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The Cyprus Lie Changes Again: Capital Controls Will Be Present After All
In an unsurprisingly supportive tone for the ECB and the Eurogroup, Cypriot Central Bank governor Demetriades says:
- *DEMETRIADES SAYS SUPPORTED FIRST EUROGROUP PROPOSAL ON CYPRUS, and
- *DEMETRIADES SAYS ECB DOING ITS JOB RIGHT ON CYPRUS BANKS
But, it seems, in recognition that there are 'leaks' in their current capital control scheme, Demetriades has just admitted that:
- *DEMETRIADES SAYS CAPITAL CONTROLS TO BE SAME FOR ALL BANKS
- *DEMETRIADES SAYS CAN'T GO INTO MORE DETAILS ON CAPITAL CONTROLS
Not only that but he clarified that if the deal had not happened then ATM limits would be EUR30 per day not the current EUR100 per day. Now that all the Russian money is gone, the only question remains just how big the capital shortfall will be - earlier we learned that it will be at least EUR2.5-3 billion.
The EUR is not happy...
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Endgame => dead ahead.
All this bullish double speek is giving me what ones purple pills would give you
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What are they going to do when there is no more money left in those banks to control? Or will ATMs be modified to dispense coins to drag this out a bit longer??
They will be modified to eat 70% of all ATM cards.
Does anyone know behind which curtain the Wiz is? There are so many curtains now we're running out of dogs.
BREAKING NEWS:
Cyprus is escalating capital controls and will now determine how bank customers utilize their capital.
All your capitals belongs to us
A tin cup on every beggars corner
Nah. The reciept you normally get will have a value printed on it. You'll be instructed to use the receipt itself to buy groceries. No actual money will come out of the machine. Just the receipt.
Benanke and the rest of the money printers will have a fit when this happens, but hey, when the shit hits the fan, you gotta cut out the middleman.
Isn't money just a receipt with the value printed on it anyways?
I just hope Gerard Depardieu is still happy about his move.
I also worry about Kim Jong-un. With all this attention on Cyprus, he may be feeling left out.
I also worry about Kim Jong-un. With all this attention on Cyprus, he may be feeling left out.
So Yahoo bought Chumlee for 30Mil - does that mean Pawn Stars is toast (like I'd care)?
Reminds me of a bunch of criminals scrambling to get their stories straight before being questioned by detectives.
It doesn't make a lot of sense considering that they're outside the law.
But they still have to put in effort to make it look like they are formally below the law.
The Usual Suspects?
They employ and pay the law, lawyers, judges and military
But not outside with the people who will lose all their money in their country. Also not outside the reach of the bankers who may have been lied to to bail them out. This is becoming a farce.
@camaro68ss,
An erection?????
oh, wait, that's the blue pill, my mistake
And still no bank run in any of the PIIGS. I don't get it.
I've been saying that since this Cyprus crap all started.
Maybe it's all electronic bank runs...
Heh heh.. I think the real end game was linked in Frontrunning this morning.
And gee, I don’t know what those guys are going to want to use to stabilize their exchange rates, but I don’t think paper “claims” or “receipts” from the Fed or ECB will do.
BRICS Nations Plan New Bank to Bypass World Bank, IMF (BBG)
"BRICS Nations Plan New Bank to Bypass World Bank, IMF" ... Hey, we want to print too !!!
Hey did you ever stop to think there's no money for people to actually DO a bank run?
Run on Guns, ammo, drones, armored personnel carriers, physical Gold and an end run on Liberty here in the U.S.
How's that for a "run"?
I think Greece might have lost at least a few billion in deposits during last years "situation".
It's happening. They just aren't reporting it.
Most peop, uh, sheeple are visually oriented. Cant allow herd mentality to occur without controlled alternatives
OF COURSE the capital controls apply to every bank and every depositor.
Otherwise, capital just leaks from one bank to another, then out. Capital controls are to stop capital leaving the island.
What part of Argentine-style corralito did people not understand?
Argentina's corralito turned into a corralón (Big Gulp, to use a Bloomberg metaphor), and it LASTED A YEAR.
So far, all we've heard is the tip of the iceberg. The capital controls are a monster, and they're still writing them.
Daily Telegraph gave Nigel Farage an OpEd today and he used it to expand his off-the-cuff advice to a detailed set of instructions to any Brits with money in any southern European country - GET YOUR MONEY OUT NOW. Brits are very slow to panic and generally prefer to see an orderly queue before getting imvolved in a bank run, and we haven't had much practice, just one in 150 years (Northern Rock). Also there are many who worry that Farage is a bit of a stirrer and won't want to be seen to follow his advice. But its probable that a lot of online bank transfers are happening today. As a card-carrying member of UKIP I am meeting Farage soon at a constituency event - looking forward to it.
If you do please ask him how the rest of his banker friends are doing today. As an esteemed fellow of the corporation of the City of London anything that pisses him off in this respect must have been a good measure after all.
Go Diesel-Boom go!
Average Joe is a idiot... people just don't want to realize it because it would destroy their Nirvana...
Capital will probably flow out of the Eurozone slowly. There's no immediate threat to other banks, but of course large depositors will probably reduce and or move capital. I also think that some insured depositors will take action as well. For example if I had 50K in an EU bank, I would probably still think about moving some of it, despite being insured. Firstly the banks can shut for an extended period of time if things turn sour, and secondly we know that the EU, ECB and IMF all signed up to raid all accounts in Cyprus, even the insured. If it wasn't for Cyrpus voting that deal down it would have gone through. All in all it's a tremendous own goal for the EU and one that will be hard to undo. It's likely to make bank funding in the Eurozone even more difficult than it already was.
That's because there are probably honourable people left who feel that if they would do so , they would aid in ruining what is left.
They might be the same people keeping this whole ponzi sceme up , the ones who intend to pay back their debt and feel morally oblidged.
(They might not be very knowledgeable though...)
Do you REALLY believe there are no bank runds in the PIIGS......remember the fiat is now "digital" and make no mistake the digital run is going on with big depositors
People always will think that bad things won't happen to them.
Hope you are right, but I fear we are underestimating the psychology/ignorance of depositors here.
I can just see us all here in a month saying, "well I'll be damned, people are actually standing for this!".
NICOSIA (Reuters) - Thousands of students and hundreds of bank workers protested in the Cypriot capital Nicosia on Tuesday as banks stayed shut to stop a run on deposits after the island agreed a painful bailout to avert bankruptcy.
http://ca.finance.yahoo.com/news/cyprus-banks-remain-closed-avert-run-de...
I remember the zerohedge "riot-cams" during the Greek crisis and the talk of hanging "wanking bankers" in Ireland.
Then... nothing...
The only win for the little people I remember seeing was Iceland. They had three referendums where the people rejected bailing out foreign depositors. The third one had over 90% voting "no". The iceland government's response was "its meaningless". Then enough people showed up with torches to credibly threaten to burn govt buildings down and they relented.
It can be done. It just almost never is.
Its truly amazing what people will stand.
In America a lawyer/liar/politician can order you imprisoned or killed without evidence or trial. DHS is ordering billions of rounds of ammo while the criminals in government are trying to take away your Constitutional right to defend yourself using the excuse of an event less likely to happen than your being struck by lightening. The banksters are given a monopoly that has allowed them to steal 98% of the value of your money over the last 100 years. Elections are rigged. Young fools go off to 'defend the nation' not realizing those wars are a scam that only enrich and empower a very small group of insiders. In the meantime those 'defenders' will be used as pawns to destroy the very 'freedoms' & citizens they thought they were defending. Most of them don't know it, but they are the greatest threat to the country, not any 'terrorist'.
Say any of this to most Americans and you will be met with either knee jerk anger or a blank look of ignorant incomprehension. They have 'more important' things to do such as watch the latest spectator sport or propagandist sit-com on t.v.
No, its not very surprising what people will put up with if they have been trained long and hard.
"Endgame"
Does Putin ride back into town and calm down all those newly found EU-haters?
More slippery than a bag of eels
WHOA!!! Dude on Bloomberg just caught a fly with his tongue!! What the....???
Obama is pretty good with flies, too.
They should consider putting "bitchez" at the end of all official statements. It would be very fitting.
"ATM limits would be EUR30 per day not the current EUR100 per day.".... "Thank you sir may I have another"
"yea, and if there are any more slip-ups, folks might end up getting EUR-0, so please keep your money in our banks!"
(facepalm)
"Assume the position"
http://image.shutterstock.com/display_pic_with_logo/71008/71008,1223892097,2/stock-photo--dollar-bill-detail-of-this-note-is-legal-tender-for-all-debts-public-and-private-18813409.jpg
think about it...
In America, this could also mean you OWN DEBT instead of money.
The situation in America when capital controls hit will be quite different than in Europe. It's all already factored in...
All bank NOTES are the same. A NOTE OF INDEBTEDNESS.
Dumb & Dumber -- Empty Suitcase of Money
http://www.youtube.com/watch?v=7GSXbgfKFWg
The new app.. iOwn
Shows the debt clock and your share of it in realtime!
Oh my science, we are screwed.
ATM fee, EUR20.
30€ won't even fill up my gas tank. I wonder how the poor bastards are going to pay the rent on the first.
30 euros per day is still more than daily wages in China. It can get even worse
Where is Reggie?
It's time to drop the bomb....
let's just get this done n over with.
You mean, where's Reagan!
My fellow Americans, I'm pleased to tell you today that I've signed legislation that will outlaw Russia forever. We begin bombing in five minutes
There is no possible way they can not have capital controls. If they didn't the moment they opened the bank there would be a run that would bleed it dry.
Which is why that moment will never arrive.
I beg to differ, dear Doctor. I think one possibility, which I have not yet seen proposed, would be for the central bank to insist that Cypriot bankers are to wear clown noses when banks reopen, that should raise the level of confidence depositors now have, considerably.
New bumper Sticker
My other car ran over a banker
this precedent will set a new template of capital controls...oh, nevermind.
The death of fiat in the western world is accelerating exponentially. Do the BRICs have that commodity/gols-backed currency established yet? if not, all eCONomies are about to get considerable more "local".
I have a gold-backed currency. It's gold.
That's good because you can't really buy a quality pitchfork for 30 Euro.
A good molotov coctail:
1. Empty bottle : 10 Cents
2. Liter of diesel : 1,39 euro
3. cloth... : let's say another 5 cents.
4. THROWING ARM: FREE!!! QUALITY IMPROVES WITH PRACTICE!!
ps: If you want to go retro style, I propose you use a Wodka bottle
ps: Add sugar syrope and mix for improved effects
Found that CIA EOD manual, have you? :)
BELGIUM NOW HAS TERRIRISTS ON THE LOOSE
Not diesel ... jet fuel (kerosene).
Eats thru structural steel like lions devouring an antelope.
AS SEEN ON TV (9/11/2001).
more important is a gelling or binding agent so that the fuel "sticks" when the bottle breaks
btw kerosene and diesel are interchangeable
(and I don't play a terrorist on TV... yet)
I've read here on ZH that adding little bits of styrofoam also improve "performance".
5. match
not necessarily in that order
5. sub $1 Lighter (1000+ quality starts).
So this is how it works. They simply will restrict access to physical euros with permanent bank holiday ATM access scheme. Well heck then it seems Cyprus is well on its way to having a good reason to make/find a new currency.
Will they choose the right one? If I were Cypriot now I'd be wondering if 'getting out' is worse than staying in. Take my medicine now, or theirs forever.
Time will tell.
Perhaps 'this' is the Template we need to be looking at more carefully.
There will be nothing left. Mark my words....nothing.
Bullish for the US stock market.
That's now a tautology. 'P v ~P' is bullish for the US stock market.
My point is that it's become insanely ridiculous trying to figure any of this out. Nothing makes sense anymore. White is black and black is white... down is up and up is down. We live in bizarro world now.
I know, I was agreeing with you and trying to appear clever in doing so. I guess I failed :-[
My avatar? Its called Htrae, The Bizarro World
My Bizarro World avatar would be ThunderLips.
what can you do with 100 euros? What if you had 50,000 euros in the bank, and you were allowed to take out 100 euros a day, then it would only take you 500 days to get all your money out. Anyone who has more than 1000 euros is screwed, all the money will be gone after 10 days of the banks being open.
I am sure I read somewhere that the imposition of capital controls was effectively illegal under EU/EZ regulations and "offenders" would be kicked out
Or have they changed that rule as well?
The EU/EZ has rules?
If the Depositors were saving in physical gold and silver in their possession they would not be involved in this Banking problem.
If:
1) Their gold was not filled with tungsten
2) If they did not keep it in the banks' vaults
3) If they could leave the country with it
See it is not gold that you need, it is guns and use them. Sitting on your gold waiting for it to be taken away is just as an austrich attitude as keeping the money in fiat. German mark during Third Reich was not tied to gold, but it was strong, because its government was conducting economically sound policies.
30 euros a day ? hum cab to fast food or fast food ?
A silver philly/day keeps the sociopaths away
Cypriots in UK tell of despair at bank crisisLaiki customers blame EU, Germany and single currency as they face losing slice of savings
http://www.guardian.co.uk/world/2013/mar/25/cypriots-uk-despair-bank-crisis
Back at the community centre, where men of a certain age sat playing cards and drinking coffee, Ali was feeling less optimistic.
The 65-year-old Turkish Cypriot, who had returned to the UK from the island on Sunday, had seen the panic there first-hand.
"Everybody is hoping for something to happen but they don't know what," he said. "They are trying to decide whether to buy shoes for their children or to spend the money on food and drink."
Unless that something – whatever it might be – happened soon, Ali added, he foresaw strike after strike after strike.
"Everyone is in the middle," he said. "They don't want to go into the sea because they might drown, but they don't want to go into the forest because it's burning."
---
Well, at least the new EUR30/day limit will alleviate the stress of deciding between shoes for the children or food and drink at the EUR100/day controls. No question about it... it's all about the food. Gotta look at the positive.
/sarc
: "England, America and fucking Germany," he said. "I blame America – that's where all the trouble started."
Americans will be targeted all around the world. We used to be loved; now we are hated.
It seems like self-reflection isn´t one of the Cypriots strongpoints so I wouldn´t bother too much about it.
Look at the spreads in bonds. This shit show is beyond pathetic.
Germany 10-Year • 1.340 1.339 1.368 1.337 0.002 0.07% 16:09:45
Spain 10-Year • 4.943 4.937 4.955 4.892 0.005 0.12% 16:09:27
Italy 10-Year • 4.587 4.584 4.591 4.516 0.003 0.07% 16:09:37
Well, Tyler, out of 70 EUR bln in deposits nation-wide, about 20 bln were in USDs, that were presumably 99% foreign money, so you could write that off - nearly 30% outflow.
Need help setting up a Cyprus offshore a count?
This guy can help:
http://privateinternationalbanker.blogspot.ca/2009/11/cyprus-offshore-ba...
Panicos Demetriades to be exact.
whole europe sound a bit like "no", i mean "yes" but no, wait indeed yes, erm let me think
STOP ASKING QUESTIONS !
Read this Reuters story and the comments - they are really working to keep a lid on this...
http://www.reuters.com/article/2013/03/26/us-markets-forex-idUSBRE92E111...
All 3 comments?
Who has time for that?
I am watching survivor on DVR
Makes FastMoney look like SlugMoney
Thus begins the Next Phase, having limited the amount of money a Prole can have and controlling the production of Goods and Services ("Hey, Ireland, your Corporate Tax Rate is about to be EQUALIZED!!!"). The next Step is simply this:
CONFISCATION OF PRIVATE OWNERSHIP OF GOLD.
Feudalism 2.
CW
Sorry bro. They are taking all your paper money, your stocks and your bonds. What they don't take they will make worthless. They cannot find anyone's gold. That is a point of owning it.
There is no place else to go but gold.
This is the start of the final collapse. They heaped all of their hopes on the back of the Central Bank printing donkey. Then they shot the fucking donkey. Its over folks. No one is staying in the banking system. Every story you hear about "no bank runs yet", is just more evidence of the collapse ramping up.
You'd best get gold in your own hands.
"Mr. Demetriades, a Russian gentleman is waiting to see you, may I send him in?
The next travel best-seller: Cyprus on EUR30 a day ...
When he says for ALL banks what does he mean?
They may be nitwits or this may be an orchestrated fire drill.
For one thing I find it hard to believe that a bank does not realize that billions are being withdrawn in the space of days. Sounds like capital is more controlled for some. And the eurocrats are not howling so are they simply embarassed or was this part of the template? Germany is being rewarded with lower rates and maybe the market is safer place to launder your money¿ Seems like money is being herded.
If I was a Russian that walked into the local branch that was still open transferred all my money out while the inept "elites" bicker over what they were going to do and preannounced that they were going to rip people off one way or another, I would be watching the tv sipping a nice cognac smoking a Cuban and laughing my ass off. Though they should probably be thankful they were able to get their money out since now there will probably not be too many cars randomly blowing up.
'DEMETRIADES SAYS SUPPORTED FIRST EUROGROUP PROPOSAL ON CYPRUS'
which first one?
the one the ecb et al originally proposed with 15% on the over 100k crowd and funding for the banks?
or:
the second first one, in which the pres of cyp insisted on a 10% cap on the over 100k crowd, 6+% on the insured under 100k, and funding for the banks?
that is the one the pres delivered to the cyp parliament voted on. deafeted by the majority with 19 abstentions from the pres of cyp's party.
then, in the same session, the vote on the bank resolution proposal passed, taking away the opportunity for the parliament to vote on the final solution that then needed no further approval on the bank resolution aspect. snuck through perhaps in the heat of the moment? not mentioned in msm or even fringe blogs at the time 'cause nobody bothered, noticed, or volunteered an explanation. hence, the 'can't vote on it' bombshell.
my guess is the second first one. the one that traded 5 points on the over 100k crowd so that the unisured under 100k crowd could 'participate'.
just askin so as to keep these things straight in my head.
timelines are such a pain in the....
analysis.
"In an unsurprisingly supportive tone for the ECB and the Eurogroup"
yeah, right. it was the ecb et al's proposal. not. the ecb et al did in no way want the insured under 100k to be part of the levy/confiscation. doubt that?
check the ecb et al final deal. no under 100k levy/confiscation. in the pudding proof is.
the fascinating question is, of course, why did the pres of cyp ran the risk on losing the funding for the banks? did he think he could 'deliver'.
listen to the 'live webcast'. especially 34:30 ish for a bit and 59:50 ish. for answers.
also:
http://www.bloomberg.com/news/2013-03-16/anastasiades-seeks-cyprus-parli...
http://www.bloomberg.com/news/2013-03-17/cyprus-parliament-to-vote-on-de...
my 'best' and final guess now is that the pres knew he did not have the votes for a 15% on the over, and tried to set up enough of a coalition by spreading the deal out, so as to save the banks. that would preserves the integrity of the presidency and the individual, albeit not the popularity of the individual. and save the country of cyprus...at least for a while longer.
(a grand secret scheme between germany and the pres of cyp to bust the eu while saving the banks by busting the guarantee? gone wrong when he couldn't deliver?
bizaroo?
yes. even for me.
but have fun with it folks: http://www.bloomberg.com/news/2013-02-24/cyprus-picks-anastasiades-as-pr... :)
)