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Cyprus-Troika Talks "Delicate" But Schaeuble "Won't Be Blackmailed"
Some late news indicates that the 'deal' is further away than many hoped (or rumored) earlier in the day. Welt am Sonntag reports that German FinMin Schaeuble exclaimed "I won't allow myself to be blackmailed," adding his responsibility to the stability of the Euro. Simply put, he adds Cyprus must respect the rules, insistent that, "Cyprus is a hard road to go either way; but that is not the result of European stubbornness, but a business model that no longer works." With that as background, Cyprus President Anastasiades will be meeting with the IMF's Christine Lagarde tomorrow morning with talks at a "delicate point," with his spokesperson admitting the situation is "very difficult." The disinformation-to-total-confusion train pushes on forward; beggars can be choosers and 'demanders' won't be blackmailed.
- *STYLIANIDES SAYS ANASTASIADES DEPARTS FOR BRUSSELS 7:15 AM
- *STYLIANIDES SAYS ANASTASIADES WILL MEET WITH IMF'S LAGARDE
- *CYPRUS EUROGROUP MEETING TO BEGIN AT 7 P.M., SPOKESMAN SAYS
- *SCHAEUBLE SAYS WRONG DECISION NOW WOULD DO EURO A DISSERVICE
- *SCHAEUBLE SAYS CYPRUS MUST RESPECT THE RULES: WELT AM SONNTAG
Via Welt am Sonntag (Google Translate),
The euro zone crisis has seen in her many dramatic hours. But never before, the situation was so critical as this weekend, never had the political fronts so hardened - and never was the risk of a euro exit as high as in the case of Cyprus.
Finance Minister Wolfgang Schaeuble said the "Welt am Sonntag", "We want to avoid possible that Cyprus slips into insolvency." The framework for a utility change but nothing, and the European Central Bank could guarantee their relief to Cypriot banks only until Monday. Schaeuble made clear that Cyprus itself - and not Germany or the EU - to blame for its precarious situation.
"Cyprus is a hard road to go -. Either way but that is not the result of European stubbornness, but a business model that no longer works," said the CDU politician.
...
Before the crucial meeting of euro finance ministers, which is scheduled for Sunday evening, Schäuble was adamant: he was known that he was "[I won;t allow myself to be blackmailed]" He was aware of his responsibility for the stability of the euro.
...
Economists see the wrangling over a compulsory charge concerned. "The danger of a European bank runs is latent because the banking world of Southern Europe is tarnished," said Hans-Werner Sinn, president of the Munich-based Ifo Institute, this newspaper. "Some countries and many banks are actually already broke and held only by the special loans to the ECB on life. The disaster has occurred long ago, but the public closes their eyes."
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"Schauble won't be blackmailed..."
And the ECB and IMF stealing depositor money is what..."charity"?
ebworthen you kick ass.
Yep, you're one of my faves.
" Cyprus must respect the rules "
What a joke the Troika are making the rules up as they go.
No one else has been forced to steal directly from people's bank accounts.
Tell them to get stuffed there is life after default.
Cyprus needs less control and interference from the EU,
If they agree to these terms Cyprus and it's people becomes debt slaves and the Troika will pay you flying visits demanding cut-backs and austerity left, right and center.
Cyprus needs to stay in control of it's own affairs and sort this out your selves.
Thank You Tylers. 1990? 2009? The more you know, the less you learn!
Angela Merkel disapproves of the Cypriot proposal, which involves bundling state assets into a "Solidarity Fund" that includes the country's retirement fund to back bond issues. According to reports on Friday, she is not alone. The troika, made up of the European Commission, the European Central Bank and the International Monetary Fund, agrees with her assessment.
What happens next? "I hope that it doesn't result in a crash," Merkel told FDP parliamentarians according to a meeting participant.
Merkel has long warned of a potential domino effect should a euro-zone member state enter insolvency.
But now, her government is no longer excluding the possibility.
Cyprus is not comparable with previous euro-zone bailouts primarily because of the inflated size of its banking sector.
Many rich Russians have deposited their money in banks on the island. Some €70 billion are sitting in Cypriot savings accounts -
- against an annual gross domestic product of just €18 billion.
http://www.spiegel.de/international/germany/chancellor-merkel-angry-with...
I'm taking my glass of " snifted" Tequilanand putting it in the 'fridge' for tomorow morning/ Bitchez
So the music in the Eurozone stops again and there's no free chair left for Cyprus?
Southern European countries are responsible for their own mess perhaps but Germany is not innocent either. They loaned Euros to these countries' banks and then people borrowed Euros to buy German cars etc. Subsized export that is. Germany was not complaining then about corruption and laziness. Germany wants to save these Euros loaned out because if someone owes you 10.000 Euro than that person has a problem but if he borrowed 10 billion Euro from than it is you who has the problem. The first Greek bailout was not to bailout the Greek but to bailout German and French banks. Germany has elections this year so that is why they play it tough but they send out a real strong message to Europeans: Germany is twisting everybody's arms and your money is not safe anymore in Europe.
Why don't we look reality in the face : this whole ponzi is out of control on both sides of the pond and in Japan.
We are now on a printing binge to protect the rich and their banks; all the while the politicians like Merkel HAVE TO GET ELECTED.
The protection of bond holders worldwide, sovereigns and private in shadow banking, has resulted in this awesome climb of government/coporate debt :
Market Risks Are Higher Than Ever - Business Insider
With a global bond market at 212 Trillion $; and no or low growth economic model in first world, especially in austerity strapped Eurozone, how in Hell can the banking/oligarchy world sustain that pyramid by government encouraged printing or government encouraged depositer bleeding?
Debt has to be reduced, the banks deleveraged either by real growth or by hair cuts! Not by head in the sand debt accumulation.
The solutions proposed don't match up to the continuing creation of debt denominated wealth that is supposed to protect the UPPER LAYER OF EQUITY IN STOCK MARKETS, the veritable treasure trove of the Oligarchy world!
Both the Gangsterised central banksta shenangins of Tarp/QE/ZIRP leveraging/Carry trades/Libor fixing- rehypothecating/HFT manipulating Anglo saxon finance, as now statist deposit squeezing going to wealth tax careening Euro decisions, soon to be followed by Jap currency war debasing printing, means that the whole electronic shooting match of current banking is one big manipulated fiat shithole with no rules and only toxic derivative tools used by unscrupulous fools. The so called most regulated industry in the world is all smoke and mirrors in every segment of the global network.
WHere is the growth to take us out of this ubermenschen paradise, now turning to Humpty Dumpty land very fast?
As that chart shows the bond market high in 2007 was 202 trillion...
The harder they tumble when thieves fall out in awesome banksta rumble!
The real issue now in first world is the ominous battle underneath the current "we are the leaders of the world" tattered carpet :
Oligarchy global and private corporate power unbridled and autocratic; selfish and short termed VS statist revival trying to reuscitate a "we the people" meme without regressing into total anarchy under debt tsunami; all the while sucking the teat of oligarchy cronyism.
You cannot be Messalina and Mary Magdalena refound and virtuous; choose first world democracia!
Got Gold?
Midas?
Kind of like how Cramer cries about the 3X Bear Direction ETFs when the market goes down, but never says a word about the Bull ETFs when the market's ramping up.
This whole thing is nuts
If ya take depositor money, there's no reason for banks
And everything screeches to a grinding halt.
Nobody to grease the politicians
No bank jobs
No nothing
Naught
Nada
Zilch
Zip
O
Maybe Schaeuble won't be blackmailed, but what about the other 15 or so finance ministers? Just goes to show who's in charge in the EU lest anyone forget that Germany is the one and only country with ultimate say in what happens in the EU.
The Cypriot bailout was supposed to have agreed upon on in principle at a meeting in Brussels last week and formally approved on February 10. But at the meeting in Brussels the potential bailout was pushed off. Meanwhile, Cypriot Finance Minister Vassos Shiarly has indicated that Russia might be asked to join the efforts to save Cyprus if the E.U. approves the bailout. "First there must be an E.U. agreement, then we might ask them [Russia] to join," Shiarly said.
Some think that it is in Putin's interest to do so, to avoid investigations into the role of Cypriot banks in Russian money laundering. However, Russia's strategic geopolitical interests are a much more important reason for Russia to gain a foothold in Cyprus.
The same applies to Israel. The Jewish state and Cyprus are also currently strengthening their ties. Israel is seeking to work with Cyprus on national gas exploration and extraction. The Cypriot-Israeli rapprochement has already angered Turkey, which is bullying both Nicosia and Jerusalem.
Israel is also collaborating with Cyprus in the EurAsia Interconnector project. This is a undersea cable which will link Israel with Cyprus. The 286-kilometer link will be the world's longest undersea power cable in the world.
If Europe fails to bail Cyprus out, there are at least two countries, Russia and Israel, for whom it makes political, economic and strategic sense to step in. Indeed, while a monetary union between different nations makes little sense, a monetary union between the Cypriot currency and the Israeli shekel would make more sense than the current conflictious monetary marriage between the Cypriots and the Europeans.
http://www.jewishpress.com/indepth/opinions/does-russia-have-its-eye-on-...
Remember, money is just a marker to value work. And money has to be an agreement between governments.
Internationally defined resource allocation markers. So just because Cypriots have to make a little "concession" to fix the value of their work, there is a lot of complaining about "moving the goal posts."
Banker this, banker that, my cold dead gold! Useless complaining, If you just do some work you'll still be working at Market Rates in the labor market. With perhaps some cut away by the man who takes taxes...any way they want.
We like to blame Mediteranian lifestyles compared to the "Protestant Work Ethic". This was already happening, it's just highlighted by them all being in Euro for a change. (A bright side is some Currency Manipulator crooks were poot out of business. Within banks, some, sure.) But still it's a measure of work and placating mobs of idlers.
The U.S. is (half) full of a more southern "laid back" lifestile, too. They fly rebel flags and I hear they drink a lot, hoot and holler, and invent NASCAR-reliant play-economies. But that is neither here nor there, as they have a right to blast guns so I say that is the best lifestyle in the world, no foolin'!
Money is just a marker to value work.