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ECB To Set "Fair" Cypriot Standard Of Living Via Capital Controls
As Europe wakes up to what could be a tumultuous day, Handelsblatt reports that the ECB has decided that, due to the "great danger" of a bank run once they reopen next week, it will enforce capital controls independently of Cypriot (elected) officials. With perhaps a nod towards negotiating some ELA funding for Cypriot banks next week (if the government accepts this ECB-enforced 'program'), the rather stunning restrictions on people's private property include:
- Freezing Savings - no time-frame (it's not your money anymore)
- Make bank transfers dependent on Central Bank approval (a money tzar?)
- Lower ATM withdrawal limits (spend it how we say?)
The capital controls will be designed "so that citizens have access to sufficient cash to go about their lives." So, there it is, a European Union imposed decision on just how much money each Cypriot can spend per day. Wasn't it just last week, we were told Europe is fixed?
Handelsblatt cites unidentified central bank sources so we wonder whether this is yet another strawman shot across the bow as the Cypriot government heads in for an early start of discussions at 10am (GMT)
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Comrade, rules will be made as we go.
Rest assured, your leaders in Brusells won't let you down!
J.M. Barroso
At least initially, restrictions are going to be per account. So it helps to have multiple accounts.
Just as you can go to a U.S. ATM with a $500 limit and pull out $1,000 using debit cards from two different banks, both in your name.
Linking up all accounts on a 'per name' basis would require gov't coordination. And they aren't that quick, or bright.
As always, it's more dangerous to have all one's eggs in the same basket.
GERMANY, the DISGRACE of Europe
...the barbarians, who forced beautiful Europe to get down Zeus’“back” and made her a prostitute ...the unworthy Europeans, who in 1945 “took Europe down” from “Mount Olympus” and in 2012 relinquished “enslaved” Europe to the Phoenician loan sharks.
Germans are proved to be the easy solution to breach Europe’s door. Whoever wishes to “set foot” on Europe and demolish it, the only thing he has to do is to “fool” the Germans. For a second time in less than fifty years, Europe’s idiots become the victims of foreigners and they serve their interests at the expense of Europe...
http://eamb-ydrohoos.blogspot.com/2012/02/germany-disgrace-of-europe.html
_____________________
The German traitors of Europe along with the Phoenicians from Asia may have forced Europe to get down from the "back” of the Greek “bull”, but it remains to be seen how they shall pull it through with the “bull”.
Authored by PANAGIOTIS TRAIANOU
The Germans are done, they will be left holding the baby on this one, the rest of Europe is going to put the blame square on them for the EU's failure. If I was German i'd be moving Far East and pretending I was Dutch or from one of the Nordic countries.
TARGET2 is the best revenge!
US to bail out Cyprus in exchange for access to shale gas reserves? Cyprus FinMin on the way to US.
http://www.vesti.ru/doc.html?id=1061412&tid=102494
Looks like the end game is coming into view. If it accepts the US's help then Cyprus' banking industry is decimated, and will never recover since it will owe its allegiance to the US and will be regulated. It'll also probably have to give up its deep harbor for the navy in addition to the reserves of course.
Really? They're planning to sell their future to save some banks? WTF? These people are mentally retarded.
Gas is real, money can be made up.
How is that any different from the current game?
I am in the camp that believes eurocrats didn't think this through before demanding that deposits be haircutted. They've been flying by the seat of their pinstriped pants for three years of this euro crisis, and they finally made a move that can only be called a horrific blunder. Any tournament chess player can tell you how it happens, especially when you're playing under the pressure of a clock.
Because, you have to realize that what they were trying to do - that is, save the euro monetary union in the face of a debt tsunami - was IMPOSSIBLE.
Same here in the US. It doesn't matter how clever the plans, what bright ideas Bernanke and his minions come up with, IT CAN'T BE FIXED. The financial world has created magnitudes more debt than exists monetizeable collateral out there.
Your absolutely right.
The Troika has known about Cyprus since they scalped the banks 75% on the Greek bonds. They delayed doing anything about Cyprus because of not wanting to give ammunition to any opposition parties in the Italian election. But it didn't matter since their guy lost.
Now with the bank bond payments coming up in June and the German elections in September, they had to get the ball moving. They couldn't allow bond holders to be hit, since they need them to sell new bonds to. Merkel can't be seen as weak here as the Germans are tired of paying for the bailouts and now the black swan that hatched last Friday is on its way to becoming Mothra and threatens the Euro zone.
Unintended consequences are a bitch.
Nothing in politics happens by accident. Don't be ridiculous.
Vladimir Vladimirovich: Izvineetye, spasiba ?
Angela Merkel: Ochin preeyatna, Cyprus za vas, puzhalsta !
The French ex-football player Cantona called for a bankrun a few years ago. Everybody laughed at him and nothing happened but it could very well happen now. Anyway, the Cyprus people are put on a diet. Soon in other countries. The hunger games have begun.
Closer to home, today I went to Wells Fargo to get new ATM cards for a savings account - I'd let the old ones expire w/o ever using them (we mainly bank with our credit union, but for a few reasons also have savings at WF). I talked with their "wealth advisor." I told him that I'd noticed that in Greece, with the banks closed, people could only get money via ATMs, and so I wanted functioning ATM cards. Since I figured it would happen here. He was not even slightly suprised. In fact, he basically told me that we should keep some money at home. And that he'd been reading about government interest in grabbing retirement accounts. And he mentioned a variety of other items that have come up on ZH, like the pathetic underfunding of the FDIC. Hmm. I don't think that he had any particular info that ZH readers don't already have, but it was amazing that he was discussing it.
Yesterday I called Fidelity, to set up a brokerage account within my husband's retirement account (my dear husband wants to get "back into the market, and I can deny him no longer). I chatted with the nice Fidelity rep. When she asked if there was anything else I needed, I said "yes, I'd like that Jon Corzine not steal all our money. Just joking." In the old days this would have elicited a pompous "our brokerage system is safe and reliable and blah blah blah." Not a peep. I think she's been hearing this from others.
Intersting story.
You should buy your husband a nice present like some beautiful gold and silver eagles. The gold to have easily transportable wealth and the silver to be able to make small transactions like food and fuel.
I would love to, but the pigheadedness of a Polish-Italian-Ukrainian American husband is a force not to imagined by any who have not experienced it.
Even that aside, I have no faith in my ability to buy gold or silver, rather than a tungsten simulacrum. If savvy NYC gold dealers get tungsten, I would get cat poop.
But I am happy to stockpile food and other staples, and he doesn't interfere with that.
That is the reason that I suggested US coins. One thing that the gov does right and it's an accepted medium.
LOL
Yes, nice anecdotes.
Your Hubby wants in at the top? Well, give him some play money and make a sex slave bet, or car washes, or something.
I have had similar conversations with bank, TIAA-CREF, and their ilk; they don't try the B.S. on me anymore in person (just in the emails and pamphlets), they have had an earful from their customer base for certain - at least the one's without their heads in the sand.
To be fair, he is willing to move money over VERY, VERY slowly, from the money market funds in his retirement account, into stocks in his retirement account. And to be fair, I don't have much faith in the money market funds anyway. And he acknowledges that things may just blow up. It's just that his greed is about to make his head explode.
Just be sure you tell him to short this mutherfucker for the next few months. Looks like it'll be nasty.
So far the pattern has been to delay collapse as long as possible. So imo, its entirely prudent to keep some fiat in the market whether you think it'll all go to shit or not. I wouldn't put all of it there though. And that's after you've taken care of the SHTF shopping list whose items don't need repeating.
he is willing to move money over VERY, VERY slowly
Good! When I was treasurer of a nonprofit that received a big bequest, the board wanted to immediately dump it all into a growth-income fund.
Instead, I convinced them to do it over four years, holding the balance in T-notes meanwhile.
That was in Dec. 2007. The first 25% installment lost big in 2008, but the portfolio loss was only 12%. The three subsequent tranches all made money in their first year.
TD
This is SUBSIDIARITY. I'm surprised you've forgotten about the old memos regarding EU SOP.
The EU is truly a dictatorship. They are printing money and each country has to bide by their rules to have some of it.
Russian government agencies had their money in Cyprus accounts, too, and can't meet their obligations. This really did just get interesting. http://investmentwatchblog.com/breaking-russian-treasury-unable-to-meet-...
"Please Sir, may I have some more?"
"More!?!? You want more!?!?"
Ah Dickens...
The next black swan has arrived. A few more black swans and we'll have some serious planetary chaos that will be impacting on all G20 countries... including us here in the USA. We're all connected now... we're global.
Contrary to what we've all been "taught" by Hollywood, the evil bad guy is not a super-intelligent and sophisticated individual. Criminals (whether in the role of banker, politician, CEO, etc.) are inherently stupid and their evil intentions and actions eventually blow up in their faces. TPTB might have plans and agendas but that doesn't mean they will be able to successfully carry them out.
Achieve their goals? No. Achieve some of them, plus cause a lot of unintended consequences and destruction and chaos? YES.
Put on your seatbelts, it's going to be a rough ride.
Coming soon to America...
OK, now I have something definitely not tin foil. This paper was put out by Boston Consulting Group, the place where Romney and Netanyahu both worked. On page 12, you can see where they propose a “one time” wealth tax, a la Cyprus of 25%. These people have been scheming this a long time. (September 2011)
http://www.scribd.com/doc/130778664/BCG-Back-to-Mesopotamia
http://en.wikipedia.org/wiki/Notable_employees_of_Boston_...
Look at the BCG list of names. This is legit. Don’t for one second think it couldn’t happen here.
so even when those banks reopen you're still not going to be able to have your money out ... GREAT plan europe ! what about you need to move abroad ? can you close your account and get your money ? will there be some kind of clumsy technocrat supervising the whole shit ?
what are people supposed to do now ? what's left beside violence ? FIGHT SHEEPS
There is a sensible solution that some say won't make it to the table:
Mitu Gulati, Lee C. Buchhei: on voxew
"All insured depositors to be protected.
Holders of deposits in excess of the insured €100,000 minimum would receive, at par, interest-bearing bank certificates of deposit (CDs) for those excess amounts.
The maturity dates of all sovereign bonds would be extended by a fixed number of years, let’s say five years."
http://www.voxeu.org/article/walking-back-cyprus
Great deal.
You might even find someone to buy those bonds @ 50% par.
Ha.
Clearly it is not your money. It's their money.
Even the OECD's Gurria is for taking money from the depositors...so bankruns and capital controls it is.
That other guy didn't say it so here goes.
ECB bitchez.......
if they have a credit rating, can you buy CDS on them ?
Restrictions in daily withdrawals
Ban on premature termination of time savings deposits
Compulsory renewal of all time savings deposits upon maturity
Conversion of current accounts to time deposits
Ban or restrictions on non cash transactions
Restrictions on use of debit, credit or prepaid debit cards
Ban or restriction on cashing in checks
Restrictions on domestic interbank transfers or transfers within the same bank
Restrictions on the interactions/transactions of the public with credit institutions
Restrictions on movements of capital, payments, transfers
Any other measure which the Finance Minister or the Governor of Cyprus Central Bank see necessary for reasons of public order and safety
All Greek to me
Does this mean no moar toasters or towels???
AAHHEEMM.
http://www.youtube.com/watch?v=5IZ-x-nv5BI
ZH has to report events not in terms of its own value systems but in terms of the reality of power matrices in conflict. Sometimes the brilliant analysis here gets diluted by approximate synthesis of global events; iMO ofcourse!
News reporting isn't about us first, what we feel in navel gazing retrospection, its about the movers and shakers who run the world and how they perceive the flow of critical events. Once this is clearly understood we can then analyse the implications of "we the people" meme in the context of the uber power play in the making.
What is the big issue here in Cyprus and who is calling the shots ?
1° Merkel calls the shots. From her perspective the big issue is the use of Cyprus by the Russian Oligarchy as a staging post to move BIG hot money in and out of the EUro zone at their own behest, outside the control of ECB who is guarantor of the Euro, and in cahoots with surrogate banks of Cyprus whose balance sheets have now ruined the country. This has created the runaway crisis of a pea sized nature in itself but which has enormous geopolitical consequences in the ME cauldron. Those money transfers in and out of Eurozone by the russian oligarchy can throw a spanner into ECB functionning in these very fragile times. The gas revenues and the oil deals are generating HUGE amounts of cash in Russia that NEEDS to find outlets into western markets. The EU is sending a clear warning to Putin : Not on YOUR terms, but on ours. This is our territory!
Read this new deal in the making, its Russia calling bigtime!
Rosneft $55 Billion Deal - Business Insider
2° The EU/Merkel power matrix has now reacted. Its verdict is this : Your economic model is KAPUT CYprus. This is a message to the Russian rival matrix that there will be blood (economic loss for Russian Oligarchs benefitting from this model) and henceforth, if Cyprus wants to stay in the Euro zone it will be on the terms of the EU/Merkel/ECB matrix. Period.
Merkel: The Cyprus Business Model Is Dead - Business Insider
This is a power equation and the Russians have now been caught with their pants down on this financial front, as their own vehicles, the two CYprus banks, are belly up. Nobody can contest that reality.
3° As the Cyprus economy is a pimple on the EU radar, they will have no problem to reign in the impotent Cyprus political class, now apparently isolated from their Russian financial overlords, obliging them to tell their sheeple in dire potential distress : "tough times fellas, our model is kaput, it means our banks must slimfast and you guys who work there will lose your jobs. Tuff shit, this show is coming to an end. You guys like your Greek cousins will suffer until a new economic paradigm emerges in the island under EU control and supervision. Merkel has said its that or its walking the plank into the deep blue."
That is the whole discussion about plan B, or C or what have you. No other issue. Lets see how this pans out this W/E.
4° The Russian oligarchy has two choices now :
a) Outbid the EU/ECB to take over the island economy and save their own skins. But this is very risky as its NATO controlled militarily, so thet won't invest bigtime in what is ENEMY territory for Putin and consorts.
b) Thin down their presence and gnash their teeth in the face of EUro zone reality firepower and Nato shadow over Cyprus.
Its looks like option B) is the real-politik one for them, unless they pull an unknown rabbit out of their hat! Putin cannot take on Nato challenge in Cyprus; period.
5° Now we come to the interesting bit : Will the ECB/MErkel use the Cyprus trauma to prolong the wealth tax reset, aka the BCG/Bruiter blessed strategy, to all of Club MEd, to SAVE the banksta debt problem? Your banks must be saved by your wealth stashed away in Cayman/Swiss lands. Get cracking Club MEd we come after your bank's rich stakeholders!
That would be awesome game changer and psychological ringdinger! Statist German/EU control of continental shooting match and awesome signal to City and FED that there is a new game in town other than QE-infinity and socialisation of private debt.
We will soon find out how this interfacing of new Euro matrix with Anglo capitalist matrix occurs; IF this Euro experiment goes from possibility to hard facts.
Cyprus economy is a dead horse carcass whose current dismemberment may have led to far reaching results in this realm of airy-fairy science of Economia, in a world gone financialista mad since 2008 and for which statist controlled austerity shock therapy is now the other possibility other than can kicking to infinity !
Sad and morbidly bad reality of today's first world.
Falak:
You loose every bit of credibility in your argument when you link to "stories" from Business Insider.....
hey, I don't BUY BI synthesis; I buy their facts.
Those are hard facts they report. Don't buy their analysis, that I agree with...
But don't junk facts!
You know, i now want to peddle the ultimate conspiracy on this. Since this is an spontaneous outburst of the German electoral campaign, Tptb set this trap for Merkel they know she will cave & it's over for her.
SPD and Greens step in, this time next year we will be speaking about a 50 % wealth tax on the core and Steinbrück & Trittin get to plow their cavalry charge a la cypresse on the little Swiss miss. How is that for geopolitical methodology.
wow, awesome Magpie...will Ben and Potus buy THAT left turn in Deutsch kaiser bahn?
The Left are useful idiots, if every Steinbrück Kavallerie gaffe slashed 0.05 off US & UK yields
The only problem in it would be despite all solidarity Hollande would hardly stomach the whine from the Rhine to shutdown his nukes
Merkel wants them out...remember they said they don't care where Cyprus gets the money (meaning that the politicians on the ground will take all blame all the way), then suddenly she turns around and says so-and-so pawning the pension fund etc is a no go...puhleaze. Chaos and disruption on Cyprus is the premium outcome, encouragez les autres, wails from St. Petersburg while snickering emanates from London and New York as the boche madame's tantrum chases the Slav beachcombers away.
the chaos resulted from that business model. I don't buy her business model....
But my whole point is understand her stance, then criticise it.
I am posting my understanding of events, for your to criticise according to your own lens, that's fine!
But at least lets UNDERSTAND facts and power player's rationale before we add to it our own analysis.
I do not subscribe to facts being mixed with emotion or valued judgement. First the fact, the power's player's avowed rationale, he that calls the shots, then our emotion and our cross examination.
Its about methodology.
Condensation, condensation
We don't want your stinking money, Russians quoth the EU
Cypriots join the Greek lifestyle
Savers, save yourself -run Euro, run
Jah,
This is about killing Cyprus' Russian hot money.
Russia 'rethinking' holding Euros in reserves. They could cause some serious pain dumping those.
So let me see, I put my money in a bank after paying loads of tax on it, get not enough interest to compensate me for inflation or risks and then if there is a problem I can't get at it to pay my bills and buy food?
So tell me again why should I not put it in Bank of Mattress where I get the same amount of interest but I can count it and spend it any time I like
alternativlos
The technodirtbags are tipping their hand and showing people that their governments are simply puppets to the bankers. The elected officials have no real power and can be ignored. Only the bankers create the laws now. Do you think that it is any different in Greece, Italy, Germany or the US?
I really do hope Cyprus pulls an Iceland and sticks it to the EU debtholders. If they were smart they would telling their own banks to position for it this week. Then insure all domestic deposits up to some limit, confiscate all foreign deposits, and cut your debt to zero with 100% default. Then cut your budget to your tax income. Anything else will cripple your economy and put your country in the chains of foreign masters. Once you have all the Russian money you will be in a much stronger position to negotiate with them.
The trouble is that your negotiation position is a bit shaky when you're in a car trunk .
You got that right!
Especially when some of "your representatives" helped to shove you in it.
Geopolitics is coming to the fore.
The entities of old are re-emerging. I did a review of Fruchtenbaum's Sequence of PreTribulational Events, in which he says, "The Great Tribulation is not immanent. The world stage has to be set in a certain way before the Tribulation [Armageddon as it's popularly known] can actually begin. A number of events are clearly stated to precede the Tribulation period."
1. WWI,II
2.reestablishment of Israel
3. Jerusalem under Jewish control
(we are here)
4. The northern Alliance invasion of Israel (Russia et al)
5. One World Govt
6. Ten Kingdoms
7. rise of Antichrist
8. period of peace and false security
9. the seven year agreement/covenant
10. other events: first end time black out, return of Elijah, perhaps the third temple building.
Everything you see happening spins around these issues.
The good news is that the ECB, via the ELA, will continue to provide liquidity to Cypriot banks. The bad news is that there are a lot of excess government leaders in Cyprus if someone outside of the country can dictate citizens' access to their own savings, and thus spending, and thus the entire local economy.
What a fucking joke this all is... RISE UP BITCHES!
But, I eat more than her.
Sorry tubby, in a centrally planned world one size fits all. Here's your new work uniform. I know it's ten sizes to small, but, maybe you can swap it on the black market for a barrel or a burlap sack.
looks to me that (even though this is a complete cock-up) the ecb at least has made an attempt to "reach out" to oridinary cypriots.
of course, it was never the ecb's right to do this in the first place..or should that be..it was never the troika's right to do this in the first place, especially when we see that the IMF (and frecnh government) continues to be headed by criminals..
http://www.guardian.co.uk/world/2013/mar/20/christine-lagarde-flat-raide...
how ironic it is for the IMF to have a say about money laundering and the activities of tax evaders when she is, in fact, one herself.
i guess she learnt from the best
http://bigstory.ap.org/article/lawyer-french-ex-president-sarkozy-facing...
now...all we need is for another "bunga bunga" jacuzzi party from an italian politician whose face is stetched tighter that a hot air balloon and we can gt back to the rise and rise of the protest vote of europeans against a centrally planned socialist economy
i am reminded of that famous german saying "be my brother..or i smash your face in"
then again, what goes around in europe, comes around in the US..so my prediction next week is the outing of elected government officials in the US on sex charges that would make a catholic priest blush
ps..ack..wrong thread, my bad