• Monetary Metals
    05/02/2016 - 01:28
    The price of gold shot up this week, and silver moved proportionally. Headlines are screaming for gold to hit $10,000 or $50,000. Does this alleged new bull market have legs?

Caught In The Cyprus Crossfire: Small Businesses Suddenly With Zero Cash

Tyler Durden's picture




 

One of the prevailing false conventional wisdoms about the Cypriot cash confiscation is that it primarily affected rich, tax-evading individuals of Russian origin. Alas, those same individuals are likely to have been least affected, as subsequent discoveries of capital control breaches by the "richest and best connected" reveal, while increasingly it appears that the uninsured depositors on whose back the nation of Cyprus was bailed out are small and medium corporations, who had been parking cash for net working capital purposes with Cyprus' banks, cash which is now gone forever to feed the creeping insolvent Euro-monster, and which can't be used to fund such day to day business activities as payroll, purchases, and business operations.

Such as this one:

The most of circulating assets on our business Current Account are blocked.

 

Over 700k of expropriated money will be used to repay country's debt. Probably we will get back about 20% of this amount in 6-7 years.

 

I'm not Russian oligarch, but just European medium size IT business. Thousands of other companies around Cyprus have the same situation.

 

The business is definitely ruined, all Cypriot workers to be fired.

 

We are moving to small Caribbean country where authorities have more respect to people's assets. Also we are thinking about using Bitcoin to pay wages and for payments between our partners.

 

Special thanks to:

 

- Jeroen Dijsselbloem
- Angela Merkel
- Manuel Barroso
- the rest of officials of "European Comission"

 

So while Cypriots may have been quite cool and collected during yesterday's bank reopening when the Troika was kind enough to give them access to €300 of their cash per day, one wonders just how cool and collected they will be when the implications of the cash crunch spread through the system, when hundreds of small and medium business are forced to lay everyone off overnight, when paychecks suddenly stop and when not only savings but ongoing cash grinds to a halt.

Because if the locals thought the deposit haircut is the worst of it, just wait until the full brunt of what a -20% depressionary collapse in the economy hits them head on.

h/t Manuel

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Fri, 03/29/2013 - 08:12 | 3388088 firstdivision
firstdivision's picture

At least they doen't have margin calls like those that were long Corn, Wheat, and Soybeans yesterday.

Fri, 03/29/2013 - 08:13 | 3388094 GetZeeGold
GetZeeGold's picture

 

 

Who needs food?

Fri, 03/29/2013 - 08:17 | 3388101 dogbreath
dogbreath's picture

whats up with gold??      http://www.kitco.com/charts/livegold.html

Fri, 03/29/2013 - 08:19 | 3388105 Zer0head
Zer0head's picture

TD check out e-receps comment on Canada bank bail in proposal

http://www.zerohedge.com/news/2013-03-29/senior-sac-trader-arrested-give...

Fri, 03/29/2013 - 08:49 | 3388181 BurningFuld
BurningFuld's picture

Cyprus: This is a test of the emergency confiscation system. This is only a test. If this were an actual confiscation....you would be FUCKED!

Fri, 03/29/2013 - 09:01 | 3388194 BaBaBouy
BaBaBouy's picture

GOLD ETF ???

FED Vault ???

FT Knox ???

 

What Happens When Everyone Wants Their GOLD In Hand ???

Fri, 03/29/2013 - 09:07 | 3388201 GetZeeGold
GetZeeGold's picture

 

 

Looks like it's dead.

 

Dammit Jim.....I'm a doctor, not a PM miracle worker.

 

Get it fixed Scotty.....we need to warp out of here mucho pronto.

Fri, 03/29/2013 - 10:16 | 3388377 Fukushima Sam
Fukushima Sam's picture

I'm sure everything is just fine over at Cyprus.

Fri, 03/29/2013 - 10:22 | 3388396 CrazyCooter
CrazyCooter's picture

What I learned from this whole thread? According to Wiki, Alaska is a tax haven!

Seriously though, these idiots in Brussels had to know this was going to be the outcome, right? I mean, they can't be that stupid, right?

I still waffle between distilled incompetence and malice. The history books on this episode are going to be fascinating.

Regards,

Cooter

Fri, 03/29/2013 - 10:38 | 3388432 kaiserhoff
kaiserhoff's picture

We're all crazy now, Cooter, because everything we thought we knew ain't working.

I don't think they are that stupid, but maybe that exhausted and desperate.  No two "bail-outs" are the same.  Not one of them makes any sense, or looks at the underlying problems.

Not sure it matters now whether it's incompetence or conspiracy.  There is clearly plenty of both.  Let's look ahead.

If the bank runs spread -  they surely will...

And/or another country or two has it's citizens savings raped - another sure thing...

The mother of all depressions will hit us hard, as everyone starts to follow the lead of ZH.  Silver uber alles.

Fri, 03/29/2013 - 11:42 | 3388566 redpill
redpill's picture

Cyprus is a mortally wounded soldier that has been deliberately given an overdose of morphine so he might have a few moments of comfort and lucidity before the inevitable conclusion. As the Cypriot economy implodes, it will become far worse than worries over daily ATM withdrawal limits.

Fri, 03/29/2013 - 10:44 | 3388449 DeadFred
DeadFred's picture

They're not stupid. The possibilities I see are:

1 They see the inside data and know things are so screwed up that Cyprus is small potatoes compared with that which cometh.

2. Someone (Germany?) has a vested interest in shaking the house. I tend toward number two that Germany is out to reorg the EU and put themselves in as CEO. Don't get your hopes up about the history books though. If they can tame the whole MSM news feed they can control the history books. If the system doesn't break we will keep being fed our steady diet of manure.

Fri, 03/29/2013 - 11:53 | 3388584 NotApplicable
NotApplicable's picture

As was known long, long ago.

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. -- Ludwig von Mises

Fri, 03/29/2013 - 11:16 | 3388516 flacon
flacon's picture

The victor always gets to write the History book. 

Fri, 03/29/2013 - 11:28 | 3388535 The Big Ching-aso
The Big Ching-aso's picture

If you want a picture of the future imagine a central banker's boot stamping on a small business owner's face forever.     It's almost Orwellian. 

Fri, 03/29/2013 - 13:01 | 3388734 palmereldritch
palmereldritch's picture

and hold the cheque book

Fri, 03/29/2013 - 11:26 | 3388536 LostAtSea
LostAtSea's picture

Intentional malice.  Those crazy NWO conspiracies are looking more and more plausible.

Fri, 03/29/2013 - 12:21 | 3388638 The Big Ching-aso
The Big Ching-aso's picture

I'm starting to see a trend here.   The smaller the country and the greater its resources the more likely it'll be phucked first and phucked hard.      Switzerland however is the exception.    It may be small but they're very rich in lead deposits.

Fri, 03/29/2013 - 13:05 | 3388749 palmereldritch
palmereldritch's picture

not to mention the headquarters of the BIS...making it the ultimate looter's redoubt

Fri, 03/29/2013 - 12:58 | 3388723 AGuy
AGuy's picture

" these idiots in Brussels had to know this was going to be the outcome, right? I mean, they can't be that stupid, right?"

LOL! Never underestimate the power of stupidity!

 

 

Fri, 03/29/2013 - 09:06 | 3388209 natronic
natronic's picture

Mine IS in my hand, others will have pretty pieces of paper

Fri, 03/29/2013 - 11:10 | 3388504 bank guy in Brussels
bank guy in Brussels's picture

Paper money like this ... A picture of the new, very special Cypriot euro currency note ... The Zero Euro

http://3.bp.blogspot.com/-fJMOrVZR-SY/UVNJFKkdKWI/AAAAAAAAJ-U/Bx_OD_nLDa...

Fri, 03/29/2013 - 12:22 | 3388642 The Big Ching-aso
The Big Ching-aso's picture

If George Orwell were alive today he'd have the sequel to 1984 already written for him.

Fri, 03/29/2013 - 09:42 | 3388280 Groundhog Day
Groundhog Day's picture

What happens when everyone wants their gold in hand??

They get Hollow points...all they want

Fri, 03/29/2013 - 10:15 | 3388375 Karlus
Karlus's picture

So, dumb question here. What if you put some big time money NOW into a Cyprus based bank?

Is it an ongoing haircut? Or did it happen on a date and after its cool? What if you combine some bank accounts and they go over the threshold, do you get funds held?

Or would you be able to snap up assets on the cheap while "saving" a few businesses with your hot capital injection?

Fri, 03/29/2013 - 11:19 | 3388520 dark pools of soros
dark pools of soros's picture

you'd probably just get shot

Fri, 03/29/2013 - 11:28 | 3388538 SokPOTUS
SokPOTUS's picture

You'd have to be INSANE to make a deposit now of any amount.

Fri, 03/29/2013 - 13:09 | 3388770 dogbreath
dogbreath's picture

Weather you were doind a wire transfer of depositing directly with a teller, there would be a spasmodic fit of uncontrolled laughter. The teller might tell you  to your face "are you crazy" 

Fri, 03/29/2013 - 13:25 | 3388820 Clycntct
Clycntct's picture

Correction "You are Crazy"

Fri, 03/29/2013 - 08:48 | 3388179 idea_hamster
idea_hamster's picture

I wonder what that "Lower Your Costs" link at the bottom of Laiki's web site leads to -- a passport agency?  Singpore citizenship application?  Suicide advice?

Fri, 03/29/2013 - 09:41 | 3388277 Opinionated Ass
Opinionated Ass's picture

Yup, this guy fucked up. Forgot to set his "Banking Alerts" to Your money will be stolen in 7 days like the savy Russian oligarchs did.

Fri, 03/29/2013 - 10:55 | 3388480 kaiserhoff
kaiserhoff's picture

So.....

You steal the working capital from every small business..., on an island for god sake..., and the whole place implodes.

Whocouldanode?

Fri, 03/29/2013 - 11:56 | 3388590 Matt
Matt's picture

It is amazing that people are still so in the dark over this. He:

1) states that the money was taken to pay off Cyprus (State debt) when it is instead simply an amount that was lost due to the bank making bad investments.

2) he thinks that putting his money in a small caribbean island will somehow make him safe, since they "respect property", not understanding this problem is universal.

Sounds like he is lining himself up to get burnt a second time.

Fri, 03/29/2013 - 08:20 | 3388107 Going Loco
Going Loco's picture

Must be Kitco. Silver apparently opened in Hong Kong at 03:00 EST, crashed 50c, then closed immediately. Weird, but I doubt it means anything. http://www.kitco.com/charts/livesilver.html

Fri, 03/29/2013 - 09:01 | 3388197 JOYFUL
JOYFUL's picture

My usual price-check site goldprice.org has been showing 'markets closed' for the last twelve hours...first time it's ever been down since I started using it. Coincident with the weird business at Kitco, the SD report and going into a long weekend...this is starting to look very weird....

and quite possibly a sign that they've lost control in the paper markets.

Mass bank holiday preparation for Easter Weekend? Gold over 1900 when\if markets re-open?

Fri, 03/29/2013 - 10:11 | 3388356 Gief Gold Plox
Gief Gold Plox's picture

Most markets are closed today. EU banks are open but most will not settle transactions till Monday morning.

Fri, 03/29/2013 - 10:13 | 3388368 Sandmann
Sandmann's picture

Really ? news to me. Most Banks are CLOSED on Good Friday and Monday as in the UK

Fri, 03/29/2013 - 17:13 | 3389525 Gief Gold Plox
Gief Gold Plox's picture

Damn, pardon me! Tuesday mornin'

Fri, 03/29/2013 - 10:13 | 3388369 Sandmann
Sandmann's picture

Really ? news to me. Most Banks are CLOSED on Good Friday and Monday as in the UK

Fri, 03/29/2013 - 10:21 | 3388393 e-recep
e-recep's picture

i have been watching the gold price for some time now and i have never seen such a thing before. it goes flat with lots of random spikes? wtf?

Fri, 03/29/2013 - 10:31 | 3388413 JOYFUL
JOYFUL's picture

Combine that with the experience of last week (8 days lockdown) and the fix is in e-cep ...

time to pull the cord methinks....we've been warned.

Fri, 03/29/2013 - 10:58 | 3388486 seek
seek's picture

Goldprice.org is also misreporting the change -- it's saying the price is down $53 in a day, and that's nowhere near the actual (smaller) decline.

Someone upstream on the quotes must be sending out bad data.

Fri, 03/29/2013 - 08:25 | 3388121 Dooud
Dooud's picture

Nothing to see here, gold is NOT manipulated in any way. Those truncated spikes are a totally random, free market occurrence.

Fri, 03/29/2013 - 10:13 | 3388296 Chupacabra-322
Chupacabra-322's picture

To Crush small business and secure the worlds resources via a Military Junta/Chicago School of Economics was always the intent among The Global Criminal Cabal (Bankster/Intelligence) Crime Syndicate.

I believe it was Criminal Rockefeller who said and envisioned a type of "Super Capitalism Mixed with Communism."  I'm just Paraphrasing a quote. 

Fri, 03/29/2013 - 11:20 | 3388522 dark pools of soros
dark pools of soros's picture

bitcoin hitting $100...... 

Fri, 03/29/2013 - 12:46 | 3388689 seek
seek's picture

And interestingly enough, MtGox faces a massive DDOS as this happens -- there's been rotating DDOS attacks on many bitcoin related sites over the past month, and no one knows who's driving them. My guess is it's some aspect of TPTB building a contingency capability.

There was also an exchange hack in Brazil, but that was probably just hackers looking for easy cash.

(Tip, don't store your coins in exchanges, people!)

Fri, 03/29/2013 - 16:13 | 3389319 ncdirtdigger
ncdirtdigger's picture

Yes, but you can't eat a bitcoin.......can you?

Mon, 04/01/2013 - 11:18 | 3395919 Faust82
Faust82's picture

Not more or less so than you can eat a dollar or gold bullion.

You can backup, securely store, freely and anonymously transfer a bitcoin though.

Fri, 03/29/2013 - 11:58 | 3388540 misitu
misitu's picture

<---- feeds disconnected to hide start of price spike/crash

<---- feeds disconnected in order to "edit" attached descriptive data

M

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