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Is This The New "Scariest" European Chart?
Until this past weekend, the scariest, and thus most important, chart relating to Europe, was that of European youth unemployment. And while its updates month after month showed a situation hopeless and constantly getting worse, the final outcome is quite clear: it is not a pleasant one especially for Europe's youth. However, now that the topic of bank confidence, particularly in the context of unwarranted and unprecedented deposit confiscation is suddenly front and center across the entire Eurozone, here is the new "scariest" European chart: that of deposits around the European periphery. We know one thing: if and when the Cypriot banking system reopens, the dark gray line for Cyprus is going straight down. The real question is: which other lines will follow Cyprus in its dramatic reintroduction to monetary gravity?
Source: Guggenheim
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The request by some that we take down the system or it will take us down, is a real premonition, because the reality of history is that people will not take down the system if you increase your oppression of them (us?) slowly enough. Therefore the simple conclussion is that most likely nothing will happen.
Cypus was a controlled experiment in a very pacific population, did you see any riots? to test whether they could create a wealth tax. They got their answer, they need to slow down and keep on inflating... But inflate they will... Meaning many times Cyprus and done to the people of most of the world, except those that can defend themselves, which are most in the top 1%.
What you will see is big fights among those people, hopefully it will not bring us to war, although for those of you that are familiar with history, you may want to remind the ones who are not, what caused the entrance of Japan into WWII...
Until next time,
Engineer
one thought "if and when the Cypriot banking system reopens, the dark gray line for Cyprus is going straight down"
OK, let's assume I have 250'000 on a Cypriot account, and the Cypriot government very kindly (/s) exchanges 25'000 of it for Cypriot Bank stocks
do I really rush out of this shearing pen into another where sheep have not been sheared, yet? it all depends on how much real cash I want to hold, doesn't it?
of course in my case I would put it all in a suitcase and take a ferry to Turkey, where gold is an everyday matter, but my point is that it's all a question of preferences
Some "smart" money from Russia might even rush in "freshly fixed" banks
As there will be a few more lines screaming to be included...so No, it is NOT the scariest chart.
But then again, we will likely not have a chance to see THE chart.
So this will do.
it appears we have a mystery here. http://www.youtube.com/watch?v=lp6z3s1Gig0 we'll put our best man on it: http://www.youtube.com/watch?feature=player_detailpage&v=64yianfGvzc
take-home message from chart:
greek deposits have increased by 10 percent in the past year
the bottom is in
bullish
The bottom is in? Well, for greece maybe, not sure how much lower their living standards can go, as for the rest of the west...
@SafelyGraze
Bear trap?
Those with money are doing fine in a deflationary depression.
And the other 90% - well, who cares for them?
My observation to your scenario Ghordius is that people are witnessing the fact that using banks removes their control from their money. Regardless of whether the state/banking cartel steals 10% or 100%, the take away should be that banks are not looking out for the best interests of their customers and are risky to ones assets.
This would mean that folks along the whole sprectrum of wealth need to rethink how they are to conduct business going forward. For your guy with the 225K remaining it could mean diversifying immediate needs into cash held in a private safe, intermediate needs are trickier depending upon how one earns their living and who they are doing business with. I would consider holding higher inventory or buying durable goods that I know I'm saving the money for in any event. I'd also consider services like www.goldmoney.com which also holds funds as deposits other than PM's in several different currencies. Perhaps bitcoin might be considered, although I don't have any personal experience with that. My longer term cash I'd put into PM's and make sure it is out of the reach of the state/banking cartel.
The one thing I'd make sure I did going forward is NOT leave funds in an institution that has already proven it has no qualms about assisting in gov't theft.
You can keep your 225k in your bank account, but not able to use it when you need it. What if the bank(s) close again for another week/month?
Not to open a can of worms, but... How is it that fiat money on Deposit reminds me of Bitcoin? Other than the logistical convenience of using a plastic card, how is the banks' binary data on my money different from Bitcoin? Do I have a Blind Spot for 'money' because I'm used to it? Just sayin'.
you completely changed your comment while I was answering, but anyway, to your second post: at the end, there are two options for all bank "restructurations", or, better, "solutions"
either the state coughs up, prints and the Inflation Tax pays for it
or someone pays directly
we have all noticed that letting banks fail is simply not an option, politically - and don't try to tell me that the Cypriots would endorse this solution
since Nigel Farage is emphatically saying that the eurozone is a den of thieves, I suggest everybody opens an account in London?
Didn't we all agree that the Cyprus' banks are already toast? They will fail when they re-open, isn't that what will happen?
Someone is putting the pedal to the metal right now on PMs
nice, about fucking time the en mass overwelm the shorts...
the wealth protector is awake!
Are we talking paper or physical? I reall don't give a shit about the former. An ounce is an ounce is an ounce.
We are talking liquid, manipulable ... paper. Lets see how Blythe fades this explosion down.
an ounce of paper anyone?
"Someone is putting the pedal to the metal right now on PMs". Alright!
I've been saying for days now, that a one-two punch by the BRIC+ countries can/will put the fiat currencies into a crisis (of their own making).
Punch 1: Aggravate a Monetary+Fiscal policy of sovereign countries (EU, US) that are caught in the Debt prison of their own making (fiat currency + FRB).
Punch 2: While you got them on the ropes, follow up with a well-placed KO punch, by buying up ALL the PM bullion -- thus causing a PM-run that leads into a Bank run.
TPTB (.UK .US .DE) can handle one or the other (by using their fiat-money printing presses), but they can NOT handle both at the same time. Especially if you add a social/economic/military combo to the mix. At that point, IMO, it's RESET time.
p.s. Whether you agree or disagree, please respond at at civil and mature level. Thx.
"The request by some that we take down the system or it will take us down"
Ah shorts, just got a thot.
What if the Tyler's gave a poll over a couple of days time asking:
Do you want to see the present world banking system crash?
Yes, or No?
We cut off their oil because they did not want to join the global ponzi.
They responded by bombing Pearl, thereby falling into the trap that was laid for them.
Will all be be converging soon.
Its all just a clever way to get europeans to spend....quickly
This chart tells me only one thing: Italy bank deposits up = S&P up. Sarcasm off.
True, unless of course...the ECB and the Russians can scrape together 10% of the value of the deposits in said Cyrpian banks, and then all of a sudden 100% of the deposits can be returned to depositors...or so the story goes.
This is an excellent case study in modern fractional reserve banking, as well as a great study on the various ways European bankers plan to ameliorate the mess they have made.
"This is an excellent case study in modern fractional reserve banking,..."
True. I love experiments, don't you? Especially seeing as how the past failed experiments in fractional reserve finance all ended exactly the same way. Fortunately this time is different.
interestingly nearly nobody points to the modern fractional reserve banking systems as an issue - they are all busy pointing to the EUR as the "failed" "experiment"
meanwhile I still ask myself how much brething and thinking space Cypriots would have had this week if they had the Cypriot Pound on their island
Thanks for the chart! Awesome! But if WE know that the Cypriot line is going to go vertical, then they must know it too. And so must the banksters. What choice does Cyprus have? If they open the banks, it's all over. So... will they even open the banks? Is there a reasonable assumption that they actually may never do so?
Then they could continuing the same chart & PROVING [once & for all to people] that there'e no need to panic because Cypriot deposits had flatlined...
~~~
Brilliant!
expect a controlled release of money
lines open to corp
limits on plebs
If I were them, I'd open the banks BUT forbid withdrawals and international transfers. Only domestic transfers allowed.
The "euros in Cyprus bank" would effectively become a different currency. Still accepted as payment by local bussinesses, at a discount. Gradually they would become worthless. South America has a number of examples of this scenario.
you forget that euros are fungible and that Cyprus is a quite open touristic and off-shore banking island - and has plenty of smugglers
your scenario would be valid if a South American country would have done this with Dolares
Great info, but it beats me why italy should have substantially incresing deposits, or it that just money from its neighbours rushing over the border?
Not only do wealthy Italians have money stashed all over the place, they have been historically [& notably] slow on the uptake of anything in the realm of electronic banking... A greal deal of Italians don't use credit cards... Pensioners get their checks & go to the post office bank to cash them and hold the money... Many businesses do 'cash only' deals, & barter price breaks, to keep their register receipts down & protected from the Guardia di Finanza...
~~~
I wasn't surprised AT ALL to hear the news that Italians had little interest in BITCOINS...
Correct. Italians understand what this is really about, power and control. Even with fiat, possession is importart. Why? You control it, not some stuffed fucking shirt. I know several that keep stacks of cash next to their stacks of PMs and rounds. Power and control folks, money, especially fiat is an illusion, but a powerful tool just the same. Like the Rothschilds said, he who controls the money (regardless of their own stack) cares not who make laws. Power and control people, power and control.
the Italians are basically anarchists, we should learn from them. But they also have several hundred years of experience with failed empires!
That could be beneficial in the times to come.
I concur. Interestingly, those cultures that have a long history (e.g., Jewish, Chinese, Italian) have accumulated a lot of collective/tribal knowledge. BTW, we use the term "tribal knowledge" as a metaphor in the high tech world also.
That being the case, the Italians are not as likely to jump on any band-wagon that the latest politician, banker or (snake-oil) salesman is 'selling'. They tend to be mid-stream or late adopters -- just like many ZH'ers. Admittedly they might miss out on some early opportunities for success, but their risk strategy also ensures that they avoid a lot of dangers.
Put another way: Leading Edge or Bleeding Edge?
Other than possibly being a transitory and quick means to exit a currency for the "little people" while searching for a permanent home, I don't see BITCOIN at all.
I'm italian and i'm shocked to see this chart... i thought we were less bovine than that ... SCARY! I think TV has fucked up a loooot of minds here. Quite no discussion on Cyprus, all tvs talks about who has been elected at the presidency of Senate and House... hours ot sterile discussions on nothing here in italian tv and newspapers... we're kind of asleep. Land of anarchists? maybe, but quite dumb ones!
Can't see how they can reopen the banks until all deposits have been converted into their new currency (Cyprus Pounds ?). Try transferring them abroad, suckers!
It still amazes me that the fate of the world hangs from a fiat cloth woven with the thread of fractional reserve banking.
If the foundation of money is questionable then those who serve it or control it are equally questionable both in their motivations and actions.
I also find it ironic, but for a slightly different reason. It is that invariably those who control the creation and distribution of fiat are evil psychopaths. There is no doubt that the fiat system has made many things easier. Is easy right and good when it gives evil psychopaths the power to create wars, oppression, starvation and disease without pain and sacrifice themselves? They sit in their clubs and spiderwebs creating fiat to direct for their own designs and NOT for the good and progression of humanity. They might be delusional enough to believe that "what is in their best interest is in the best interest of humanity", but it is not.
I do however believe that the curse that these people/entities are upon this earth and the curse of temptation are here for a reason ... and it will help us grow and build character and perspective. We will, at least for a short time, say: "NEVER AGAIN A BLANKFEIN, DIMON, GREENBERG, OBAMA, MERKEL" ... and we will be better for it.
Behold a dark gray line
And on it rode the future of banking and it's name was death.
MARK MY WORDS: These deposits people will be standing on line to withdraw will one day serve two purposes: bathroom tissue and/or kindling.
They worked all their lives in exchange for paper issued to them by a bank at interest! What a sin!
Silver just popped a boner.
It might be a scary chart.
But that perennial hit, the TARGET2 chart, is what keeps the ECB's monetary koncentration kamp guards awake late at night.
The colossal centrifugal forces depicted on the TARGET2 chart are enough to rip apart a moderate-sized galaxy.
Play it again, Tyler!
It's not that long since all Italian banks share prices were under €2, and most under €1. Yet since 2009, deposits in the system are up 35%, including a recent spike up as Monte paschi was getting its third bailout, and TSHTF election.
That is a bit weird.
It's hard not to appreciate how thoroughly Irish journalist Vincent
Browne shuts down these banker's multiple attempts to weasel their way
out of answering his questions. Don't miss a short speech that does
journalists everywhere proud at 1:40, and find out what left our hapless
banker friends at a loss for words at 3:18.
Read more at http://www.liveleak.com/view?i=85c_1363743687#BSLbL8SvRY2uDBv6.99
http://www.liveleak.com/view?i=85c_1363743687
This Is What Happens When A Journalist Forces A Banker To Actually Answer A Question
Read more at http://www.liveleak.com/view?i=85c_1363743687#BSLbL8SvRY2uDBv6.99
Cracking clip.not always been a big fan of Vincent but he doesn't take any shit from that weasel.it is a shame though yhat the smug prick from the Ecb just thinks its funny.i live for the day these bankster scum are beaten in the streets.
EXCELLENT!
Thanks for the link.
Bankers are people, and just like us should experience the benefit of successful investments AND the pain of losses from stupid/boneheaded investments!
Cypress needs to find a commedian quick.
Fractured Reserve Banking.
Another day, another pile of shit.
the biggest eye-opener to depositors everywhere from the Cyprus affair is that a deposit at a bank is a loan to the said bank for which you get paid interest but...wait for it........you may or may not get back your principal ))))))))
straight down!! bitchezz
That line is not going straight down......it's clearly declining on a gentle and easily manageable glide path.
As Ray Dalio has said: "beautiful deleveraging"....or not
It's clear few have an idea what is going on.
It's triage. Everyone's purchasing power is being cut across the board by circumstance or design. The details don't matter.
We could say, "We will sharply limit fuel consumption and eliminate most of it directly. The public would have their purchasing power intact ... to obtain non-energy goods and services- plus energy in very reduced amounts".
Instead, fuel consumption is reduced by way of everyone and their countries falling bankrupt! Penniless people do not buy fuel. Instead, they scuffle like mangy dogs in the gutter.
We don't want to make this choice, we don't even want to talk about it or mention the problem. We believe in our heart of hearts that ignorance is a solution ... that the way things have been for fifty years is the way things will always be far into the future ... as seen on TV!
How many more countries have to go down the toilet before people start looking at cutting fuel consumption sharply ... getting rid of the goddamned cars?
A: all of them.
As with any and all ZH article, one of the first questions I ask is: 'How can I make hay out of this?"
A: In this case, I personally would avoid certain banks altogether and to the extent that I allocate cash/savings to other geographies (diversification to mitigate risk!), I'd select safer-have locations -- since there are no absolutes, but only relative places of safety.
I have no choice about where I keep my "family jewels" but, like a squirrel with brains, I choose to keep my "nuts" in a number of locations. That is to raise the bar (the effort, time, cost and bandwidth) for those who wish to confiscate them from me -- under the pretext of whatever sanitized weasel-word they use.
Think of the moral story of the Little Red Hen: http://en.wikipedia.org/wiki/The_Little_Red_Hen
The real question... how old are these numbers??
Do they include this week? I think not...