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Will Russia Kill The Cyprus Bailout?
While hope appears to still be alive that the Cypriot government will hand over their natural resources to wealthy Russia (or Gazpromia) and all depositors (Russians and Cypriots alike will be saved), we suspect there is a much bigger threat from Russia that has not been discussed. As Monument Securities' Marc Ostwald notes "there's a 50/50 chance Cypriot bailout fails because of the 'massive danger' a large amount of Russian cash flees Cyprus following deposit tax plans." Russia has ~$60 billion exposure to Cyprus, including loans to companies registered in the country and after the haircut 90% of Russian deposits will still be free to leave the country if the levy is approved.
The critical point is that, should this occur (such a large outflow of Russian cash - dwarfing in fact the size of the bailout package itself) it is hard to see how the Cypriot banking system could survive (even with the assistance of the ECB's ELA). Russia's Finance Minister Siluanov expressed disappointment that Russia was not involved in the deal and it is clear that should those outflows leave Cyprus, they are unlikely to end up in other European nation banks.
It seems the pre-emptive contagion and anxiety of this 'levy' have only just begun.
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"...and it is clear that should those outflows leave Cyprus, they are unlikely to end up in other European nation banks."
There's always Switzerland.
who would have thunk WW3 would start over Cyprus? oh well.....
Yeah. It's not like somebody shot an arch duke or something.
Imagine the fun if the Russian depositors took their Cyprus cash and bought gold...
UFC 159: IMF Mafia Welterwieght Chrissy Diaz-Lagarde v. Russian Mafia Welterwieght Vlad St-Putin
i'd put my hard earned fiat on putin (not that it's worth much anyways) - i mean for crissakes the guy wrestles bears for fun!
that doesn't change the fact of the Russian Mafia doesn't like being stolen from much less following any NWO Banksters for that matter.
I might add on the Western Front the Global Criminal Cabal (Intelligence/Bankster) Crime Syndicate are about to John Corzine the whole world. Cornzine was just the warm up just to see how much the Criminals could get away with.
Could this be the future as to why FBI and other alphabet agencies want access to every ones bank account here in Amerika?
A case, forget which one has already been ruled in US Courts about raiding Customer's Segregated Accounts under the guise of wide spread durress.
With the IMF & EU powers forcing the Cyprus tax haven bank account holders (mostly Russian money) to pay the bill today, it will be interesting to see how the Russian natural gas suppliers squeeze the EU in retaliation.
The EU may have just made a huge mistake.
You don't bite the hand that feeds you gas...
Unintended consequences, bitchez.
"Nobody could have seen this coming....nobody..."
They know exactly what they are doing.
Spank the bitch.
Cyprus has her black swan suit on, smiling back at us.
or the City of London, or Dubai, or Miami, or the Vatican.
The battle for market share in money laundering is on. Trustees and banksters are ready for the Russians all over the world.
Wells Fargo needs to pad its resume...
except Swiss bankers have started ratting out their depositors. There is definitely opportunity out there in this market segment. I am sure Goldman and JPM have something set up somewhere in the world.
Something special about the island of Cyprus that maybe we dont know about exactly?
.
Geographically, its a strategic location in the middle east.
.
Its been occupied by several major powers during its ancient history...Egyptians, Assyrians, Persians, Romans and Ottoman Empire...
Not quite; Cyprus is to Russia as the Bahamas are to the U.S.
And Cyprus was occupied at one time by the Templars, the first major international banking org.
No, but Latvia is the new Cyprus. JPM and Goldman have branches (where don't they?), but I doubt they'll see the bulk of the Russian money; it'll disappear untraceably into very opaque, very local institutions.
I agree that a Swiss haven may be yesterday's strategy. Instead, expect a lot of post-haircut funds to be directed to struggling NBA franchises, such as rescuing the Kings for CA and moving them to a new Stadium/Winery combo in the Russian River Valley.
Soccer clubs are great vehicles, too.
Portugese and Spanish clubs are used for South American drug money laundering.
German, English and Swiss clubs are the Russian and central Asian favorites.
The Russian league itself is the outflow mechanism. That's why their clubs are buying so many overpriced South American players.
Do you really believe, Russian have their money in Cypriot savings accounts...I suppose They use Cyprus as an intermediary platform, where probabely informed on the issue before all the others...and have moved on to circumvent the EU measures..
DOA.
At least their dictator has some balls.
Gonna Fly Now...
http://www.youtube.com/watch?v=ygQvB6OjHOU
Indeed the best solution is suggested above
Cyprus dumps the euro, leaves the EU and aligns with Russia
What the EU itself should be doing if it had a brain ... Hello, Moscow, Good riddance to the USA and Nato
Russian oligarchs no happy.
The Eurocrats don't want the dominoe effect of one country leaving. The Cyprian government should call their bluff.
Russia and the West are two sides of the same NWO, only a contest to see which side becomes the leader of the NWO.
Bank guy in Brussels,
don't you think this case of,"the devil you know is better than the devil you don't" ? Granted,Soviet/communist era is way past but Putin surely will be tempted to use the 50-60 bil in Cyprus to bolster himself politically and as personel piggy-bank.
You are right about the Devil you know. Because you already know the USA is 100% corrupt. What if Russia was only 90% corrupt? You would have no idea what they would do next...what if they actually helped out their citizens? You just can't have an unknown like that hanging over your head.
It's like playing Tropico... YOU RULE bitchez!
~~~
http://en.wikipedia.org/wiki/Tropico
Tropico was a close second to Sid Meier's Pirates! for me, I guess ultimately I rather be the guy stealing from the rich than the other way around.
"Cyprus dumps the euro, leaves the EU and aligns with Russia" - have you asked the Cypriots if they want this?
I get it, you do have a little problem with the American Empire, and yes, I can understand your frustration with the government of our American cousins of the (mostly) naive, innocent persuasion, but I, for my side, am not willing to forsake several generation of alliance for a very doubtful full embrace of the proto-fascist dictatorial approach of Mother Russia. I like Russia, I like Russians, but let's say I prefer to keep options open
the vicinity to Brussels seems to distort your views and attitudes, imho, both versus the western part as versus the eastern part of the alliance
Remember, Ghordius, geography and demography are destiny. Eurasia is the Heartland, as McKinder put it, and the only possible successor to the dying American order.
Btw, prey tell, who on earth is the "we" you have in mind when you refer approvingly to "the government of our American cousins"? I am still to meet any moral and decent American who underwrites his government with the nonchalance you do. But again, for an appologist of Little Brother (European Soviet Union), Big Brother (US Gov) cannot seem that foreign.
do I underwrite governments (plural) that engage in treaties? perhaps. does this make me an apologist? only if I write something I don't believe
Given that one side of the fight (UK/US) doesn't appear to be any morally better than the other side (Russia/China), I would say, whoever is giving you the better deal, go with them.
Have the eurocrats asked the Cypriots anything? They say they gave Cyprus an ultimatum, "the Greek style".
And speaking of proto-fascism, the EU fits the bill perfectly (and the US isn't too far behind).
Is EU still wanting to make fuck?
Agreed. Yesterday I blogged that Cyprus accept a gold-backed Ruble, and the naval port, to safeguard their share of the huge gas reserves offshore, that Gazprom can help them develop. Now THAT would be a "Take A Long Walk Off A Short Cyprus Pier!", you EU and IMF scum!
Looks like Vlad might take his ball and go home......can he do that?
Nope. Vlad is stuck. When he goes to withdraw his money the teller will ask him to wait a moment while she gets the manager.
The manager will explain that there is a slight problem and he cannot take his cash today. Please comeback tomorrow.....
And Vlad tells the manager that he will be back tomorrow with the manager's kids.
If he makes a 100% withdrawal, you get 100% of your children.
The kids will be dead either way.
I think you onto the problem. The deal is desinged to keep Russia from controlling Cyprus. How Europe doesn't have 20 billion sitting around or on a Fedex truck is baffling. The Russians are for real, not the candy ass passive agressive sh#t from Brussels.
The old Cold War could turn Hot.
More MAD threats.
More money theft for Military Industrial Banksters.
Most the Moscow money is with Cyprus subsidaries of USbanks...and they probabely advised how to handle the issue in advance..
I doubt it, that would just be too much! They could, however, as a next best option "dispatch a permanent fleet of five or six combat ships to the Mediterranean Sea..."
http://www.zerohedge.com/news/2013-03-17/russia-sending-permanent-warshi...
I kind of like Putin right now.
Enemy of my enemy?...
Exactly!
I am not against the tax. The savings tax is better than a tax payer bailout. Eventhough banks have a long history of criminal activity, people for some strange reason trust them. Why should tax payers fund gullible people?
Why should tax payers fund gullible people?
They shouldn't.
The loss should be bourne by the bank's bondholders.
or the bank's owners and management. Leadership (or lack thereof) is at always at fault, but never seems to pay the consequences. They steal your savings and keep all their wealth, bull fucking shit. Oh well, that which cannot be sustained, won't be.
LoP, for an 'Aggie' you know way too much. What did you do in your previous life? :-)
"Leadership (or lack thereof) is at always at fault"
Never in any way the fault of those who chose and supported and often continue to defend those leaders. If people are really so totally helpless and inept that they never bear any responsbility whatsoever for having bad leaders, this necessarily implies that they will always have bad leaders and have no hope of ever improving their situation.
So which is it? They're slaves because they're servile, or they're servile because they're slaves?
Why would criminals force themselves to pay? They can just shear the sheep without consequnce.
Yes I think more people SHOULD trust the Maniacal Monetizer criminals and put all their funds within their grasp! Then I won't need to be robbed so much!
Naive position imho. Most of the big money has left Cyprus long ago. Small foreign fish and domestic depositors are fitting the bill.
A little despotism isn't all that bad really.
Just the tip ain't really sex.
What is with all the hate? IN the Depression, banks closed their doors. People took a 100% haircut. 9% is looking pretty good in my grandma's eyes. She never stored money in a bank after that. I guess people are looking for uncle sugar to protect them.
it's also not a haircut, but a buy back, a repo.
though it's certainly undemocratic and arbitrary.
What hate?
The scumbags took the depositors' deposit insurance money based on laws enacted by the government.
So, where are the fucking deposits and how would it be "fair" if they got 90 or so cents on the dollar? Was that the deal?
This is what they teach boys and girls in Russia.
This is my rifle, there are many like it but this one is mine.
Interesting video. America is weak. Russians teach this stuff, meanwhile we suspend girls for hello kitty bubble guns.
"everyday I am in this room, I get weaker.....Everyday Charlie squats in the bush, he gets stronger."
This is what they teach boys and girls in Russia.
This is my rifle, there are many like it but this one is mine.
Sad thing is, if you showed that gun to most of Americas youth today, it would scare the ba-doodle out of them after the demonization of the tool it is has been so hyped up in the USA. Makes one wonder if this has been done on purpose.
Nearly every gun owner I know teaches their children how to tell if a gun is loaded, and how to handle it safely. The most dangerous thing about guns is when an untrained person picks one up.
Russia? The same Russia run by the mafia? Cyprus is a clearing house for mob money. Russia's response will be something like this; http://www.youtube.com/watch?v=5ydqjqZ_3oc
Oh noooo just leave your money there in the grasp of the EU criminal banksters! It's PERFECTLY SAFE! Why would anyone want to close their account? All is WELL, they've GOT this shit I tell ya!
This is the spark,
After nearly two years of consolidation, it looks like we have a break out.
This could be it guys, the one that takes Gold above $2000 and Silver above $50.
the Nato counrties will never allow EU to walk away from CYprus and let it be a russian colony; no way.
Just read the history of Cyprus its been bone of contention between west and east since Haroun al rashid captured it from Byzantium. Its been a bone of contention during each east/west stand off.
Don't forget about all the natural gas off shore...
There was a time, not long ago that China would announce support, seems even the Chinese are finished with the miss-allocation booze cruze...
I'm really surprised that nothing is burning in Cyprus
I would be far happier if the Russians and Mr Putin would kill the bankers and politicians who cause so much of the fucking damage in the first place.
Go ahead Mr Putin.
Make my fucking day.
Spetznatz on the way as we speak.
Tally hoe winston.
Make it painfull boys, stick a mains voltage powered 240v tazer with 10 meters of cord, a broom handle and a kitchen fork.
Apply liberally to the balls and sack region, repeat as necesary.
Nice. ;-)
Cyproit Capital controls = russian embargo
Russia has the same problem as China has with UST- There ain't no money. If they try to collect, they'll get pennies on the dollar. In the short term, Russia is stuck. Long term.....By Cyprus.
The only thing of Russia's thats stuck is their foot up EU ass...
Whoever came up with this solution fucked up big-time
Russia should;
1. withdraw all their money from Cyprus because it's not safe,
2. sell the Euros and,
3. buy gold bullion.
This is the ol' one, two, three punch. Once the EU's nose has been bloodied, they'll come off their high perch and negotiate instead of dictate.
LMAO! Russia doesn't 'buy' gold. They fucking mine it!
How long before Obama decides it's a good idea? Isn't he from Keynesia? This is fascinating, the idea that banks can take what they like from savings accounts to cover their idiocy, it's like the Sentinel ruling without the lawyers.
I just laugh when people say 'legal' this and that...they still just don't get the nature of the Maniacal Monetizing central plansters...they'll all be like Cyprian depositors one morning and be left with FAR more than 10% losses.
Let em call a lawyer then! Good luck with all that...
so truew.. there is no legal recourse when the whole freaking system is owned and operated by the oligarchs...
like the fabled restore america farce... ya...
some world court has authority over the those above the law? dont hold yer breath...
I don't think it matters what they do now. The veil has lifted. Money in a bank is someone else's money.
Money in a bank is money lent to a bank, and so in possession of the bank. after all, a bank lends it further. which makes the possession of a creditor
'after all, a bank lends it further'
Which might not be a bad thing if they only lent it once after they grubby claws on it ,but that's not the case is it.
.
Not true. A Deposit is the Bank's Money for which the Depositor receives a Credit and the Bank books a Debit, but if the Depositor then issues a Bill of Exchange known as a Legal Draft = Cheque against that Deposit and the Cheque bounces because the Bank has appropriated 6.75% Balance in an Insured Institution. Who then has the legal liability for the criminal offence of issuimng an Uncovered Cheque ?
Correct, the key is the deposits are in an Insured Institution. This implies government oversite and regulation, with adequate controls for the depositer should the bank fail. In the US, this has been the standard since the Great Depression. The proper course should be that the regulators identify the failed bank BEFORE it collapses. The bank is then placed in receivership and the debts and accounts allocated and paid according to established bankruptcy law in an ORDERLY fashion.
All this has been destroyed beginning in 2008 because of TBTF, which has its roots in the elimination of Glass Steagall years earlier, allowing the mingling of Investment and Retail banks. There was simply no way the Investment Bank 40:1 leverage could be contained without stealing protected/insured deposits. Every bank crisis since has resulted in re-writing bankruptcy law to accomodate TBTF. The result is never ending bailouts, and confiscation of wealth of either depositers, or protected bondholders, to save equity holders. GM is a perfect example. What should be clear to every investor, is that there are no rules or protections for savers. Implied or even written intent when you opened your account is not even worth the paper it is printed on, because the government will change the rules retroactively at will. The only way to avoid being taken, is not to play the game.
+1 to both of you - is nevertheless my original comment wrong or just too simple? Good reminder of Glass Steagall, btw
"The only way to avoid being taken, is not to play the game."
EXACTLY.
You put your money in a fictional reserve bank, you assume the risk that you'll never get it back. You CANNOT eliminate risk, full stop. But it seems that those of us who know anything at all about how fractional reserve banks really work are in the extreme minority, and the rest of the population thinks the bank just takes their hard earned money and stashes 100% of it in the back vault until the depositor comes to claim it again, end of story, zero risk involved.
These people need to wake the fuck up. Western governments have spent a century trying to hide all risk via total centralization of political, economic, and social control, and judging by the average person's attitudes toward risks like bank failure, they've done a damn good job. Those risks will remain hidden, until they don't.
To quote Barry Ritholz,
"This is not about punishing savers. It is about a 1 million person island that has become a tax haven for Russian oligarchs. It is not another MF Global. No one is confiscating."
Ritholz is a whore.
MF Global was an unpunished crime by a Master Criminal.
I'm surprised to hear such nonense from the usually coherent BR
Who then is able,can stand up to and take the proceeds from the CIA money laundering operations that go through New York Banks? Apply those hundreds of billions to the deficit. No different in the good old USA is it?Na,we'll just shake down those pesky Russians a little.
The Vatican bank is back in business........
Ironic that we have to hope the Russians will save us from our bankers isn't it?
I think our numbskull greedy bankers have just now figured out that it won't only be Russian money in Cypress that will be leaving, all of the Russian money that props up the rest of Europe will be leaving along with it.
We kill the bailout
or
We kill you.
Choose wisely.
- Vlad
I give my condolences in advance to the fools who try to steal money from the Russians in broad daylight and think they can walk away unscathed and without consequences.
yes, Ive read some stuff suggesting this was really about confiscsting russian deposits in cyprus..
recall.. z. Brezinski was a early "mentor" to obummer.. Z Big.."grand chessboard"..
his mortal "enemy".. russia... this smells of his influence...
This is all and all about the russian base in Syria. They want it so badly. Nato seems to be saying no, hence financial war ensued.
I was thinking it was about the 21 tons of heroin Russia seized in Afghanistan.
Is that "analysis" or just gibberish ? It is probably all about crackpot thinking
If russians had no military in the area, nobody would care about them.
How would they fuel and service their navy without a base?
I'm sure that is a big part of it but it's also important to remember that Cyprus is where dirty money gets laundered. It's being reported that 60-70% of those deposits are from Russian oligarchs hiding money.
It's interesting to me that Merkel is being blamed for this. Whether or not that is part of it, I don't think it is, there is a mindset in the media that is having trouble processing all of the facts. IMHO, all of this one-world globalist government is about dirty money taking over the world.
That is well known, however europeans have not intervened due to Russia being..........Russia, military power.
So do the Russians have hot chicks that walk around with AK's?
People who lack means, brains or imagination, tend to use force as a first resort.
Prediction: A group of Russian investors to assume Cyprus bank debt, in exchange for rights to devel offshore gas reserves. To be led by Gazprom, and have Cypriot national participation.
RT, Gazprom, Gospodin Putin: Your ball.
ECB, IMF: Please come to Cyprus and take long walk. Off A short pier.
Hmm, so the ECB (etc) is playing Russian Roulette (how many chambers have live rounds in them?)
I don't think this has been mentioned... perhaps this move by Western Bankers is in response to Putin signing a law banning foreign banks on March 6th. This may have something to do with banning Rothschild banks from Russia...?
http://indrus.in/news/2013/03/18/putin_signs_law_banning_foreign_banks_f...
lol, confiscate $6bln only to have $60bln flee the country. Winning!
I'm waiting to hear Boris' commentary. Boris? Boris?