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Meanwhile, Cash Exodus From Cyprus Surges Despite Bank Closures, Capital Controls
When Cyprus put its banks into lockdown last weekend until... well indefinitely, now that capital controls are established, the main reason was to halt all capital outflows from the henceforth liquidity starved island whose banks will only exist as long as the ECB provides an ever greater dose of liquidity to account for the collapse in deposit funding. Which is why it is surprising, make that shocking, that as Germany FAZ reports, in the past week there has been a surge in cash outflows from Cyprus, even as its financial system has been supposedly ringfenced from the world, which by the way is the only thing preventing the EUR17 billion bailout from soaring by orders of magnitude because should a liquidity leak be discovered, it is all over for the country's financial system.
From FAZ, google translation edited:
Despite the closed banks and a lock for payments in the past week, more money flowed out of Cyprus than in previous weeks, Frankfurter experts report for payments. Prior to the escalation of the crisis in Cyprus accruing on the payment system Target liabilities of Cypriot central bank to the European Central Bank (ECB) had increased daily at approximately 100 to 200 million euros. In recent days was after Parliament the stabilization program initially had to fail, the daily has risen to more than double. Just in the last week so could cash assets have been withdrawn from Cyprus in the billions, although the Cypriot central bank has actually issued a lock.
...
Broad exemptions from capital controls
A few days ago, the Cypriot Fed made aware of the payments was interrupted. In the official announcement, which in these cases are quite common exceptions, however, are very broad. Allowed are transfers of humanitarian aid, those are not received financial stability is at risk, and "special payments", which are not defined in detail. The unusually high outflows from Cyprus in recent days indicated but then, that the central bank in Nicosia control rather liberally interpret, some analysts suspected for payments.
How is it possible that cash is leaving the country even with a bank halt? It isn't, unless of course, the banks aren't really halted, and some outbound wire transfers, which are permitted, are more equal than other wire transfers which are stuck on the island. Of course, that would imply an "Europe Farm" type of arrangement, which in the bastion of fairness, equality and honesty which is Europe, would be absolutely impossible.
On the other hand, if indeed the drain of the Cypriot banking system has continued despite all the enacted halts during the past week, then it's game over for Cyprus, which will soon have only the ECB to thank for providing liquidity, an arrangement that may not be the best long-term outcome for a nation whose economy has basically been gutted in the span of one week.
It also means game over for the bailout as envisioned, as the EUR17 billion is history, and much more cash will have to be injected to cover for the stealth outflows.
Of course, in what is now a Pandora's Box experiment in kicking the box, nothing could possibly surprise us. After all, even in a worst case scenario, there are GETCO algos doing the bidding of the BIS and literally bidding up the EURUSD to such levels as allow everyone to ignore the absolute terminal disaster that has happened in Europe in the past week.
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I really hope this brings down the global "financial" (system) pyramid scheme.
The lack of a bank run in any of the PIIGS proves what a bunch of ignorant sheep the Europeons are.
"How is it possible that cash is leaving the country even with a bank halt?"
I don't know -- how did Bin Laden's relatives fly out of the US while there was an order grounding all air traffic?
Just guessing here......but maybe they used their handy dandy Get-Out-Of-Jail-Free "Monopoly" Card?
<Or maybe nothing is or was as it seemed regarding 9/11.>
Well, I guess that answers one of the questions I was pondering yesterday.
I'm wiling to bet that the European and US funds with cash in Cyprus banks are more equal than others.
"...There are many European, Ukrainian, Russian, Jordanian and American funds and investment trusts that have exposure to the Cypriot crisis. Billions have been invested in these funds. Will they be subject to capital controls as well? Will they experience any impairment? In order to do business in country, a Cyprus domiciled bank must be used as custodian and/or pay agent."
http://www.zerohedge.com/news/2013-03-22/cyprus-officially-passes-capita...
I could cover a lot of ground under the "humanitarian aid" banner. And "special payments?" Wow. How about I ESPECIALLY want to get my money out of your thieving hands?
what is the latest on the jp morgue international front
office in Cyprus?
People are getting screwed big time and they haven't seen it yet.
Insiders R Us...(As usual...)
These aren't even Russian Oligarchs using the Teng Bunma bank withdrawal method- it is bankers and politicians using SWIFT (in addition to routinely pointing guns at airline staff, Teng is also known to point them at bank managers when he wants to make a withdrawal after-hours or during a bank holiday).
http://en.wikipedia.org/wiki/Teng_Bunma
It's the politicians and fat bankers that are able to move their money out
...and all their friends. No wonder Putin doesn't give a shit...I'll bet most of the Russian money is already gone.
Whaaa?
They don't really believe in fraternity, liberteee...a "we're all in this together" attitude of comrahhhddduuuurrreee? That all those archaic sayings are meant for the chumps?...lol.
This line cut to the chase...
"How is it possible that cash is leaving the country even with a bank halt?
It isn't, unless of course, the banks aren't really halted, and some outbound wire transfers, which are permitted, are more equal than other wire transfers which are stuck on the island. Of course, that would imply an "Europe Farm" type of arrangement, which in the bastion of fairness, equality and honesty which is Europe, would be absolutely impossible."
Trust is an earned thing. It can't be forced on people...coerced.
I've always been intrigued by the notion that if they shut off access to my bank account, what assets of THEIRS can I strip from them that are just laying around unattended?
Maybe that Mercedes sitting over there would be a good start ;-)
> Maybe that Mercedes sitting over there would be a good start ;-)
Perhaps. But the car - like the assets in your bank account - isn't yours to do that with. You don't own Fed notes - Fed notes own you. Same with your house, car ... etc. You and me - we own nothing. We can use shit thru title and licensing - but we don't really ever own it.
And that's why you can't have the assets in your bank account when they close the bank - the shit ain't yours. You merely store it there and use it when needed... but a chosen few ultimately control how and when you use it.
We should have known then - damn that was a very visible indication of absolute corruption at the highest level - the seals got the wrong guy - it should have been Bush who lied to us over and over again - that the fucking politicians will steal every dime we have - one way or another in their criminal connection with the banbksters - money. Remember in the USA no one who commits a financial crime connected to a politician gets prosecuted.
No Muppet transfers allowed.
I don't know -- how did Bin Laden's relatives fly out of the US while there was an order grounding all air traffic?
Better yet, how Saudi's responsible for the 9-11 flights, anre now allowed a PASS on Passport cks by J Reno's sister.
On Airfarce One.......mamosa's anyone...
We won't know if there's been bank runs until we get the deposit information.
But the announcements that we've been having makes me think that others in the sector are seeing runs.
Maybe not runs, but at least little jogs or slow leaks.
And what of the ignorant Americans who are so deluded that they think it won't happen here.
You mean unlike Americans back in 2008?
Germany FAZ? How ironic.
Imagine going to jail for moving your money to a safer place as Banksters get immunity from prosecution.
Madness.
imagine all savers having their money turned into "equity" in a bank that is now worthless "save for the big money" which is now gone. you could argue we have "progressed" in the sense that it used to be the Banks just closed for good and that was that. "now you get an equity stake worth ten percent of what you thought you had in there." doesn't sound like much progress though.
Relax losers. Deal tonight and DOW 16,000 tomorrow
If so, flacon, do you also hope to see genocidal wars, along with democidal martial law? Those could well be the real consequences of the global pyramid scheme collapsing. I really hope that continues to be as postponed and protracted as possible, although I think it is inevitable. This Cyprus story unfolding appears to be an example of the OEDIPAL DILEMMA of self-fulfilling prophecy!
http://en.wikipedia.org/wiki/Self-fulfilling_prophecy
I KNOW, we KNOW whose cash is getting out.........and for what nations account holders.
Score ONE again for the Ever crooked Banksta Gangstas.
$500 came OUT of the ATM today, and it ain't going into stocks. Even if Barron's is bullish... CA$H and gold works for me.
"Review of Barron's -- Dated 25 March 2013"
http://tinyurl.com/a4ehphx
Excellent DCRB. I wish I could withdraw 500 dollars but I don't have ANY cash in a banking entity.
Time to ZERO OUT those accounts folks. Do it yourself or they'll do it for you.
+++++
Yo, get to the point where money IN THE BANK is diversification!
I took out $500 from the ATM today and I'm heading to Canada. No joke.
Ok, Ok, it's just Niagara Falls with the family for vacation, but it does sound sinister, doesn't it?
Uncle Janet has a place for you!
Hmm... FEMA Camp No. 131, near Rochester...
Niagra Falls!!! Slowly I turned...
Some MOAR equal than others is the European Way! I said there would be a whole bunch of back dated transfers timestamped right before the bank closures.
Some good basketball games on tonight on CBS.
BAAAAAAAAAA! BASKET-BAAAAAAAAAAAAA
Germans getting paid??;
Interesting point, but not likely. What they (EU, the Germans, banksters, etc) want is collateral, not just worthless paper. Collateral may include islands, utilities, public property and Cyprus posterity.
yep...
Spiderman towels?
Does this news somehow endanger the bailout? How so?
They must have put the money in Al Gore's lockbox.
A leak like some people are able to get their money out but not others? Kinda like a "who ya know" type of deal?
I wonder if any US Senators or CONgressmen have money in Cyprus? I'm thinking the Russian's have first access to the leak though.
OR it could be a "Who you threaten to kill deal."
tough call if you're a banker. do i "follow the money" or "try and save the thing...and my town with it." http://www.youtube.com/watch?v=_Er69b4HMl8
http://www.youtube.com/watch?v=TAE8i40A5uI&NR=1&feature=endscreen
Is there anyway to trace where the money is going to?
Not when it's been "vaporized".........
Comrade, so cynical!
z,
you guys an' gals are great reporters!
thanks.
Here comes counterparty risk exposure.
There goes the rules...except everyone for themeslves. No power? Too bad...Skippy.
The President of Cyprus threatened to quit in the EU meeting today.
http://www.guardian.co.uk/business/2013/mar/24/eurozone-crisis-cyprus-ba...
10.11pm GMT
Reuters is now reporting that Cypriot President Nicos Anastasiades threatened to resign during a heated exchange with European Union and IMF officials this afternoon.
This confirms the rumours that engulfed Cyprus earlier this evening (see 6.39pm onwards).
Here's the full story from the terminal, by Luke Baker:
Cypriot President Nicos Anastasiades threatened to resign during a heated exchange with European Union and IMF officials over a rescue package for his country, a senior official taking part in the negotiations said on Sunday.
Anastasiades objected to a proposal that two Cypriot banks be shut down if Cyprus is to meet the terms of the bailout being offered by the EU and IMF, the official said.
"He offered to resign," the source said, describing the meeting, which included IMF Chief Christine Lagarde, European Central Bank President Mario Draghi, European Council President Herman Van Rompuy and other top officials, as tense.
The EU and IMF are offering Cyprus a 10 billion euro bailout package as long as the government can come up with 7 billion euros itself, largely through the restructuring of its banks, a process that will mean imposing a big levy on deposits over 100,000 euros.
According to someone on another thread, this was a bad translation.
Basically what he asked was, "What's the deal? Are you just trying to get me to quit?"
Always the same problem: communication, communication, communication.
I suspect there must be a way to prove that the digital
currency that has, so called, left the country was never
really in the country but was just showing up on computers,
mistakenly, that happened to be plugged in in that country.
had they been plugged in somewhere else the money would have
shown up elsewhere, is there an app for that?
" is there an app for that?"
Yup. Just download the "rehypothication" app from the RBS website. I also think that the same app is available on the Chase website, but look for the "Repo-105" download button instead.
so "frozen assets" is a relative term.
David Copperfield has been appointed Cyprus finance minister.
The safety of your importance is the most important thing to you. This is why we are telling you. Because you know. So your worry is without place in our place. Come in and bring your money with you. It's safe since you believe it.
Close your eyes and count backwards from 100...
... aannnd Voila! It's gone.
Was John Corzine busy or something?
Corzine was busy sucking off the Amazing Kreskin
"Even now I know what you are thinking"... according to Kreskin's website tag line and Corzine's ability to suck Kreskin's cock.
But I digress...
It is fitting that All Money, Electronic, Physical, Shiney Paper, etc, Exodus Stage Right to only G-d knows Where
Monday is Passover...
.......and ES continues to levitate.....
It seems that EU is currently governed by EXECUTIVE ORDERS.
Unlike USA where all 50 states are american ones, EU states are different nations.
Something is happening. Something is really on the go, here. This is quite strange.
Who's going to accept executive orders from Berlin? Now it's the little cyprus, but do you see Beppe Grillo or Berlusconi accepting orders from Berlin?
Something is on the go.
where is beppe? this is right up his alley. this was that whole youtube that was going aroung...."the banks push a button...beep...and mexico goes bankrupt...and it could happen here tomorrow".
he is strangely silent
http://www.corriere.it/
They haven't elected a new gov yet. Nothing to do, ...yet
Do they have new elections? He should take out as much space as he can on Italian telivision and just play that video clip over and over.
Oh, no, no.
He refused to show up on TV during the campaign, so the media followed him.
He edicts via his blog.
If they don't agree on a new gov, they'll have new elections and if that happens Berlusconi is front runner.
Oh yeah that's right he is all internet. Well I hope he is capitalizing on this.
Two senators betrayed him and voted for the new senate leader, who is a famous anti mafia prosecutor. He had told them to vote blank.
What's the over / under that he is one of the Tylers?
Beppe: Told to STFU in harsh language.
"he is strangely silent"
Betcha he got a phone call (or maybe a visit even) in the middle of the nite last week- kinda like what happened to Ross Perot- where the situation was 'splained to him.
Didn't you hear....he changed his name to Beresovski and moved to London.
Putin has them over the barrel.
Isn't it possible that Frau Merkel would rather eat nails than give in to the Russians? Unfortunately for her, she has little choice.
:D
We can only speculate as news unfolds.
I still think it's all up to Barack Obama. Germany has no money to do any kind of bailout, I'd say.
Stick it to the americans.
As far as I know, Obama goes to sleep at 11pm every night, that's 5am CET in europe.
So, if no news until 11pm EST, then go to sleep. Nothing will happen until next day. Usually obama gets up at 9am and does nothing until 11am which 5pm in central europe.
Europians have to wait for his majesty the president of USA to finish breakfast.
Can I just eat my waffle?
This had already happened back in 2009!
Read more about the Lisbon treaty, EU = EUSSR
http://www.civitas.org.uk/eufacts/FSTREAT/TR6.htm
http://www.corbettreport.com/articles/20090821_lisbon_facts.htm
I don't see any news leaders like Grillo or hungarians or others to be elected, who would respect that treaty.
The thing with totallitarians, is that treaties are discarded as fast as they are signed.
It's even more outrageous than EOs, because it's an unelected Troika. The ECB, Eurogroup (finance ministers), and the IMF are a bunch of unelected bankers. They are doing this is in clear violation of sovereign laws and their own EU laws. And they know it, and they are liking it.
This is the equivalent of Ben Bernanke, FOMC, and Goldman Sachs bypassing the DC lackeys and making the Governors of Texas and Florida fly to DC to give them confiscation orders after freezing accounts.
When the FED needs confiscations to prop up JPM and GS, at least they have Obama to give it an EO stamp.
Bribes. People are finding ways around the Digital Curtain like they jumped the Berlin Wall.
Allowed are transfers of humanitarian aid, those are not received financial stability is at risk, and "special payments", which are not defined in detail. The unusually high outflows from Cyprus in recent days indicated but then, that the central bank in Nicosia control rather liberally interpret, some analysts suspected for payments.
Oh My! Is that what they call a "loophole"?
Very humanitarian to not have Russian mobsters paying you a little
house call. Nicht war?
Was there a housing bubble in Cyprus? I'm just asking because otherwise it would mean the money in the Cypriot Banks was loaned out to foreigners and there was no actual benefit to the Cypriot people who are now suffering a Bank collapse solely because of the Greed of their Bankers. Now that would really suck especially if YOU were a Cypriot Banker cause I know some Russians that want to talk to you.
I want to make one thing perfectly clear: I DO date online.
That is all for now...
Just like digital money, it is really convenient, but there is nothing like real thing (pussy or currency).
Avid Life Media...exposed to Cyprus bank woes!
"Just like digital money, it is really convenient, but there is nothing like real thing (pussy or currency)."
So, how do you rank....BitPussy?
Coming Soon?.. Online Dating Limited To 1 Date/Mo.
They can do anything they want, as long as they don't touch my online porn!
I mean, where else will I ever be able to see lesbian midget tranny orgies?
"I mean, where else will I ever be able to see lesbian midget tranny orgies?"
At the SEC archives?
Just announced (from Cyprus Sigma News Live):
Eurogroup meeting over for this evening to continue at 6am Brussels time tomorrow.
The beat goes on.
EDIT: announcement now denied. They will continue to meet tonight. Now having dinner.
You couldn't make this shit up.
6 am? Send up moar coke and fresh hookers.
Russian hookers on the way...
http://www.youtube.com/watch?v=OUEwAvWVaGQ
You can bet no one is putting money into them. Everyone can draw out (500) (260) 100 euros a day.
Damn...Gotta hope they don't read ZH in Cyprus huh? Goddamn if they only knew right? It's like the entire EU banking system would
Did they announce the Sunday night deal yet? It has to be soon so stocks can hit that all time high. Meanwhile...as long as Benny can print money out of thin air, It's all Bullshit!
So, there's a deal eventually. Yup, the sheep will leave their money in the banks? I don't think so. They're dead on arrival no matter what. The banks will be emptied.
What makes medium and low level bank employees comply with Govt?
If I'm a local Suntrust or Wells Fargo manager and my friends and family are calling,
I can obey "corporate headquarters" and have a job for a few more weeks, and
stiff my family and friends: People I will have to live with for the rest of my life.
Or, I can make sure that the people who make up
my community ---my firends and family---aren't led to financial slaughter.
What makes medium and low level bank employees comply with Govt? Exact same set of conditioned responses that kept the Nazi administrative and punitive system in place right up to the arrival of the Allies/Russians.
They should go to California...
http://www.youtube.com/watch?v=8dDhO4wS-0k
Special treatment for favored clients can be expected in a culture where thieves, liars and fraudsters dominate.
Oh lighten up everyone. Remember, "the meek shall inherit the earth."
So at least they get something, if not their money.
I as of today have 1.01 left in my bank account. Just enough to keep it open.
First bank opens in Cyprus:
https://twitter.com/cypnew/status/315960996487368704/photo/1
Sign does say 24 Hr. Banking
Devil is in the footnotes and I'm fairly certain I can see a tiny asterisk next to that sign: ' Per day, month or any other period of time at the discretion of the bank.
DOW just hit a new record high!!!!!!!!!!!1
i personally know several billionaires in cyrus and they are trying to withdraw all their billions from atm machines $260euro at a time. it may take awhile but they will probably get all their money out....../sarc
"i personally know several billionaires in cyrus"
Billy-Ray, or Miley?
" After all, even in a worst case scenario, there are GETCO algos doing the bidding of the BIS and literally bidding up the EURUSD to such levels as allow everyone to ignore the absolute terminal disaster that has happened in Europe in the past week." Well well, this has been goping on for soo long, that they surely cant stop now
muppet money..
DIRTY money....
If I had a few hundred million or more tied up in those banks, I would think it would be a trivial exercise to offer a few million and citizenship in, say, St. Kitts, to a few execs to make sure my money was moved. I would probably have set up this exit strategy long before now.
Such is the game with the whales. They operate by a different set of rules, many of which are made up along the way.
Is this fair? No, but nothing in life is fair.
This cuts directly to the heart of the matter of being prepared.
"Such is the game with the whales. They operate by a different set of rules, many of which are made up along the way."
Laws? We don neeed noo stinking laws! We transfer funds, play ring around the rosey, and our dark lord rothschild laughs all the way to ze fallink banks. La-la-la. Oui!
"Hung Tran, the First Deputy Managing Director of the IIF, told Phileleftheros newspaper in Nicosia that the decision to impose a haircut on Cypriot bank accounts was “a bad decision,” as it affected the guaranteed deposits of up to 100,000 euros."
"It violates the European Union directive and by doing so it undermines the sanctity of secured deposits. That is why I believe it was a bad decision,” he said, hoping that would not be extended to other countries."
IIF says Eurogroup decision violated EU law:
http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_24/03/2013_489633
I have zero cash in banks just to piss off the banksters!
+1000
A simple glance at this chart should compel everyone to get out.
Adjusted U.S. Monetary Base
http://research.stlouisfed.org/fred2/series/BASE/
Dear Hannibal:
That means you've spent it all into the general economy, thereby creating economic activity. Your Chairsatan thanks you! As a suggestion going forward, please consider investing some of your earnings in stocks,
Signed,
Benjamin S. Bernanke
With a hopelessly corrupt administration, congress, scotus and corporatocracy, ZEROING your bank balances may be the very best civilian response to entrenched corruption: VOTE with your in-bank or ATM WITHDRAWAL swipe.
Gandhi financial non-participation, spread worldwide. Depositors of the world disperse. What can the A**holes do?
Apologies if this was already asked, but is this where the extra 2 billion euros went that they now need added onto their bailout per this morning's story?
This strange outflow of money from Cyprus when the banks are supposedly locked shut is easy to understand when one realises that whatever law, rule, regulation that exists in any section of society in virtually any country does not apply equally to everyone. Meaning some are more equal than others. These are the ruling elites and those with contacts among the elites.
Different levels of equality is a rock solid founding principle of socialism, which we now live under.
New all time high for S&P & DOW....
Every short in the markets just got taken out, ...across everything, and of course Gold and Silver getting slaughtered at the same time. Looks like every Central Bank was give the script.
I like to think of myself as an idea man so here is my thinking on this. It has always been my contention that if the captain of the Titanic would have had the presence of mind to have the crew blow a bigger hole in the back of the boat the water would have run right through and all would have been fine, so in that same reasoning the capital outflows are just designed to make room for liquidity inflows that are about to happen, see? simple.
So for my other idea, take live tuna and feed them mayo and pickle relish, BINGO!
what you just showed us right there they don't
teach in schools, it is a gift I say. thanks
Hold on, these outflows are like the LBMA Unallocated gold accounts only in reverse...they don't exist.
Confused? you will be !
-> LBMA unallocated metal does not exist but they say it does exist.
-> Cyprus outflows do exist but they say they don't exist.
Because, George Papandreou isn’t the only one with a mother who has secret accounts outside of his official home country.
But don't worry, Larry Fink has it all under control.
Poor Cyprus hit a berg.
There will be no shortage of deposit envelopes at Cyprus ATMs, methinks
Ok. Money is secretly flowing OUT. Is money secretly flowing IN? Inquiring minds want to know.
Maybe this was the plan of the NWO scum bags all along, to force Cyprus to take a second bailout, which will require them to hand over recently found oil fields..