EU banks everywhere. Brilliant!
Really, how hard would it have been to shut down those banks, move the performing loans, cover deposits to the extent of deposit insurance. A few billion farted out Bernanke's ass, that's all. Instead, the EU in one fell swoop induce housewives in Denmark to stuff the cookie jar. Like that helps the EU.
Go long mattresses.
Before this is finished, those fcks are going to make Africa look good.
Will this cause (more) bank runs across Europe? Certainly a warning shot to say the least. Things should get much more interesting also with the geopolitical tensions between Europe and Russia. Popcorn anyone?
wait, I thought Europe was fixed, or being fixed or in the process of releasing patches and up dates on the fixes they made last year and the year before that and so on.
remember all those meetings? these guys were getting after it hard, i mean, they even had meetings to plan more meetings even when the meetings they originally had planned were cancelled. how can you have that many meetings and not be on top of it?
Cypress must have done something wrong, mucked it up somehow...
maybe they didn't have enough meetings?
Wash, rinse, and repeat a new crisis mode.
Global Debt for Dummies!
This is quite strange. Cyprus is geographically an asian country but european culturally.
The only reason Cyprus is in EU is to veto any Turkish attempt to be EU member thus Berlin and Vienna and Paris won't be blamed for it. That's it. Cyprus has no other value for europeans.
However, hitting deposit holders is quite radical. I just checked italian and french media and the event is front page event, but somewhere at the bottom and not widely discussed and broken down.
What hit me is this:
http://www.ft.com/cms/s/0/6ec0fe6a-6a32-11e2-a7d2-00144feab49a.html
http://www.ft.com/intl/ftfm/view-from-the-us
John Dizard of FT Title:
Bored markets thirst for banks’ blood
Something is happening. First the untouchable Jamie Dimon was humiliated in public. Now in europe they set the precedent of hitting depositors.
Something is happening. Some powerful people are looking for blood, and I think they will get blood.
+1 Just a snipet of what's to happen....
http://www.agrimoney.com/news/pension-fund-buys-$100m-of-land-in-hunt-for-safety--5608.html
http://www.agrimoney.com/news/uk-woes-prompt-further-downgrade-to-eu-whe...
http://www.agrimoney.com/news/saudi-may-add-forage-to-list-of-hefty-crop...
http://www.agrimoney.com/news/saudis-buy-argentine-farms-on-eve-of-land-...
I'm focusing on food. It seems that everybody wants to import food. The issue is : Who is exporting?
And this:
http://www.agrimoney.com/news/no-end-in-sight-for-feedlot-losses-usda-wa...
Please allow me to oversimplify:
Gold, bitchez!
is this the original ?
http://www.zerohedge.com/article/gold-bitches-1200
Everything in the universe is cyclical. You'd be a fool to think otherwise.
The principal cause of the temperature of the earth is from an object, which takes light about 8+ minutes to travel from, to the earth.
+1 One of the steps my wife and I took the past two years was becoming Vegetarians, we think Meat will become a luxury and unsustainable.
Whatever your position on Climate change, It's very obvious drought is playing heavily on the food supply. Owning and buying farm land weighs heavily on water supply.
There is no man made climate change, but climate changes all the time. Sometimes there are droughts sometimes there aren't.
I do not blame the drought, I blame the USELESS ELITE that produces nothing and gets to use the fresh batch of money. There is Useful Elite like very rich people who produce something and there is Useless Elite which is very rich people who extract money from those who work, like Primary Dealers.
In this case, IMO, Useless Elite has simply used the freshly printed money to buy up and store Energy, Food supplies, thus creating a contrived shortage which disrupts food supply chain, as it is happening. That is what they are fearing, IMO, food riots.
Don't know what to make of climate change, I do know every year for the last 9 years rainwater has progressively gotten more scarce.
I talk to many farmers and they repeat my same concerns. I hope your right about it being a pattern
that's why it's critical to conserve every single drop coming onto your land.
go long mulch, raised beds, no-till, cover cropping & swales.
+1 yes, I bought these 500 gallon tubs from an old pickle factory and I try to save every drop. We also reuse all our grey water for plants and such.
My neighbor and I also dig ponds and I live on a lake and even though we're not supposed to we steal water from our lakes.
It's almost as much work as burning wood for heat.
if you're producing/bartering 90% of your food supply, you're way way way ahead of the game, my friend. cheers to you and your wife.
Well thanks, It's taken us awhile to get to this spot, we had lots of help/advice and we were pretty naive (probably helped). I do know I'm not going back, I love it here and my new life/friends/family.
Watch:
http://www.youtube.com/watch?v=0gDErDwXqhc
Thanks for sharing...
there's the useless elite
but what about (??) the hofjuden that supply their judefetzen to the
Technology works only if there is energy available. If there is abundant energy available, water could be deviated from point A to point B. There are ways around the drought, only if.....there is energy available.
We produce/barter 95% of our food
100% of electrical energy
But we're just 2 people. (we grow enough to barter also)
Moving water from point A to B does take a lot of energy (which is why it's so expensive and not cost effective) We can't produce enough energy to run the process.
We're living now how we're going to have to live in the future.
Interesting.
That's why I am on ZH. I don't get this kind of feedback from the main stream media.
How do you practically do barter? Can you explain it really shortly?
Do you have money in a bank at all? Do you use money or bank card?
Well, my whole local community barters and the whole thing really got started by word of mouth.
My wife and a couple gals started a farmers market in our closest town and that has grown faster than you could imagine. We raise chickens/eggs so we do consume some animal protien.
We use a local bank but have no accounts. (Many people there we barter food with)
No credit cards, or cards of any kind.
wow. What state do you live in?
heya ekm, hope you don't mind if I nudge into the exchange.
I know folks who "barter" pretty much anything you can imagine - including trading time/work for living space. the only shift needed happens in the mind, when people begin to realise "money" isn't needed to exist, providing you have a trusted community in place - "money" is just the abstract put in place to get a % of your life-work into usurious hands.
once that concept is fully understood, it frees the mind up to be more creative in life. as in, creating ways to absent oneself from the system that exists to keep one hand in your pocket. exchanging what skills you have to offer for what things you have need of can work best if one keeps life simple - it's when people start to need things on offer, that they'll inevitably get sucked into "their" world. . . and of course, we all dip in and out of it, as we seek to find a balance.
here are some ideas: community supported agriculture: CSAs have many different ways of existing, but basically trade time and/or money for local, usually organic foods, keeping the production local, very important.
farmers markets are becoming more ubiquitous, and are relatively easy to start up. exchange of information as well as getting to know local producers, very valuable.
for those who rely on wood for heating, rocket mass heaters!! spend less time gathering your precious resource, and use less, win win.
another great resource, often linked here by tip e. canoe (h/t, my friend!), is permies.com, very valuable for ideas and practical support, for anyone looking to diversify their lives.
in the past, I've known of people who used their community to "fund" local small business start-ups, things that benefit locals, simply creating "coupon" type promise of service, paid for in advance, the monies used to get the service up and running, coupons redeemed when service wanted/needed.
people can be very creative once the "normal" implant is removed, frees up so much imagination!
best to you.
Wow thanks, Rocket mass heater....I'm going to build one of those.
Interesting stuff.
My neighbor built a greenhouse around the entire outside of his house and heats the house and greenhouse with a hole he dug into the ground. He got a big feature on the local news. I'll see if I can find the video.
was hoping you'd see the link - your words referencing the amount of time spent on feeding that fire got my attention, ha!
it's good to read of people networking amongst their community - and I "predict" you will come to find the permies-folk an extended community once you've spent some time there. . .
here's a link to the thread on Rocket Mass Heaters. . . in greenhouses!
folks can be sooo creative, eh.
thankfully.
Thanks again, You know I've been researching this since you shared the link (I think my wife is mad at you lol) and the only problem I can see is heating large area's?
But yes, Greenhouses....I just built a large greenhouse on the SW exposure of my home and I think that is where I'll start with the stove. Maybe then I can experiment and see if I can move to the house.
It's quite an idea and I think your definitely onto something. I'm going to build one tomorrow.
this cat is doing wild crazy insta-rockets with cinder blocks...great for greenhouses...also check out his rocket kitchen.
http://www.youtube.com/user/DateFarmer?feature=watch
Quite impressive. Thx a million. I'm going to read your post few times.
The purest form of Money is TRUST. Gold or Fiat derive from Trust. What you said makes very much sense.
What state do you live in?
the State of Mind.
not necessarily being facetious, but as I'm something of a gypsy, I don't necessarily have roots, though I have many spaces I work with, and for. . . let's just say I'm currently based out of Cascadia subject to inspirations. . .
I'm fortunate to have quite a network to learn from, and add my own skills/time as support to. despite the dominant cultural narrative, not everyone on the North American land mass acts as live-stock, many are hard at work creating alternatives to the enForced realities, most flying under the radar.
and the key to belonging? yes, you nailed it - TRUST. no need for monies when you have a TRUST-ed network of people empowered by mutual respect.
very happy to have added to your curiosity - your posts of late have lit a fire of resolve for me, getting back to being busy creating, less time worrying. . .
thanks!
Never was much good at predicting the weather a week out. Let alone predicting 100 year trends.