This page has been archived and commenting is disabled.

Ukraine Imposes Capital Controls, Limits Foreign Currency Withdrawals

Tyler Durden's picture


Yesterday we reported that as part of the Ukrainian central bank's plan to bailout the nation's largely insolvent private banks, it would provide any needed funding but only "if they will remain under open control of the National Bank of Ukraine." And since the new CB head Stepan Kubiv's allegiance to Europe were already well-known, this was merely a quick and efficient way of providing Europe with all the banking details including asset holdings of the local population. Today, the annexation of the country's banking system by a "benevolent" Europe is complete.

Itar-Tass reports that Ukraine's national bank has imposed temporary limits to withdraw money from foreign currency deposits to sums equivalent to no more than 15,000 hryvnias (about $1,500) a day, National Bank Chief Stepan Kubiv told a press conference. Or, as the citizens of Cyprus call it - capital controls.

Why is Ukraine doing this? Because when your currency is crashing at a record pace to unseen lows, what is the best way to limit FX transactions? Simple - just minimize the amount of foreign currency that can be in circulation.

Which is also why the the central bank's capital controls do not touch local currency: there is more than enough of that in circulation since after all Ukraine has its own currency and can print it in infinite amounts: "For hryvnia deposits you may take as much as a million or two. Banks have liquidity," Kubiv said.

Then there was the token propaganda:

The chief banker also noted that the situation on Ukraine’s currency market was under control. "The exchange rate may move in one direction and the opposite. There are just emotions and misinformation on the financial market," he noted.


He assured the national bank would toughly stop violators of the currency law. For example, inspectors were sent to eight banks that had engaged in speculation, he said.

To summarize: first banks abdicate their control to a pro-European central bank, and now the citizens face their first (of many) capital controls which incidentally will simply aggravate the fund outflow situation even more, leading to an even faster drop in foreign reserves.

Finally comes the inflation. Wait until the people start rioting - think Egypt - when the economy collapses and a loaf of bread costs its wheelbarrow equight equivalent in Hryvnias. Just how fast will the countercoup in Ukraine take place then? Recall, in Egypt it was just over a year and a half...


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 02/28/2014 - 13:13 | 4489674 Hippocratic Oaf
Hippocratic Oaf's picture

Ukraine have bitcoin?

Theft is theft either way.

Fri, 02/28/2014 - 13:14 | 4489679 PR Guy
PR Guy's picture

I'd be having kittens too if I had the US Navy Seals on my border!! ;-)


Fri, 02/28/2014 - 13:15 | 4489687 PR Guy
PR Guy's picture



At least they got democracy now :-)


Fri, 02/28/2014 - 13:17 | 4489692 fonestar
fonestar's picture

Ukranians learning the hard way what happens when you reject Satoshi Nakamoto from their lives.

Fri, 02/28/2014 - 13:19 | 4489708 john39
john39's picture

welcome to europe serfs.

Fri, 02/28/2014 - 13:29 | 4489767 StacksOnStacks
StacksOnStacks's picture




Fri, 02/28/2014 - 13:42 | 4489838 fonestar
fonestar's picture


Fri, 02/28/2014 - 14:13 | 4489978 LMAOLORI
LMAOLORI's picture



I'll rush right out on your advice and let some thieves screw me over too ROFLMAO


Mt. Gox bitcoin customers could be out of luck, experts warn


Mt. Gox Bitcoin Exchange Down Amid $365 Million Theft Claim

Fri, 02/28/2014 - 14:47 | 4490101 fonestar
fonestar's picture

Only buy from trusted sellers like fonestar.  Look him up on today!  100% positive feedback!

We pride ourselves on our repudiation at fonestar!

Fri, 02/28/2014 - 14:51 | 4490202 SWRichmond
SWRichmond's picture

Economic hitman playbook.  Crash the currency.  Now foreign "capital" (bankers) can buy up assets at pennies on the dollar.

Fri, 02/28/2014 - 14:57 | 4490230 Boris Alatovkrap
Boris Alatovkrap's picture

Great, just great @#$%! Last time Boris is sell copper in Kiev!

Fri, 02/28/2014 - 14:58 | 4490238 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is apologies... is mean "Great, just @#$% great!"

Sat, 03/01/2014 - 10:40 | 4493135 jerry_theking_lawler
jerry_theking_lawler's picture

Understandable considering the situation. Where exactly are you from again?

Fri, 02/28/2014 - 22:22 | 4492411 jez
jez's picture

"We pride ourselves on our repudiation at fonestar!"




I'm sure you do.


repudiate; verb

1. to reject the authority or validity of; refuse to accept or ratify: 2. to refuse to acknowledge or pay (a debt) 3. to cast off or disown (a son, lover, etc)   [C16: from Latin repudi?re  to put away, from repudium  a separation, divorce, from re-  + pud?re  to be ashamed]


Fri, 02/28/2014 - 13:45 | 4489847 StacksOnStacks
StacksOnStacks's picture

To any of you alt coiners out there:

Fri, 02/28/2014 - 13:48 | 4489860 fonestar
fonestar's picture

Mmmm!  fonestar loves the gravy train!

Fri, 02/28/2014 - 13:49 | 4489866 StacksOnStacks
StacksOnStacks's picture

I'm more of a Gravy Boat fan.

Fri, 02/28/2014 - 15:02 | 4490255 Boris Alatovkrap
Boris Alatovkrap's picture

"Gravy Train"...? You are refer to constant trip to toilet boil for expulsion of bowel liquidity? Is something like "Quantitative Ease"?

Fri, 02/28/2014 - 13:32 | 4489779 Thought Processor
Thought Processor's picture


I think this one's gonna get messy.


Probably sooner rather than later.

Fri, 02/28/2014 - 14:50 | 4490120 bigkahuna
bigkahuna's picture

You may be right - but it will have nothing to do with Russia or The Ukraine if it does. The US is strategically fine militarily with Russia owning the Crimea region. For all intents and purposes, they have owned it militarily if not de facto throughout modern history.


Right now, the world economy is in a shit storm. That means everyone - Europe, Russia, China, and the US and Your Country too.


All these leaders need an excuse to not be impaled by their citizens. War is the excuse - it is now and it always has been. ALWAYS.


If there is a real war over there, it will because the sociopaths that we all call leaders have decided to send your sons, your fathers, your brothers into fucking chaos. There are no good guys in this - only bad guys sending "sheep" to the slaughter (where they slaughter each other) - simply for a distraction to save their own behinds.

It is just this simple people (all people everywhere) - wake up or you, your brother, your dad, your son - is going to be sent to slaughter each other. 


WAKE UP PEOPLE!!!!!!!!!!!!!!!!!!!!!!!!!   WAKE UP NOW!!!!!!!!!!!!!!!!!!!

Fri, 02/28/2014 - 13:32 | 4489781 Levadiakos
Levadiakos's picture

I hereby declare these games...OPEN!!!.................................Oh! Wait!

Fri, 02/28/2014 - 13:34 | 4489796 DblAjent
DblAjent's picture

Ukraine Imposes Capital Controls

Ukraine? Or Russia?

Fri, 02/28/2014 - 14:03 | 4489937 Buckaroo Banzai
Buckaroo Banzai's picture


Fri, 02/28/2014 - 14:15 | 4489986 Urban Redneck
Urban Redneck's picture

"What difference does it make now?"

The Russian banks have 28B liability exposure, which Putin has already said may be backstopped by Russia

over 40% of domestic bank assets were international, and they're just getting around to capital controls now-- long gone

NPL estimates were up to 40% before TSHTF

Any sizeable business/industry in Ukraine (which are concentrated in the East) that still had deposits in local banks would have relocated those over the last week(s).

Ukraine has a fractional reserve banking system.

Do the math...

The little guy is FUCKED (as usual), they can print their own currency, but no one wants it - so the foreign purchasing power is gone.

Sat, 03/01/2014 - 00:04 | 4492583 Wahooo
Wahooo's picture

I don't think Mr. Kubiv is long for this world.

Fri, 02/28/2014 - 17:53 | 4491268 Silveramada
Silveramada's picture

really? shit-oshi sagamoto is the cause of the war in Crimea? you must be a geo-political neuro-scientist...

Fri, 02/28/2014 - 13:18 | 4489700 Colonel Klink
Colonel Klink's picture

I'm sure they're going to free the fuck out of them!

Fri, 02/28/2014 - 15:27 | 4489936 LMAOLORI
LMAOLORI's picture



Central Banker Democracy lol brought to them in large part by the U.S.


Ukrainian Neo-Nazis Declare that Power Comes Out of the Barrels of their Guns


The New Great Game: Why Ukraine Matters to So Many Other Nations



The Institute of International Finance, which represents big banks, estimates that with no change in policy Ukraine would need $30 billion in foreign assistance this year alone. The IIF predicts that the International Monetary Fund will insist as a condition for aid that Ukraine cut natural gas subsidies to consumers and industry, and allow its currency, the hryvnia, to fall further, shrinking the trade deficit. 



Fri, 02/28/2014 - 13:13 | 4489678 Silver_K-9
Silver_K-9's picture

Got Phyzz!?



Fri, 02/28/2014 - 13:17 | 4489689 fonestar
fonestar's picture

Ukranians getting Zhou Tonged!

Fri, 02/28/2014 - 13:35 | 4489794 AG BCN
AG BCN's picture

The video was a bit shit, but carry on with the whole Bitcoin and third person thing, I will give it to you that it is amusing if nothing else. 

p.s. just for the record, my money will be going nowhere near Bitcoin. 

Fri, 02/28/2014 - 13:40 | 4489825 fonestar
fonestar's picture

Oh your "money" will be going near Bitcoin, around Bitcoin and into Bitcoin.  When 10% of people accept Bitcoin it will snowball from there and you will accept Bitcoin in the same braindead manner you did "dollars".  Monkey see, monkey do.

Fri, 02/28/2014 - 13:53 | 4489888 AG BCN
AG BCN's picture

When 10% of people accept Bitcoin? 

Accept Dollars?

I am currently looking over the Mediterranian with a stash of Gold and Silver. 

Seriously son, come back in a few years and maybe we can talk then. 

Fri, 02/28/2014 - 16:33 | 4490743 Bytor325
Bytor325's picture

10% of the idiot generation snowboard, i still ski

Fri, 02/28/2014 - 18:12 | 4491417 fonestar
fonestar's picture

fonestar brought a crazy carpet.  Then all of the kids held him down and gave his face snow washes.

Fri, 02/28/2014 - 13:44 | 4489845 freedogger
freedogger's picture

Sort of like saying in 1990 my computer will go nowhere near the internet.

Fri, 02/28/2014 - 13:58 | 4489909 fonestar
fonestar's picture

fonestar still remembers those dolts.  "Who would want a computer in their house?  Do you want a nuclear missile too?"  Reminds fonestar of the dolts on this blog.

Fri, 02/28/2014 - 14:02 | 4489928 AG BCN
AG BCN's picture

fonestar seems to be flustered. 

Fri, 02/28/2014 - 16:25 | 4490692 TPTB_r_TBTF
TPTB_r_TBTF's picture

i get a bit flustered too when the price of my holdings drops all month.

Sat, 03/01/2014 - 08:33 | 4492968 FinalEvent
FinalEvent's picture

And ofcourse that applies to everything except gold.

Fri, 02/28/2014 - 13:58 | 4489910 AG BCN
AG BCN's picture

Sort of like saying this time it will be different. Gold sunshine. You stick with the digits. 

Fri, 02/28/2014 - 14:00 | 4489921 fonestar
fonestar's picture

Well you're going to have to raise digits if you want to explore for gold.

Fri, 02/28/2014 - 14:07 | 4489949 AG BCN
AG BCN's picture

I mean seriously? I'm going to have to raise digits? Some paper may be involved for a very limited period of time until it turns into metal, but nothing more than that. I have no intention of ''exploring' for gold. 

Fri, 02/28/2014 - 13:14 | 4489680 TheFourthStooge-ing
TheFourthStooge-ing's picture

Welcome to the open control of the National Bank of Ukraine!

Sorry, no Spiderman beach towels.

Now get out of here and enjoy your new "freedom".

Fri, 02/28/2014 - 13:23 | 4489693 Element
Element's picture

I got zee debt!  Yaaaay!!

They seem to be attracted by the reckless immorality, corruption and denial.


The West is the BEST!

Fri, 02/28/2014 - 13:17 | 4489699 Skateboarder
Skateboarder's picture

$1500 is not insignificant money, at least to the non-management class.

Fri, 02/28/2014 - 13:34 | 4489790 Levadiakos
Levadiakos's picture

I wipe my ass with it

Fri, 02/28/2014 - 13:57 | 4489902 Pool Shark
Pool Shark's picture



Maybe, but how long before it becomes $1,000, then $500, then $100, then: "Oh, sorry comrade, your account has been 'appropriated' by the "Glorious Revolution of the Republic of United Ukraine®"?


Fri, 02/28/2014 - 13:17 | 4489695 ZeroPoint
ZeroPoint's picture

Bagdad Bob, is that you?


Fri, 02/28/2014 - 13:17 | 4489697 pods
pods's picture

Crash the hryvnia then bring in the Euro.

The EU has got them by the shorthairs now.  


Fri, 02/28/2014 - 13:23 | 4489733 CrashisOptimistic
CrashisOptimistic's picture

This is the case for bitcoin, and it is a compelling one.  It is the one thing that can get through the airport, and the only thing.

Fri, 02/28/2014 - 13:35 | 4489799 swmnguy
swmnguy's picture

Yes, that's the case for anything convertible outside the official banking system; toilet paper, coffee, cigarettes, beef jerky, pogs, marijuana, S&H Green Stamps.  The bit about "Getting It Through The Airport" certainly does favor Bitcoin over the others.  But the tangibility, the ability to visualize and understand the chain of control (either you have it and you can touch it right now, or you don't) tends to scare people off Bitcoin.  Maybe the mechanics of Bitcoin itself aren't manipulable (I suppose we could ask Fonestar what he thinks?), but obviously the exchange of Bitcoin can be compromised.  To get my coffee, you'd have to come over and take it.  You can't get it away from me from your keyboard.

Fri, 02/28/2014 - 13:40 | 4489826 maskone909
maskone909's picture

its just a matter of time untill they inact pog confiscation.  i have a shit ton of gold and silver slammers

Fri, 02/28/2014 - 13:48 | 4489861 CrashisOptimistic
CrashisOptimistic's picture

The discussion is about capital controls.  Bitcoin is immune to xray.  Nothing else is. 

There is way too much swaggering about boating accidents and having gold at the bottom of a lake. 

It doesn't do you any good there, especially if you can't or won't ever return to the country where that lake is. 

Make no mistake about this.  A future smash scenario CAN force you to leave.  If you are going to face gold transaction taxes, you WILL convert it to currency and bitcoins and then get the hell out.  You'd be crazy not to.

Fri, 02/28/2014 - 13:35 | 4489801 pods
pods's picture

This I agree with.

Fri, 02/28/2014 - 13:59 | 4489914 maskone909
maskone909's picture

all they would have to do is ban electronics from leaving the country after they set up a firewall.  then make passengers go through magnets to destroy data devices.  although, people with pacemakers and metal implants might be able to smuggle, it will be just as difficult as gold and silver.

Fri, 02/28/2014 - 14:07 | 4489946 CrashisOptimistic
CrashisOptimistic's picture

I don't think you understand how bitcoin works.  The "wallet" stuff could be encrypted, mislabeled and emailed to yourself.  There's nothing to magnetize.

Fri, 02/28/2014 - 13:53 | 4489887 walküre
walküre's picture

So does a stupid S&P portfolio held with an online international brokerage account. BTC is nothing but a hyped up digital stock cert.

Fri, 02/28/2014 - 16:35 | 4490760 Bytor325
Bytor325's picture

"the only thing that can get through an airport".......


Not for long:

Fri, 02/28/2014 - 13:18 | 4489701 jubber
jubber's picture

so sell Gold then the market says

Fri, 02/28/2014 - 13:20 | 4489713 greatbeard
greatbeard's picture

The market always says sell gold. 

Fri, 02/28/2014 - 13:19 | 4489707 skwid vacuous
skwid vacuous's picture

what happened to the other one... NATO only cashing up odd numbered ATMS now?

Fri, 02/28/2014 - 13:21 | 4489722 fooshorter
fooshorter's picture

if you like your attack helicopter, you can keep your attack helicopter!

Fri, 02/28/2014 - 13:22 | 4489724 q99x2
q99x2's picture

Welcome to Goldman Sachs Ukrainian bitchez.

Fri, 02/28/2014 - 13:22 | 4489727 Quinvarius
Quinvarius's picture

They already have a Department of Homeland Security too.  I am not joking.

Fri, 02/28/2014 - 13:29 | 4489773 Whoa Dammit
Whoa Dammit's picture

Have they made everyone enroll in ObamaCare yet?

Fri, 02/28/2014 - 13:22 | 4489729 Fractal Parasite
Fractal Parasite's picture

"Ukraine's national bank has imposed temporary limits to withdraw money"

So the foreign-owned central bank passes laws by decree and parliament is irrelevant.


Fri, 02/28/2014 - 13:25 | 4489743 Seize Mars
Seize Mars's picture

..."So the foreign-owned central bank passes laws by decree and parliament is irrelevant."

America? Oh, you meant Ukraine.


Fri, 02/28/2014 - 13:25 | 4489741 CrashisOptimistic
CrashisOptimistic's picture

In the final analysis, the EU and IMF are going to realize that any money they give to Ukraine has to be sent to GAZPROM for nat gas bills in arrears.

They will scratch their heads and ask "why are we doing this?"

Fri, 02/28/2014 - 13:29 | 4489769 Quinvarius
Quinvarius's picture

Which is why in the end, they will give them nothing--Like every other country the US and the EU have destabilized in the past ten years.

Fri, 02/28/2014 - 13:29 | 4489772 layman_please
layman_please's picture

it's funny money. there's plenty more where that came from.

russians will be the ones scratching their heads if they go along with this

Fri, 02/28/2014 - 13:53 | 4489885 CrashisOptimistic
CrashisOptimistic's picture

You, sir, are correct.  It is when the Russians start saying "your Euro is worth nothing.  Give me aircraft carriers in return for the 6 million bpd we send to Europe" that things get ugly.

The Ukraine has to pay for nat gas with wheat calories.  Period.

Fri, 02/28/2014 - 18:44 | 4491576 layman_please
layman_please's picture

"The Ukraine has to pay for nat gas with wheat calories. Period."
What does it say about the value of money? Currencies are starting to depreciate faster than rotting food.

Fri, 02/28/2014 - 15:45 | 4490447 Debugas
Debugas's picture

to be able to install NATO bases in Ukraine

Fri, 02/28/2014 - 13:25 | 4489744 Quinvarius
Quinvarius's picture

If the banks like your foreign currency, they can keep your foreign currency.

Fri, 02/28/2014 - 13:25 | 4489747 AG BCN
AG BCN's picture

And now the dumb money gets caught, they thought that it was all going to be roses after Yulias speech. 

It escalated rather quickly. 


Fri, 02/28/2014 - 13:26 | 4489748 ebworthen
ebworthen's picture

And they want to join the EU?

Out of the frying pan - into the fire.

Fri, 02/28/2014 - 13:33 | 4489762 skwid vacuous
skwid vacuous's picture

welcome to Polar Vortex of the Rothschild klan, at least they are dressed appropriately

Fri, 02/28/2014 - 13:33 | 4489783 fonzannoon
fonzannoon's picture

any currency folks on here? Euroheading towards 1.40 and the pound heading towards 1.7? or no?

Fri, 02/28/2014 - 13:51 | 4489875 konputa
konputa's picture

It's hard to say, fonz. My opinion is that euro will probably reverse again before it breaks through 1.40.

Fri, 02/28/2014 - 14:01 | 4489926 fonzannoon
fonzannoon's picture

thanks, that is probably correct.

Fri, 02/28/2014 - 14:18 | 4489996 konputa
konputa's picture

I wouldn't be shocked if we saw a 200-300 pip reversal over the next 2 weeks.


Maybe orly or yen cross have some thoughts to share.

Fri, 02/28/2014 - 13:38 | 4489820 itchy166
itchy166's picture

Cant put capital controls on Bitcoin...

Fri, 02/28/2014 - 14:12 | 4489973 moonman
moonman's picture

Nope you can just hack them all away and you do not need to control them

Fri, 02/28/2014 - 16:18 | 4490635 Mike Hunt III
Mike Hunt III's picture

Are you suggesting that a government could hack away all it's citizens bitcoins? How exactly?

Fri, 02/28/2014 - 16:14 | 4490606 viahj
viahj's picture

didn't Russia outlaw BTC?  if so, that's most def a capital control.

Fri, 02/28/2014 - 16:25 | 4490696 Mike Hunt III
Mike Hunt III's picture

But it would be a capital control with no teeth. How does does a government control something over which they have no control? Money in banks on the other hand...

Fri, 02/28/2014 - 21:20 | 4492255 Clowns on Acid
Clowns on Acid's picture

Mt Gox did.....

Fri, 02/28/2014 - 13:39 | 4489823 NoTTD
NoTTD's picture

Capitol controls?


It must be Friday afternoon.

Fri, 02/28/2014 - 13:48 | 4489859 TNTARG
TNTARG's picture

So, the banksters' "revolution" goes on and on.

It remains Venezuela, Argentina and few others, and the Banksters will control the finances of the  whole World.

Isn't that nice the way the US agencies work for the Banksters?

Fri, 02/28/2014 - 13:51 | 4489874 Yttrium Gold Ni...
Yttrium Gold Nitrogen's picture

UAH gained few points today, as interbank market closed at 9.60 - 10.50 UAH/USD, up (or down, depends on the view) from yesterday lows of 10.80 - 11.10 UAH/USD. Lets see how long will it stay that way. I doubt NBU intervened today, as it simply lacks the reserves to do so.

Fri, 02/28/2014 - 13:55 | 4489898 walküre
walküre's picture

Germany's biggest energy company RWE AG lost 3 billion Euros last operating year.

They're shutting NatGas power plants because the demand for energy from traditional power plants is down as more and more alternative renewable energy has come online.

NG seems to be losing some relevance in Europe.

Fri, 02/28/2014 - 14:11 | 4489966 Chuck Knoblauch
Chuck Knoblauch's picture

Like Saudi oil is loing relevance in the US?

Fri, 02/28/2014 - 14:14 | 4489980 CrashisOptimistic
CrashisOptimistic's picture

I suspect you don't understand.  That's not an "energy" company.  It's an electricity company, and electricity doesn't move food to shelves.

They get their oil from Russia, and they get their nat gas from Russia (lesser amounts from norway and netherlands) too.  At most, these renewable electricity things will provide 30% of German electric by 2030.  At most.  Nat gas mostly the rest, and oil essentially ALL of transport.



Fri, 02/28/2014 - 13:56 | 4489899 Who Laughed
Who Laughed's picture

They will be beging for Putins helicopters..

Fri, 02/28/2014 - 14:37 | 4490118 BanksterSlayer
BanksterSlayer's picture

Would I be derided as a fear-monger if I suggested that WE ALL go to our banks today and withdraw cash to get us through next month??

Fri, 02/28/2014 - 16:10 | 4490570 TPTB_r_TBTF
TPTB_r_TBTF's picture

you would be a fear monger if you told me you went diving in the lake near my house.

Fri, 02/28/2014 - 15:26 | 4490369 Itchy and Scratchy
Itchy and Scratchy's picture

Time for BitRubles!

Fri, 02/28/2014 - 15:43 | 4490441 Debugas
Debugas's picture

Ukraine got Cyprus'ed

Fri, 02/28/2014 - 16:35 | 4490680 Kirk2NCC1701
Kirk2NCC1701's picture

Look, CCs (crypto-currencies) have their place in the financial ecosystem, but let's keep our heads and shorts on, and keep perspective:

When a country goes downhill like those in North Africa or like the Ukraine, I sincerely doubt that CCs are the prudent vehicle for daily life.  What you need are the things that you'll need for daily life and which are easily and widely CONVERTIBLE.  E.g., Here is a PARETO of valuables to possess (at hand!):

1.a. Foreign Currencies in cash (USD, EUR, CHF, CAD, AUD, GBP, JPY).  In the case of Ukraine, having a mix of EUR and RBL makes the most sense, 90% of it in a safe at home. 

1.b. Gold and Silver coins in safe, along with a few handguns and ammo -- kept in same safe.  Diamonds are a rich-man's or crime-lord's "Gold".

2. Food, Water, Medicine, Heating Stuffs (Wood, Coal, Oil) to back up NatGas or Electricity.

3. Barter goods:  Alcohol, Medicine, Spare Parts, Tools, and Skills that retain value in a barter economy.

4. Long-Term Real Assets:  (a) Productive Land that produces cashflow, food or resources, (b) Precious Art (for rich people or crime lords).

5. Speculative Assets:  Paper debt, paper assets (stocks, bonds), CCs.  These are "luxuries", after you have plenty of 1-3.  Bitcoin, Litecoin, Dog-e-coin, Feathercoin, Get-rich-quick-coin, etc. are all in this group of CCs -- and each takes a position on the "CC Totem-pole".

p.s. Having the right "Travel Documents" and a decent Escape Plan is also a MUST, as NO one knows what life and fate have in store for us. 

Note: Fate and Nature favor the prepared.  Although Hope & Prayer may be necessary Feel-Good ploys to keep up our mental, psychological and spiritual energies, they are not a viable strategy that replace 1-5.

Fri, 02/28/2014 - 17:34 | 4491113 philosophers bone
philosophers bone's picture

Isn't there a problem now with ALL Bitcoin now that Mt. Gox went tits up due to "theft".  If someone goes and purchases "Bitcoin", do they need to be worried if any of the purchased Bitcoin was previously stolen from Mt. Gox, or risk having it taken from them at a later date if it can be traced to the purchaser?

In other words, all Bitcoin is potentially tainted, unless you confirm it never ran through Mt. Gox

Fri, 02/28/2014 - 21:09 | 4492223 bentaxle
bentaxle's picture

Does fiat really still count as "capital?"

Sat, 03/01/2014 - 00:05 | 4492586 litemine
litemine's picture

Someone should lend the New Ukrainian leader a Nail Gun. The F-in Puppet.


Do NOT follow this link or you will be banned from the site!