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Daniel Hannan Urges Cyprus To "Default, Devalue, And Decouple" Itself Back To Growth

Tyler Durden's picture


"Either Cyprus is going to have to find the money to fund the bailout, or it's going to have to leave the Euro - to default, devalue, and decouple," is the cold hard truth that UK MEP Daniel Hannan explains in this brief clip. Neither of these paths, he goes on to say, is an easy one, but he believes "there is no doubt the second of them is the less painful - allowing Cyprus to price itself back into the market and start exporting its way back to growth again."

There are no good outcomes for a country as indebted as Cyprus is, "but if I were a Cypriot member of Parliament, I would vote now to go back to an independent currency as the least painful of the various difficult options." Hannan then makes a fantastic point, "in the rest of Europe, we have measured the cost of monetary union in unemployment, deflation, poverty, and emigration; in Cyprus that wasn't enough, they have had to gouge the savers directly," and so the Cypriots who claim to want to stay in the Euro can now quantify the cost of that shackle, as he reminds us that , "you don't have to be a Russian oligarch to have EUR 100,000 in the bank," as he concludes, "the really interesting question is - who's next?"

Now that the precedent has been set (that governments can come after what is in your savings account) what country is safe?



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Tue, 03/19/2013 - 13:44 | 3348280 somecallmetimmah
somecallmetimmah's picture

Hey now, no fair talking commin sense, Minister.

Tue, 03/19/2013 - 13:46 | 3348293 toys for tits
toys for tits's picture



I love this guy.



Tue, 03/19/2013 - 13:51 | 3348323 redpill
redpill's picture

It's either now or later, malaka!

Tue, 03/19/2013 - 13:58 | 3348370 Lost My Shorts
Lost My Shorts's picture

If only it were so easy.  Do you think the Russians will happily accept a new currency in place of their Euros?

Cyprus is going to get "foreclosed."

Tue, 03/19/2013 - 14:21 | 3348511 TJ00
TJ00's picture

'Foreclose' is the new "Terminate with extreme prejudice'

Tue, 03/19/2013 - 14:25 | 3348544 fx
fx's picture

As much as I share his proposal - what growth from what kind of , eh, business? growing sheeps? Isn't the world full of them already?

Tue, 03/19/2013 - 14:45 | 3348769 MagicHandPuppet
MagicHandPuppet's picture

Global bank run in 5... 4... 3... 2...

Tue, 03/19/2013 - 15:14 | 3348788 Manthong
Manthong's picture

I think Daniel Hannan is the most outstanding American Constitutional Statesman of our time.

I wish we had someone of similar wisdom and eloquence here..  in the United States.

-- a great speech.. at a more hopeful time:

Tue, 03/19/2013 - 13:59 | 3348372 MiguelitoRaton
MiguelitoRaton's picture

Iceland those Bitchez!

Tue, 03/19/2013 - 14:16 | 3348429 TruthInSunshine
TruthInSunshine's picture

Once you go Icelandic, you never go back.

Sovereign nations (especially the U.S. and UK) have to make up their minds and either regulate the banks as utilities (not my preference, but still better than unlimited taxpayer $$$ subsidies-- that fund excess & non-market anything related compensation/bonuses of employees and executives-- and too-big-to-fail-- meaning endless rounds of saving them from gambling addiction -- & allegedly-too-big-to-jail status) or let them sink or swim by their own managerial (in)competence and the (un)soundness of their (mal)investment/loan portfolios, period.


Tue, 03/19/2013 - 14:16 | 3348479 Cdad
Cdad's picture

Crazy talk!  You mean leave it all to a free market?  Madness!

Tue, 03/19/2013 - 15:16 | 3348936 Ghordius
Ghordius's picture

+1. though "bank as utilities" is my preference, and I'm not alone, here

Tue, 03/19/2013 - 14:04 | 3348407 Kirk2NCC1701
Kirk2NCC1701's picture

That's right, GS:  Malaka!

"Don't fool yourself.. it's winking at you... I'd knew you'd be surprises!"  - F. Zappa.

Tue, 03/19/2013 - 14:03 | 3348398 Sceptical Scot
Sceptical Scot's picture

He talks sense sometimes, but his false trumpetting of Tory 'acheivements' has irked me too often. The man even tried to claim that an Osborne led Treasury was being fiscally responsible, and made no mention to deficit reduction by nationalisation of pension assets.

Tue, 03/19/2013 - 13:54 | 3348341 blu
blu's picture

"exporting its way back to growth again"

That makes no sense at all. The guy is behind the times. Cyprus won't find a market for its goods in a down global economy suffering from sky-high energy costs.

All the bail outs are about the failure of the growth engine. That game is over and it is never coming back.

Tue, 03/19/2013 - 14:42 | 3348747 rotagen
rotagen's picture

Bullpucky.  There's no way out without abolishing usury and fake debt dropping the euro and making real government printed money.  Cypriots?  Cypros? Olive loafs?  or just use a piece of wood with notches.  Screw the belgian bastards... There's nothing more derogatory than "belgian".

Wed, 03/20/2013 - 06:53 | 3351404 StychoKiller
StychoKiller's picture

"Belgium man, Belgium!"  -- Zaphod Beeblebrox, "HitchHikers Guide to the Galaxy"

Tue, 03/19/2013 - 13:45 | 3348287 FieldingMellish
FieldingMellish's picture

This would not please the squid... ergo, its not going to happen.

Tue, 03/19/2013 - 13:51 | 3348327 BullsNBeers
BullsNBeers's picture

Agreed. It might catch on too once the remainder of the troubled EU members (read: "most") realize that self imposed austerity and some modicum of self determination may the lesser of two evils.

Tue, 03/19/2013 - 13:48 | 3348290 machineh
machineh's picture

I were a Cypriot member of Parliament, I would vote now to go back to an independent currency as the least painful of the various difficult options.

Straight out of the Argentina 2001 playbook.

Cyprus already has the corralito. Why not the debt relief too?

Tue, 03/19/2013 - 13:55 | 3348351 eclectic syncretist
eclectic syncretist's picture

I'll fix this mess.  Somebody get this link to the Cypriot leaders.  Tell them they can give their regards to Drs. Greenspan, Bernanke, Krugman ect.

Tue, 03/19/2013 - 14:08 | 3348426 Kirk2NCC1701
Kirk2NCC1701's picture

 Better still:  A GOLD & NATGAS-BASED RUBLE!   GAZ(PROM) the IMF, BIS!

Tue, 03/19/2013 - 15:18 | 3348949 Ghordius
Ghordius's picture

"Cyprus already has the corralito. Why not the debt relief too?" and the soft currency that goes with it? wonder if Cypriots want that

Tue, 03/19/2013 - 18:37 | 3350008 Matt
Matt's picture

Exactly. If the new notes are worth half as much as Euros, that is a 50% haircut for ALL depositors. 

Tue, 03/19/2013 - 13:57 | 3348298 slackrabbit
Tue, 03/19/2013 - 13:47 | 3348301 McMolotov
McMolotov's picture

I keep waiting for some Eurocrat with a cameraman to walk out from behind a bush in Cyprus to inform the planet that we're all on Candid Camera.

Tue, 03/19/2013 - 13:55 | 3348355 Cdad
Cdad's picture

So....your cosmic bunny hole has also gone super nova.  Glad I'm not alone.

Tue, 03/19/2013 - 13:48 | 3348302 tony bonn
tony bonn's picture

"...but if I were a Cypriot member of Parliament, I would vote now to go back to an independent currency as the least painful of the various difficult options." .."

god almighty, someone with intelligence who is also a politician....i hope his life insurance is current....

Tue, 03/19/2013 - 18:39 | 3350019 Matt
Matt's picture

You really think printing your own currency (at what devaluation?) is less painful than just letting Gazprom drill of natural gas?

Tue, 03/19/2013 - 13:48 | 3348304 Sandmann
Sandmann's picture

Hannan is being his usual polemical self. The Brezhnev Doctrine made it clear in 1968 that Czecoslovakia could not deviate from the doctrine of the Warsaw Pact and that Dubcek was a heretic. In much the same way the Euro is an indisoluble union so Cyprus cannot be permitted to leave or to default of find a solution to its problems that deviate from the program. They have botched the first attempt and the Cypriot President has botched this just as he botched the proposals to sort out the divided island when nobody backed his proposals in the referendum.

The Troika will attempt to get Putin to stump up the readies and they will tell him all about their Brezhnev case he has forgotten

Tue, 03/19/2013 - 14:18 | 3348494 magpie
magpie's picture

Juncker promised war in Western and Northern Europe. How is that going to happen.

Tue, 03/19/2013 - 13:48 | 3348305 waterwitch
waterwitch's picture

...what country is safe?

Surely this couldn't happen in the US of A?


Tue, 03/19/2013 - 14:56 | 3348794 Smegley Wanxalot
Smegley Wanxalot's picture

No way it can ever happen here. 

Krugman said so - an' he's gotta Nobel Prize thingie

Tue, 03/19/2013 - 13:50 | 3348308 akak
akak's picture


"you don't have to be a Russian oligarch to have EUR 100,000 in the bank"

No, merely an idiot.

"Here, central bank, PLEASE take 5-10% of the value of my savings annually!  I'm too much of a sheep, or an ignorant fool, to do anything wiser or safer with it than allow you to continually devalue it!"

Tue, 03/19/2013 - 13:51 | 3348325 waterwitch
waterwitch's picture

Russian drug dealers don't play nice.

Tue, 03/19/2013 - 14:19 | 3348496 new game
new game's picture

shallow graves take valuable time

boris doesn't get blisters...

i respect ther shit...

a nod of understand.

Tue, 03/19/2013 - 13:49 | 3348311 sschu
sschu's picture

With moral and honest leadership focused on getting the country back on its feet in the fairest and most painless method possible, this would be the best approach.

As if that is possible in our world today.

Any option out of the Euro is still better than being stuck forever in the dead-end deal that the EU offers today.



Tue, 03/19/2013 - 13:49 | 3348312 Joebloinvestor
Joebloinvestor's picture

How come the Iceland answer isn't more popular?

Tue, 03/19/2013 - 13:54 | 3348346 ATM
ATM's picture

Because it worked and it screwed the vested interests. 

Tue, 03/19/2013 - 13:55 | 3348353 mick_richfield
mick_richfield's picture

It is very popular.   But in a world ruled by the Powers who create fiat currency, popularity does not matter.  The politicians do not serve the voters. 

The only way it happened in Iceland is that they gathered around their parliament building and threatened to go Viking.

Tue, 03/19/2013 - 13:50 | 3348313 news printer
news printer's picture

 Gazprombank was in Cyprus

Gazprom confirms that came to Cyprus suggesting agreement Cypriot Government, but this does not seem to contradict the bank's own company, Gazprombank.

The Gazprombank did not want to comment on the information broadcast by the television Sigma, that the company representative was in Cyprus offering substantial assistance to the government in exchange for land in the Cyprus EEZ.

The President of the Bank Yekaterina Trofimova, invited by the agency Itar-Tass said that: "No comment."

Earlier this week, Gazprom, made it clear he has not made any offer to Cyprus but refer to something in terms of Gazprombank.

Gogle translation

Tue, 03/19/2013 - 13:50 | 3348319 machineh
machineh's picture

'The Cyprus pound was replaced by the euro as official currency of the Republic of Cyprus on 1 January 2008'

That was only five years ago!

I could print these on my inkjet:

Tue, 03/19/2013 - 13:53 | 3348337 akak
akak's picture

Maybe they should call their new currency the Cyprus Ounce.

Tue, 03/19/2013 - 13:57 | 3348363 machineh
machineh's picture

Probably you meant to type 'the Cyprus OUCH' ...

Tue, 03/19/2013 - 15:50 | 3349164 Nobody For President
Nobody For President's picture

Cyprus Gram

Tue, 03/19/2013 - 14:22 | 3348521 duffelpud
duffelpud's picture

Medusa played rugby?

Tue, 03/19/2013 - 13:51 | 3348322 terryfuckwit
terryfuckwit's picture

Silver gold and bit coin bitchez

Tue, 03/19/2013 - 13:52 | 3348328 reTARD
reTARD's picture

He has met our friend MDB yet. I have an MDB to sell ya!

Tue, 03/19/2013 - 13:52 | 3348329 debtor of last ...
debtor of last resort's picture

Well yeah. Print yourself to the moon in your own currency like the UK.

Tue, 03/19/2013 - 13:52 | 3348330 wagthetails
wagthetails's picture

I, for one, am thankful that the EU is heading for a collapse at a glacial speed. just moves the US' eventual day of reckoning farther out in the future. I might even be able to steal a few more years of paychecks before chicken's come home to roost.

Tue, 03/19/2013 - 13:52 | 3348333 Cognitive Dissonance
Cognitive Dissonance's picture

"Let the games begin." - Caesar

"Render unto Caesar the things which are Caesar's." - Someone who hated money changers.

Tue, 03/19/2013 - 14:28 | 3348598 Miss Expectations
Miss Expectations's picture

Jesus tells His interrogators, "Render therefore to Caesar the things that are Caesar’s; and to God, the things that are God’s."

Either God and His divine laws were supreme, or the Roman emperor and his pagan laws were supreme.

Much more here:

Render Unto Caesar: A Most Misunderstood New Testament Passage
Tue, 03/19/2013 - 13:53 | 3348335 gwar5
gwar5's picture

Both Hannon and Farage are Awesome. I would have already written off the Eurozone entirely if it was not for guys like them.

Tue, 03/19/2013 - 14:35 | 3348673 gwar5
gwar5's picture

Sinclair commented last night that Cyprus was an trial balloon as an alternative to moar QE that (so far) has failed badly. All of which now seems obvious, with the great coverage and commentors here and other alternative media. Thanks to all.  MSM largely reports Cyprus situation as a failed bailout attempt for ungrateful Cypriots.


But if TPTB don't think they are devalueing fast enough via QE, and stealing deposits is a total loser, will there any eventual escaping a large one-off, overnight devaluation massacre, ala Belarus?  Methinks banks cannot keep assets marked up anymore than they already have. So, what else they got?

That would indeed be an economic Armageddon worthy of 2700 domestic MRAPs.



Tue, 03/19/2013 - 14:38 | 3348710 reload
reload's picture

Indeed - but Hannan has the balls on occasion (sorry no link, will keep searching) to criticise the fractional reserve banking / government cohabittation arrangements and inflation tax which disadvantage the majority of mankind.

Farage on the other hand is a populist - very careful to keep to a few issues - democracy, sovereignty & immigration, while being very coy about banking, government defecit finance etc. Farage needs to define some of UKIP`s would be policys a lot more than he has so far. Flat tax - ok Nigel, sounds great.....what will the rate be? and he can not say or even be drawn on a ball park figure.

Tue, 03/19/2013 - 13:56 | 3348344 ekm
ekm's picture

Strategically Cyprus is extremely important to be left in Russian hands.

There's a lot more then money involved here, best chess game ever played.


Did Asmusen do that on purpose or he just had a moment of mental crisis?

This looks like a premeditated setup to me, but it could be that Asmusen lost his mind, also.


The genie is out of the bottle already, no way back, either way.

Tue, 03/19/2013 - 14:17 | 3348489 magpie
magpie's picture

It was too easy in Ireland, Portugal, Spain, Greece and Italy. That is all.

Tue, 03/19/2013 - 14:22 | 3348525 Day_Of_The_Tentacle
Day_Of_The_Tentacle's picture

If it is true:

that the Cyprus banks are holding Russian establishment money far above the official numbers in secret accounts, which technically would mean that the banks are not insolvent afterall

that the EU or Germany is planning to join forces with Russia, China and the Middle East in the transition out of the US dollar reserve currency without the US going to war, because the switch happens with so many and so big players, that further resistance is futile

could it be that Cyprus is used to trigger a "bailout" from Russia, that would be washing that money out of the sand and into the transactable light to be used as general recap funds for those european banks that are supposed to survive the transition reset?

Far out I guess, but you asked, if he did it on purpose, and I am absolutely conviced that it was on purpose - the question is still open with regards to precisely which purpose. And it does not really tally with the massive liquidity injection that the FED did last week, which suggests that the FED is in the loop.

So it could also just be a trial balloon for funding the needed bailouts by other means than QE, as Sinclair suggests, but that does not get the assets marked to market. So I don't see how that solves the pandemic insolvency across the world. That doesn't mean they wont try though.

Tue, 03/19/2013 - 13:56 | 3348360 No Euros please...
No Euros please we're British's picture

Cyprus has a choice, it could align with Russia and put 2 fingers up to the EU.

However, the banksters have revealed their next plan and that is currency control and theft of assets to save the banks. Anyone with any sense will get their assets away from bankster control as soon as possible and into anything of value that can be hidden from the bankster scumbags. Gold, silver, cash it's up to you, if I'm wrong you can always put it back in the bank.


Tue, 03/19/2013 - 13:57 | 3348362 JR
JR's picture

The translation of the European Union: “You belong to us – all your money, all your labor, and all of your future.  We will take what we need as events develop.”

And who are “we”?

“We” are The Banking Cartel.

And who is the Banking Cartel?

Do the name Ruby Federal Reserve strike a familiar note?

To join a group like that means you have given up everything.

Go sovereign, Cypriots. Go sovereign!

Tue, 03/19/2013 - 14:20 | 3348501 Kirk2NCC1701
Kirk2NCC1701's picture


Who are"WE"?  We are...

Bankfine: "We're doing God's work."

Lucifer:  "Same here: God's dirty work."

Tue, 03/19/2013 - 13:57 | 3348364 Never_Put_Down
Never_Put_Down's picture

In the US the Fed print money to pay for monetary indiscretions of the Treasury, carving out 10% of all deposits from Cypriates to pay for their bad spending habits is no different - it's theft, devaluation and counterfietring

Tue, 03/19/2013 - 13:57 | 3348366 jubber
jubber's picture

He speaks like the UK aren't £10 Trillion in the hole themselves

Tue, 03/19/2013 - 13:59 | 3348375 BlackMagician
BlackMagician's picture

Where are they to get the money for the scores of people wanting to withdraw all their money the second the banks open...


FRACTIONAL RESERVE BANKING doesn't work during bank runs...

Tue, 03/19/2013 - 15:24 | 3349002 Alpha Monkey
Alpha Monkey's picture

Moar airplains with cash i spose.

Tue, 03/19/2013 - 14:01 | 3348383 Anasteus
Anasteus's picture

Finally a logical conclusion.

Tue, 03/19/2013 - 14:01 | 3348384 mrdenis
mrdenis's picture

Corzine could make this whole problem dissappear .....

Tue, 03/19/2013 - 14:26 | 3348563 new game
new game's picture

dream team: o,ben, honorable corz, ketchup man and buffuk...

Tue, 03/19/2013 - 14:03 | 3348400 Paracelsus
Paracelsus's picture

  For a start the Cypriot banks can make a bonfire out of the GGB bonds.Not much use keeping them,and if they were used as collateral then they should be surrendered to the counterparty. It is interesting watching this slow-motion trainwreck but I feel it takes the spotlight off other problem areas such as Hungary or Latvia. Is Merkels party in that much trouble over this stuff? I see that the only reason people are freaking out over 10 bill. Euros is the system is way overextended in Europe. Ben wouldn't raise a sweat over $10 billion....

Tue, 03/19/2013 - 14:03 | 3348402 Dr. Engali
Dr. Engali's picture

It's too late ..the damage is done. There is no way that anybody in their right mind is going to leave their money in the banking system after this mess. 

Tue, 03/19/2013 - 14:11 | 3348420 akak
akak's picture

I would like to agree, but the fact of the matter is most people in the modern world are not in their right minds.

Tue, 03/19/2013 - 14:12 | 3348451 SmallerGovNow2
SmallerGovNow2's picture

Couldn't agree more Doc.  What would our reaction be?  The mere threat of them doing so would make a sane person wonder if the bank was solvent.  I'd be getting what I could get as soon as they open.  Question is, how fast does this spread to the rest of Europe?  Certainly Greece, Spain, and Italy have to be watching...

Tue, 03/19/2013 - 14:28 | 3348590 new game
new game's picture

im with akak; til its too late...

no smoke no fire-yet.

Tue, 03/19/2013 - 14:04 | 3348408 kaiten
kaiten's picture


Brilliant idea, so instead of losing "just" 10% of savings, let them lose 50% after the new currency collapses. Must be the next candidate for Nobel price in economics, I guess.

Tue, 03/19/2013 - 14:16 | 3348478 Meat Hammer
Meat Hammer's picture

This may be a textbook Darwinistic excercise.  Those in the know, i.e. ZHers, have the foresight to get the fiat out of the bank and buy tangible assets, then if there is a new currency maybe we trade said some assets for it, maybe not....we have options.  Those who are ignorant, willfully or otherwise, watch their money litterally become worthless and start over from scratch.  

Tue, 03/19/2013 - 14:17 | 3348487 earleflorida
earleflorida's picture

B  ...  Blame

A  ...  Assigned

I   ...  Innocents

L   ...  Lien


I   ...  Independence

N   ...  Non Negotiable 

Tue, 03/19/2013 - 14:23 | 3348526 Mediocritas
Mediocritas's picture

I'm just waiting for someone to come out with a proposal the split the euro into north and south. The south will invove the Union for the Mediterranean, easier now that Gaddhafi is gone (Libya was holding out).

Might seem ridiculous now, but don't underestimate how emotionally invested the elite are in their Euro project. They'd rather lose the south (to be later recaptured) than give up their precious euro.

Tue, 03/19/2013 - 14:36 | 3348600 MarsInScorpio
MarsInScorpio's picture

I remember reading in ZH how desparate governments - in this case the Banking Cartel working through its proxies, the ECB and the IMF, would eventually get to this point.


As soon as I saw the headline in ZH about this plan to steal the money of every depositor in Cyprus, (because the the so-called MSM sure as hell doesn't understand the consequences of this event - and so nary a peep was heard at its outset), I said to my wife, "It's here. The game is coming to an end. It's exactly what all those posts and comments have been predicting would happen, and now here it is. Damn, those ZHers have got their act together."


Then I thought about the smug, arrogant. look on Bro. Ben's face when Rep. Paul told him at his committee hearing, "The FED is going to fall apart anyway . . .", referring to the fact that the deceit of Ben et. al really didn't matter, because they set themselves on a course of assured destruction.


Guess what Ben? Ron was right. 


I've often wondered what it would take to spark the fire of regaining the control of the government from the bankster criminal cartel. I think I've seen it - going straight into the savings accounts of people and stealing their money outright.


I'd feel very comfortable saying that one reason the so-callled bail-in plan will never pass is because there are too many people who would actually be motivated to murder their reps in whatever legislative assembly passed it. Anyone voiting for this plan would be nothing but a dead-person walking.


In other words, legislators value thier life more than they value lobbyists' money, and being treated like they actually matter in the course of world events. It is only when they understand their life is now Ground Zero, that they will finally stop taking everything they can steal on behalf of the Banking Cartel.


I'd like to ask the Tylers to re-post some of those articles - so that the world can see for itself this is nothing but the inevitable progression of the international ponzi, going into collapse.


Tue, 03/19/2013 - 14:40 | 3348731 Mediocritas
Mediocritas's picture

If only people would see inflation the same way they see deposit clipping (the effect is the same). Slow burns are never taken as seriously as big bangs, yet it's the slow burns that do the real damage.

Tue, 03/19/2013 - 14:43 | 3348752 walküre
walküre's picture


I spoke with a friend this past weekend who said he had cashed in all his bullion just last week to finance a land deal.

Nothing phases me much but when he said that, I gasped and just stared at him. That deer in headlight look was on me there for the remainder of the conversation. When he was finished, I mentioned the Cyprus problems and he got really quiet. I will never forget that moment for the rest of my life. The guy is pretty well off but I think he's deeply leveraged and he sold off the only thing that holds value in my opinion.

Tue, 03/19/2013 - 16:31 | 3349339 Ghordius
Ghordius's picture


Tue, 03/19/2013 - 15:09 | 3348878 Diogenes
Diogenes's picture

Honesty is no longer an option, even in theory. The only choice is which scam still stands a chance of working. The choices dwindle down until there are only 2  left, none  of them good.

Back in the beginning it didn't look that way. It looked like honesty would cost you but you could weasel out scot free with a slick trick. Then another trick, then another.

Now you have a choice of collapsing your country's economy or ripping off your most honest citizens (savers) and pissing off the Russian mafiya.

Some choice. And this time you won't stave off disaster for years or even months. More like weeks or days.

Tue, 03/19/2013 - 15:16 | 3348937 Meat Hammer
Meat Hammer's picture

Well said

Tue, 03/19/2013 - 16:44 | 3349407 Winston of Oceania
Winston of Oceania's picture

+ 20000


Since here in America there is not a great deal of money in "bank accounts" we will be treated to retirement confiscation where the ills of SS and Gub'ment pensions can be cured with a national pension funded by empty promises and your former 401K, and IRA of any and all stripes. They will first engineer a "crisis" and the sheeple here will fucking beg for it. Just watch and see; that is of course if we are not thrust into war first.

Tue, 03/19/2013 - 14:29 | 3348603 paint it red ca...
paint it red call it hell's picture

Cyprus, grow a set of Icelandic balls and SCREW them............

Tue, 03/19/2013 - 14:40 | 3348726 Paracelsus
Paracelsus's picture

One of the items not commonly understood in this grand poker game is that when markets drop a margin call is generated to post more collateral. This means funds have to sell real assets and dip into cash reserves to meet the margin call. Ante up fellas?

Tue, 03/19/2013 - 15:21 | 3348969 steve from virginia
steve from virginia's picture





@ Hannan:


"Export its way back to growth, again!"


Export what? Hannan just blew up his remaining credibility. No point in even listening.


Cyprus is a money conduit between Russia, its energy managers and the eurozone. It arbitrages regulations being more benign than Russia in some ways, Europe in others. Abstractions are not exportable nor do they 'grow'.


"Oh -- oh! Cyprus has a million-bazillion cubic meters of natural gas ..."


IF it does it would be served best by hanging onto those reserves and using them itself, not exporting them. What would it gain? More empty promises!


There is no more growth to be had. There will be either a shadowy war over what capital remains in this world or a more rational regime that manages capital with a long-term strategy to husband it. Because 'growth' destroys capital, there is no place -- or hope -- for it, anywhere.


There is no 'Plan-et B' we can all escape to if things go wrong. 



Tue, 03/19/2013 - 16:38 | 3349378 Winston of Oceania
Winston of Oceania's picture

Maybe the gas rights the Russians were willing to bail them out for? The only way to prosper is to export something of value for other things of value that you don't already have a good stock of. I never thought of Virginia as a slow state but you try my patience boy...

Tue, 03/19/2013 - 15:53 | 3349181 halcyon
halcyon's picture

A fucking populist with no understanding of banking or care for the small guy who would lose 60% overnight.


Tue, 03/19/2013 - 16:10 | 3349250 neutrinoman
neutrinoman's picture

The second choice is the better, in an immediate sense.

But -- Cyprus will have to exit the euro, redenominate all accounts and securities into a national currency, devalue that, and impose capital controls -- like Iceland. The Russians aren't going to like that either, but it's the only way to save an independent Cypriot banking system. Outside the euro, Cyprus becomes very vulnerable to bank and other financial runs, as well as Russian blackmail.

They'd better think twice, thrice.

Tue, 03/19/2013 - 19:08 | 3350133 Kreditanstalt
Kreditanstalt's picture

Might be a good idea to divest oneself of those Euros NOW, in or out of a bank account...!

Wed, 03/20/2013 - 10:58 | 3352185 Minburi
Minburi's picture

What just happened?... They just replaced a 5 minute plus interview with a 43 second introduction?

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