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Caught In The Cyprus Crossfire: Small Businesses Suddenly With Zero Cash
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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Your absolutely right Bruce, but heaven forbid you paint with broad brush stokes on this site.....
You probably already know that though...
Perhaps the ECB has more respect for their 'currency' By not printing obscene of amounts of money, digital or otherwise to bailout insolvent institiutions
Bruce,
The only people receiving haircuts should have been the "stake holders" in the failed banks. That includes the ECB. Not one person outside laiki should have been affected by this theft. They had to steal other peoples money because the ECB would not agree to a haircut for itself.
earnyermoney,
When you deposit money in a bank, you are providing the bank with a busness loan. You are investing in the bank. You are a creditor, just like a bond holder. It's no longer your money.
They invested in a crap bank which failed.
Americans cannot understand europe yet.
In Europe there is a BLIND FAITH that the government is LITERALLY there to help.
Now, let me re-phrase that: In europe there WAS a blind faith that the government is literally there to help.
People in north america are not understanding yet the full scale of what has happened.
This is a tremendous shock. Small Businesses and people just learned that the government is there to ..........STEAL.
It takes time to sink in, but it is sinking in.
Strictly finance-wise speaking, this is the 9/11 of finance in Europe. The shock is so humongous, that people's sub-consciousness cannot face it, hence it is simply hiding in somewhere inside the souls.
It's not just Europe. I posted some info about Canada's new budget including provisions for a Cyprus style bail in on a web site frequented by some fairly savvy investors. The response was things like "don't go full retard" and basically, "things like that don't happen in Canada" "you are over reacting" "you are a tinfoil nut" etc. One said the world economy cannot collapse, apparently unaware of Iceland, Ireland, Greece, and Cyprus.
Everything is PRE-PLANNED and thought out in advance.
The only issue is that the outcome usually does NOT follow the plan.
ekm you need to get a tv asap. Everytime I turn mine on they blast me with news that Cyprus was a one off. It is the size of Bangor Maine or something and their banking system is 700x their economy. So you see ekm....this was just an isolated incident, and their citizens are better off for it having happened.
That is what I see and that is what everyone else sees. That is why money is not scrambling anywhere significant. When it happens in Italy that will be a much bigger deal, although Italy is only the size of Italy and therefore nothing like that could ever happen in the US.
Oversized sarcasm :)
I must store it overnight and it just comes flying out in the morning.
Toss the TV set out. Go and play with daughter.
You will not regret it.
Had this conversation with my mother yesterday, she's a Socialist. All outraged that the Russians got their money out. I said "It's their money" she had no reply. Then I explained how Canada's banks had received bailouts in 2008, she refused to believe me. I told her CIBC and RBC between them had re-hypothecated some $120B of client funds, she said it was just a word I made up. lol.
Your mother must be related to my mother.
LOL
You are generally totally correct.
But keep in mind the US is only a little behind and catching up fast in that belief you mentioned.
And we had our own share of maybe slightly smaller financial 9/11s here:
- GM debt restructuring
- Robosigning, and its AG "resolution"
- MF Global
dupe
720K is hardly a nut for a mid-sized firm. A firm with working cap that small is a small firm and likely their finance person is an accountant.
Please do not look at it under the US point of view.
Small Firm in USA would mean 500 employees.
Small firm her in Canada would mean 50 employees. In canada, 500 employees is a Mid-size Firm.
In Cyprus I would think 500 employees is a large firm, in its effect on the local economy.
Electricity Authority Of Cyprus employs 2500
I'd say it's quite a large firm for a tiny country
Scarier by the day.
What lessons are to be learned from Cyprus? For all us looking from the outside, that may be the most important thing to carry away and adjust your life accordingly.
"creeping insolvent Euro-monster"
Uh that be the Goldman Sach
Bitcoin will be the way governments force people to go electronic.
I don't know any dirt farmers that are willing to take that crap. Maybe some slickster in NYC will take it....but no one I know of in flyover country is going to go for it.
Remember the Romans debauched their currency as well at the end of their empire. The PTB will create such mayhem that no currency will be trusted. That's why I say bitcoin (or similar electronic currency) will be like falling into the lap of the enemy.
Digital dollars are the next $Zim.
They'll do it if Monsanto and ADM tell them to or their crop insurance pays that way.
Yeah, Monsanto and ADM and the crops incorporating neonicotinoids. Loss of 50% of the bee colonies this past winter. High priced fruites and veggies coming to a store near you.
What about MF Global? Thousands of farmers who hedged their crops got taken to the cleaners. Corzine is still at large and no one has been torn in half between 2 tractors or had his head blown off by a duck gun.
commenter paper crusher (http://www.zerohedge.com/news/2013-03-27/quote-day#comment-3381328 ) proposed the other day this type of treatment for those who corzine customer funds (ffwd to 02:59):
http://www.liveleak.com/view?i=94f_1343002966&comments=1
and i approve that message
Lots of people have missed that MFG clients will get 90% of their money back. JPM released funds a week ago.
Look I hate the Fed and Corzine and JPM as much as anybody, but let's keep the facts straight.
http://online.wsj.com/article/SB1000087239639044368750457756313113275207...
Taxes on small entities, businesses are nothing more than protectionist mechanisms enforced by governments, who are backed by multinational corporations, that want to eliminate competition.
This goes for countries as well. Germany is crushing these economies via austerity and confiscation of deposits because it wants cheap exports. Cheap exports helps prop up their GDP, as well as keep labor costs low relative to their cost of living.
In short: they are exporting the inflation of the "German Euro" towards other (south) Euro currencies (and the inflation is represented by capital controls and depositor access to their funds).
And yes, that DOES look familiar to a certain country I live in.
"All your euros are belong to us"
http://i.imgur.com/bkVeYKp.jpg
You won’t hear these stories on the MSM channels. Their field crews are too busy looking for the one moron in Cyprus who is still making deposits to his account so they can feed him a line of bullshit for a mock upbeat interview during prime time about his hope for Cyprus in the future, followed by an advertisement from Blackrock of course.
In other CNBS news, parishioners at the Cavalry Church outside of Detroit claim they have found a shroud in their catacombs with stains portraying images of Michael Jackson buying stocks.
We need DNA tests on those stains!
S just got real. Cyprus will be the Cuba of the Mediterranean in a matter of month. Visitors will have to carry all the cash they intend to spend.
Hopefully this will be supplemented with a nice Easter cake from Cyprus to each "helper" -- made from semtex, of course.
"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."
good question.
given:
"The curbs on access to cash are designed to prevent a run on deposits after Anastasiades forged an agreement with the euro area on a financial rescue that is being funded in part by those with deposits of more than 100,000 euros in the nation’s two largest banks."
http://www.bloomberg.com/news/2013-03-28/cypriot-bank-controls-curb-capi...
and that all cypriots new that deposits were were at jeopardy,
it may be that a much larger % of everyday folk and small to medium sized businesses moved their money to banks other than the two biggest ones that needed the funding..
the bigger the business, it seems, the more likely they understood the risks long ago and left the big two, but not necessarily the country.
given the calm so far, it is reasonable to suggest the impact may have been mitigated by the foresight of the cypriot people..
but, the story headlines that are to come may well center around leverage within those two banks and how the amount of more money will be needed to cover those levered losses so as to keep the real contagion (bank insolvency) from crossing boundaries and exponentially growing.
oh by the way....looking at the picture....
i guess i don't undertand "LAST TRANSACTION DATE"
it's a bitcoin sourced graph.
so....anybody?
thanks in advanced
Contradictory statements:
Yesterday it's "this will be the new way to solve crisis"
Today it's "this situation is contained".
Canada discusses bailins, yet this situation is 'unlikely'.
And of course in the US.........It's all about the children! You'll get the contradictory statement after you give the criminals your guns.
Our finance minister, Jim Flaherty was attacked last week for presenting a budget that has .....no breakdown number. Economists and journalist do not understand what the budget is about.
He said on the radio something like this: Here in Canda we have to be prepared. History has shown that financial shocks happen rarely but they do happen.
My conclusion: Preparations for a pre-planned collapse like the pre-planned one for Lehman are under way.
The budget document mentions the establishement of "bail-in" procedures on page 155.
The IMF published a paper in April of 2012 called Bail-out to Bail-in: Mandatory Debt Restructuring of Systemic Financial Institutions.
Mark Carney mentioned the use of bail-ins in a speech in Nov.2012.
This has been in the works for a year.
Absolutely agree.
Thanks.
Mr. Carney said cross-border agreements among national regulators on how to handle the bankruptcy of an international bank may need improvement. He also said authorities should clearly identify the securities that banks would “bail-in” in the event of a collapse, rather than relying on a “bailout” from governments
http://www.theglobeandmail.com/report-on-business/economy/banks-that-are-too-big-to-fail-still-a-threat-carney/article5097436/
Hah......
"Uncertainty over the country’s financial sector is driving bearish bets on exchange-traded funds with significant exposure to stocks listed in Cyprus.
“Cyprus is a very, very dangerous place,” said Oliver Pursche, Gary Goldberg Financial Services President. “If Cyprus becomes a template like some are suggesting and you’re a wealthy individual that’s got a lot of money in the banks, you’re going to pull it out. This type of run on the bank is very dangerous, especially for feeble and weak banks.”
Russia’s exposure to the banking crisis sent shares of the Market Vectors Russia ETF (RSX) into the red. According to a recent tally by the central bank, Russians are believed to account for the majority of the 19 billion euros of foreign money held in Cypriot banks.
The RSX, the largest Russia ETF by assets, is down nearly 5% over the past week and 7.6% since the beginning of the year as investors pulled more than $259.46 million from the fund according to Index Universe.''
"And Russian ETFs are not the only funds suffering from trouble in Cyprus. Shares of the Global X FTSE Greece 20 ETF (GREK), an exchange-traded fund that tracks 20 companies on the Athens Stock Exchange, fell more than 15% over the past two weeks."
http://www.foxbusiness.com/markets/2013/03/29/crisis-in-cyprus-hits-etfs/
significant exposure to stocks listed in cyprus?
you mean dual listings on the athens and nicosia boards?
(i dont think cyprus has a stock market)
this from yesterday (good luck with any of th links on the left hand side of the web page..nobody is updating/preparing any data)
http://oam.cse.com.cy/Announcement/announcementvariation/3511
if a stock market is shut, did it make a noise?
http://oam.cse.com.cy/Announcement/announcementvariation/3507
A paper published by the Federal Reserve in 1941 used this example of the effect on small business as to why a tax on deposits was deleterious and counter-productive.
It was mentioned in an article on Bloomberg but the article disappeared before I could track down the actual paper.
http://fraser.stlouisfed.org/docs/publications/FRB/1940s/frb_111941.pdf
Page 31.
There was no tax. The business invested in the wrong bank.
Most small to medium size businesses could easily have 100K in a single checking or savings account, which buys product, pays customers, etc., and would be wiped out. This will be great for their economy.
I wonder if any of Cyprus' local goverment authorities or similar organisations have accounts with Bank of Cyprus or Laiki?
Or the airport operator?
Or hotels used by the tourist trade?
Could well be that all the air-traffic controllers, police, hotel cleaners & bus drivers don't get paid next week either...
and the tax department..i guess that wont get a haircut..
tell you what i am really surprised that aggrieved russians didnt take out all those G4S security vans.
a few billion being transported by some quack outfit? you couldn't make this shit up..well unless you are driving 50 billion dollars from the fed to the new york port then transporting it to Baghdad with zro security before giving it away to the officers of US army to light cigars with.
How to pronounce Dijsselbloem:
http://www.youtube.com/watch?v=wgVdY4AmNgs&feature=youtube_gdata_player
Good humor
Government should provide a stable climate for commerce and employment. Governments now are nothing more than organized crime syndicates that lie, steal and murder. Gangsters and thieves. It is this loss of "faith" that will usher in anarchy & chaos. No wonder they are arming themselves to the teeth here in the U.S. The people are moving towards the place where they collectively withdraw their consent to be governed by these fucking monsters.
Soon to be released - a book by A.M. and Mr . Boom
"How to Destroy a Nation in Less thsn 10 Days - Without Firing a Shot"
Available at Amazon.com this Spring. Ships anywhere in the world from the Caribbean for just $500.00 USD shipping.
[comment moved]
I come to a few conclusions here.
1) What is occuring is a complete lock of capital in Cyprus.
2) This will completely kill the Cypus economy.
3) People will be forced to leave (if you can't do business or get necessities, your only choice is to get out somehow)
4) This appears to be timed precisely with beginning of spring. Imagine if they did this at the beginning of winter?! It buys time before the shit really hits the fan.
Results
1) Depression will hit hard, fast and be completely UNavoidable now.
5) Prices on Cypriot real estate/assets will drop like a rock.
6) Mass exodus not of whatever free capital there is but people and whatever they can carry with them across the borders.
7) If (6) is not allowed to occur protests turning violent.
One can only surmise WHY the ECB, IMF etc. would think that gutting Cyprus is a good thing. Surely someone who still has firing neurons could have done a scenario analysis and came up with something better. Surely at least one Cypriot politician can see the writing on the wall here. Basically what is being said to Cyprus is that your bankrupt and we (the IMF, ECB, etc.) are ceasing all assets and closing them down. The reaction immediately should have been to tell the IMF and ECB to go f' themselves and to bring back the previous Cyprus currency. It would have caused a lot of pain, but better some pain starting in summer than violent riots and worse pain starting next winter with no sign of relief.
There is absolutely NO way Cyprus is going to pay one Euro back of debt EVER in the current situation, and someone is going to be able to swoop in and buy the entire country of Cyprus for a fricken song.
Want to bet who is licking their chops to buy Cyprus? I'd put money down the Russians would be happy as hell to take over Cyprus as a newly acquired state.
This is a huge mistake of the ECB, IMF, etc. Literally as others have put out another 9/11 event where the whole damn country is being completely destroyed by the equivalent of a financial nuke. Not one country is standing up for Cyprus, let alone individuals. This story should be shouted from the mountain tops, on every fricken television 24/7, reporters on the ground asking Cypriots what they are going to do if 3/4 of all businesses fire all employees, close up shop, and move on? Ask citizens and small business owners in other countries what 'they' would do if faced with the same situation? Ask them if they are concerned that what is going on in Cyprus could happen to them? What they are doing about it now?
Trust is key to all economic activity, lose trust and we are all done, fini. If the global CBs, Elite whatever want to get rid of 1/2 to 4/5 of the population I think they just found the surest way to achieve their goals. We will see how long before this gets ugly in Cyprus. Because from what I can tell there is no way it doesn't get ugly. Anyone, everyone invested in anything in Cyprus is completely screwed. One couldn't sell a villa there if one had to and I somehow don't think people are going to be coming into Cyprus with suitcases of Euros to BTFD!
I'm going to have to talk to one of my Cypriot friends and tell him if he has family or friends that are good folk (preferrably with home improvement skills that can make it to the US) I have a nice room I can put one or two people up in until this shit resolves. No guarantees this doesn't happen in the US but sure as shootin I don't think US citizens would take this kind of crap laying down. I could be wrong, but don't think so.
Folks the simple answer here for everyone. Stay liquid, be sure to be mobile, keep your secure locations small and completely paid for, have at least a year of cash ON HAND, pms, stored food, water, weapons, get connected with your neighbors. Send out the warning to prepare because the first shot against all citizens has been fired in Cyprus and will be coming to a debt laden country you live in next. Talk to your legislators, don't stop buzzing their phones about this.
Let them know one thing. The breaking of trust as in Cyprus and looting of the good economy to prop up the bad one won't be tolerated elsewhere AND if they (our politicians) allow it occur here THEY are just as responsible and like us won't escape the consequences. Houses MUST be put in order, now. Borrow and spend infinitely now so we can confiscate and destroy later will NOT be tolerated. The CBs have exposed themselves for what they are 'ultimate sociopaths' who would rather lie, pillage, rape and kill than to allow contractions in the economy. No longer can 'we the people' afford their out of control borrow and spend policies.
well said...when you say, "stay liquid" you presumably mean in on call deposits in "national champion banks" like ummm say for the UK, government owned RBS and Lloyds or do you mean drug money launderers and tax evaders like Barclays and HSBC ?
lol surely you jest. liquid means in hand necessary/transferrable assets that have value in good or bad times. Fuel, food, water filtration, ammo, weapons, cash, pms, nails, screws, batteries, solar panels, generators, medicines, tools, booze, skillz. Not some piece of paper that can only be used to wipe your butt. (FIAT cash probably will still have some value as well for a while but no intrinsic value).
My main point on being liquid - means don't bury yourself in debt because once accounts are frozen you like Cypriots will have a hard time paying mortgages, taxes, and other stuff. For those have cash on hand. What will be interesting is when the govt starts forcing tracking of all people paying larger bills (over $1K say) in cash. Which is why it is probably a good thing to live WELL within ones means and having lots of small bills. (nothing over $20s). Since most people without cash will likely be trading things 'for' cash just like the Cypriots.
you are well on to it i can see.
only fly in the ointment for your cash (all the other liquid assets like food water gas bullets etc are truly liquid) is the redenomination of bank notes..still wont be worth any the less for being in cash/bank note form than being held in a bank as electronic ones and zeros
>> There is absolutely NO way Cyprus is going to pay one Euro back of debt EVER in the current situation, and someone is going to be able to swoop in and buy the entire country of Cyprus for a fricken song.
I'm sure Israel (House of Rothschild) would love to have an unsinkable aircraft carrier aimed at Europe like a dagger.
Europe will regret its actions in Cyprus like nothing else since the GFC struck.
This badly thought out and ill executed action in Cyprus may well unravel the Euro.
If the events in Cyprus have not woken people to the necessity for goldand silver, then let them suffer the same fate.
Part of the propoganda put forward, to suck the idiots into the euro, was that it would prevent wars in Europe.
The way TPTB are conducting operations they are going to cause a war in Europe.
It will be bigger than the last one.
Germany will lose again.
A bucket full of Euros will be needed for a loaf of bread.
This war will be different in that ALL the people in ALL the countries will be fighting the current crop of arseholes who at present think that we're all Winston Smith.
I have been self employed since eighty two. I've been around somewhat and have visited all kinds of places, from mines to pulp and paper mills to nuclear power plants to factories to dancing studios and so on. I think I have a fairly good grasp of how business works, those which are successful to those who are not and why.
The unelected bureaucrats running the so called Troika have no clue what they are doing when they decided to steal uninsured depositors money as collateral for a "bail - in" in Cyprus. The talk was that most of these funds were held by Russian Mafia type or wealthy individuals parking their coin from the prying eyes of regulators. I think this rumor was spread around to remove the guilt associated with plunder.
It so happens, many businesses park their money there too. Now payrolls and expenses cannot be met. People will be without work.
I look at California and noticed the excessive pension plans, salaries and benefits given to so many civil servants. Who is paying for all that? Not the civil servants.
It is private enterprise, successful small to medium sized businesses and their payrolls which carried America till the printing presses started humming.
The business giveth, the government taketh away.
i was listening to Greek tv (not one of the pro-government mainstream channels) and the guests on this show were students from Cyprus who were studying in Greece. The students almost unanimously were in favor of leaving the euro. They weren't angry and did not appear the type who are "all talk" as we can see in some other countries which shall remain nameless. They only joined the euro about 5 years ago. According to them, their primary reason for wanting to join the euro was to gain some allies that would help resolve the difficult situation on their island (which is divided between the Turkish and Greek part). Some allies! Their folks couldn't send them money from home while the banks were closed and a couple of them had to leave their apartment because they couldn't pay the bills. I was impressed by how calm they appeared. They knew something worse was coming.
so the question really is what deposits are insured ?
FIRST 100000 EUROS OF ALL DEPOSITS ?
or
ONLY DEPOSITS WITH LESS THAN 100000 EUROS ?
Things are seldom what they seem. For those who want to examine possible implications of what is really going on behind the scenes in Cyprus, go here:
http://pennyforyourthoughts2.blogspot.com
Those who won't think outside the box often are buried in one.
Assuming first 100,000 Euros are "insured" this account "bailed in" 83% of its total. How patriotic
Seriously ... why the small and medium businesses have to pay the price, in addition to the citizens...
And they try to close the fissure. good luck with that...
+5 to this epic screenshot
Seriously ... why the small and medium businesses have to pay the price, in addition to the citizens...
And they try to close the fissure. good luck with that...
+5 to this epic screenshot
Just so that I'm clear:
The bankstahs and their political friends eat cake, drink champagne, snort coke, drink coke and rum, and hire hookers?
Everyone else can F.O.A.D.?
Is this right?
How hard is it to sharpen one's shooting skills and take out a couple enemies in this scenario?
Surely someone with access to the personal address of these bankstah types is good enough to publish? Where's Wikileaks when you need them?
Take a couple of these guys/gals out first...then self imolate, if you must.
Deflation bitchez.
Obviously the Cypriots are very happy with what was happening: government not overthrown, no riots and as far as I know, restaurants and fuel stations are open. What to worry?
Now the real question is whether the banks will charge overdraft fees on the checks written against the float in the business bank accounts.
This business now has 100,000 available to pay 200,000 in monthly payroll and to cover 500,000 in accounts payable.
If the confiscation is considered as a "business expense", there will be no tax receipts from businesses for a very long time.
Too bad they are not eligible for free Obamacare.
you got it...another unintended consequence of allowing nitwits/buffoons/academics/politicos to get their hands on something that requires a qualification in the real world of integrated capital markets and financial infrastructure..
scares the shit out of when you see that these same jokers are setting the rules for things that aren't going wrong and could just as easily fix themselves
fuck you ecb, imf, european commission, fed, BoE and everyone else that thinks any "governing body" can handle anything beyond sucking warm soup through a straw
And, btw, those Russian oligarchs primarily are the connected Jews.
And it can’t be said enough; you don’t get money out of a closed bank unless you are connected to the bank. The money was removed electronically by people who were connected. That doesn’t mean Putin’s brother-in-law; it means the odds are you are an international financier who happens to live or have lived in Russia.
Many or most of the Bolshevik murderers of millions of innocents in Russia were Jews. Faux News' "correspondent" Jew William Crystal's father was a Jewish Bolshevik scum bag.
Don't hold your breath waiting for a Russian Holocaust Museum funded by US tax dollars.
Per the western world, run by Jews, per Jewish sacral law, the word holocaust is reserved only for Jews, because Jews are God's chosenites. Harvard PhD. Deborah Lipstadt desires all "holocaust deniers" imprisoned while she herself (a Jewish princess) denies the allied bombing of Dresden was a German holocaust (40k innocent non-combatant German citizens incinerated...no military targets).
Russia, as well, is involved in Holocaust politics.
Putin promised Netanyahu a Holocaust Museum, but whether it was built, I don't know. This from The Guardian on February 16 2010:
MOSCOW (AP) — Prime Minister Vladimir Putin has told the Israeli prime minister that Russia will build a Holocaust remembrance museum.
Putin met Prime Minister Benjamin Netanyahu in Moscow on Tuesday and promised Russia would build a museum dedicated to the Nazi extermination of millions of Jews.
Netanyahu said Israel would erect a monument to the Soviet army, to be completed by the time Putin visits Israel next year, the 66th anniversary of Victory Day, which commemorates the end of World War II in Europe.
http://www.guardian.co.uk/world/feedarticle/8947749
Also, according to Russia Today this month, there is a bill in the Russian lower house to ban Holocaust denial.
From Russia Today:
The Russian lower house has received a new bill suggesting up to five years in prison for publicly denying the Holocaust or portraying Nazis as heroes.
The sponsor of the bill is Boris Shpigel, an Upper House member who recently submitted his resignation after being elected president of international rights group 'World without Nazism,' as Russian laws do not allow senators to hold leading posts in foreign or international organizations.
The new bill suggests amending the Criminal Code article on inciting hatred or humiliation of human dignity. The current draft would criminalize the rehabilitation of Nazism, portraying Nazis or their aides as heroes, Holocaust denial and also humiliating the dignity of individuals or groups on the basis of gender, race, ethnicity, language, background, religion or belonging to a social group. These offenses would be prosecuted if committed in public or in mass media.
The amendments would punish such crimes with fines ranging from 100,000 to 300,000 rubles (from $3,300 to $10,000), correctional labor for up to two years or, in severe cases, prison terms of up to two years. If the crime is committed through abuse of office or together with threats of violence, the fines are raised to 500,000 rubles (under $17,000) and a maximum prison term of five years.
Russian law mandates punishment for inciting racial and ethnic hatred, and Nazi movements are outlawed in the country. However, these norms have not been formalized into a single legislative act. Last May, the Parliamentary Assembly of the Russian-led Commonwealth of Independent States (CIS) political bloc approved a model law aimed at countering the glorification of Nazism, prioritizing mandatory punishment for such crimes.
Russian law enforcement has also noted a rise in nationalist sentiment in society, and called for rapid approval of laws to combat this threat.
http://rt.com/politics/denial-holocaust-criminalize-moves-russia-853/
You might try Puerto Rico: http://www.pridco.com/index.php/incentives/tax-incentives.
Say you have a lawyer practice in Cyprus. You hold money for all sorts of folks. House purchases, business sales in escrow, death duties, whatever, whatever. Average client might have Eu50K with you. Total funds in millions, you get the haircut on the grand sum, but none of your clients is individually over Eu100k.
So who pays, who loses?
You invested the money and lost it all.
“The Law” by Frederic Bastiat was first published in June, 1850, written before and immediately after the French Revolution of 1848 when “France was rapidly turning to complete socialism.” God forbid that Bastiat had lived to see the same socialist-communist ideas sweep the 21st Century world and even the word “invest” gives plunderers the legal right to steal private property.
Bastiat:
“The purpose of the law is to prevent injustice from reigning. In fact, it in injustice, instead of justice, that has an existence of its own. Justic is achieved only when injustice is absent…
"This question of legal plunder must be settled once and for all, and there are only three ways to settle it:
1. The few plunder the many.
2. Everybody plunders everybody.
3. Nobody plunders anybody.”
Bastiat, who at the time was dying of tuberculosis and within a year was dead, championed: “No legal plunder: This is the principle of justice, peace, order, stability, harmony, and logic. Until the day of my death, I shall proclaim this principle with all the force of my lungs.”
it will be each legal entity or person. pooling devices should be subject to doctrine of privity..but who the hell knows when the rule of law has been abandoned by the law makers.
so each trust is assessed individually.
if the solicitor has formed an umbrella trust (parent) that "borrows" the money from subordnate trusts (child) then the master trust is an indivudal and would be subject to the tax on the aggregate of its assets.
solicitors worth their salt ought to be able to claim the ability to "look through" but see the "who the hell knows..."
my guess is that although many many apartments in cyprus are sub-100,000 in price, most 2or greater than 2 bedroom houses/villas in cyprus are above 100,000. only 30% is required as a down payment for buying property into a lawyers trust account, with top-ups of 30% or so later, so there will be all sorts of stages being intercepted by the tax. if the money was being borrowed from a bank in those stages, the individual won't suffer so much, but the lending bank will presumably have secured this money to on lend to the borrower (depends on the lending banks balance sheet).
its a mess..imagine if you are a competing bank...two competitors go tits up and you lose 40% of one side of your balance sheet!!!
the troika has bankrupted the cypriot economy and caused cyprus to become a failed nation state....al because the eurocrats and IMF "lunch hour" bankers are beneath stupid with no experience in the real world.
We have not seen the actual numbers yet for the worthless assets that killed these banks. However, I expect that it will eventuclly turn out to be large positions in one AAA Greek Government Bonds that were made worthless by the haircuts. The same group that imploded Cyprus once decclared that there could be no Greek default. Well, the way it worked out, there was no default for the ECB, just for the private sector, including all other banks. These banks went along with the haircut plan to be seemingly cooperative. End result is that the ECB showed them not one bit of gratitude.
Remember when everyone knew that Greece did not matter. Now it is Cyprus that does not matter. This is going to set off a chain reaction among all Cypriot banks. There cannot be a business in Cyprus that will not have to default on all bank loans - it will just be an inevitable chain reaction. When they all go down, the liquidation of the assets will trigger the avalanche onto all EuroLand banks.
I think the people of Cypress should get the hell out quietly before they lose the shirt on their back....
I hear this guy is good at rating Banks and CUs.
http://weissratings.com/Login.aspx?a=s
http://weisswatchdog.com/
bullish for equities...forcing money out of deposits...good grief..so ina free capital market where you want capital risk reduction..you cant have it...either lose 40% of your capital in cash of 40% in the stock market...
http://www.uncommonwisdomdaily.com/the-master-plan-behind-the-cyprus-pan...
hey look..cypriots can use their credit cards now...yanno to run up bills beyond their allowable money transfer amounts and pay 25% credit card interest rates once they have screwed that up!
http://www.bbc.co.uk/news/world-europe-21978286
I wonder how you can program the accounts to block off a certain percentage on a system wide scale. Is it pre-programmed into the different systems worldwide?