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Cyprus Officially Passes Capital Controls Into Law
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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Along with the MYTHS "We're a democracy", "Freedom is not free" and "Our government is here to help us" add "The money in the bank is my money"... remember, read the fine print....
It's not clear to me whether the Cyprus Capital Controls include limits on taking Euro fiat out of Cyprus to other EZ member states.
If it does, then it is complete and utter madness. It would be equivalent to Americans not being allowed to take USD from one state to another. Or Scots not being allowed to take GBP to England.
Whatever superficial merits such a policy might have to the Barmy Brigade in Brussels, Berlin and Nicosia, it surely marks the death of the EUR. All that's left is for these political maniacs to face it toe-to-toe.
I was hoping Cyprus would be a beacon of liberty...it's just sad
I do hope the Cypriots are spending as much time as possible with Iceland, as they buy time to sort out the old Pound-Lira stamps and plates.
The lesson we learnt from Cyprus crissis is that if you have money, you have to buy an asset invisible to government, otherwise, they will tax you to death. House will make sucking sound, PM is a good choice, but you have to buy it as casual as possibe (each time less than $500), no paper trace. Your back yard is your best central bank.
Can't Cyprus turn to Scientology for help?
they failed bernankiology 101 i think
Where would this forum be without MDB to bite us in the balls. Hows that taste MDB....A little salty?
If I buy a bond that turns out to be shit I should lose my money.
Just saying....
you just want a call from GS with a deal thats too good to miss!
on a risk adjusted basis of course (their basis spread = your loss!)
Citizens of Cyprus :
Your savings, for which you have worked hard, spent judicially and managed to accumulate, are no longer yours. How you can access them and spend them will now be decided by those who have contributed hardly anything positive to the society, not saved a penny, infact borrowed money to spend on itself in the form of high salaries and luxuries perks, which has now to be repaid by you : Your Government.
P.S. If we are successful in doing so in Cyprus, we intend to replicate this privledge with savers around the world as it is the duty of the citizens of the country to support the governments in whatever idiocy they do.
http://www.marketoracle.co.uk/Article35345.html
www.letstalkmoney2012.in
RT @market_talk: For my English followers, according to sources, haircuts of 60% and 25% on accounts above 100,000 euros in BOC and Laiki Bank
The Russian mafia is gonna LOOOOOOOOOOOOOOOOVE THIS...
"The bank hath benefit of interest on all moneys which it creates out of nothing.”
- William Paterson, founder of the Bank of England, 1694.
“Know the enemy and know yourself; in a hundred battles you will never be in peril. When you are ignorant of the enemy, but know yourself, your chances of winning or losing are equal. If ignorant both of your enemy and yourself, you are certain in every battle to be in peril.”Sun Tsu
Everything you thought you knew was false. Your money you believed you earnt was never yours in the first place, merely a licence to exist. There is no financial security in old age it is gone. To have succumbed to a system and slaved when it was a mere puff after all, what is worse? To have your road to damascus experience and realise its an illusion in this system or to never have realised it at all?
We are living witnesses to a debt system that has fucked us from cradle to grave with no concience. What holds the future? Our children our loved ones, when we are poised to get shafted by these monsters. I'm not a trader, not a speculator merely a man that has unwittingly from birth been set up to be robbed beleiving the bleatings of governments that all is well, when they give not one shit for me. The writing is on the wall. Diversity and accumulation of real assets is the key to begin to retain any wealth you may be fortunate enough to have accumulated during your life, art, pm and land.
hmm, this recent development supports your comments:
www.reuters.com/article/2013/03/22/us-israel-turkey-obama-idUSBRE92L0RK2...
winds are turning again in middle east. russian threat once again pushes west for tighter relations.
Let the whole damn system collapse. I never approved of the government roaches that suck working people dry for their benefit.
Lebanon on the verge of another civil war...
http://www.naharnet.com/stories/en/76618-clashes-renew-in-tripoli-with-m...
Clashes Renew in Tripoli with Miqati's Resignation after Fragile TruceAnd the Brits are about to freeze their nuts off (if they have any left).
http://www.dailymail.co.uk/news/article-2297296/British-gas-reserves-run...
Freezing Britain was last night facing the unprecedented prospect of gas rationing.
The country has less than 36 hours of gas reserves remaining and one energy expert warned yesterday that if the cold snap continues, rationing is ‘inevitable’.....
The fix remains the same: guarantee <= E 100K accounts; put the banks through bankruptcy resolution, forcing all parties (including depositors with > E 100K) to take losses. Restructure what's left into new, viable banks and turn them loose. That's what Iceland in 2008 and Scandalnavia in the early 90s did.
The rest is more speculative, but might come to pass: not just capital controls, but departure from the eurozone as well (although not from the EU). Capital controls may force the issue: you've got a "Cypriot euro," and it's not the same as "Dutch euro" and so on -- at that point, you have a national currency in all but name.
Send in the Clowns
Let the dominos drop. Everyone must take action in position.
Shocking Week:
Cyprus = capital controls
Bernanke = continued printing
CNBC ratings = now at the lowest since back in '05.
There are moar, of course, and even though these may appear disparate at first glance, they aren't. It is all the bubbling, gooey, clusterfucking, of a globe inching toward the greatest cleansing mankind has ever known.
oh, and...
Fuck you Bernanke!
endgame
Bring it
is it just me or does anyone else find it anachronistic that france, the us, the uk and germany all allow the purchase of real estate with as little as a 5% deposit,
yet the eu insists on a 5.8 billion for a 10 billion loan, valuing the entire island at 15.8 billion euros?
europe is not a banker..but i guess that the central bank, the ecb, will lend money to banks on a 3% of total deposits per bank, unsecured...because banks always act in every individuals interst right?
as long as the price is right..yanno..with charges, insurance, transfer fees, interest rates that are 3% above the centrl bank repo or lenfing rate..etc etc.
exactly what id the difference between a 10 billion euor loan from the ECB on an unsecured basis and 33 times levered...compared to a half levered sovereign, who is supposedly in your won family of nations ?
Once again, the banksters spread the cheeks to ram cock in fucking ass!
Surprisingly no groups have targeted the bansters responsible for the blatant theft and economic slavery.
Until people rise up, the banksters will take more and be bolder.
Wait until the Social Security and other government entitlements go away as well as the US constitution is declared officially null and void.
Homeland Security is getting ready (guns and ammo) for the 99% to be forced to be bent over the table and violated by the banksters.
Hey CNBS said that Cyprus is getting a bailout and everything is fine. I am sure glad that I put all of my savings in S&P futures today!
Cyprus should go the route of Iceland and just fail and start over. Also they need to throw in jail and prosecute the bankers.
So what is the trade on the new Cyprus currency. Do we even have a name, beside the Ruble.
Worth watching just to read the last sign.
http://www.youtube.com/watch?v=XvU40sdjY3Y
Everybody knows WHO the world's enemies are. Now, most are even using a international term for them.
Banksters! Killing the paper fiat money god near you soon after the well planned, IMF RIOT!!
Not a very nice thing to do to a country at all.
Pray for Cyprus.
"its contained" meh cgnao
Bruce, your sentiments are spot on, your numbers not.
I am Swiss and reside in France, in France one is limited on cash withdrawal to €500. This past week, I needed to wire funds to Switzerland. The French bank demanded 13% fees!
I told them I do not like Russian haircuts, called my wife, who was in Lausanne and told her to visit every ATM she could find and lower all French accounts to below creditcard limits.
The car is filled with fuel and documents. I am prepared to drive to Geneva, at a moment's notice, because France can get ugly, quickly.
Someone just let me know if it is the time to sell all gold and silver and make one big deposit at one of the EU banks.
I hope they still accept deposits over Eu500 in France if I use Russian passport. I will desperately wait when Russian haircut is available in France.
I have heard if I deposit money at the Swiss bank they will handcaff and send me to the US on military plane, where I can be imprisoned for life without trial.
Maybe I can deposit my money directly at ECB. Do they accept deposits in physical gold and silver? Will I get a haircut on that too? Are they going to reduce my "troy ounces" to regular ounces? Is that the next step? Every holder of gold and silver will have their troy ounces converted to regular ounce?
If only someone from ECB can read this, they will definately implement this idea! Will it only work for US account holders? Will I get a cut from the deal for the idea?
Will they make "kilobars" with new purity standard of 900? Who needs 995, it's too soft and only 50 gram of copper, but Chinese need copper. Its a double wammy. Will Chinese pay premium for European Au900/Cu100 kilobars with Russian haircut?
Oh,i am so glad DOW is going up
s/
"All money transfers will be frozen indefinitely. Laiki Bank, the island’s second largest lender, will be wound down, threatening more than 10,000 jobs on the island, which has a population of just over 1m. Individual savings up to €100,000 will be moved to the Bank of Cyprus. All Laiki deposits above €100,000 will be placed in a bad bank and sold off at a discount of up to 40pc."
Now this is interesting. Never ever heard of a "bad bank" that could be sold off at a discount.
http://www.telegraph.co.uk/finance/financialcrisis/9949686/Cyprus-savers...
Strange dayz in the money changer world.
Pray for peace in Cyprus.
Robbing The Robber is not a crime
I can't help: Suckers. (and that is mildly put)
I am this firefighter you speak of except.... after 25 years my pension is only $25k
The $100K is for pencil pushers who didnt risk shit!
For anyone interested in how the little people are coping:
And the poor become even poorer…
Cash demands impacting supermarket shelves
Plenty of fuel just not enough cash
@qikipedia: In Cyprus, the Central Bank Governor in charge of keeping everyone calm about the banking crisis is called Panicos
Leaves me hysterical that...oooops wrong word again! Drat..
Any country that can't see what going along with the EU has done for Greece deserves what they get.
Of course in many cases it's about what's best for the gov't not the people. As if the Greek people have time for protests anymore when they spend all day dumpster diving for scraps and their fat Troika criminal leaders wine and dine and probably have 16year old girls tied up in their basements. Or little boys in many cases.
Looks like I picked the wrong week to quit sniffing glue.
https://www.youtube.com/watch?v=VmW-ScmGRMA
The latest from Cyprus: looks like their parliament is going to bend over and spread 'em wide:
http://www.cyprus-mail.com/bailout/disy-apologises-cyprus-says-we-all-sh...
http://www.guardian.co.uk/commentisfree/2013/mar/22/cyprus-deserted-isla...
OutsideLookingIn 23 March 2013 3:10am Still pushing the myth that Cyprus is a dirty-money launderer for Russian mobsters? Some inconvenient facts:
(a) Banking assets of Cyprus are about 7.1x GDP relative to the EU average of 3.5x GDP and similar to Ireland and Malta. Luxembourg, by contrast, where Anglo-Saxon firms do their tax arbitrage has banking assets of 21x GDP. So, Cyprus’s exposure is similar to that of an economy that has large financial services sector, but that still has a real economy too. It is not Luxembourg nor the Cayman Islands nor the Bahamas nor the Channel Islands or the Isle of Man.
(b) 20B of the 70B of deposits in Cyprus are non-EU (aka Russia/CIS) which, while meaningful (28%), hardly dominate the system
(c) The banks are almost 100% deposit funded (something that regulators across the world have been encouraging because deposits tend to be sticky if you take care of them)
(d) Cyprus' problems largely arise due to their exposure to Greece, Cyprus’s neighboring economy, both on the commercial side, but most importantly and most critically because of the Greek Government Bond EU restructuring (this accounts for about 40-50% of the capital needs) which Cyprus signed up for in the spirit of EU / Greek solidarity. It was understood at the time that there would be some protection in exchange for this later on otherwise, Cyprus should have taken a harder line at the time such as ensuring the that Greek branches get covered by the Greek bailout.
(e) Cyprus has two money-center type banks: Laiki (Popular) Bank and Bank of Cyprus. Laiki was purchased by a Greek vehicle (Marfin Investment Group) backed by Gulf money. Marfin’s purchase of Laiki took Laiki from being a fairly conservative local bank to being highly exposed to Greece. Laiki is definitely insolvent and needs to be restructured.
(f) Bank of Cyprus has been more conservative vis-a-vis Greece, but still has meaningful exposure. It is conceivable that, given time, Bank of Cyprus could survive.
(g) Beyond the main two banks, there is Hellenic Bank (a much smaller bank with much less Greek exposure), Cyprus Development Bank (no Greek exposure), the Co-ops (no Greek exposure) and the Cyprus subsidiaries of foreign banks (aka, Russian, English, etc banks), also with no Greek exposure.
(h) All the local oriented banks (BoC, Laiki, Hellenic, Coops) have exposure to the local real estate market that went through a bubble during the 2000-2009 period. This exposure however is not short-term and could be resolved over the period of years. It is a problem, not a crisis, and is offset by the fact that the two main banks have quasi-monopolistic earnings power locally. Given the time and some financial represssion (a la the United States) and the local issues would be manageable yet the depositors with them are being hit to bail out the profligate ones. So much for moral hazard.
(i) There might be some true money laundering in Cyprus just like there is at dozens of Western banks (HSBC, Standard Chartered, and so on). However there are also legitimate tax reasons for investment in Russia to be routed through Cyprus (BP Russia is also a Cyprus company for example) for well-known and transparent tax treaty reasons, no different than Ireland, Luxembourg, Netherlands, Bahamas, Delaware, Nevada and so on. Moreover Cyprus and its courts uses English commercial law which makes it very attractive to international trade.
(j) This is not a bail-in of Depositors of Bank A to rescue Bank A, but a bail-in of Depositors of Banks A-Z to rescue Depositors of Bank A (Laiki), B (Bank of Cyprus) and C (maybe some small amounts to the others). There are for example 3B dollars of Russian money in a subsidiary of VTB in Cyprus, a perfectly solvent Russian bank. This will be haircut in order to bail out Laiki, a bank it has nothing to do with while the depositors in Laiki’s branches in Greece (aka a totally insolvent bank in a much more insolvent sovereign) will not be haircut.
(k) If you're happy that Cyriot savers should be punished en mass for having a 'bloated' financial industry that found itself in trouble, I must assume you would have no objection to having your savings docked the next time the City of London screws up.
excellent work...thanks v much
Tanks...er, I meant thanks, but maybe tanks are what's coming.
Testee
That's the Cyprus parliament? It's like 10 people in a closet. Regardless, they need to go Iceland or go home.