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Cyprus ATMs Low On Cash, Credit Card Payments Refused; Medvedev Compares Europe To USSR
So far the market has been largely oblivious of the shattered trust and changed dynamic in European banking dynamics for one simple reason: Cyprus banks have been closed, and likely will be closed indefinitely, preventing the mass media from broadcasting what happens when an entire population, and foreign depositors, decide to clear out the holdings of their bank accounts, either physically or electronically, and the public anger the will result when they find that courtesy of fractional reserve banking, only a tiny amount of said deposits is actually present.
In the meantime, retail depositors have had their withdrawals limited through a form of capital controls, allowing them to pull only as much as the daily limit is on given ATMs. So far the banks have had enough cash to keep ATMs stocked up to the daily required minimum, but that may soon be ending. BBC's Mark Lowen, in Nicosia, reports that "Cyprus' banks are still giving out cash through machines - although with limits, and some are running low." Ironically, as physical cash becomes ever scarcer, merchants are now clamping down on electronic payments unsure if they will ever be able to convert electronic euros into actual ones: "Some businesses are now refusing credit card payments, our correspondent reports."
Logically, this progression of limited transactions will accelerate exponentially until by some miracle, either normalcy returns and faith in the local banking system is restored, or every form of commerce, trade and exchange grinds to a halt, leading to a localized, at first, manifestation of the "just-in-time" supply-chain cross contagion that was explained in painful detail in "Trade-Off: a study in global systemic collapse."
Since we don't believe in miracles, our money is increasingly on the latter. This sentiment is further reinforced by former Russian president, current Prime Minister, and Putin mouthpiece, Dmitry Medvedev, who said that what Europe has done is nothing shy of what the USSR used to do in its attempt to destroy faith in private property, and thus, capitalism.
Mr Medvedev said the EU and Cyprus had acted “like an elephant in a China shop”.
“All possible mistakes that could be made have been made by them,” he added.
"We are living in the 21st century, under market economic conditions. Everybody has been insisting that ownership rights should be respected.”
Mr Medvedev also criticised the decision to freeze the Cypriot banking system, and not just withdrawals from troubled banks, warning that if this continued for any length of time it could “result in losses . . . even bury the whole banking sector of Cyprus. It will cease to exist,” he said.
...
The proposed bank levy, rejected by the Cypriot parliament on Tuesday, had a "clearly confiscatory, expropriating character," RIA quoted him as saying - remarks that echo earlier criticism by Russian President Vladimir Putin.
It was, Medvedev said, "absolutely unprecedented".
"I can only compare it some of the decisions taken ... by Soviet authorities, who did not give a thought to the savings of the population."
Alas, it is not just in Cyprus that the current failing status quo has become the USSR incarnate: one can see it in the central planning of the stock market, in the general approach toward the wealthy, in the absurd penetration of cronyism and the terminal corruption of the system.
And while we commiserate with the simple people of Cyprus (and soon everywhere else), who have for no fault of their own become the first pawns to be sacrificed in the systemic endspiel, we are grateful to Europe for proving us, once again, correct.
Because our only purpose with this media experiment has been to warn our readers that concentrating unlimited decision-making power in the hands of a very few conflicted individuals, without checks and without balances, always, always, ends in absolute disaster, bloodshed, and ultimately war.
Sadly, at this point there is nothing that can change the final outcome of what is an ongoing systemic failure. One can, at most, prepare as much as possible and hope for the best.
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Of course the assumption is that just because the front doors of the bank are closed that their electronic transfer systems are also closed. In fact I can pretty much guaran-damn-tee you all that there are transfers being done to drain Russian money out of that "banking system" in order to assure that their "national interests" are not infringed when the doors reopen and/or the Cyprus Parliment or some other entity tries to impose the blood letting.
What money in the banking system ? At 100-1 leverage, there's only 1/100th of cash in the system...and that's before you count the derivatives.
haha, long on russian rpg bank vault attacks.
This, Tyler, is tremendously well said.
The disaster ahead has been coming for some time, and I can think of no other source that has given us earlier and better warnings than Zero Hedge.
The Cyprus developments are a good example because they can be equated, as Zero Hedge has done over the past few days, with the banking dangers ahead in America. These intelligent interpretations of what is happening in Cyprus could well be the kind of Thomas-Paine warnings that will enable Americans to stand and prevail against absolute economic crisis.
Hark is that a Helicopter I hear in the distance?
USA and EU are like the USSR... or Argentina. Take pick.
I think there was a rule/law that was implemented in the US with little fanfare last year. Says that US taxpayers who are even 'suspected' of owing $50k in taxes will have their passports revoked and not allowed to leave the country until it is 'resolved'. I shit you not.
Well, with all this kind of crap coming down the pike it might well apply to most anybody, even on a DHS whim. So when the time comes, until you can prove otherwise, comrade, you shall remain locked behind the Digital Curtain.
WWAD? What Would Argentina Do?
After more than a month of mishaps, Carnival Corp., the parent company of Carnival Cruise Lines, has announced the cancellation of more cruises.
http://gma.yahoo.com/12-more-carnival-cruises-canceled-155507362--abc-ne...
Does this mean they will not stop at Cyprus anymore?
...bin preparing for this for at least 5 years, maybe 7...
So businesses are refusing credit cards.
Short step from there to EMPLOYEES demanding to be paid in cash from those self same employers.
Next step goes like this:
"Short on cash? No problem either pay me in bartered goods from the store (without taxes BTW cause screw those guys) or I don't work here anymore..."
Next step: the market value of euro in cash grows to match the bank leverage multiplier.
And then, thousands of tourists from EU mainland come with wheelbarrows.
In the US they worked 5 months without any payment whatsoever. This is great. You know, this spirit. Really great. Got to admire that. Good spirit. Wonder why they want to outsource the shit still to backward countries like India, China or Canada. Ah, yeah, you're right. It's called
subsidized economy. Talking about that Rhythm and Hues-Shit. They won that Oscar for that Indian orphan kid movie with Richard Parker.
So you gotta choice here - subsidize them too or let the worker pay for working there. Otherwise VFX candy goes to Bangladesh or other desperate places. You know it's great to be moron and a capitalist. Like Ang Lee said - make it cheaper. Better for the guys at the top with their oversized egos and dysfunctional brains.
how much does it pay to be putin's lap dog? if Putin is only worth a few 100k then surely Medvedev doesn't have to worry about having a Cyprus account :p (is sarcasm for those that are not good at picking up such things)
if u had your debt based currency in your possesion along side your physical Silver and Gold would you be trippin off the fucking rotten ass politicians, banks and their sociopathic fucking banker owners??
would you have to accept as change for a sandwich costing 10 Euros 2 candy bars from a merchant that aint got any Euros as change instead of the 10 Euros you're owed??????????????
THERE R ONLY 2 FORMS OF REAL MONEY....PHYSICAL GOLD & SILVER.......
+1 for that effort KS.
This is appreciated.
"would you be trippin off the fucking rotten ass politicians, banks and their sociopathic fucking banker owners?"
Hard to add to that given the circumstances.:-)
Next crisis : Pakistani election on May 11... could be hilarious if they elect an anti-US president who won't take bribes anymore...
http://rt.com/usa/mccain-graham-syria-war-555/
McCain and Graham push for US to invade Syria
Syrian government and the opposition accuse each other of using chemical weapons. The US considers this a “red line” – and two US senators are now urging Washington to declare war in response to alleged use of the weapons.
As the Assad government and the opposition throw out accusations over the use of chemical weapons and the US is assessing the situation, two US senators are urging the president to go to war. Sens. Lindsey Graham (R-S.C.) and John McCain (R-Ariz.) released a statement on Wednesday, urging President Obama to ‘take immediate action’ and consider deploying troops.
"President Obama has said that the use of weapons of mass destruction by Bashar Assad is a 'red line' for him that 'will have consequences,'" the statement reads. "If today's reports are substantiated, the President's red line has been crossed, and we would urge him to take immediate action to impose the consequences he has promised."
At a minimum, the senators want the US to provide arms to rebels, establish safe zones to protect civilians, and launch targeted strikes against the Assad regime’s aircraft and SCUD missile batteries. And Graham said that he would even urge the president to declare war, if that is what it would take to stop chemical weapons from being used.
Any excuse for yet another war, from the Country led by a Nobel Peace Prize winner!
Gotta keep the MIC happy with their guaranteed revenue streams.
Yup the zionists are up for the wider war they have been trying to get started, and let's ignore the fact that it was the REBELS that fired the weapon.
Earlier today Iran warned that if the rebels are using chemical weapons in Syria, then Iran was going to hold responsible the countries supplying arms to the Syrian rebels.
i.e. the US and NATO/Europe
those 2 are usually off blowing each other
Bitcoin myth busting for the benefit of zh bloggers....
We keep telling ya cause we love you really... and share a common enemy ......
https://en.bitcoin.it/wiki/Myths
They will realize it, when 1 BTC > $10,000.
You will realize true shock, then, when all BTC are priced at 00,000$.
Bitcoin requires a grid, money requires operations with NO grid, not for power, not for networked communications.
You also seem to forget that the BIGGEST draw for bitcoins is NOT FOR GOODS – use as money – but for FIAT EXCHANGES. Euro, yen, USD, and that means those who can print them legally can buy all the BTC faster than you can then shut it all down.
Only a fool believes a fully electronic network currency can’t be traced. Or owned by those who own the grid itself.
There is no grid for gold & silver. Aside from currency CONFIDENCE there is no grid for paper money either, if actual paper, not electrons. Bitcoin is the worst possible choice.
Bitcoins are at least better than credit cards
@dark pools of soros
The non-reversibility of transactions does have that allure.
I think if you don't have bitcoin and precious metals - you aren't prepared for what is coming. I believe both are vital to your financial health.
agreed
Really? A grid of power I don’t control and a grid of information transit I don’t control, both of which can stop and / or abuse bitcoin, is vital to MY financial health?
No, you are very far mistaken.
What’s vital to my health is barter, stored food & fuel, gold & silver coin & paper for the transition out of currency confidence when banking grids fail.
Bitcoin has no place in this.
How’s that? A credit card uses a currency more stable than bitcoins and if one’s desperate, it’s unsecured credit so you can just REFUSE to pay anything. Now all the goods are free
Quick, someone take a hundred dollar bill over there to the euro zone and run it around like super crazy as in the below example and all of the problems will be solved.
http://www.abovetopsecret.com/forum/thread544407/pg1
But Sovereign Man assured us our foreign accounts are wonderful planning!
simon might be insolvent man tonight, haha.
Time to open a bank account in Russia bitchez!!!
Bad idea.
Reuters, could you spell "China" without the capital "c"?
Come on! Will we let Medvedev the Russian to analize the situation of Cyprus? Medvedev the friend of oligarch russian multinationals that filled Cyprus banks of investments now gone in dust? Medvedev the Russian whose country is 90% beneficial of Cyprus offshore Banking system?
Come on! Dindn't we know Cyprus is the first Eu investor in Russia and in a dozen of former USSR satelite states? A tiny country of just 1 million people that invests in Russia more than Germany, France, UK...with the money of whom but the Russian Oligarchs that place their profits in Cyprus to gain lower taxation?
Can we really think the Europeans should pay to bailout a banking system that is functional at 90% to Russian multinationals? Is there really a matter of right, or simply let the Russian pay for the disaster they made?
all savers were robbed in USSR on many ocassions, and at rhe end of Soviet power too. Without own choices. In Cyprus nothing happened yet.
"We are living in the 21st century, under market economic conditions. Everybody has been insisting that ownership rights should be respected.”
Really? Near Sochi too?
Fuck you Medvedev.
Just a red click but no retort? Why? Too hard to form a sentence?
The only currency I trust these days is made of lead and copper moving at 3,000 feet per second towards its intended target.
The Rape of Cyprus made a believer (or nonbeliever) out of me. They will not be content with just ZIRP and Inflation for gutting the middle class.
Time to put the Big Boy Pants on and aim for the whites of their eyes, if push comes to shove.
The only currency I trusted was my brain. Then one night - after listening hours to Ben Bernanke - it depreciated. Never recovered.
go to 1.49 on this for how putin will treat the cypriot finance minister
http://www.youtube.com/watch?v=_vafxnkWndI
Medvedev is fcking russian citizens everyday so if a bunch of his friends gonna lose some money in Cyprus it is a GOOD thing. Maybe they will start caring more about their own country and invest back in russia (Medvedev including)
Must be rough to be between a rock and a hard place.
Cyprus Fails to Obtain Kremlin Ai:
http://www.themoscowtimes.com/news/article/cyprus-fails-to-obtain-kremli...
Of course, sooner or later as the clock ticks closer and closer to the make it or break it time, they might give up what ever the Russians want (sea ports and gas rights, prolly both), and cave in to a deal. Or, the EU could give in to avoid this.
All the long stories short, the babylonian banksters have already tipped their hand. It is too late. Everybody knows. We wondered forever how they were going to cause the crash, and now the world has seen the preview of what's to come. The only bad thing about all this is, they are being rushed into a corner of quick decisions that includes more false flag events, and warmongering that could change everything overnight. We could actually see more govt sponsored terror as well as a banking crash as everyone is fast already taking out their cash from banks all over the world NOW!
Lol...you banksters did mean to cause a world wide crash and bank run, right? What the supposedly smart banksters did not count on was the quickening of the news and how it was groused and correlated by the mass mind, and not spun as 'nothing happening here' reporting by the lame stream media as is usual. Of course, then again, we are seeing more and more coming over to the truth side to gain back some semblance of readership in the face of their failing and falling businesses too. What every soul on board should know is, there are greater forces at work than the babylonian god, money.
And at home the situation for now.
Cyprus scrambles to avert meltdown, EU threatens cutoff:
http://ca.news.yahoo.com/cyprus-throws-bailout-disarray-seeks-russian-he...
As everybody knows, the greatest fear of the banksters is a world wide bank run. It is already happening and is set to make a buig show in Cyprus when, er, if the banks ever open. Try not to imagine the people being told, sorry Charlie, all your savings are mine.
Well, it is too late mr rottschild and the beast of a thousand tentacles. Your time is getting closer and your only hope of survival is to come along quietly to the nice padded cells the world has waiting for you all. Don't worry, you will get the same kind of justice the cia-renditionists are so good at.
We get dibs on the rights to the pay-per-view public hangings.
Who is supplying cash to Cypriot ATMs? Are they crazy?
Who - with even half a brain - would swap folding beer tokens for a book-entry with a Cypriot bank??
Eurozone giving Cyprus to Monday to agree to their deposit theft, or the offer expires:
http://www.nakedcapitalism.com/2013/03/ecb-to-push-cyprus-over-the-brink...
Roh roh. Here is a new twist in the hangman's knotty noose for the EU banksters. Is Russia thinking about pulling out of the euro too? Prolly before everyone else does maybe?
The world turns, the warmongers monger, the Russians are an interesting crew,a nd stay tuned for the ongoing movie, The Great Euro Gatsby.
Russia may rethink euro in reserves after Cyprus, Medvedev says:
http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_21/03/2013_489048
And, not sure what to think about this guy. Sure creeps the average Brit out when they, and the Russians come to the conclusion that there is this kind of premeditated planning going on to purposely harm people. Does this count as terrorism against these folks in Cyprus, or is that trillion dollar war on terrorism for the other kind of terrorists in govt?, Er sorry, those mean ol Iranian terrorists. Oh no! Gotta send your sons and daughters to support israels war on those other terrorists, oh yah, das right, oui!
“Cyprus’s tax was a wealth tax, we specifically tried to target non-resident depositors,” said the Eurogroup head. "The vast amount of depositors in Cyprus are not really savers. They're investors."
"“In the present situation I think there is definitely a systemic risk and I think the unrest of the last couple of days has proven this, unfortunately," he said in a comment that appeared to contradict some of his colleagues in the Eurogroup and the German position that the consequences of a Cypriot banking collapse and euro exit could be contained."
Dijsselbloem says Cyprus 'systemic' and has little option than to accept troika plan:
http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_21/03/2013_489090
This is like some kind of game right? A poker game maybe huh??
50 person strong queue at a Nicosia ATM. Seeing lines like this across the city this morning from https://twitter.com/Imeldaflattery/status/314687911201239040/photo/1