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Cyprus Central Bank In Shambles Following Third Board Member Resignation

Tyler Durden's picture


Perhaps the most underfollowed story of the day is the blatant takeover of the Cypriot Central bank by the ECB, which as we reported earlier, has been ordered to sell their gold by the ECB's Mario Draghi, even though the disposition decision of the "independent" central bank of the now insolvent nation is supposedly theirs. First it was this:


And now we learn that not one, not two, but three board members of the central bank have called it a day:


We are sure there are at least a few more board members who can resign topped off by Panicos himself bailing, before the entire central bank implodes, and there is nobody left in charge of the now obsolete monetary policy apparatus. What happens then: will Goldman appoint a new "technocratic" Board and governor, or will the country finally confirm that all European lies about member bank Independence is just one big lie?


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Fri, 04/12/2013 - 13:22 | 3441747 redpill
redpill's picture

Somewhere there's a giant Pez dispenser full of ex-Goldman execs just waiting to have it's squiddy head pulled back and the next one in line extracted to fill vacant central banking positions around the world.

Fri, 04/12/2013 - 13:24 | 3441768 Bastiat
Bastiat's picture

I like to imagine the Pez dispenser fumbled into the toilet.

Fri, 04/12/2013 - 13:27 | 3441781 Arius
Arius's picture

i am puzzled ... why ECB wants cyprus to sell their gold for cash, so to pay them back, when ECB can print its own cash... and save the country ... no?

Fri, 04/12/2013 - 13:30 | 3441792 toys for tits
toys for tits's picture

Last one out is a rotten egg.

Fri, 04/12/2013 - 13:41 | 3441848 RobD
RobD's picture

O.T But I thought I would report on the ever larger guns and ammo bubble that is going on in the US. I dropped by the Big Reno Gun show this morning, more out of curiosity then anything else as I'm topped up with all that I want and need. Normally the show is crowded as hell on Saturday and Sunday but Friday morning early is not to bad. Well this morning everybody and there brother was there and even at an hour ofter the open the line for tickets was crazy.

Fri, 04/12/2013 - 13:50 | 3441879 Dr. Engali
Dr. Engali's picture

Is there anything left to buy that people can afford? It's pretty difficult for people to shell out a buck a round for .223. Just saying..maybe people are tapped out (pun intended....both of them).

Fri, 04/12/2013 - 14:10 | 3441961 RobD
RobD's picture

Well if there was any ammo actually for sale in the show I'm betting it would be gone by this afternoon no matter what the price was. In the past(before the Os re-election and Sandy Hook) you could get pretty good deals on ammo at this show if you were willing to buy the re-manufactured stuff in bulk. There was a break even point in that if you were to have it shipped in the cost of shipping would be greater then the sales tax. I have no clue what the prices are in there now as I did not get in line for a ticket. I might stop by after work and check it out again as it's on my way home anyway. As an aside I was in Wall-Mart this morning and there was a line at the sporting goods register(about 5 guys), they said it was ammo shipment day lol. Shits getting crazy.

Fri, 04/12/2013 - 13:37 | 3441823 rogeliokh
rogeliokh's picture

"why ECB wants cyprus to sell their gold for cash"

Because they take the GOLD down and now wants to get

Cyprus Gold at fire sale.

Fri, 04/12/2013 - 13:41 | 3441839 Arius
Arius's picture

yes, but it is only 10 ton .... it is just peanuts.  china i think has bought over 2-3 hunderds tons over only this year in less than 3 months... poor Cyprus cannot even fill one day quota .... i wonder if its worth the fuss .... just a thought ...

Fri, 04/12/2013 - 14:06 | 3441939 kaiserhoff
kaiserhoff's picture

Only ten tons would look great in my basement;)

Fri, 04/12/2013 - 14:55 | 3442184 Grimbert
Grimbert's picture

It's only about 20 cubic feet. I'd put it in my bedroom and lie on it.

Fri, 04/12/2013 - 15:40 | 3442375 Manthong
Manthong's picture

But then your bedroom would be in your basement.

Maybe this guy had 10 tons of gold in his bedroom.  :-)

Fri, 04/12/2013 - 14:21 | 3442004 ziggy59
ziggy59's picture

For These bankser phucks, its the thrill of the game...

Sadistic mofos, these people are

Fri, 04/12/2013 - 19:58 | 3443425 Obaminator
Obaminator's picture

its a quarter oz per person in Cyprus - its like asking each person to give up a piece of jewelry.

bastards! fuk a duk

Fri, 04/12/2013 - 15:33 | 3442347 Guy Fawkes
Guy Fawkes's picture

In a fractional reserve banking system that 10 tonnes of gold "magically" becomes 100 tonnes.

Fri, 04/12/2013 - 14:13 | 3441974 kliguy38
kliguy38's picture

They're just wanting them to sell all their barbarous relics....

Fri, 04/12/2013 - 17:01 | 3442868 Urban Redneck
Urban Redneck's picture

The ECB doesn't want Cyprus to sell it's gold for cash (to just anyone).  

The ECB does, however, want the title the gold that is nominally "owned" by Cyprus.

In the meantime, the headline saves Ben a few bucks on his monkey hammering bill, and forces that many more weak limbs on the magic hard money tree to give up the fruit of their labors at a reduced joke of price...   


Sat, 04/13/2013 - 00:16 | 3444035 Aussiekiwi
Aussiekiwi's picture

because physical Gold is real money perhaps

Fri, 04/12/2013 - 14:12 | 3441967 Downtoolong
Downtoolong's picture

Yep, Lloyd is watching quietly from behind the one way glass window.


Fri, 04/12/2013 - 13:27 | 3441753 DeadFred
DeadFred's picture

What makes them want to follow Draghi's orders? How many divisions does he have? How is he going to get them to Cyprus? Follow Nancy R.'s advice and just say NO!

Fri, 04/12/2013 - 13:25 | 3441754 Bam_Man
Bam_Man's picture

Everything is proceeding according to plan.

It will be pretty difficult to leave the Euro and launch your own currency when:

1) You have no Gold

2) Your Central Bank is in chaos and disarray.

Fri, 04/12/2013 - 13:23 | 3441755 McMolotov
McMolotov's picture

It's all going to hell in a handbasket, as my dad would say.

Fri, 04/12/2013 - 13:27 | 3441777 GolfHatesMe
GolfHatesMe's picture

Brother can you spare a handbasket?

Fri, 04/12/2013 - 13:32 | 3441803 McMolotov
McMolotov's picture

Sorry, I only have one, and I'm saving it for when I have to haul a load of Benny Bucks down to the store to get a loaf of bread.

Fri, 04/12/2013 - 13:40 | 3441831 GolfHatesMe
GolfHatesMe's picture

Make sure it has wheels

Fri, 04/12/2013 - 13:23 | 3441756 FieldingMellish
FieldingMellish's picture

What amazing motivation a gun to the head is.

Fri, 04/12/2013 - 13:23 | 3441760 Vashta Nerada
Vashta Nerada's picture

Perhaps if enough board members resign, they won't have a quorum.

Fri, 04/12/2013 - 13:24 | 3441765 DavidC
DavidC's picture

Said it elsewhere on ZH today - PLEASE, Cyprus, tell the ECB to FUCK OFF.


Fri, 04/12/2013 - 13:29 | 3441771 Yen Cross
Yen Cross's picture

     Cyprus really needs to tell Troika and the ECB to get back on their 'short bus' and head home before things get really ugly.

  These f**king markets are criminal.

  U.S. 10-Year 1.728 1.791 1.795 1.724 -0.064 -3.53%  

                                                                              T-10s down 6.5 bps. WTF? It's definitely different this time...

Fri, 04/12/2013 - 13:29 | 3441793 Uber Vandal
Uber Vandal's picture

These f**king casinos are criminal.

Fixed it for you.

The game is rigged.

But you can't win if you don't play......

Fri, 04/12/2013 - 13:36 | 3441820 Bastiat
Bastiat's picture

As Evan-Pritchard points out, Cyprus doesn't *have* its gold.  Do you suppose they will politely return it from London if Cypruse quits?  Without the gold what will Cyprus base its new currency on?  That's how the game is played.

Fri, 04/12/2013 - 17:09 | 3442909 Urban Redneck
Urban Redneck's picture

Use their own bullshit tactics against them... execute a physical SWAP with the Chinese or Russians for gold they hold domestically at a 5-10% discount.  See if the dickless wankers have the balls to stand up to a bigger bully than themselves.  


Fri, 04/12/2013 - 13:48 | 3441865 gjp
gjp's picture

Bonds up, PMs crushed, stocks welll on their way to green again with high beta names leading the way.

Central bankers are having it all their way. Absolutely incredible, outrageous, evil. But when will something break? How long can the world last with a criminal capital allocation and wealth distribution process?

Solidarity, zh brothers. We are under full frontal attack by a heavily armed and desperate enemy. We're on th right side I'm sure, but we won't all make it.

Fri, 04/12/2013 - 13:27 | 3441784 RonBurgundy
RonBurgundy's picture

Draghi is a fool for demanding the Gold. Krugman has said its all just "goldbuggery"

Fri, 04/12/2013 - 13:30 | 3441798 DavidC
DavidC's picture

I feel sad for Krugman, an obviously educated man with no concept of the real world.


Fri, 04/12/2013 - 13:37 | 3441825 Bastiat
Bastiat's picture

I do too but because he's a shameless, gutless pimp and that's not a quality way to live.

Fri, 04/12/2013 - 14:19 | 3441990 ziggy59
ziggy59's picture

Who says educashun leads to intellijence?

Shheeit...lookie at the leaders of this country..

Fri, 04/12/2013 - 16:29 | 3442663 flapdoodle
flapdoodle's picture

Krugman just does what he is told, just like Obama...

Fri, 04/12/2013 - 13:29 | 3441794 tecno242
tecno242's picture

Fools are just handing over the country to the ECB... 

taking a bailout is essentially suicide for your country.

Sat, 04/13/2013 - 00:22 | 3444038 Aussiekiwi
Aussiekiwi's picture

Its Ok, they 'bailed in' everything will be just fine, listen to the calm re-assurances of our leaders and....look 'Biggest loser is back on TV' must not miss that!!

Fri, 04/12/2013 - 13:32 | 3441802 youngman
youngman's picture

I bet some Russian Mobsters have something to do about a target t-shirt or something sent to them..

Fri, 04/12/2013 - 13:35 | 3441812 swissaustrian
swissaustrian's picture

So the central bankers of Cyprus don't want to sell the gold?

Damn tradionalists.


Fri, 04/12/2013 - 13:36 | 3441815 taraxias
taraxias's picture

Okay, I'm confused.

Who wants to sell the gold, their central bank on orders from Draghi or their own governmen without consultation?

Will someone pull the plug on this charade please.

Fri, 04/12/2013 - 13:38 | 3441833 somecallmetimmah
somecallmetimmah's picture

Just leave your gold on the counter and walk away.

Fri, 04/12/2013 - 13:44 | 3441852 insanelysane
insanelysane's picture

But where is the gold?  This is why Germany is repatrioting their gold.  Because if the ECB or IMF decides you owe them money, they don't want fiat.

Fri, 04/12/2013 - 13:37 | 3441818 beavertails
beavertails's picture

let the banks implode Cyprus and Save your gold for the reset.  It's not that difficult a decision.  At least each citizen would have half an oz of gold to their name.

Fri, 04/12/2013 - 13:37 | 3441819 Schmuck Raker
Schmuck Raker's picture

OT: Sprott Silver ETF(PSLV) now trading at ZERO premium. Interesting.

Fri, 04/12/2013 - 13:59 | 3441911 Schmuck Raker
Schmuck Raker's picture


Paper Silver now trading at a discount to spot!!

-0.07% $10.32

Praise be to Ben!

Fri, 04/12/2013 - 13:38 | 3441824 somecallmetimmah
somecallmetimmah's picture


If you surrender before an attack occurs, was it ever really an attack?

Fri, 04/12/2013 - 13:40 | 3441842 ekm
ekm's picture

The whole world market is hanging on one and one hair only:

Order from Obama to crap it.

Nothing else holds this market, same as in 2008, a simple Bush's order crapped the whole thing after oil went parabolic.

Fri, 04/12/2013 - 13:45 | 3441856 newworldorder
newworldorder's picture

Anyone know where the Cyprus Gold is located?  City/London, NY FED, US Treaury? 

Fri, 04/12/2013 - 13:51 | 3441877 Sid James
Sid James's picture

As of yesterday, Frankfurt.

Fri, 04/12/2013 - 14:37 | 3442099 AlaricBalth
AlaricBalth's picture


Cyprus gold in Frankfurt. German gold in France, UK and US. France gold in Mali. US gold in who knows where.

This is just a global game of Where's Waldo. It reminds me of an old Johnny Carson joke. • There’s only one fruitcake in the world. It just gets passed around.

Fri, 04/12/2013 - 13:50 | 3441870 azengrcat
azengrcat's picture

Central bank that can't print money =/= central bank

Fri, 04/12/2013 - 14:00 | 3441890 THE DORK OF CORK
THE DORK OF CORK's picture


"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"





This new and somewhat strange episode is all about pushing resources higher  (above the bank controlled nation state)

They wish to push resources to the very top of the euro market state experiment which happens to be Germany at this moment.


Europe is / was all about destoying the banks previous creation - the post 1648 experiment.

They wish to kill it and somehow reanimate the corpse.


 Euroland is the 9th circle of banking hell

Fri, 04/12/2013 - 14:07 | 3441943 ziggy59
ziggy59's picture

Golden, uh goldman rule applies...he with the gold, rules!!

Of course once the friggin crooks get the gold, its lights out for Cyprus ..

Fri, 04/12/2013 - 14:09 | 3441949 trebuchet
trebuchet's picture

ECB = central bank for eurozone, single monetary policy, nothing to see here, move along

Fri, 04/12/2013 - 14:17 | 3441976 Pseudo Anonym
Pseudo Anonym's picture

i'm kinda curious who the resignees were and what their ethnic background was

we learn that not one, not two, but three board members of the central bank have called it a day

surly they could not have been of jewish descent.  were they jewish, that would be against their religion of going along with fraud, deceit, plunder and theft

Fri, 04/12/2013 - 14:28 | 3442051 somecallmetimmah
somecallmetimmah's picture


Fri, 04/12/2013 - 14:18 | 3441985 HoaX
HoaX's picture

Panicos resigning was to be expected, I´ll get worried when Calmos finally decides to step down.

Fri, 04/12/2013 - 14:29 | 3442053 No Euros please...
No Euros please we're British's picture

Cyprus, just do us all a favour and tell Europe to fuck off. It's not like you don't have any alternative, I'm sure Putin could make you a sweet deal. What's so wrong with a sovereign default, you'll get over it. This Europe/ECB crap is torture for generations to come. You might as well hand the south of the island to Turkey. At least they'll rape you but not your children.

Fri, 04/12/2013 - 14:57 | 3442193 teolawki
teolawki's picture

No doubt their bank accounts left Cyprus before they did.

Fri, 04/12/2013 - 15:07 | 3442233 theprofromdover
theprofromdover's picture

If the central bankers of Cyprus cannot understand that the minute they give up their gold, they lose all possibilities of self-determination.

Without gold, there is no way they could ever print their own currency again.

I would say that was treason.

Fri, 04/12/2013 - 15:09 | 3442242 SK8boarder
SK8boarder's picture

It is treason,,, tell them ASS wipes to piss up a rope,,,  

Fri, 04/12/2013 - 15:18 | 3442274 walküre
walküre's picture

No more PANIC(OS) at the Cypriot central bank?

Who is the next guy? CALAMITOS or COLLAPSIOUS?

Here's the rub. The Cypriot central bank cannot operate under the capital controls. I mentioned weeks ago to have a look at the Deposit Insurance Scheme for bank accounts up to 100,000 Euros. There is no funding for that just as there is no funding for our FDIC unless the Fed unleashes the dragon and by that time, the insured amounts will be worth SQUAT.

Cyprus is broke. Germany's parliament will probably not vote in favor of any bailout. Even if they do, the country needs more, lots more. The ECB suggesting to sell gold just means that Cyprus is fucked and left to its own devices. Is like the rich brother telling his poor brother to sell his Spiderman towel collection and stop asking Mom and Dad for more money.

BANK RUN is continuing unabatted. Sell off in gold is another symptom of a bank run imo.

P.S. Fuck Bernanke and Windows 8 sucks.


Fri, 04/12/2013 - 15:51 | 3442458 Rustysilver
Rustysilver's picture

From BBC site;

"The man arrested at Athens International Airport was said to be carrying 7kg (15lbs) of gold tablets and almost 300,000 euros (£255,000) in cash in his luggage.

Customs officials also believe he attempted to smuggle out another 425kg of silver."

The guy was going to German.

And you guys are worrying that there is no gold or silver left. There's plenty, all in luggage at different international airports.

Fri, 04/12/2013 - 21:46 | 3443746 AgentScruffy
AgentScruffy's picture

Who cares? They sucked and were horribly negligent.

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