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Here We Go: Cyprus To Sell €400 Million In Gold, About 75% Of Its Total Holdings, To Finance Part Of Its Bailout
Curious why every bank and their grandmother, and most recently Goldman today, has been lining up to push the price of gold as low as possible? Here's why:
- CYPRUS TO SELL 400 MLN EUROS WORTH OF GOLD RESERVES TO FINANCE PART OF ITS BAILOUT - TROIKA DOCUMENTS - RTRS
Or about 10 tons of gold. But... the bailout was prefunded and there was no need to provide any additional cash? What happened: was the deposit outflow discovered to have been even greater than the worst case scenario and thus Cyprus needed even more cash? As for the buyers? We will venture a guess: central banks buying at the lows.
Finally: congratulations Cypriots. You are now handing over your gold for the one time, unbeatable opportunity to remain a vassal state to the Eurozone. But at least you have your €.
The good news: Cyprus will have at least another 4 or so tons after selling the 10 demanded now, before the Troika kindly requests that Cypriot citizens sell a kidney or two to pay for the ongoing deposit outflow from its insolvent banks, and indirectly, the endless bailout of the Euro.
Full story from Reuters:
Cyprus has agreed to sell excess gold reserves to raise around 400 million euros and help finance its part of its bailout, an assessment of Cypriot financing needs prepared by the European Commission showed.
The draft assessment, obtained by Reuters, also said that Cyprus would raise 10.6 billion euros from the winding down of Laiki Bank and the losses imposed on junior bondholders and the deposit-for-equity swap for uninsured deposits in the Bank of Cyprus.
Nicosia would get a further 600 million euros over 3 years from raising the corporate income tax rate and the capital gains tax rate.
Out of the total Cypriot financing needs of 23 billion euros between the second quarter of 2013 and the first quarter of 2016, the euro zone bailout fund will provide 9 billion euros, the International Monetary Fund 1 billion and Cyprus itself will generate 13 billion, the assessment said.
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Gold is like a beach ball being held underwater.
By a whale.
With mad cow disease.
It was 10 years ago sure.
So the Cypriots are a little less barbaric today. Good for them.
Do Cypriots realize that when the Euromusic stops... they'll have nothing left to restart?
GAME
OVER!!!
Cypriot mail order brides and indentured slaves?
Actually, replace Cypriot with European.
WHO WANTS TO ORDER ANYTHING AND MARY IT?!!
CAN'T WE JUST USE THEM FOR 14 DAYS AND USE THE RETURN POLICY?!
AND WHAT IF I ORDER 5?!!
IT'S AGAINST THE LAW TO MARRY ALL 5 OF THEM!!!
unless I become a muslim...
It was the perfect test bed for many reasons.
Isolation,foreign military bases,hostile neighbours over the green line,
and its protecctor(Greece) already crippled.
Not sure they will get the same reaction in the other PIIGS.
We willl see.
Do Cypriots realize that when the Euromusic stops... they'll have nothing left to restart?
~~~
& oh by the way... Having nat gas deposits & being conveniently co-located to the Apartheid State of Israel [with all those nukes]...
Not saying that's going to happen, but it sure as hell is on SOMEBODY's mind...
Bollocks.
Gold is a representation of wealth in exactly the same way as paper. Having gold is nice but it's not a must have by any means.
Let's sell our real assets so we can continue to get buttfucked in Euros!
Their politicians and banksters trading their gold for toilet paper? The people should riot!
Exactly! They should say fuck the Euro and draw up their own currency...
They should have done that before the money slipped out of the country. The first sovereign that corzines everyone's shit in the bank and I mean ALL of it and uses it to flip into gold then enacts Swiss style banking rules, tells the troika to go fuck off will make bitcoin look like a dog as the money pours in. Which little country will be first having seen Greece and now Cyprus ?
And then promptly invaded by NATO for being terrorists if the country is in Western Europe or Africa. Invaded by the US if in the Americas, and invaded by whoever gets there first, China or Russia, if in Asia or Australia.
"promptly invaded by NATO"? there is a British military base on the island
They can sell to me. I promise to only rehypoticate it 10 times or less.
pen sure is mightier than the sword.
They should just exchange those physical gold reserves for bitcoins and they would end up owning the entire european union.
http://www.youtube.com/watch?v=DlJEX04wG_0
This is most likely Bush's Fault, since it happened during the O'Bowel Movement......
All your golds belong to us
Stooooppppiiid fuckers.
at least we know what the plan is. Make everyone broke and have to cough up their gold one by one. Then revalue.
This "plan" is as old as time itself. The outcome this time around will be the same (world war). Wouldn't it be a "shocker" if the Fed and IMF were behind bitcoin all along... just saying, hedge accordingly.
I wouldn't surprise me if the NSA was behind bitcoin.
And Max Keiser is just a plant.
Are they also behind Litecoin and other virtual coins?
Please tell us so that we know where not to invest!
I floated this idea sometime ago and got down arrows up the kazoo. Only I said CIA & co
The crowds a fickle beast.
People like Saddam and Qaddafi need a little nudge.
Also cover their shorts...
Quelle fucking surprise........
I thought I saw a Chinese brinks truck with a Goldman sticker on the bumper...
and the sticker read "driver carries no cash".
+1 for the Dead reference
Or Black Flag,
but pretty sure it's not Will S. this time.
We'll see if BTC can save the Cypriots (no sarc). The Greeks have been using local currencies, maybe Cypriots will be the first nation to use digital currency as their national currency. Those Cyproits that bought BTC recently could potentially afford to leave if they had only deposited a small amount. Which country to choose...hmmm...???
Maybe they could sell that gold to their own citizens (even in BTC) to fund their "bail-in/bail-out"?
Interesting times...
Cyprus needs a central bank that is capable of EXPANDING THE LOCAL MONEY SUPPLY (i.e. devaluing against the Euro) Bitcoin is EXACTLY THE WRONG PRODUCT for their circumstance.
You're talking about central banks, I'm talking about the people.
+1 on your understanding on monetary bases, but why should Cyprus expand it at all?
If they stay chained to the ECB- they shouldn't expand their indebtedness because they would be digging their grave that much deeper. However, if they had an independent central bank and national currency they would have that tool at their disposal, although the marketplace might (would) find the appropriate level of devaluation without central bank intervention.
well, yes, but their fiscal base is quite in order while being fully inadequate / too small to save their humungus banking system
to be frank I'd doubt they could do an "Ireland", who would buy an expansion of Cypriot Sovereign Bonds in the tune of dozen times their GDP?
Ireland's "trick" was to go from 60% to 120% of debt/GDP - a "simple" doubling - shocking enough, imho
that's why I was asking "why should they"
If they lose their gold, and get no debt relief, then what are they sovereign in, other than name?
At this point they have emptied almost an entire pistol magazine shooting themselves in the foot, so I'm not sure how well they could pull it off, but some serious belt tightening coupled with some serious FDI and a build-out of energy sector could stabilize the hemorrhaging.
17-20B GDP isn't that hard to make up if they can succeed in finding and exploiting energy resources, if have seen much larger boosts elsewhere when the black gold rush comes to town.
Nice gesture, but 400M euros is sweet fuck all. This should get them through next week.
They don't care about the euros...they care about the gold. It is so much more valuable than 400M euros that should be clear to everyone. The Greek CB, even in the face of all their problems, were BUYING gold. The Cypriots should say "The Fed Chairman says it's just tradition and we reallly really really like that tradition so we think we'll just pay in real money...euros."
normally such deals are published after they are conducted
Banksters: like battlefield scavengers, knocking out gold teeth from the fallen.
interestingly, Cyprus has plenty of bankers
I was thinking of the uber-banksters.
i was thinking of hofjuden
Even if you are a gold bull, you have to recognize that the powers that be have decided to bitch slap gold for a while. Hold off buying metals for a while until they finish their hatchet job. Sure looks like they want to drive gold below $1500.
Even it this were correct, you would want to buy while they are, which means right about now.
Silver Eagles sales are through the roof! The US Mint sold more in the first 10 days of this month than in all of April last year. Those kinds of hard numbers can not be papered over forever.
Maybe some of the April 1 number should really
be counted for March--
but the 1st 3 months + total is huge
in either case.
That is so sad.
Yes, I'd guess the deposit outflows were larger than originally admitted to.
Question is: was the leak of what-was-coming and thus a leak of money out of Cypriot banks before the curtain came down all part of the Troika plan to create exactly the gold sale we now see? hhmmm.
+1 "...the deposit outflows were larger than originally admitted to" - but... why did they lie about them? /s
Simple. There are two possible explanations.
1. To hide the fact that there had been an accidental leak of information, and thus save their necks.
2. But perhaps the leak was not accidental. Recall that Barroso paid a very hurried visit to Putin in Moscow 1-2 days before the curtain came down. Maybe the leakage of what-was-coming was deliberate to appease Putin and other 'well-connected' deposit holders so they could all get their money out before the curtain came down. All for EU geo-political reasons because Barroso is a commie and Merkel has always had very close connections with Russia.
If true, it would be a criminal conspiracy to defraud. Meaning it was long known that the action today would become necessary even before the Troika deal was finally settled.
Imagine that: people at the very top of the EU, Troika and EC involved in criminal conspiracy!
What I would do if I was in charge of Cyprus (and really forced to sell AU): Hold an auction with China, Russia, India (etc) and see who's willing to pay the most for it.
It's difficult to imagine them doing anything else but criminally conspiring against those who elected ... Wait. They werem't elected.
Unbelieveable: Selling hard currency for depreciating fiat !!!
They're selling gold to buy BTC.
Alfred b.
Yeah, unbelievable yet they are doing it.
I don't know what reality is anymore.
Tyler,
Most of your points are well made, but
>>>
central banks buying at the lows
<<<
doesn't look right.
To me, USD 1,500+ looks a lot higher than only a few years ago.
What was the aggregate monetary base of G10 central banks only a few years ago??? I thought so...
his "timeline" isn't long enough...
What was the aggregate monetary base of G10 central banks only a few years ago??? I thought so...
~255M ounces at current prices, or 7.9 tons about 4 days worth of Chinese gold imports
it's just a part of Germany's 7 year repatriation shipment...
The Central banks own the Gold.
The individual States remain in debt to the banks both commercial & central.
Its not really Cypriot gold.
You see the banks own EVERYTHING.
Including your ass & assets.
... my wife promised me that ONLY I OWN HER ASS!! :(
Can we mark it to market ?
Why don't they just take out a loan so they can pay everybody back?
They should have created a Gold ETF and loaned the gold out 99 times.
Come on, they are supposed to know high follutting cheaters finance...
They should be coming out soon to announce another week of cypriot capital controls anytime here...
...funny actually..,
That little 'half-man' Jim Cramer this morning commenting
..how we never saw any chaos or disorder when Cypriot banks had reopened after being shutdown.., something like: '....see, there was no bank run..'
haha, was funny.
Funny little man!
Oh no! What is going on? Have these people gone ecompletely insane? How can they sell off the gold? It is just sad. Truly, people of Cyprus, you should arrest some, if not all, of your "representatives", and a handfull of selected banksters. There is still time. You must unlearn, what you have learned! I dare say it: Leave the zooro and rescue yourselves!
They should physically block the streets around the depository 24/7.
in London ?
Good point. Silly of me to think they held it themselves. They should demand delivery first.
We'll see if they can pull off the same stunt with Italy -- there's a big pile there.
A window of opportunity should open with the next election ....
Cyprus should call Europe's bluff, and demand immediate physical delivery of all their gold holdings. They might back off then.
In other news, France just notified Germany that they are about to give the Germans the first 8 tons of gold that were requested last month.
Seems the French can deliver faster than the US.
And still we see no bodies being drug throught the streets. WTF does it take?
I guess a severe breakdown of television broadcast for a few days is absolutely essential.
It was already on deposit at the IMF.
After the Big Crash, IMF to issue "gold-backed" VirtualCoin. HSBC: "Your DNA becomes your data."
money changers
hutzpah
pound (or ton) of flesh (or gold)
...
"It's a pound of flesh but it's really a ton,
99 problems and a bitch ain't one." -- Hugo
Or the Bard again, but twice in the same thread?
Barnum-Bailey Travelling Circus comes to Cyprus....and leaves laughing!!!!
Seriously......... every morning there is a new comedy routine in the world markets. How Entertaining.
Pissed at the Fed - that they couldn't get their gold, Germany takes cyprus Gold and has the Fed wire 400 billion to the cypriots =
Smart move Germany...
next they'll be coming for your teeth
When do people get desperate enough that midnight gardening at the local cemetery becomes trendy (either for the serfs or the banksters)?
Melissa Harris-Perry over at MSNBC has another commercial out hot on the heels of the "Your kids belong to the State, not you" commercial. This one talks about "WE" thinking YOU should be allowed to make a "little more" if you work hard. Less than a minute long, worth a look but keep heart medication nearby if you currently take it.
I posted this here not as a threadjack, but because I genuinely feel it applies with the article - the Cypriots are being told by the same "WE" that their country and their money don't belong to them, and that if they work hard, they may be allowed to keep a little more - although in this case, it appears to be if they work hard, they keep nothing.
Forward Marxism!
And for the rest yah niggas slightly smaller then Cyprus.. only holding a couple pounds of the yellow metal, HMS is almost ready now to deploy it's forces and seize yir shit... best believe bitchezz! Have no illusion!
I see this as a positive sign. You only sell your family gold and silver if you see that
the future looks bright. /sarc (sarc: only for people that might miss it).
Pffft.. Canada sold all of our gold and invested in foreign currencies years ago. That's going to work out Pretty sweet for us when crunch time comes.
No problem. Temp foreign workers will do all the heavy lifting and I retire in luxury. We don't need no gold. But if we do it's in the ground and costs 5 dollars to dig out.
It's funny, once you start to see the pattern(s).
Qaddafi, thy name is Cyprus. Or whatever. You know what I meant. Bitchez.
"My name is Legion: for we are many."
-- Luke 8:30
Or Hamlet, whatever.
A real story from Bangkok: I was speaking with two young Russian men about everything...I mean everything political and economics....the human conditions in mother Russia. At the end of our debate/conversation, they told me how much they disliked their situation in Russia. So I asked why they didn't try to change it and this was their answer,"We have no guns!" Ya see why I harp on the gun issue!!!!!!
No. They are simply unmotivated.
Two hillbillies on a porch --
#1 - Why is your dog moaning.
#2 - He's laying on a nail.
#1 - Why doesn't he move?
#2 - It doesn't hurt that much.
The idea is for the IMF to create more and more SDR’s backed by nothing, in order for struggling nations to borrow them.
These nations will then gradually come under the control of the IMF as they struggle to pay the interest, and have to borrow more and more. The IMF will then decide which nations can borrow more and which will starve. They can also use this as leverage to take state owned assets like utilities (gold) as payment against the debt until they eventually own the nation states.
this is exactly what's happening to Iceland right now.
OT any technicians in the room have a SPY target where a line drawn across the the highs going back a decade or so falls ? I'm thinking we're hitting up against it right here and now but I can only project off weekly charts. I'm curious where the one minute bars puts it ?
The gold's going to Germany, right?
Mission accomplished - wonder though where that Gold is - NYC? May take the ECB 7 years to get it
Gold is $? WTF!
13.9 tonnes is worth 550 million euro. After they sell 400 million euro worth they will only have about 3.8 tonnes left. Stupid, stupid, stupid! Where is the Cypriot outrage? Will the whole of Europe roll over without a whimper?
yes
Walk like an Icelander.....
What the f**king hell is Cyprus doing ?
Strange turn of phrase to apply to a gang-rapee.
'the sad face of a cyclops economy before the final blow of the troika spear,... blinding all that was once`hope-- penned in the twilight of despair,... eyelid heavy no moar... thus the premeditated extinction set's its course upon the isle of myopia?'
Well "Duh"......
As if this was not one of the intentions from the beginning.
On to Slovakia...!!!
It's all a sham .... impossible to verify .... ever .... like Bitcoin .... and roll over into stocks .... PM (price manipulation) .... it's all about discouraging gold bugs .... a fool and his gold are soon parted !
There is no such thing as "excess gold".
The don't put spares in the pack.
No problem:
China imported much more gold again in February
Month-on-month, imports nearly doubled to 97.1 tons according to data from the Census and Statistics Department of the Hong Kong government.
http://homment./china-gold
And Goldman Sachs is saying to short gold??!!!!!
http://blogs.wsj.com/marketbeat/2013/04/10/goldman-sachs-short-gold/
Get those fuckin' bot out of the aisles.....I'm buying today!!!! These fucker's are so easy to read when you know their game.
What is gold for, if not for a rainy day?
From Caddyshack, where all wisdom is derived:
"I don't think the heavy stuff is going to come down for quite some time."
+1 - My fav is:
“You don't have to go to college. This isn't Russia ..."
First they came for the bailouts and I did not speak out, because ....................................................
Then they started the currency wars, and I did not speak out, because .......................................................
Then they brought in austerity, and I didn't speak out, because .......................................................
Then they came with Papademos and Monty, and I did not speak out because .........................................
Then the came for Cyprus depositor accounts, and now there is ........................................................................................
Funny that the “peoples’ representation” of Cyprus’s parliament can make the decision to dump its gold reserves for the banks to swallow, but could not make the decisions to protect its citizens from the lowest, most criminal, most severe banking robbery of innocent Cypriot bank depositors. When the final raid occurred, the parliament took no vote or action to prevent it.
Every single member, every single elected member should have resigned immediately in that any semblance of representing their people was gone.
The Troika has taken over again.
Doesn’t this suggest that when the Rothschild cartel comes to pick up the real estate titles of the Washington Monument, the Lincoln Memorial, and the U.S. Capitol, that Congress will very conveniently not be required to take an action?
“When the Prince of Hesse-Cassel handed his portion of das Rheingold over to Meyer Amschel Rothschild, who then handed it over to his son Nathan to spirit off to London, he enabled the bondage to Jewish finance which, according to Marx and Engels and Wagner, brought about the revolution of 1848* by reaction.” – E. Michael Jones, Das Rheingold and the Gold Standard
* Dresden was a centre of the German Revolutions in 1848 with the May Uprising, , which cost human lives and damaged the historic town of Dresden (Wikipedia).
instead of this
how about this: http://tinyurl.com/czegrmg
Goldman cutting gold price forecast to 1390 next year. Well this drift lower ever let up? I am beginning to wonder how strong my hands are, but don't see any alternative but to hold. It's all very depressing. I feel very bad for ZH'ers who've staked their future on PM's getting a bid.
Dr. Roberts discusses this on USAWatchdog here...
http://usawatchdog.com/if-bullion-were-not-a-threat-government-would-not-attack-it-paul-craig-roberts/
Oh crap, oh dear. Don't let Dr. Krugman in on this.
"I feel very bad for ZH'ers who've staked their future on PM's getting a bid."
PMs always have a bid. I feel very bad for anyone who has staked their future on getting good advice from Goldman.
Casaananda,
Look at 5 or 10 year horizon. Do you see things improving. I don't read or listen to what GS says.
They also said sell SPY back in 09 around 80. They let it fall a few weeks and get everyone loaded short before they sprung the trap. I suspect gold will drift down to new lows in the next few weeks as they try to tease up short positions.. break the long term supports just before blast off.
Well, at least in America we will never be short on savages to rampage in the streets...unlike in Cyprus....1st Chicago, now Philly...hundreds of wild savages do BarakaDoc's dirty work to try and intimidate the government...don't believe that this is not orchestrated from above. Just wait till it really gets hot this summer...this kitchen is about to feel like a pressure cooker!!!!!!
The people of Cyprus are not selling their gold - those in authority who supposedly have a fiduciary responsibility to the people are selling the gold. I have to wonder where the Cypriot courts are in all this - isn't there at least one judge on the island with the authority to halt this 'sale' and have those who are arranging it arrested? Isn't there a constitution? Are there no relevant laws governing the responsibility of those in public office? Or is everybody in Cyprus above the level of streetsweeper either on the take, completely intimidated, or merely stupid?
So the lesson is pass out as much monopoly money as possible where it is sure to cause bubbles and be misallocated. When the bubble pops turn off the easy money spiget, freeze and then confiscate bank accounts to pay for it then swoop in and take the gold,,, and everything else of real value. Purchase enough politicians with clown money to make it all legal and rewrite or ignore any laws still standing in your way. Sounds fair and square to me. How could people not want an arrangement like this? Iceland was crazy to pass this arrangement up.
Psst... your sarc switch is on...
I've been wondering what was up with their gold.
http://www.zerohedge.com/news/2013-03-17/live-streaming-cyprus-mega-tv#comment-3338924
derp
JPMorgan and Scotia Mocatta have moved many tons of gold out of storage at Comex recently:
"Comex Gold Inventories Collapse By Largest Amount Ever On Record"
Don't do it Cypress!
Tell them its a barbarous relic. Why would they want it?
Anyone that thinks that judges and/or politicians can stand up to this cabal single-handedly is a dope or on dope!!!!!! Any dopes around here? Didn't think so!
But, but, but...
"Gold isn't money"
http://youtu.be/jyTBhsEliUE
Interesting action today in gold vs silver -- silver only retraced about 1/2 yesterday's pop, gold 100%. Very different from the typical smack where silver spikes down. Definitely a bid under there -- maybe there's something to the short squeeze talk.
Is Goldman right, or are they just trying to push gold lower to buy it themselves? I wish someone could address this, even if it is a maybe dumb question.
But is is heartbreaking to witness this clusterfuck.
Take a few breaths.
Like many of you I watched "300" in awe. The Spartans were fearless warriors... with a long history of standing up to those who would enslave them. One would think the decendents of the Spartans would be among the first to rise up against the kleptocracy that is and has been stealing them blind and leading them into slavery - unbelievable to me that the Spartans would watch Iceland "take care of business" but not have the balls to follow suit.
Millenia . .