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Cyprus President To Rehn: "I Told You Tax Wouldn't Pass. Regards To Mrs Merkel"

Tyler Durden's picture


Update: German chancellor, Cypriot president discussed Cyprus rescue, official says. Merkel told Anastasiades that Cyprus can negotiate on rescue     package only with troika: official.

To say that the tensions within the European "Union" are getting unbearable would be an understatement.

First, courtesy of Reuters, we get a detailed narrative of what happened before this Saturday's announcement of a deposit levy, where we learn that the deposit confiscation was initially Joerg Asmussen's idea, and we also learn that Atanasiades stormed out in anger when he learned what was about to happen.

Under a promise which still appears on the website of the Central Bank of Cyprus, deposits in its banks are insured up to 100,000 euros. Cyprus has about 30 billion euros in insured deposits, a large amount for a country of just 1 million people.


But because of its status as an offshore financial hub for foreigners - including large numbers of rich Russians - it also has 38 billion euros in uninsured deposits in bigger accounts.


Cyprus could have offered full protection to those with insured deposits up to 100,000 euros and still reached the 5.8 billion euro target by taxing uninsured deposits at a rate above 15 percent


According to three sources, European Central Bank board member Joerg Asmussen and euro zone finance ministers' representative Thomas Wieser had worked on a plan that would require just that - a high levy on only uninsured deposits.


But when the plans were presented to Anastasiades, several participants said, he balked at any suggestion that uninsured depositors should pay more than 10 percent.


Since his limit meant uninsured depositors would pay no more than 3.8 billion euros, those with small savings would have to pony up the other 2 billion euros.


The meeting was contentious, participants say. Schaeuble, Dutch Finance Minister Jeroen Dijsselbloem and negotiators for the ECB, EU and International Monetary Fund broke off several times to talk separately with the Cypriots. Other ministers hung around in the corridors, playing games on their mobile phones.


In the early hours of Saturday morning, Dijsselbloem, who serves as head of the euro zone minister's group, proposed that uninsured depositors pay 12.5 percent, a level which would require insured depositors to pay only 3.5 percent or so.


Anastasiades stormed out of the meeting in anger. He returned only when senior negotiators told him that if he left, Cyprus would have to default and shut its banks altogether.


Finally he agreed to the levy, but insisted on capping the fee for uninsured depositors at no more than 9.9 percent.


Exhausted officials did the sums. To raise the other 2 billion, insured Cypriot depositors with small accounts would have to pay a 6.75 percent levy on their savings. The deal was done.

Turns out it wasn't. Moments ago Kathimerini reported what happened later today, after as we first reported it became clear that the Cypriot parliamentary majority had swung against the deal, and shows that the bad blood between the Cypriot leader and Germany's Merkel is now boiling:

Cypriot President Nicos Anastasiades held a telephone conversation with European Economic and Monetary Affairs Commissioner Olli Rehn on Monday night to inform him that there might not be enough parliamentary support for a deposit tax on the island.


Cypriot MPs were due to debate on Tuesday a tax on deposits but it looks like Anastasiades will not be able to get enough votes to approve the one-off levy, which was decided at Eurogroup meeting in the early hours of Saturday.


Anastasiades is also reported to have spoken to German MEP Elmar Brok, a member of Chancellor Angela Merkel’s CDU party who is close to the German leader.


According to Mega TV, Anastasiades is reported to have said to Rehn and Brok: “When I warned you that there would not be a parliamentary majority to pass the agreement, you didn’t want to listen. Give my regards to Mrs Merkel.”

We eagerly wait to hear back what message Frau Merkel has for the Cypriot leader now that the entire plan to punish Russian billionaires and generate political brownie points for Angie come September, while in the process using innocent Cypriot savers as collateral damage, is about to fall apart.

Incidentally, why is any of this happening? Because a few rich eurocrats have decided that this is what is "fair."

They know best...


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Mon, 03/18/2013 - 18:20 | 3344722 Croesus
Croesus's picture

Doesn't change the fact that they thought about it, and announced where does it happen next?

Anyone keeping their money in the banks, is asking to get hurt. jmo

Once confidence dies, it's game over!

$2,500 Gold by fall.

Mon, 03/18/2013 - 18:25 | 3344736 WayBehind
WayBehind's picture

By fall? How about by July!

Mon, 03/18/2013 - 18:36 | 3344781 Manthong
Manthong's picture

“the tensions within the European "Union" are getting unbearable”

Just wait until they find out that there is no honor among thieves/bankers and that their "bail-in" for the Fed is 100% of any gold that may or may not be left here.

Mon, 03/18/2013 - 18:40 | 3344805 fuu
fuu's picture

"Other ministers hung around in the corridors, playing games on their mobile phones."

These are your deciders Bruce.

Mon, 03/18/2013 - 18:47 | 3344836 NotApplicable
NotApplicable's picture

Just be glad they had a distraction, lest they decide other unpleasant things.

Mon, 03/18/2013 - 18:58 | 3344871 nope-1004
nope-1004's picture



"Germany's leader is Angela Merkel - she's a lady!"

Mon, 03/18/2013 - 19:22 | 3344942 negative rates
negative rates's picture

I smell a bondy default a brewin. This is getting good.

Mon, 03/18/2013 - 19:30 | 3344977 Rubbish
Rubbish's picture

This is a good time for Ben to the rescue. More ink boys, keep it coming.

Mon, 03/18/2013 - 19:43 | 3345040 Element
Element's picture

Time's man of the year 2013, coming up.

Mon, 03/18/2013 - 19:57 | 3345106 ArkansasAngie
ArkansasAngie's picture

Benny pisses out the money Cyprus needs every other day.  

The issue is that thisis NOT a liquidity problem ... duh.  Cypriot banks are insolvent.  

Mon, 03/18/2013 - 19:59 | 3345123 flacon
flacon's picture

Rehn is another motherfucker with a Ph Dee.... fron an Ivy League univeristy Oxford. Fuck him! It's no wonder he lacks common sense. 

Mon, 03/18/2013 - 21:06 | 3345327 Troll Magnet
Troll Magnet's picture

somewhere on this planet, jon corzine is shaking his head and saying, "amatures..."

Tue, 03/19/2013 - 01:41 | 3345916 Heavy
Heavy's picture

yeah where is that guy, shouldnt he be in jail forever or something? 

Tue, 03/19/2013 - 05:20 | 3346036 torak
torak's picture

......annnnnnd it's GONE!


Tue, 03/19/2013 - 06:09 | 3346071 jeff montanye
jeff montanye's picture

though the banksters may yet come to regret taking ten percent of the money of some of the very best and least forgiving assassins on planet earth:

that's why jamie dimon may not be as much richer than you in the future as he was in the past.

Mon, 03/18/2013 - 20:36 | 3345239 Element
Element's picture

He got the award last time for (allegedly) bailing out planet Earth ... that's what I'm referring to.

Mon, 03/18/2013 - 22:00 | 3345506 The Big Ching-aso
The Big Ching-aso's picture

"We have to pass this deposit tax in order to find out who's getting phucked."

Angela Merkelosi


Mon, 03/18/2013 - 23:13 | 3345704 TruthInSunshine
TruthInSunshine's picture

Breaking - It's gettin' real in the Chase bank parking lot...

Chase Bank Customers Report Seeing $0

NBC Southern California - 33 minutes ago‎  

Many Chase Bank customers logged into their bank accounts Monday evening to find a horrifying figure: $0. The major bank acknowledged via Twitter that the "internal issue" causing customers to see zeroed-out accounts online and on the bank's mobile app ...

Tue, 03/19/2013 - 00:02 | 3345821 lewy14
lewy14's picture

Confiscation code accidentally deployed to the production servers.

Tue, 03/19/2013 - 00:30 | 3345858 Seer
Seer's picture

Usually already well into development of a follow-on version.  I'm thinking that the next version is going to have the ability do display those fancy negative signs...

Tue, 03/19/2013 - 01:17 | 3345897 Silver Bully
Silver Bully's picture

'Breaking - It's gettin' real in the Chase bank parking lot...'


Time to repeat the remix. Aaaaaaaaand it's gone. It's all gone.


Party down like you're the 0.00000000000000000001%.

Tue, 03/19/2013 - 06:45 | 3346106 The Heart
The Heart's picture

"Breaking - It's gettin' real in the Chase bank parking lot..."


Lets see how these Americans react to their funds being stolen.

Oh, it's too early you say? OK, we will wait a month.

Mon, 03/18/2013 - 19:57 | 3345107 clymer
clymer's picture

Here's an idea:

Putin comes to the rescue with an offer to recapitalize the entire cypriot bankng system with rubles backed by gold and russian energy. Who needs Euro's anyway?

That'll teach Euro-cratic NWO pukes to fuck with Russian Billionaires

Mon, 03/18/2013 - 20:14 | 3345172 Terminus C
Terminus C's picture

Why would he do that?

Let the fucker collapse, Cyprus will come begging and he'll pick it up for pfennig on the euro.

Mon, 03/18/2013 - 20:51 | 3345273 earleflorida
earleflorida's picture

WW I, and why 'Russia' ?    'The Last Tzar now resides in American Politics?'

Emphasis on 'Wealth and Family Ties' throughout Europe?! Scroll - 'Family Background'

Hint: Rothschild's?!?!?!      Bolshevik's rebellion insues...

Tue, 03/19/2013 - 03:07 | 3345968 MisterMousePotato
MisterMousePotato's picture

Why would he do that? Are you kidding?

A. A deep water port right in the middle of the Mediterranean.

B. Cyprus (and Israel) are sitting on one of the biggest gas fields in the world (recently discovered). Right now, Europe is beholden to Russia to not turn off the gas. Were Cyprus still a part of Europe, and they were developing and exporting their gas to Europe (which is a whole lot closer than Russia, by the way, and no pesky Muslims astraddle the pipeline either).

Why would he do that?

Obvious reasons. In fact, one might almost wonder if Putin didn't somehow infiltrate the European bodies making these decisions and orchestrate this little fiasco.

And all for a few billion Euros (of someone else's money)? Not a significant amount of money in light of the above.

Finally, you can be sure that some got their money out in advance, and others are still waiting for the banks to reopen. That, I am sure, was icing on the cake for someone, probably Putin and company.

Oh, sure. He whined that he wasn't consulted.

How many troops does the U.S. have in Europe?

And why?

Mon, 03/18/2013 - 22:04 | 3345500 WallowaMountainMan
WallowaMountainMan's picture

oops, posted by another below (nat gas)

Tue, 03/19/2013 - 00:36 | 3345862 Seer
Seer's picture

Pretty much as you say.  Cyprus can't marry Russia without first getting a divorce from the EU.  Bankruptcy = divorce from the EU.

The affair has already gelled in the back-rooms quite some time ago.  What we're now seeing is a nasty break-up.  Cyprus and Russia would have long ago run off if not for this divorce thing, which will mean subjecting the Cyprians to a bit of pain first (have to make the divorce look straight up, can't introduce the groom yet).

Tue, 03/19/2013 - 01:50 | 3345921 ebear
ebear's picture

How do we know Putin isn't delighted that these guys are getting singed?

He has his enemies too, you know.


Mon, 03/18/2013 - 23:04 | 3345699 silverserfer
silverserfer's picture

Sounds like a job for "The Shadow Banker" Caped crusader of shady shit and financial buggery. Picture Bernanke dressed up like the hamburgler

Mon, 03/18/2013 - 23:25 | 3345755 tunnelvizn
tunnelvizn's picture

. . . spewing $trillion coins from his rectal oriface . 


Mon, 03/18/2013 - 19:46 | 3345020 mjcOH1
mjcOH1's picture

"According to Mega TV, Anastasiades is reported to have said to Rehn and Brok: “When I warned you that there would not be a parliamentary majority to pass the agreement, you didn’t want to listen. Give my regards to Mrs Merkel.” We eagerly wait to hear back what message Frau Merkel has for the Cypriot leader now that the entire plan to punish Russian billionaires and generate political brownie points for Angie come September, while in the process using innocent Cypriot savers as collateral damage, is about to fall apart." '


'Dear Anastasiades, I stand humbled by your leadership. Feel free to tax your citizens to fund the bailout (or not) as you wish without further involvement from the German taxpayers. Regards, Angela.'

Mon, 03/18/2013 - 20:27 | 3345210 Banksters
Banksters's picture

I just got the official Russian Mob response.  Here is a rough translation from Yuri.


Oh, yes,   go ahead and vote for the 'tax'.   BTW, how is the family?   Good,  Good.   Too bad they will die a painful death in the near future.   

Mon, 03/18/2013 - 21:06 | 3345325 a growing concern
a growing concern's picture

It seems like a lot of people in countries all over the world have finally had it with banksters and their ilk.  I can only hope this portends many banksters meeting their untimely fates at the hands of angry mobs in the near future.

Mon, 03/18/2013 - 21:19 | 3345353 DeadFred
DeadFred's picture

What are the odds Rehn and friends didn't listem when told the votes weren't there? Or they didn't have a clue on what the Russians might think? They probably had a better vote count than anyone in Cyprus. They certainly know what a screwed Russian mobster is going to think. They are playing a deeper game than most are giving them credit for but I for one don't see their goal. They put this out there knowing what was going to happen and had a reason to do it this way.

Mon, 03/18/2013 - 23:35 | 3345782 aka Gil
aka Gil's picture

Perhaps you're correct, but maybe somebody (or several people) miscalculated, got drunk on a toxic mix of arrogance and hubris or whatever. Sometimes we give these NWO types more credit for being smart than they deserve. Given the current level of backpedaling, it appears to me that somebody just fucked it all up.

Tue, 03/19/2013 - 00:07 | 3345827 jeff montanye
jeff montanye's picture

so it appears.  if they do backpedal on hitting the small depositors, they'll have to hit the uninsured big depositors harder.  yet, as jim sinclair notes, that means the kgb and those people, if you steal their money, will fuck you up.  maybe not today, maybe not tomorrow, but soon and for the rest of your life.

Tue, 03/19/2013 - 00:44 | 3345870 Seer
Seer's picture

The EU has been one big bluff.  In total it's a collection of entities that are very limited in natural resources- PHYSICAL.  And in a world that is placing higher values on PHYSICAL (because it's all limited, unlike cheesy EU money [and USD for that matter]) this is problematic.  Now that the smoke has cleared and we understand that the banksters can no longer deliver skittles and unicorns we get to meet the new bosses...

No miscalculation occurred.  The Ponzi is failing.  These folks were without ammo a LONG time ago.  If nothing else one should commend them all on an amazing acting job, pulling "wealth" out of thin air!

Going forward it means that most will fall from high places.  The BAD is that all the shit they we're toss aloft wi going to come down with them, all on top of us...

Mon, 03/18/2013 - 20:13 | 3345168 Chuck Walla
Chuck Walla's picture

I say, let Putin work his magic on them.



Tue, 03/19/2013 - 01:31 | 3345908 The Navigator
The Navigator's picture

Thanks TSP for the good article by

If I were the Cypriot PM, I'd be reconsidering that wealth CONFISCATION plan.

Still, the unintended consequences may be bank runs when the banks open on Thursday in Cyprus, and perhaps earlier in Italy, Portugal, Spain........

Mon, 03/18/2013 - 22:54 | 3345670 Mugatu
Mugatu's picture

"That's not a lady - its a man!"

Austin Powers

Mon, 03/18/2013 - 19:36 | 3345011 mudduck
mudduck's picture

This is the distraction.

Mon, 03/18/2013 - 21:30 | 3345402 This just in
This just in's picture

Exactly.  Watch the other hand.  

Mon, 03/18/2013 - 22:00 | 3345508 Its Only Rock N Roll
Its Only Rock N Roll's picture

Meanwhile, back in China...

Mon, 03/18/2013 - 19:11 | 3344910 Cap Matifou
Cap Matifou's picture

It will surely catch their attention, when Asmussen and Wieser get strung up on each other's guts, unless they pay out swiftly the russian mob bosses from their own pockets.

Mon, 03/18/2013 - 19:44 | 3345049 Iocosus
Iocosus's picture

they made google play lots of euros

Mon, 03/18/2013 - 20:40 | 3345259 Catflappo
Catflappo's picture

Perhaps they find it hard to differentiate between games and real life?

Tue, 03/19/2013 - 00:05 | 3345825 Dr Benway
Mon, 03/18/2013 - 21:19 | 3345360 Go Tribe
Go Tribe's picture

Amazing. And this kind of shit could one day determine whether we can afford to put food on our tables.

Tue, 03/19/2013 - 02:44 | 3345955 Long_Xau
Long_Xau's picture

Lemme guess.. they were playing DEFCON. Which continent is the best one to go in smoke next.

Mon, 03/18/2013 - 18:56 | 3344867 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

I wouldn't want to be one of those Cypriot politicos. You're either pissing off major amounts of Russians (mafia or not), or Frau Merkel will make sure that you won't be taking any [successful] small plane trips or car drives on high mountain roads...

Mon, 03/18/2013 - 19:06 | 3344891 john39
john39's picture

she answers to the banking cartel like the rest of the puppets...  focus on the man behind the curtain, not the strawmen (or women) they put up for you to see.

Mon, 03/18/2013 - 19:20 | 3344934 disabledvet
disabledvet's picture

What banking cartel? Seems to me they're answering to the oil cartel actually. "Crimes are expensive"...and fiat destruction only makes it more so. Time to "take in the Russian Navy"? On which part of the island?

Mon, 03/18/2013 - 19:23 | 3344951 mick_richfield
mick_richfield's picture

I'm trying, but I can't figure out what in the hell they're trying to do.

They're either a lot smarter than I am, or a lot stupider than I can easily believe.

Mon, 03/18/2013 - 19:34 | 3345001 kaiserhoff
kaiserhoff's picture

Think about a drowning man, grasping at straws, then some fool tosses him an anvil...

so without giving it a lot of thought...

Mon, 03/18/2013 - 19:37 | 3345013 nope-1004
nope-1004's picture


Mon, 03/18/2013 - 19:41 | 3345038 nmewn
nmewn's picture

Believe it...they are that stupid.

Remember, we're talking about politicians & common thieves here ;-)

Mon, 03/18/2013 - 19:49 | 3345071 Element
Element's picture

That's one view, problem is Lehman's and Bear Sterns before it were taken down by a concerted systematic naked-short play by a particular player in both cases. That was absolutely planned and entirely deliberate - those 'banks' were literally assassinated.

This could be the same sort of thing.

Mon, 03/18/2013 - 20:08 | 3345151 nmewn
nmewn's picture

Yes, could be. In my view Lehman for sure, Bear not so much IMO. Bear was the toxic bag holder.

I'll post again what I posted below (from the above article)...

"But when the plans were presented to Anastasiades, several participants said, he balked at any suggestion that uninsured depositors should pay more than 10 percent.


Since his limit meant uninsured depositors would pay no more than 3.8 billion euros, those with small savings would have to pony up the other 2 billion euros."

That my friend is blind stupidity or evidence of corruption all the way to the top if is Reuters "several participants" would have to be identified, deposed of course and stand by their statements.

But there it is...he threw his own people under the bus...always stupid.

Mon, 03/18/2013 - 20:37 | 3345204 Element
Element's picture

Well I strongly suspect he was reaching out to the Russians at the same time (i.e. when he left the room etc), see this comment;

Look at his 'offers' in that context, for now, plus the fact that he said he didn't think it would pass a vote anyway, so what did it matter what he offered? Let's see where this goes from here, when the dust settles a bit more, before presuming he actually seriously proposed to throw depositors under the bus.

The larger reality is that the EU-German proposal is what has binned those banks and the deposits within them (plus the fact that the Cypriot finances were shot to bits long before this).

Mon, 03/18/2013 - 21:02 | 3345320 nmewn
nmewn's picture

Well I think we both know the entire government of Russia has become an oligarchs dream come true, with the occasional beat down of a petty boss to keep up some appearances...kinda like the DC-NE corridor here, just on a more massive scale.

The Gazprom angle is interesting as its controlled by the Russian same same, in my opinion.

The larger reality is, as you say, the EU & IMF are doing exactly what they've always done, sucking the last drop of blood. Maybe its time to remove the patients from life support?

Whats odd in all this, is no one has brought up the Turkish side of the island, they seem completely oblivious to it all ;-)

Mon, 03/18/2013 - 21:26 | 3345351 Element
Element's picture

Oh, I think the Turks are VERY concerned about what may happen in the region, and are being as discrete as possible lately, and hoping the Russians don't decide to take a very dim view of them, which I suspect they already have.

I think the Germans are very soon going to have to make a back-channel offer to refund the lost Russian deposits (and I don't know how they can open those banks again so it may have to be a 100% refund) and quell Moscow with some diplomatic concessions and hope like hell they can avoid a full-blown 2008 style meltdown developing as a result of this debacle.

Mon, 03/18/2013 - 22:25 | 3345581 nmewn
nmewn's picture

Well, nothing has been confiscated yet.

Everyone can agree this is confiscation of principle, of savings after taxation, not digits in the ether. And thats what the issue really is, the jockeying for position of the monied class against the worker class as to who will lose the most after the monied class made the decision to buy insolvent Greek debt in the first place. I really don't care if monied class Russian nationals take it up the ass from Cypriot Greeks...really, I don't.

The game of thrones ;-)

What I do care about is that fruit vendor/baker/fisherman on the corner with under 100k euro in the bank that Anastasiades is/was planning on fucking in the ass to the benefit of foreign nationals. He has been exposed here as a conniving thief posing as that fruit vendor/baker/fishermans champion and defender.

To even entertain the thought of division of savings from those completely uninvolved with governments prior decisions is to make a mockery of governance itself.

Mon, 03/18/2013 - 21:57 | 3345493 TrulyBelieving
TrulyBelieving's picture

Or maybe this is the real deal. The EU and IMF know exactly what they are doing, and that is stealing from the Russians. There will not be any back door pay-back. What thief ever brought payment back?  Either they are so completely debt exhausted that taking honey from the bear is worth the risk, or they are provoking the Russians on purpose. Will not end well for any, except the bankers. 

Mon, 03/18/2013 - 22:06 | 3345529 GCT
GCT's picture

Putin has made an offer to bail out Cyprus for the exploration rights to thier natural gas deposits found offshore.  Putin may well get this for pennies.


Mon, 03/18/2013 - 22:45 | 3345644 TrulyBelieving
TrulyBelieving's picture

Yes, Putin could get the rights for pennies, but is it plausible that the EU and IMF would just sit back and let that happen? There are too many unknown vairables to know what their actions really mean. But one thing for sure, a sociopathic mind is capable of anything.

Mon, 03/18/2013 - 22:51 | 3345663 Seer
Seer's picture

I'd offered this in previously related threads.  I'm amazed that people here (even the so-called bright ones) keep missing this.

We're NOT in conflict over money of today.  It's a conflict for FUTURE money.  Seems pretty obvious where That would come from!

EU is energy short.

EU is money short. (Germany is/will be in rapid decline due to export drops- where is the growth markets?)

Russia is energy long.

Russia is not money short.  BUT... if the West gets its hands on the NG fields off of Cyprus then that's a hit to Russia's exports.

Putin will only back the oligarchs as long as they help feed the State: like this is any different than anywhere else?  If he doesn't see them contributing for share of support they will be left high and dry (or, very low and wet as the case would be).

Tell the folks what Russia (would) wins:

1. Happier oligarchs.

2. More stable revenues to the State (happier apparatchiks).

3. More influence in Cyprus with which to hold off US military control of the area.

4. More cooperation from the locals.

And if the milk-toasty EU wins?

1) More debt.

2) Promises of better price controls on energy (NG).

3) Increased US military presence in the area.

4) Dead EU bureaucrats (consequence?/benefit? of Russia losing and or Cyprians).

Make no mistake, this IS a conflict.  The real game underneath is about energy.  People are being "pawned."

Tue, 03/19/2013 - 01:58 | 3345927 The Navigator
The Navigator's picture


I'm going long on what you posted - very good Seeing!

Tue, 03/19/2013 - 08:36 | 3346338 Shitters_Full
Shitters_Full's picture

Thanks for this one, Seer.

As a follow up, and this from just a few days before the Cyprus shit started going down.


Mon, 03/18/2013 - 21:51 | 3345473 CH1
CH1's picture

They're either a lot smarter than I am, or a lot stupider than I can easily believe.

Always bet on stupidity.

Tue, 03/19/2013 - 01:17 | 3345898 Kirk2NCC1701
Kirk2NCC1701's picture

Not that I disagree, but I'd frame it this way:  Dumb or smart, competent or incompetent -- it matters naught -- I always bet on self & career interest above all.  The others come into it as 2nd and 3rd tier factors in a hierarchy of drivers/factors. 

Nothing's more predictable than the laws of Nature :-)  and Human nature.  ;-)

Tue, 03/19/2013 - 03:53 | 3345994 CompassionateFascist
CompassionateFascist's picture

The Russians are being squeezed. Hard. In Syria, now in Cyprus as well. There will soon be 3 or 4 US carrier battle groups in the Eastern Med. Only one Russian carrier. Putin will have to back off...then retaliate by freezing Europe. 

Mon, 03/18/2013 - 19:47 | 3345063 SDShack
SDShack's picture

Yes Merkel answers to the banking cartel, but she has an election coming up in September. Like any politician, that is her #1 priority now. She knows the German people will throw her out if she doesn't change the trajectory of the bailouts. The German people are sick of recession to bail out Southern Europe and their deficit spending. Merkel is telling all of Southern Europe the pain is coming. She hopes the threat will allow the EU to just keep kicking the can. since that is what the bankers want. But if not, Merkel is also saying it's every country for themselves if the EU unravels. This German election is going to be epic, unless the EU unravels before then.

Mon, 03/18/2013 - 21:28 | 3345394 DeadFred
DeadFred's picture

She doesn't know for sure she'll be thrown out in the election, she watched the US reelect the Kenyan guy after he proved what a bought-out bozo he was. She has to know she could win no matter how how bad she is.

Mon, 03/18/2013 - 22:50 | 3345660 SDShack
SDShack's picture

I don't think she is confident. Her party got shellacked a few weeks ago, and that was a major slap to her face. I think she knows the winds of change are blowing against her. She has to change the trajectory or she is done.

Tue, 03/19/2013 - 00:39 | 3345865 deKevelioc
deKevelioc's picture

Something is not right.  Why would the Troika force a country, whose GDP is nearly half of only ONE quarter of Apple's revenue, play games with depositors?  Someone's testing the waters.  And if this is some kind of test, why would anyone screw with KGB deposits? Now, that's stupid.   Last time I heard, these guys kill for less.

Tue, 03/19/2013 - 03:31 | 3345982 MisterMousePotato
MisterMousePotato's picture

I agree. There's something going on here that we don't know about, and is not obvious at all. I mean ... yeah, maybe if we were talking about trillions of dollars. But to do this for a few billion euros?

Something is going on here that has nothing whatsoever to do with money.

Maybe it's as simple as Angela Merkel's political ambitions, but this ... I dunno. Seems to hurt the situation more than it helps.

Tue, 03/19/2013 - 04:07 | 3346003 MisterMousePotato
MisterMousePotato's picture

Went in the kitchen and while grabbing a bite, it occurs to me that this is like a scene from Animal House. You know. When Blutto exclaims, "Hey. I know. We'll take the money from the depositors accounts." And all the toga wearers agree it's a great idea.

Then, later, it turns out that the money is hot money from the mob.

Ha ha.

Actually, I think there have in fact been a few movies more or less just like that.

Comes to mind one by Madonna's ex about money in the trunk of a car.

Another, too, but I can't recall.

Mon, 03/18/2013 - 18:41 | 3344814 Croesus
Croesus's picture

I like that better, but I tend to air on the conservative side.... :)

Mon, 03/18/2013 - 21:53 | 3345479 CH1
CH1's picture

I tend to air on the...

BTW - and this is not a snipe - the word is spelled err - the root of error.

Mon, 03/18/2013 - 22:06 | 3345528 willwork4food
willwork4food's picture

Fucking Englesh teacher..

Tue, 03/19/2013 - 08:38 | 3346349 Shitters_Full
Shitters_Full's picture

I think it just means he tends to fart to the right.

Mon, 03/18/2013 - 19:16 | 3344922 Lordflin
Lordflin's picture

2500 by July... nice thought. But stakes very high in the metals market. That kilnd of uptrend would cause fiat to explode. No way that will happen without a fight... and I still do not believe that bullion banks will jump onto the long side of the trade.

On the other hand... massive hedge fund shorts to be unwound... and the upside stops will start to trip somewhere around gold 1620, and silver 29.30... that along side such black swans as Cyprus could ignite the PMs... been a battle for weeks now at 1600 and 29...

If that happens good bye to a top heavy equities market...

In any regard, I am long metals and mining... stayed away from the short side of equities though as I have developed a healthy respect for the criminal enterprise...



Mon, 03/18/2013 - 21:22 | 3345373 Go Tribe
Go Tribe's picture

That 29 silver is crazy. Day after day, it's a battleground, not sure who's getting slaughtered. I would like to see it lift-off this week.

Mon, 03/18/2013 - 21:26 | 3345366 xtop23
xtop23's picture

It sounds to me like Anastasiades was thinking about the forthcoming horse head in his temperpaedic. Mob bankers usually have more balls than that. They know fucking with a Russian mobsters wallet is a sure way to a Spetsnaz enema. The window dressing was the token little fish depositors. I'm glad he caved though. Having this farce exposed is a giant step towards the hangman's noose for these banker pricks.

Mon, 03/18/2013 - 23:00 | 3345687 Seer
Seer's picture

OK, the Russian mobsters on one side and the "mob" AND the EU/West banksters on the other side.  Clearly this guy wasn't very smart getting elected... this is pure suicide.  His best route is just as it is- put on a BIG show that you tried and then step down because you don't have support.

Mon, 03/18/2013 - 18:26 | 3344739 McMolotov
McMolotov's picture

"Look, officer, it's true that I threatened to shoot my neighbor. And it's true that I have a gun. And it's even true that I loaded the gun, walked into his driveway, and pointed it at him. But come on... Since I ended up not actually shooting him, can't we just forget about all this? Pretty please?"

Mon, 03/18/2013 - 18:32 | 3344764 Sudden Debt
Sudden Debt's picture




Mon, 03/18/2013 - 19:00 | 3344874 Antifaschistische
Antifaschistische's picture


Expand TAX to all ECB Banking Institutions.....and throw Switzerland into the mix also.  That way it's fair and equitable.  Get it done by Thursday


Tue, 03/19/2013 - 03:33 | 3345986 MisterMousePotato
MisterMousePotato's picture

Switzerland's already there (negative interest rates - think about it).

Mon, 03/18/2013 - 21:07 | 3345330 Oldballplayer
Oldballplayer's picture

And you were smoking a butt.

Fucking hanging crime.

Mon, 03/18/2013 - 18:33 | 3344774 Cdad
Cdad's picture

Yeah, but when you were the pointing the gun at me, I did not then hear you offer me shares in insolvent banks as an apology, so....try to plead down to a disturbing the peace charge?

Is anyone else having trouble with their cosmic bunny hole, too?

Mon, 03/18/2013 - 18:43 | 3344820 Croesus
Croesus's picture

I get the feeling that Christine Lagarde is about to have some trouble with her "cosmic bunny hole"....

Mon, 03/18/2013 - 18:54 | 3344858 Grimbert
Grimbert's picture

I am presently incarcerated, imprisoned for a crime I did not even commit. "Attempted murder," now honestly, did they ever give anyone a Nobel prize for "attempted chemistry?" 

Mon, 03/18/2013 - 19:21 | 3344940 smacker
smacker's picture

They gave Krugman a Nobel prize for "attempted economics".

Tue, 03/19/2013 - 03:35 | 3345988 MisterMousePotato
MisterMousePotato's picture

They gave the Kenyan a Nobel for, hm, wait. What did they give him a prize for. Peas? Oh, yeah. Eat your peas. Or something like that.

Mon, 03/18/2013 - 23:10 | 3345718 Seer
Mon, 03/18/2013 - 18:29 | 3344753 Sudden Debt
Sudden Debt's picture

It could also be a game to lure Russia into the bailouttrain.

russian depositors... russian money... you do the math.

Mon, 03/18/2013 - 18:41 | 3344811 permafrost
permafrost's picture

Apparently, Gazprom already made an offer. Bailout for natural gas exploration rights:

Mon, 03/18/2013 - 18:49 | 3344841 Sudden Debt
Sudden Debt's picture

and gazprom is owned by...

Mon, 03/18/2013 - 22:04 | 3345522 Its Only Rock N Roll
Its Only Rock N Roll's picture

The Russian Billionaire's Club will make them an offer they can't refuse.  A whole lot of drilling can be done around that big island.  Then they can over-charge all of Europe for the BTU's. 

Mon, 03/18/2013 - 23:18 | 3345738 Seer
Seer's picture

Consider this strategy more like the professional sports team that opts to pay out for a very expensive player that really doesn't add to their team.  Sometimes it's not so much what you get as much as it what someone else doesn't get.  As this article suggests Russia might be trying to keep the EU/West from getting access to the NG fields, something which would cut Russia's exports.  Russia doesn't so much want MORE, it just wants to keep existing exports going; so, Russia would like be very slow about tapping the NG there.

Mon, 03/18/2013 - 20:39 | 3345098 Element
Element's picture



"...Representatives of the Russian company submitted the proposal to the office of Cypriot President Nicos Anastasiades on Sunday evening, Sigma TV reported. ..."

OMG ... on Sunday night? ... they didn't waste any time  LOL ... need a comment from Gazprom to confirm this ... looks like the Russians also had advance or concurrent knowledge of what was going down ... as well as the mysterious proposed greek purchaser of the Greek arms of the banks in question.

"Greek Finance Minister Yannis Stournaras stated on Saturday that the Greek arms of the three main Cypriot banks (Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank) will be immediately absorbed by a Greek lender."

So it appears a lot of other people heard about this at least concurrently to the Cypriot PM, who heard the proposal early Saturday morning.

Lay down with dogs, you get up with fleas.

Mon, 03/18/2013 - 20:46 | 3345262 sunaJ
sunaJ's picture

This also makes it very interesting given Merkel's response to "give my regards to Merkel" from Anastastiades.  Merkel warns:


"Cyprus can ONLY negotiate with Troika on rescue package." 


Is Cyprus seeing red?  They might just give the EU the finger.

Mon, 03/18/2013 - 21:10 | 3345336 Element
Element's picture



"Cyprus can ONLY negotiate with Troika on rescue package."

Yes, that is interesting ... ominous even.

Mon, 03/18/2013 - 23:26 | 3345759 Seer
Seer's picture

Thanks for all the fish!

Cyprus ejects from the EU and into the arms of the Russians.  EU collapses.  What the Russians DON'T figure is that their big energy markets are going to be severely throttled and that this will really put downward pressure on Russia's energy exports.

At the end of the day you have to ask yourself what is more important, to side with a bunch of banking oligarchs or side with a bunch of energy oligarchs.  Got PHYSICAL?

And Germany, though it might be glad to not have to provide the bailout funds, HAS to realize that their energy costs are going to do nothing but become greater and greater (as pertains to affordability), not good for a big energy importing nation like Germany (now where is your industrial superiority, bitch!?).  Just like risk, energy costs cannot be made to disappear...

Figuring this stuff out is as easy as shooting fish in a barrel, with a shotgun, point blank.

Tue, 03/19/2013 - 00:06 | 3345820 Element
Element's picture

I agree, but I'm not entirely sure they are ready to roll a grenade like that into Brussels quite yet, but I'm 100% sure they are seriously evaluating their options. In the end they're physically a lot closer to Europe than to Russia, and that matters. And Greece and Turkey are also big factors in this.

The Russians need the Greeks on side, and you know what? I think they'll get it with a few inducements, and that is going to bitch-slap the EU banksters and Brussels so hard it's going to look a whole lot like payback for "the depression we had to have." Default time and contagion follows.

Greece still gets fuel. (push me - shove you! oh yeah - says who?)

But will they really go that far? Logic, circumstance and desperation suggests they may.


"So long, and thanks for all the 'bailouts'."

Tue, 03/19/2013 - 00:57 | 3345883 Seer
Seer's picture

"In the end they're physically a lot closer to Europe than to Russia, and that matters."

But what does Europe really have to offer?  It's BROKE!  What does Cyprus have to offer Europe?  NG.

I'm sure that Cyprus would prefer to deal directly with Europe because dealing with Russia will mean that Cyprus NG won't be ramped up quickly.

The EU structure effectively has handcuffed Europe from making a better trade relationship here.  Rather, "global trade" has done so.  But... the EU is broke (that's why the big hissy-fit- they KNOW that they can't "rescue" Cyprus because they cannot afford it [and they can little afford to face higher priced NG as well, but this is going to happen regardless]).

Mon, 03/18/2013 - 21:40 | 3345432 Diogenes
Diogenes's picture

The banks were insolvent due to losses on Greek government bonds. So anyone who read their annual reports, and could do arithmetic, knew they were insolvent after the Greek haircut. How many months ago was that? And why didn't someone do something when they first became insolvent, before the deficit grew to 20 billion Euros?

Mon, 03/18/2013 - 21:55 | 3345480 Element
Element's picture

True, we can take that a step further though, insolvent due losses on GGBs ... whocouldaknowed?!

I think we can call these losses a symptom of drinking EU Commission koolaide. There's a whole lot of stuff that should have and and should not have happened. But via the first Greek 'bailout' in May 2010 they transmitted this Greek virus to the entire eurozone, via those GGBs. So now what? Because there's a lot of this about, not just in Cyprus.  That's without even mentioning the sovereign bonds from the other PIIGS that were bailed out. The haircuts that lead to this were a sovereign default, and now there's more of them coming. i.e. Green Shoots ... NOT!

This time is NOT different.

Tue, 03/19/2013 - 01:29 | 3345906 Kirk2NCC1701
Kirk2NCC1701's picture

Gazprom, Gazprom, Gazprom!  Just like I told ya, bitchez: 

Mon, 03/18/2013 - 10:58 | 3342428

Mon, 03/18/2013 - 10:32 | 3342301


Mon, 03/18/2013 - 19:24 | 3344955 negative rates
negative rates's picture

Uummm,... lures,.. tastey.

Mon, 03/18/2013 - 19:26 | 3344960 gatorengineer
gatorengineer's picture

Winner................. a new russian republic anyone....?

Tue, 03/19/2013 - 03:10 | 3345972 Wile-E-Coyote
Wile-E-Coyote's picture

This is becoming obvious this it no more than an attack on Russia. The Cypriot politicians are not that dumb, they know they will have to live with body guards for the rest of their lives if this measure ever got passed.

Merkel will cave in by the end of the week, stating it was all a misunderstanding.

Tue, 03/19/2013 - 05:33 | 3346044 hawk nation
hawk nation's picture

Went to four coin shops yesterday and they had a total of 2 ounces of gold. called 2 others and they hd four stores with 3 ounces. Getting difficult to buy physical so the paper ponzi scheme may be ending sooner than I thought 

Tue, 03/19/2013 - 05:34 | 3346045 hawk nation
hawk nation's picture

Went to four coin shops yesterday and they had a total of 2 ounces of gold. called 2 others and they hd four stores with 3 ounces. Getting difficult to buy physical so the paper ponzi scheme may be ending sooner than I thought 

Mon, 03/18/2013 - 18:19 | 3344724 ZippyBananaPants
ZippyBananaPants's picture

Greek style baby

Mon, 03/18/2013 - 18:31 | 3344759 Wakanda
Wakanda's picture

Olive oil for everyone!  or not

Mon, 03/18/2013 - 18:24 | 3344734 Dareconomics
Dareconomics's picture

The German political calculus is simple:

Preserve the euro at the cheapest cost.

Mon, 03/18/2013 - 19:17 | 3344928 Cap Matifou
Cap Matifou's picture

Your street level Germans hate the euro like the plague. Only Merkel, Schaeuble and the like have a yet to explain fixation with it.

Mon, 03/18/2013 - 21:32 | 3345407 scraping_by
scraping_by's picture

The Euro started life as Currency Drawiing Rights. Big bills traded among banks, governments, and Rothchilds. No surprise the street-level European doesn't get much out of it.

Mon, 03/18/2013 - 21:33 | 3345409 scraping_by
scraping_by's picture

The Euro started life as Currency Drawiing Rights. Big bills traded among banks, governments, and Rothchilds. No surprise the street-level European doesn't get much out of it.

Mon, 03/18/2013 - 18:25 | 3344735 Rustysilver
Rustysilver's picture

Nothing happens until they actually open the banks. When is that?  I think it will be a nice show.

They shoud put it on pay-per-view.

Mon, 03/18/2013 - 18:33 | 3344770 knukles
knukles's picture

Like small depositors, cheapos only get the pics on phone or tablet for $9.99 but peole of means pay for it on the big screen for $49.99.
Could raise a lotta money, especially if there were surprise cameos with EU, EBC and IMF folk, chopping blocks, 4 horse teams, etc.

Mon, 03/18/2013 - 19:09 | 3344893 JohnnyBriefcase
JohnnyBriefcase's picture

I'm pretty sure if any bankers were quartered live on TV we would have a significant drop in the current bullshit.

Mon, 03/18/2013 - 19:55 | 3345096 nmewn
nmewn's picture


But lets not forget this little gem from the article...

"But when the plans were presented to Anastasiades, several participants said, he balked at any suggestion that uninsured depositors should pay more than 10 percent.


Since his limit meant uninsured depositors would pay no more than 3.8 billion euros, those with small savings would have to pony up the other 2 billion euros."

Meaning, the boy was looking out for the big money interests over supposedly "insured accounts" under 100k euro held by the "peasants".

I'm thinkin the fruit peddler down on the corner will not be impressed...nor will his brother the butcher, the one with the sharp meat cleaver ;-)

Mon, 03/18/2013 - 20:02 | 3345133 JohnnyBriefcase
JohnnyBriefcase's picture

Meaning, the boy was looking out for the big money interests over supposedly "insured accounts" under 100k euro held by the "peasants".

I'm pretty sure that at this point it is implied that all financial, business, and political decisions are made based on this "philosophy".

Mon, 03/18/2013 - 20:14 | 3345173 nmewn
nmewn's picture


Sadly so. Still no honor among thieves it would

"Why do you rob banks? Because thats where the money is." - attributed to, Willie Sutton, bank robber.

Mon, 03/18/2013 - 20:24 | 3345203 JohnnyBriefcase
JohnnyBriefcase's picture

"This is a stock exchange. There's no money you could steal."


"Really? Then why are you people here?"

Mon, 03/18/2013 - 21:07 | 3345328 nmewn
nmewn's picture

A great American said it

"Its a racket"-Al Capone

Mon, 03/18/2013 - 21:43 | 3345442 Diogenes
Diogenes's picture

When they showed Capone the New York stock exchange and explained how it worked, he said "I'm in the wrong racket".

Tue, 03/19/2013 - 06:24 | 3346077 sumo
sumo's picture

It was Lucky Luciano:

"Around the time of his deportation to Italy, mobster Lucky Luciano granted an interview in which he described a visit to the floor of the New York Stock Exchange. After he visited the floor of the NYSE someone explained to him the role of the floor specialist, he commented, “A terrible thing happened. I realized I’d joined the wrong mob.” "

Mon, 03/18/2013 - 18:49 | 3344844 Wakanda
Wakanda's picture

"Bulldozers and Banks"  -  new reality show!  sponsored by CAT

Tue, 03/19/2013 - 02:13 | 3345931 The Navigator
The Navigator's picture

I'd rather watch "Bulldozers versus Banksters" - and name your Pay Per View price, I'll pay it, preferably in Ag or Aug, I don't hold much fiat anymore.

Mon, 03/18/2013 - 19:27 | 3344964 negative rates
negative rates's picture

It will actually be a real nice show, once the street robbers know the money is on the street, and not in the bank, all of a sudden it's plan b ready or not. 

Mon, 03/18/2013 - 23:28 | 3345766 Seer
Seer's picture

What will be the conversion rate to rubles?

Mon, 03/18/2013 - 18:26 | 3344738 CrashisOptimistic
CrashisOptimistic's picture

The real question is how in hell can they ever re-open those banks.  Unless they jack interest paid on savings to 20%, guaranteed somehow, money is going to flee the moment the doors open.

These banks can't survive, now.

Mon, 03/18/2013 - 18:35 | 3344779 knukles
knukles's picture

Tut da dah dah!
Give the man a cupie doll!
Step right up, watch the panic, right before your very eyes...

Mon, 03/18/2013 - 18:42 | 3344816 Wakanda
Wakanda's picture

A cupie doll and an illegal 64 oz "Big Mike" soda!

Mon, 03/18/2013 - 20:10 | 3345159 kito
kito's picture

spiderman towels......all they need are free spiderman towels.......................

Tue, 03/19/2013 - 01:52 | 3345925 The Navigator
The Navigator's picture


Will you be hosting the live cams showing bank customers lining up/camping out on Wednesday night to get at their money on Thursday morning?

Mon, 03/18/2013 - 18:43 | 3344823 BandGap
BandGap's picture

HA! 20%? And where are they going to get that? Hahahahahaha!

Tue, 03/19/2013 - 00:59 | 3345884 Seer
Seer's picture

Backed by NG Bonds?

Tue, 03/19/2013 - 05:38 | 3346048 hawk nation
hawk nation's picture

print baby print

Mon, 03/18/2013 - 18:52 | 3344853 kaiserhoff
kaiserhoff's picture

Jim was chuckling about that earlier.  This may be delayed, a few days at a time, forever.

Only last week there were lots of long faces, people saying Ben could go on printing another four or five years without much change in anything.  How do you like Benny's odds now?  Lots more plates to spin.


Mon, 03/18/2013 - 21:32 | 3345406 Element
Element's picture

Well he could, just in a more punctuated equilibrium emergency response mode, after all this. ;)

Mon, 03/18/2013 - 19:02 | 3344879 blu
blu's picture

The banks were already insolvent and prepared to default.

In some ways, all this episode did was give depositors a fair warning to head for the hills.

Come Thursday (or whenever TPTB get their courage up) the jig is probably up for Cypriot banks.

Heh. Can't have Cypriot without riot.

Mon, 03/18/2013 - 19:04 | 3344888 smacker
smacker's picture

A problem of their own making methinks.

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