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Cyprus' Capital Controls Will Continue Until Morale Improves
Proving that in Europe the logic behind the saying that "the beatings will continue until moral improves" is alive and well, was the announcement by the Cyprus central bank head Panicos that capital controls in the country will remain in place until confidence returns. We'll let that sink in for a minute.
From AP:
Panicos Demetriades said the Central Bank wants to eliminate these controls as soon as possible, but it has to first make sure that trust in the banks has recovered sufficiently. He said a rush of withdrawals would put additional strain on the banks that they can hardly afford right now.
"We have to keep in mind the dangers of easing (restrictions) overly quickly," Demetriades told a press conference. "We have to be careful with these relaxations. It's more important to see how trust can be restored in the banking system."
The Central Bank had always refused to estimate how long the controls would last, though government officials have said they would last several weeks. Some of the controls, such as bank money transfers, have been eased to help local companies do business. But many others — such as the daily withdrawal limit — remain in place.
One wonders just how capital controls remaining in place - a sign that the government itself has zero confidence in the people and the banks - makes any sense especially considering that French FinMin as recently as a month ago told "To all those who say that we are strangling an entire people ... Cyprus is a casino economy that was on the brink of bankruptcy."
So, casino economy on the bring of bankruptcy, with an insolvent banking sector, yet where confidence is expected to return on its own eventually. Sounds like your typical European "plan" of attack.
In other words, a perfectly circular #Ref!
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but at least it's insured.....
LOL. You will take it up the tailpipe and you will like it. holy shit, what a fucked up world..
When the walls go up, they stay up.
https://www.youtube.com/watch?v=n5diMImYIIA
You can't have any pudding if you don't eat your meat...
The catch is...there is no meat.
It your fault, Cypriots. Its your fault you are angry and sad and antsy because we took your money. It's all your fault.
The beatings will stop when you quit your crying.
'He said a rush of withdrawals would put additional strain on the banks that they can hardly afford right now...
These are private companies limted by shares. Wind the fuckers up.
'"We have to be careful with these relaxations. It's more important to see how trust can be restored in the banking system."''
No, it's more important t give people their money back...
Correction, there is not pudding! And the meat is rancid!
What do you call someone who trusts banks after capital controls?
a banker?
A sucker sheeple!
A Corzine offspring.
Look at the arms of the woman on the statue holding the sickle! You might think she was Michelle Obama.
Which means when more money comes in than goes out.
I would have hoped for bank runs and large runs on gold and silver in broader europe. The metals have been moving on blow out sale but I'm not sure the sense of panic is in europe like it should be.
I don't know if Z.H. reported it but apparently gigolo jeroen dieselboom opened his gaping maw and stated again bail in s could happen across europe. LOL!
Of course they will: it is the template to collect on trillions of 'untaxed' capital. See: The Real Cypriot "Blueprint" - How To Confiscate $32 Trillion In "Offshore Wealth"
The run on physical gold is well underway.
Anecdotally, the bank runs are as well. Very quietly, but it's definitely happening. The 'smart money' is departing from the vaults in small but steady quantities.
Trust banks? You're fucking kidding right?
Hey Panicos, hold your breath until then will ya?
"Never again" is a long time to hold one's breath.
"Panicos" is worried about bank runs. LOL
Interestingly, this is the same guy that was against keeping the banks closed in the first week, and had to be forced by the Cypriot President
meanwhile most interest by the American media is just for domestic reasons and the British media shows a rainbow of opinions of all kinds, with very discordant notes from the ex-pat community on the island
casino? Not more than the megabanks, imho
Morals will not improve with the present govt. Not there, not here not anywhere.
"Oh, what a tangled web we weave, when first we practice to deceive." comes to mind.
"UNTIL TRUST IN THE BANKS IMPROVES"...could be the Comedy Line of the Year...!!
Maybe the banking industry should change all their signs from "________ Bank & Trust" to "Trust in Bank ________".
and then to.."aw, come on"
Does ZH and the Tylers compile a list of such things for the end of the year? That would actually be quite fun to go through in the last week of December when things are slow.
For fun, go to the ZH top-rated (most read) articles at the end of each year, which comes out in late Dec. Look for one of them to make some kind of forecast or crystal-ball gazing. Then consider what actually happened.
Use this Scientific Method to come to whatever conclusion that the results indicate. Enjoy.
Hint: I've done this exercise, and learned that there is little correlation between forecasts and reality. In spite of these articles seeming so persuasive and compelling at the time. I've now learned to... and to hedge accordingly.
p.s. Astoria is a nice place. It's where they filmed 'The Gooneys', I believe.
I will view those articles and I expect they will be incorrect, althought no more than I ever am. I enjoy ZH as a place to read things that I won't hear on CNBS, which it does in spades.
I'm in the other Astoria, the one in NYC with all the Greeks. I expect rent to be going up as Greeks slowly trickle in from Greece as their country melts down.
"UNTIL TRUST IN THE BANKS IMPROVES" is the new "WHEN HELL FREEZES OVER".
Really, how can you regain trust once it is lost and you've shown your true colors?
If only they could figure out a way to put capital controls in place but say there's no capital controls in place. It would be soooo much easier.
The Nazi's already have. Instead of directly re-running the 1930's playbook with the prohibition of foreign bank accounts and an exit tax, they're taking the digital age approach and authorizing in the ISPs in Germany to collect the unsernames and passwords of all the sheeples' foreign bank accounts. If the Nazi Party and its pet political machinery doesn't like some uppity serf it would have the capacity to log into any such serf's account and directly transfer/Corzine any and all funds without any embarrassing confrontation with a foreign power. PROGRESS!
http://www.thelocal.de/society/20130503-49513.html
(As usual the English speaking world doesn't write much about how the Germans actually make sausage until after TSHTF)
The good people of Cyprus could do the world a great favor by getting a nice mob together and dragging a few high ranking bankers/politicians out of their homes and into town square for a quick trial and public hanging. Due process is important even for a mob.
Would send a strong message.
Yea, but then they'd get 'Libya'd'... Because they hate us for our freedoms...
now that would be a game changer.
"The only thing we have to fear is fear itself."
F.D.R. speaking to the second major failure (first being 1921) of the Federal Reserve System to prevent bank runs in 1933.
The banks will confisticate your money until you trust them? WTF?
They are "Banking on Stockholm Syndrone".
How can you have morale when state sponsored theft has destroyed the nation ? Radicalism will be the only growth in Cyprus for years to come.
I am sure this will be the lead article in this months "who gives a shit" magazine.
Because if it ain't happening to you, that means it will never happen to you!
These temporary measures are becoming permanent just like Nixon’s 1971 temporay suspension of the convertibility of dollars into gold.
China is offering to purchase the entire island of Cyprus with U.S. Treasury bonds if they will delcare bankruptcy and all of the people will move to France.
Confiscation - it's like something I read in a book once... oh wait...
Some say this is not going to end well. But the bottom line is that it is going to end.
The central bankers and their billionaire hangers on are taking the seed corn from the harvest and there won’t be a harvest. And they are going to be blamed for it. The blame is going straight to the bankers. They’re going to be sitting there with the gold and the money when everything collapses and it won’t be hard for the people to see who dunnit.
The farther they go with this the sooner collapse is going to come and the bigger it’s going to be. We’re not talking about a 2008 dip, we’re talking the collapse of the banking system. And nobody deserves it more than these bankers.
There’s no common sense ending to the fact they keep taking and taking it. That doesn’t get them anywhere except to the end. It is just physics. You can’t boil water without it changing in volume. It just happens and this is what’s happening.
You are the ZH version of an optomist.
And poor Paul Krugman thinks there’s no limit to divvying up the wealth of nonproduction. Because if your money has been stolen and you’re broke you can just solve the problem by spending more money. You don’t need to produce anything.
And if that miracle doesn’t work, your nonproducing government can just create a trillion dollar platinum coin and cash it in for a trillion dollars and hand out food stamps.
Krugman and Bernanke are the fraudsters, the myth makers.You can't eat paper.
There’s a limit to this and collapse is a comin’, and you’re right, fonz, on ZH, that’s the makings of good news as we push these people out of the mainstream and get on with reality.
"You can’t boil water without it changing in volume..."
Ah, but the gods of the monetary universe can and will change the classic law of PV=nRT. When all else fails, they'll change the 'nR' part -- because they can. Expect the bankrupt Western CB's to meet at the bottom of the drain (that they are circling in concert), and eject a plasma of SDR's.
Since the BRIC+ countries do not trust the Coalition-of-the Fed, or the SDR, they are opting for Gold. That's where East and West part ways: Gold vs SDR's.
And God help us, if Club-Fed comes out with their version of BTC. You might as well call it the "666-Coin"! 'One Coin to Rule Them All'. Brrrr, shiver me timbers.
We’re now talking the old days, Kirk. And they’re about to end. Cold reality is setting in. The international bankers have presented the banking industry as a service industry and that personal debt is good for business: Just bank with them, your money is safe and they’ll pay you some interest.
This was to be the new America, the new global banking system, not the old buyer-beware system. But you know what? Now they’re saying, now that you’ve put your money in their banks for safe keeping, they’re saying, if you banked with us, you’ve taken a big chance! Big risk chances! We put your money at risk and it’s only fair you pay for our losses; those were the fine print and after-the-fact terms.
Shut them down!. We don’t need risk banking and we certainly don’t need crooks running the risk banking.
Statements that the banks must keep your money and dole it back to you as they see fit and/or use it to bail out their banks, is banker propaganda. We’ve learned that from Cyprus. People are not going to accept that. If Cyprus is the template, then let the bankers do business with each other. If this is the way they want to run their banking system, we don’t need it.
Shut the doors of the Fed; it is poisoning the country and the world. Ever since the Fed opened its doors in 1914, the politics, the economy, the tyranny and the breakup of the American culture have been getting worse and worse – because the international bankers who own the Fed are taking all the money and using it to oppose individual freedom, individual opportunity and individual entrepreneurship. They are billionaire collectivists who at this moement are seizing the monetary fruits of all our labors that we unwittingly stored in their palatial edifices.
And, now, they’re telling us Cyprus is going to be our new template.
Uh-huh.
This is a variation on what's happening in the US/UK and elsewhere. Govts assume that trust in banksters and their cohorts in politics will return naturally without any need to round up the criminals and line them up in a court of law charged with fraud and other criminality. They're in denial that brushing aside the Rule of Law might be a factor in the non-recovery recovery.
What happened to the "drive a cement mixer into the central bank gates" plan, aka "break into and neutralize the central bank using wave after wave of civilian attacks" ?
Heheheheee...! LOL
Maybe he doesn't realise that all Ponzi schemes are about MAINTAINING CONFIDENCE...
WB7's pic of Benny the Magician springs to mind...
Hehehe, is right how many victims of a ponzi willingly lower their shorts for another shot?
Actually, central bank just announced capital controls will last forever, as confidence in banks will never return. Dude, do they realize that they took these people's money during the weekend? Cowards.
What he really means is: "We'll continue to keep out fingers in the dike until the threat of the deluge no longer exists."
I wonder when the bank does their own payroll..how do they cash their own checks?????
I have to wonder when the people of Euorpe will wake up and realize what is really going on, (for that matter the US too).
it just so happened that i was touring that area of the world in March (was with a family member as a chaperone & companion) . i was on the Island of Cyprus the day after the banks were shut down & i can tell you that the people there are ANGRY. the guide on the tour bus had a microphone & for 5 hours the whole busload of tourists listened to ranting about the European Union & how bad their lives were since they joined the E.U. i was up in the hills in a little village called OMODOS (it was gorgeous) & managed to find a cafe with internet. i sat down with the tour guide & showed her all the headlines on my favorite website, ZERO HEDGE . she read, two others gathered around her & also viewed all the CYPRUS headlines ....... god, i hope these people woke up .
Googled it...beautiful village! Too bad their living standards are going to fall too...when WILL we/they wake up?
"i hope these people woke up"
Are you referring to Cypriots , Americans or the human race?
It's more important to see how trust can be restored in the banking system.
Yes indeed, how does one restore trust in a system that serves only itself ?
Indeed, forwardho, the ONLY way one can trust the established system is that one is continues to be profoundly ignorant about the way it really works. The more one understands that the banking system is runaway triumphant fraud, then the only thing one can trust in is that that parasite will kill its host. In the end, that system does not even serve itself, since it is a parasite that will kill its host!
The criteria for economic recovery as reported by the politicians and central bankers is the profits made by JP Morgan, Bank of America, Wells Fargo, Citibank and the Goldman Sachs. The rest of the world population reeling under the impact of rising unemployment and poverty caused by crises created by these banksters do not form a part of any data. Such petty millions of people whether from Greece or Cyprus can be sacrificed to save the masters of the universe.
http://www.marketoracle.co.uk/Article40231.html
Lots of cars for sale here in Limassol but many car lots have closed down because there's no financing available. Cash is king on Cyprus but mose people can't get any. Oh forgot to say that unemployment is up 27% from April 2012.
"Cash is king on Cyprus but mose people can't get any"
paging Kito...
BitCoin Last price:$112.40101
http://uptweet.com/viewStory?id=1253
From Cool Hand Luke:
"I got my mind right, boss."
"Supposin' you was to back-sass?"
"I won't back-sass, boss."
Yes, and what is going to happen to those of us who can't get our mind right? I watched Zietgeist last night and it was positively chilling.
The warden had the answer to that-
"If a man runs, he gets a set of leg irons. If he runs again, he gets two sets. He isn't going to need three because he's going to get his mind right. And I mean, right."
They told Luke, "you run again, we're gonna kill you."
You know they will eliminate those that can't be conditioned, ask the 20 million Ukrainians, The Romanovs, the teachers and intellectuals of Cambodia, and Chiang Kai-shek's loyalists.
Power comes from the barrel of a gun, it's for the children.
/sarc
Temporary capital controls are inevitably followed by confiscation, repudiation or redenomination.
Fixed.
Every month I use bill pay with BOA and had continued to worry about frozen funds from all the crap going on. Well now its occurred to me to deposit the funds in cash AFTER I see the red on the screen at the end of the day, its kinda like them paying me first. May be the only thing I can do to make a difference. But boy it does feel good!
Funny, because two days back Reggie Middleton said we're probably going to have euro-wide capital controls within weeks.
Account-freezing software ready to be put in effect by July 8. Unprecedented drive for account-holder identification going on. Reggie knows.
We allow you to withdraw your money as long as you don't intend to.
But, rest assured, the money is there. It is always available for you to withdraw immediately (as long as you don't).
so, it seems that if all this comes to pass for europe, exporters to europe will die, physical euros appreciate, swiss banks crumble under the weight of zeros and ones, the chinese go communal, nobody cares about n korea anymore, the us stock market limits up every nano second, food prices in the u.s of a fall because europe can't afford to eat, north america secedes from the planet and lives mostly happily ever after .
sure i missed a couple of points.
its sunny out. i am going for a hike into the mountains.
:)
GENIOS GENIOS GENIOS!
Given that the world manifests such runaway evil, about which almost nothing can be done, I appreciate the macabre sense of humour: "We'll let that sink in for a minute."
Meanwhile I will repost this link, to a 12 minute video reviewing the history of Cypress from 2007 to 2012:
http://www.vimeo.com/64641714#
Cyprus crisis:
The road to the March Eurogroup
The most astonishing thing was the SPEED at which things turned into SHIT! No matter how much one thinks about the phenomena of exponential functions, it still seems practically impossible to get a gut feeling for those. That things will get worse, almost automatically, FASTER, with each phase doubling the previous, on the slippery slope to hell, accelerating into the abyss, continues to only something which may be intellectually thought about, but not viscerally understood ... It is like trying to imagine being in a hurricane, or an earthquake, compared to actually being in those, at the time they are happening. I think that our ability to imagine these things is insufficient ...
Interesting, I've got an old faded sticker on the back of my truck that says..."the beatings will continue until moral improves"
Its around five years old ;-)