Cyprus Officially Passes Capital Controls Into Law

Tyler Durden's picture

While it is unknown if the Cypriot parliament will agree to, and enact into law, the Troika-demanded deposit haircuts, after the shocking vote of mutiny against Merkel earlier this week that saw not one politician vote for the Europe suggested deposit tax levy (and even the ruling party abstained), a vote which will once more take place tomorrow, moments ago Cyprus became the first Eurozone country to officially implement governmental capital controls into legislation. At this point it had no choice: whatever happens with the deposit haircut, or with everything else, it is now inevitable that the local Cypriots will do all they can to pull as much money from domestic banking system as possible following the complete loss of faith and trust in banks, which is why the government had no choice but to intervene with its own "controls." Sadly, this marks a milestone in the development of the Eurozone - it's all downhill, and accelerating, from here.

There are various other proposals which are currently being voted on, all of which are secondary to the Capital Controls one (the restructuring of the broke banks is perhaps the next most important one), until tomorrow's vote on deposit haircuts.

A photo from today's historic session in Cypriot parliament, in which the first every capital controls in Eurozone history were voluntarily legislated can be seen below.

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lolmao500's picture

The army needs to overthrow these Troika slavery boot lickers. The current president has been office for what... a month, yet he acts like a despot. Fuck him and his supporters.

johngaltfla's picture

Don't give Kissinger and Associates any more ideas. They've already done that once in 1974....

 

And now the Other Cyprus Chimes in on the Crisis

flacon's picture

John Kerry walks into a bar. The waiter asks: "Why the long face?"

hedgeless_horseman's picture

 

 

I am just glad this could never happen where I live.

MillionDollarBonus_'s picture

I think a FIXED levy of 5% or more on ALL deposits is reasonable. This would generate a significant amount of revenue which can be used to stabilize the banking system. We just need to agree on a reasonable levy.

fonzannoon's picture

How do you levy the 50% of the people who don't have a bank account or the 85% of people who don't even have 3 months expenses saved?

Better yet just go fuck yourself

MillionDollarBonus_'s picture

This is only one of many measures. Everyone needs to make sacrifices. If you have a bank deposit, you need to pay a levy; if you have gold, you need to give some of this up. There are no easy options. This is the hard reality, and we need to face up to it.

fonzannoon's picture

How about we start cutting entitlements? I say federal workers first. Those 100k plus pensions and free healthcare is a good start. You are on board right?

MillionDollarBonus_'s picture

Firstly, those pensions are written into legislation, so don't even think of getting your dirty hands near them. Secondly, public sector workers are some of the hardest working average Americans. CEOs get to earn millions, and yet you're saying that a fireman who risks his life for 30 years from the age of 20 can't earn a mere 100k pension?

JohnnyBriefcase's picture

I guess I just have a hard time figuring out why we (the little people) would ever need to make sacrifices in the first place.

I had nothing to do with the creation of the federal "reserve" or the fact that they loan the fiat currency they "print" to our government at interest or the fact that the government spends most of that money on things that I neither agree with nor had the chance to directly vote on.

Fuck em all.

Fish Gone Bad's picture

If you live a simple life, you do not ever have to sacrifice.

Scarlett's picture

So this is the leehman moment for the euro, n'est-ce pas?  Au revoir..

Jack Burton's picture

Scarlett, you have good taste! See my avatar. A younger Scarlett, but a very beautiful one.

Cyprus had no choice. The bank run would have been epic. This serves notice to all European bank depositors. At anytime, the EU can take your money and give it too the banks. For your own good that is to say!

If I had money in my local Cyprus bank and they took a cut and then also said I could only withdraw a few hundred Euros because the Germans said so? "There would be blood"!!!

Agstacker's picture

"we, the little people"???

 

Are you calling us Leprechauns?  Wait...they are after our gold...

 

JohnnyBriefcase's picture

I knew it was you pesky little fuckers all along!

The Abstraction of Justice's picture

So what exactly are the Rothchild-Sassoons contributing to all this, given that it was they who financed the Russian Mafia?

ChrisFromMorningside's picture

The "Russian" Mafia that is based in Tel Aviv, asset-stripped Russia in the 90s, fled and poured all their money into the synthetic credit markets in London and New York? Those fine gentlemen?

Lloyd Blankfein - The "Russian" Mafia's Don of Dons

Benjamin Netanyahu - The Underboss

Ben Shalom Bernanke - The Consigliere

 

prains's picture

with Dicky and Rummey slurping up sloppy seconds

jeff montanye's picture

true enough.  but since then the russians have earned/stolen much much more via russian natural resources/arms sales, etc.  the talk is now of a thirty percent haircut for uninsured depositors in cyprus.   imo the owners of those funds, at least some of them, will not suffer this without, at some point, some revenge. 

"He lets the last Hungarian go. He waits until his wife and kids are in the ground and then he goes after the rest of the mob. He kills their kids, he kills their wives, he kills their parents and their parents' friends. He burns down the houses they live in and the stores they work in, he kills people that owe them money. And like that he was gone. Underground. Nobody has ever seen him since."

the raid on lagarde's house, indeed the entire fiasco in cyprus, may be giving ben second thoughts, possibly about his continuing tenure (desire to continue his tenure) and certainly about the efficacy of qe going forward.  trust is funny.  like a building (say, 7), it takes a long time to build but can be destroyed in seconds.

fonzannoon's picture

"Firstly, those pensions are written into legislation, so don't even think of getting your dirty hands near them."

Written into legislation by scumbags like you who voted in politicians who gave out those pensions in return?

So at your core you are a total scumbag.

No point in even talking about it anymore.

Bye the way, those pensions days are numbered and you know it. BWAHAHAHA

MillionDollarBonus_'s picture

Those pensions are protected whether you like it or not. UNLESS we want to see decades of legislative progress go down the drain, we NEED to find a way to finance our government. Bank levies on America's $10 trillion in bank deposits are CLEARLY one of the options we need to pursue. That's the reality, so DEAL with it.

fonzannoon's picture

stick around u are going to have a front row seat for reality

HoofHearted's picture

So MDB, where is it written that you can confiscate our money that we hold in our accounts? Where is it written that you can take gold away from the people? That same power will allow them to take away those pensions.

Xibalba's picture

shim don't know.  it's a 12 year old with a laptop. 

Socratic Dog's picture

MDB has been posting for a long time now, and you dumb fucks still haven't worked out that it's satire?

Look it up please.  "Satire".  And he's very good at it.  Appreciate him.

Colonel Klink's picture

I'm coining a new term for what MDB does, I call is SHATIRE!  Funny and full of shit.

BTFDemocracy's picture

I would like to see a debate between MDB and Paul Krugman.

Would that even be a debate?

jeff montanye's picture

imo one probably needs to examine daily kos, balloon juice, etc. and find the "libertarian troll".  s/he is mdb's proper opponent.

toys for tits's picture

It would probably end with each one jerking the other off.

NoDebt's picture

Let's put MDB and Dr. Paul Krugman in a room and let them beat eachother to a pulp until until one is unconscious.  It would be like that movie...... you know the one..... the one with Ed Norton and Brad Pitt where they start a group where everyone likes to fight eachother and then you find out they're really the same guy at the end.  That one.  Somebody should start a website like that.

disabledvet's picture

State's can fail. What justifies such a low rate? How am i being compensated for my risk in lending to an entitlement regime either through taxes or some so called 'retirement fund' that is now being legislated to give to "disabled people"? i'm not saying i'm not impressed by zero percent financing of trillion dollar deficits...i'm just saying "where's the economic recovery"? clearly it ain't coming from a "million dollar bonus." i fail to see how we don't end up like we did pre-World War II here where "you have to make something and sell it" then judge the value of the credit (meaning "the Government"...they are the number one creditor in the world right now aren't they?) via "how well the State is managed." North Dakota is an easy mark for getting "hot and heavy" with cuz "the State" has "a State bank." they know how to TRULY leverage money...namely "by understanding you can't legislate growth." simply put "i was hunting up there when you could buy a whole town for $50,000." came with three churches i might add. "just you and Tumbleweed Bob." next thing i know "the rail lines don't look like two pieces of bad spaghetti and 70 year olds are out to go Polka dancing and can't wait to do it." I was like "WTF?" 10 years later "they were pumping 750,000 barrels of oil a day." even the locals were saying "they've been trying that for years...it'll never work." and i was like "what's that?" these were guys and gals who'd never had a job in their life suddenly working on the short line out of Bismark. "and already with the attitude problem." i'm always "long attitude problems" so it seemed a sure thing that "this place is going somewhere...and in a hurry." that was 2002. wish i'd stayed looking back on it...

cifo's picture

You should start it, by donating your million dollar bonus.

nmewn's picture

"Bank levies on America's $10 trillion in bank deposits are CLEARLY one of the options we need to pursue."

And you wonder why no one trusts banks...lol.

chunga's picture

It's ironic that the only law banks will abide by is the one where they keep everybody's money.

nmewn's picture

Government parasites...errr, ahhh, employees as well. At the national level, its a symbiotic relationship...bankers & government...neither can survive without the other now.

Good thing banks are "highly regulated" by government, just imagine what it would be like.

Why, they might have a bank holiday where depositors couldn't get their money or government might institute laws for fees & levies on the innocents just because they happen to have their money in there ;-)

Oldballplayer's picture

There is probably a lot of great stuff written here. But the formatting is killing me.

pods's picture

There is, and usually it is pretty easy to navigate.

MDB and Krug relegate all long thought and well constructed arguments to the third page with their textbook spamming.

pods

ronaldawg's picture

I have argued pension dilemma with million dollar DICKHEAD before.  You'll get your pension MD DICKHEAD (underscore) and the mob will take it away.  There, feel better now?

jus_lite_reading's picture

A few hours ago I posted some info I had about Spainish banks getting notice capital controls are imminent. Such enough, it's coming to pass> when you wake up Monday. You ain't seen nuttin yet. 

I'm keeping up to date with the situation. I'm hearing word that people in the US of fucking A are already doing early runs to the bank... 

Oh yes, you ain't seen nuttin' yet. The global ponzi is collapsing! The good, the bad and the ugly of this situation is that everyone, every man woman and child will suffer. Hard times are fast approaching that made the Great Depression look like Fred Astaire at a rehearsal...


pods's picture

Yikes, if this spreads there is no containing it.

The amount of currency backing up deposits is about a squirt of piss in the ocean.

If this continues and spreads, and currency and credit separate, look out below.

pods

prains's picture

j_L_r

keep us in the loop, we're watching and listening

Miffed Microbiologist's picture

Okay....who's the shit head that keeps up voting you. Come on idiot show yourself! Oooops, that must be MDB_ himself. At least I hope so.

Miffed;-)

Bananamerican's picture

ok, i was wrong about ZH Krugman...(I now believe he genuinely admires the real K)

but MDB is a spoofer, a put-on...

He "winks" at you in his outrageous comments.

MDB, I still believe in YOU...keep drawing those red arrows from the humorless wing of ZH.

Straight-faced satire isn't for everyone, but i dig it...

Example below:

"We need to make sacrifices, as hard as it may be to admit it. It's the only way to maintain our level of sophisticated government."

Come on people! That's sheer comic gold!