Cyprus Banks To Reopen Next Tuesday At Earliest As Capital Controls Become Reality

Tyler Durden's picture




 

We can only hope that nobody will be shocked that the greatly overhyped Friday Cyprus bank reopen has been postponed.

  • CYPRUS BANKS EXPECTED TO REMAIN CLOSED THROUGH END OF WEEK:CYBC

And since March 25, Monday, is another Cyprus bank holiday, "Greek Independence Day" (from whom? Certainly not the Troika), it means Cypriot banks will now remain closed at least until next Tuesday and likely far longer. In the meantime, since TV cameras can't show lines of people at their freindly neighborhood bank, which will have been closed for over a week, the propaganda machine will blast full bore how because the market is pushed higher by the Fed, any fears of bank runs can be forgotten. Actually instead of "can", replace with "must."

But since banks have to reopen at some time, at which point the inevitable bank runs will become reality, the already discussed Plan B is now taking shape:

  • CYPRUS CABINET TO DISCUSS DECREE ON CAPITAL CONTROLS: CYBC

It remains to be seen if a country can't have a bank run in the New Centrally-Planned and Despotic Normal, if there is simply a law saying it is now illegal to pull or transfer more than €100 of cash per day.

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Wed, 03/20/2013 - 12:19 | 3352488 stinkhammer
stinkhammer's picture

jackie treehorn wants to see you

Wed, 03/20/2013 - 12:20 | 3352490 flacon
flacon's picture

The beatings will continue until morale improves. 

Wed, 03/20/2013 - 12:21 | 3352502 cifo
cifo's picture

Software developers must be doing a lot of overtime. At least somebody makes some money out of the situation.

Wed, 03/20/2013 - 12:23 | 3352515 Irelevant
Irelevant's picture

50 euros/day/depositor. Looks like good business! You will stay in line for weeks, months, years, decades!

Wed, 03/20/2013 - 12:28 | 3352542 machineh
machineh's picture

As in Argentina, so in Cyprus: the corralito [little corral] morphs into a corralón [giant livestock pen for sheeple].

Argentina's withdrawal limits on bank accounts lasted for a year.

Cypriots who can might want to live on the mainland, while they're still EU members.

 

Wed, 03/20/2013 - 12:29 | 3352548 Pladizow
Pladizow's picture

There need to be some Cyp-RIOTS!

Wed, 03/20/2013 - 12:40 | 3352610 iDealMeat
iDealMeat's picture

I seriously hope that instead of rioting. They all just walk away, stay healthy, and begin they're own barter system. They're going to have to start somewhere. Now is an opportunity to just walk away and never play the fucking Frac. FIAT game ever again.. This isn't some natural disaster..  Its all a total banker fuck up.. My guess is that Cyprus is sitting on a derivative bomb and Goldman Sachs knows it.. It won't be allowed to blow..

 

Right now fruit / milk / short shelf life items need to move.. And the grocers can't restock..  Start bartering now..  Cut out the foreign a-hole bankers..

 

Wed, 03/20/2013 - 13:00 | 3352733 Kirk2NCC1701
Kirk2NCC1701's picture

They've been bartering before your ancestors set foot in this country.  So no need for the typical-American 1-variable (either/or) solution.  They also need to march to Gov and threaten them with calm, rational, but determined civil forms of 'Civil Disobedience'. 

I.e. exercise their Human Rights, regardless of what puppet heads their FinMin or their Gov.  Too bad this is not happening in the US, where the sheep are blissfully ignorant of reality.  It reminds me of the Jesus parable of the man who objects to the speck in his neighbor's eye, while ignoring the log in his own.

Wed, 03/20/2013 - 17:06 | 3354014 Lore
Lore's picture

The public never grasps that control freaks cannot simply be asked to go away. They are pathological, and see you as livestock. Your words and feelings are irrelevant. Human costs are irrelevant. Historically, emancipation requires some kind of violence, with specific individuals and groups removed and examples made. But people aren't usually motivated and galvanized in large numbers until conditions become so intolerable that the status quo is seen as more costly than attempting to do something different.  Their thinking comes into focus around a trigger incident, like we saw during the Arab Spring.  Other individuals and groups will rise and attempt to hijack the reform movement.  (Beware of "green" Agenda 21 in that regard.) Some newsletter writers suggest a kind of Nuremburg-style trial when the dust settles, but I don't see how that will placate the desire for revenge when confidence in the judiciary is lost and the public is crying for blood.

I don't advocate violence. Looking at the trouble ahead, I just don't imagine people behaving any other way.

Wed, 03/20/2013 - 13:01 | 3352734 Kirk2NCC1701
Kirk2NCC1701's picture

Tyler, please delete double post.  Thx.

Wed, 03/20/2013 - 13:03 | 3352757 sessinpo
sessinpo's picture

That only workks for items produced locally.

 

What are they going to do with they need items produced outside Cyprus or need materials (raw materials) produced outside Cyprus.

 

This is actually an important question because it illustrates how the international banking system has a strangle hold on all of us.

 

Yes, I can get locally grown food. My electricity is produced by coal in my state. I imagine, if I look hard enough, I can find locally made items such as clothing. I can barter for services such as roofing, car repairs, etc.

 

But what is Cyprus going to do when it needs steel for manufacturing or construction? Cyprus may be in a very tight position because its an island. Do they have to import wood? Think about it.

Wed, 03/20/2013 - 14:18 | 3353163 mvsjcl
mvsjcl's picture

Don't they have, like, huge forests of cypruss trees? I'd think wood is the least of their problems.

Wed, 03/20/2013 - 15:20 | 3353540 20-20 Hindsight
20-20 Hindsight's picture

Very funny!  Cyprus = cypress.  

Wed, 03/20/2013 - 14:24 | 3353193 cifo
cifo's picture

Their main industry is tourism. Like Cuba.

 

Wed, 03/20/2013 - 12:42 | 3352622 AlaricBalth
AlaricBalth's picture

Here is the International Monetary Fund (IMF) playbook on capital controls written on November 14, 2012. To bad Christine LaGarde may be watching its implementation from La Sante' Prison.

http://www.imf.org/external/np/pp/eng/2012/111412.pdf

Wed, 03/20/2013 - 12:51 | 3352679 Muddy1
Muddy1's picture

"To bad Christine LaGarde may be watching its implementation from La Sante' Prison."

 

Too bad???????  I don't think it's too bad.  Frankly I hope she has a gang of fellow banksters as her fellow inmates.

Wed, 03/20/2013 - 13:03 | 3352761 AlaricBalth
AlaricBalth's picture

I guess I should have <sarced> my comment.

Wed, 03/20/2013 - 18:38 | 3354477 cosmyccowboy
cosmyccowboy's picture

i didnt know the russian mafia used prisons anymore...

Wed, 03/20/2013 - 12:54 | 3352624 hedgeless_horseman
hedgeless_horseman's picture

 

 

It remains to be seen if a country can't have a bank run in the New Centrally-Planned and Despotic Normal, if there is simply a law saying it is now illegal to pull or transfer more than €100 of cash per day.

Draghian philosophy states:

There can be no more bank runs;
Thus, there will be no more bank runs.
Party on, Wayne!
Party on, Garth!

Wed, 03/20/2013 - 14:03 | 3353097 Bullionaire
Bullionaire's picture

"...Cypriot banks will now remain closed at least until next Tuesday..."

 

C

U

Next

Tuesday

 

(and I'm not referring to Prissy Lagarde)


Wed, 03/20/2013 - 12:56 | 3352707 smlbizman
smlbizman's picture

with a few minor changes they could swicth cyprus to alcatraz.....only difference is the gaurds have taken all others hostage and are demanding a 15.5% ransom.....

Wed, 03/20/2013 - 12:46 | 3352655 Muddy1
Muddy1's picture

@Irelevent,

@ machineh,

Your points are well taken.  I believe I'll take charge of my own capital controls by cleaning out my accounts today, and on each and every future payday.

Wed, 03/20/2013 - 12:49 | 3352669 Max Cynical
Max Cynical's picture

Are payments restricted as well? Say if you want to buy a car or a house, etc?

Wed, 03/20/2013 - 12:53 | 3352692 jus_lite_reading
jus_lite_reading's picture

It's been mentioned here a million times and I believe it's worth reiterating --- CYPRUS SHOULD BE A WARNING TO EVERY DEPOSITOR, IN EVERY NATION AND EVERY BANK AROUND THE WORLD. THEY WILL CONFISCATE YOUR MONEY IF THEY WANT TO AND THERE IS NO AMOUNT OF "FDIC INSURANCE or EU DEPOSIT INSURANCE" WILL PREVENT THAT.

You have been warned!

IF the Cypriot banks reopen next week, I guarantee there will be no stoping what is to occur. 

Wed, 03/20/2013 - 13:40 | 3352928 OutLookingIn
OutLookingIn's picture

The banking sector on Cyprus has ceased to exist.

Their banks are finished. Done.

Put a fork in them. If, and that's a BIG IF, they re-open, they will be empty shells.

Or is that empty shelves?  

Wed, 03/20/2013 - 12:23 | 3352516 camaro68ss
camaro68ss's picture

bullish for businesses there. Some how krugman will find a way.

Wed, 03/20/2013 - 12:24 | 3352507 CH1
CH1's picture

Our overseers are righteous and benevolent!

Our overseers are righteous and benevolent!

Repeat, slaves!

Wed, 03/20/2013 - 12:25 | 3352531 otto skorzeny
otto skorzeny's picture

if they would only have had bitcoins to save them

Wed, 03/20/2013 - 13:06 | 3352727 Renewable Life
Renewable Life's picture

I'm a silver guy myself, but I've also been buying bit coins, I'm not sure why there is so much hatred on ZH against bit coins, they are NOT threatening gold and silver at all, if anything they will be the liquidity tool used to move huge amounts of wealth around the planet anonymously and you won't need a fucking ship and army to do it! Yes, if the people of Cyprus had moved their savings into physical bit coin notes, they would have had no levy, complete access to there money in ANY country on the planet, they could have gotten on a plane or ferry with them and no one would know what they had, and could have exchanged them back to the local currency at anytime and had that new currency transferred to a new account or another online payment system (liberty reserve, etc)
Silver and gold are great if your going to never leave your house, but moving around the world or even your own country with physical gold and silver is not realistic! I think people have to realize that we are now living in a police planet, at every point of entry and exit on this planet, there are governments and their police looking for "unusual" behavior, this will only get more intense and controlling, any tool that helps people fight this oppression, is a tool I'm for!!!!

Wed, 03/20/2013 - 13:31 | 3352872 Things that go bump
Things that go bump's picture

What is a bit coin? It sounds like paying out your legitimate fiat for a bastard form of fiat. Who is conjouring them out of nothing?  Why can't I just conjour my own bit coins out of nothing? The bankers will never allow such competition. One of these days you will wake up and find your bit coins have been digitally confiscated as conterfeit with no recourse. 

Wed, 03/20/2013 - 13:35 | 3352886 daveO
daveO's picture

Exactly. It's a big trap. I can see them 'attacking' it and then blaming Iran, N.Korea or China for a cyber attack. BAC's website has been shutdown already and this excuse floated. Bank Holiday by another name.

Wed, 03/20/2013 - 15:09 | 3353473 1000924014093
1000924014093's picture

You can conjure them out of nothing--BUT it takes a lot of computing power which costs money and takes time--there is no cost free shortcut to "mine" them. 

Like the other poster I don't get the hate for BC--I don't see how it threatens PM.

Wed, 03/20/2013 - 16:38 | 3353912 Renewable Life
Renewable Life's picture

1. they ARE NOT being conjoured up out of nothing, they are being "mined" using a computer program and there are a limit to the number of these that can be "mined" in a period of time, and overall (21 million BTC are ALL the bitcoins that will ever exist in the world, using the algorthymn that creates them, collectively using computers all over the world in a decentralized fashion). 10 million + have been mined so far in a little over three years, the last BTC will be mined in 2017 and each year between now and then, less coins wil be mined, until the program shuts down and the last coin will be in circulation

2. They cant be counterfeited or created by ANY other means, ever, by ANYONE! 

3. I can store my bitcoins "offgrid" in my safe, and they can never be "confiscated", I can transfer them back to digital anytime I want, and back offgrid instantly. 

There is alot of misinformation about BTC, but if you look into it a little deeper, you will see, its a great thing! Having said that, I'm still buying PM's and stock piling essentials, but BTC are a serious threat to the new world order of banksters and Gov thieves that have taken over this planet! Dont knock them until you've done some research! 

Wed, 03/20/2013 - 17:55 | 3354282 Things that go bump
Things that go bump's picture

My sister-in-law invested heavily in beany babies as a storage of wealth. 

Wed, 03/20/2013 - 22:13 | 3355256 StychoKiller
StychoKiller's picture

Unlike beanie babies, there is a FINITE LIMIT to the number of Bitcoins, try again.

Wed, 03/20/2013 - 16:57 | 3353976 Bunga Bunga
Bunga Bunga's picture

Who is conjouring them out of nothing?

They are not conjured out of nothing. It requires energy to find the number codes which have some perfect features of sound money. It's like digital gold.

Why can't I just conjour my own bit coins out of nothing?

You can become a Bitcoin miner like you can become a gold miner. You will see it's a risky business requiring investments, bears costs and requires a certain level of savviness to become profitable.

The bankers will never allow such competition. One of these days you will wake up and find your bit coins have been digitally confiscated as conterfeit with no recourse.

Confiscate Bitcoins is impracticable unless you confiscate every computer, every data storage device and every sheet of paper, engraved finger rings etc and bring everyone in the world into a gulag who have memorized private keys or have Bitcoin related knowledge.

 

 

 

Wed, 03/20/2013 - 12:55 | 3352703 waterwitch
waterwitch's picture

overseers=drones

Wed, 03/20/2013 - 12:22 | 3352509 DoChenRollingBearing
DoChenRollingBearing's picture

That just gives us more time to continue our little bank runs...  Take the gift!  Get your (at least some) money OUT!

Wed, 03/20/2013 - 12:37 | 3352587 Henry Chinaski
Henry Chinaski's picture

+1

If one were to withdraw $1k in cash every week or so, it wouldn't draw much attention. If one were to have started a couple of years ago, that would add up to a nice sum by now. Maybe some of that cash goes toward buying bullion coins at the local coin dealer every week or so.  Not much downside to this behavior in ZIRP World, especially if you can fly below the radar.  

Just sayin'.

Wed, 03/20/2013 - 15:22 | 3353501 Renfield
Renfield's picture

Damn. Someone leaked our strategy.

We've been undergoing our own 'economic depression' for about 6 years now, regardless of what economists say the cycle is, together with the biweekly 'bank runs' that go along with that.

In related news, it's bloody amazing how our budgeting savvy and general family financial awareness has leaped ahead since then. Scams suddenly appear so much more transparent, and bankster voodoo priests gradually become smaller and MUCH more understandable. Even your average non-Ivy-League, uneducated (financially) sheep family can turn into a lean mean thrift machine with just this one simple step. Even dealing with fear becomes a matter of mental strategy.

When you're living through a War On Savers, you want to train yourself into a fighting fit soldier. This is boot camp.

Wed, 03/20/2013 - 17:13 | 3354054 Lore
Lore's picture

That's a good analogy. I see it too. People are turning off their televisions.

Wed, 03/20/2013 - 12:24 | 3352521 sunnydays
sunnydays's picture

The question of it, is... What does Russia think of this?  They can't get their money either and afterwards having to controlled?  I don't believe they will go along with it.  Cyprus is between a rock and a hard place. 

 

 

 

Wed, 03/20/2013 - 12:32 | 3352561 chubbar
chubbar's picture

OK, place your capital controls and shut the banks down for 10 days. There will never be another deposit placed into a bank. How the fuck are they going to deal with that? They are doing a controlled bleed of the deposits but not thinking of how to get confidence back into the banking system so that people will actually continue to do business with them voluntarily. They are fucked now. The longer they stay closed, the more hardship the average depositor is forced to withstand, the longer the memory of the assfucking they are getting at the hands of the bankers. I'd say they have cemented the demise of the Cyprus banking system. Anyone out there have any clue the notational of the CDS that have been put on these banks?

Wed, 03/20/2013 - 12:45 | 3352648 Henry Chinaski
Henry Chinaski's picture

So maybe it's just a small scale rehearsal or science experiment?  See what happens in the test tube of Cypress before running the process on a larger scale.

All along, I have believed that any financial collapse in the US must be preceded by a collapse of the EU.  Maybe this is the beginning.  Maybe it's not and the can gets kicked for years or decades.  All I know is that now look like one of those times to pay attention, take precautions and be ready to adjust quickly. 

Wed, 03/20/2013 - 12:51 | 3352685 blu
blu's picture

They will allow people to take out their deposits in cash Euros ... and then drop the Euro. They will buy back Euros and sell Cyprus dollars at a fraction of the exchange rate. If people end up with 50% of their original value they'll be fortunate.

The banks will be fine, and they'll have siezed a lot of cash. They will appease the Russians by either 1) giving them a better deal than they give everyone else, 2) giving them a heads-up ahead of the shakedown so they can duck-n-cover, or 3) giving them access to minerals or other assets in exchange.

Wed, 03/20/2013 - 13:17 | 3352825 s2man
s2man's picture

I think you got that backwards.  They drop the euro, reopen the banks, and let you withdraw new Cyprus currency units at nice rate to euro.  Then, they revalue or print the shit out of new currency and you are left with 50% original purchasing power.

Wed, 03/20/2013 - 16:23 | 3353850 e-recep
e-recep's picture

you are very optimistic. they should consider themselves lucky if they could recoup half of their purchasing power.

Wed, 03/20/2013 - 13:03 | 3352758 Hughing
Hughing's picture

I think the Russians are making serious offers; not the degrading sh&t from the Troika. Someone is buying Cyprus, whether it's Moscow, Brussels/Washington; they're all bad choices. Moscow means mafia controll. Brussels/Washington is to be sacrificed time and again for other intrests. I vote for Moscow and honest criminals

Wed, 03/20/2013 - 12:33 | 3352565 Banksters
Banksters's picture

Germany's finance minister, Wolfgang Schaeuble said major Cypriot banks were "insolvent if there are no emergency funds,” according to a BBC report, meaning savers might lose all their money if no deal was reached.

http://worldnews.nbcnews.com/_news/2013/03/20/17384301-cyprus-crisis-dee... What a cocknozzle.
Wed, 03/20/2013 - 12:40 | 3352621 toys for tits
toys for tits's picture

Forward Fearmongering.

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