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Ukraine Imposes Capital Controls, Limits Foreign Currency Withdrawals
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...
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Ukraine have bitcoin?
Theft is theft either way.
I'd be having kittens too if I had the US Navy Seals on my border!! ;-)
http://www.youtube.com/watch?v=6DZP3fYurqU
At least they got democracy now :-)
Ukranians learning the hard way what happens when you reject Satoshi Nakamoto from their lives.
https://www.youtube.com/watch?v=kdvTkddp1F0
welcome to europe serfs.
Bullish!
SILVER BITCHEZ!
BUY BITCOIN TODAY!!
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 warnMt. Gox Bitcoin Exchange Down Amid $365 Million Theft Claim
Only buy from trusted sellers like fonestar. Look him up on localbitcoins.com today! 100% positive feedback!
We pride ourselves on our repudiation at fonestar!
Economic hitman playbook. Crash the currency. Now foreign "capital" (bankers) can buy up assets at pennies on the dollar.
Great, just great @#$%! Last time Boris is sell copper in Kiev!
Boris is apologies... is mean "Great, just @#$% great!"
Understandable considering the situation. Where exactly are you from again?
"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]To any of you alt coiners out there: http://coingen.bluematt.me/
Mmmm! fonestar loves the gravy train!
I'm more of a Gravy Boat fan.
"Gravy Train"...? You are refer to constant trip to toilet boil for expulsion of bowel liquidity? Is something like "Quantitative Ease"?
http://www.GravyTraindogfood.com/
I think this one's gonna get messy.
Probably sooner rather than later.
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!!!!!!!!!!!!!!!!!!!
I hereby declare these games...OPEN!!!.................................Oh! Wait!
Ukraine Imposes Capital Controls
Ukraine? Or Russia?
IMF
"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.
http://www.zerohedge.com/news/2014-02-24/did-imf-just-win-war-ukraine-de...
http://www.reuters.com/article/2014/02/25/ukraine-banks-fitch-idUSL1N0LU...
I don't think Mr. Kubiv is long for this world.
really? shit-oshi sagamoto is the cause of the war in Crimea? you must be a geo-political neuro-scientist...
I'm sure they're going to free the fuck out of them!
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 Nationssnip
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.
Got Phyzz!?
#Silver
#Gold
Ukranians getting Zhou Tonged!
https://www.youtube.com/watch?v=kdvTkddp1F0
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.
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.
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.
10% of the idiot generation snowboard, i still ski
fonestar brought a crazy carpet. Then all of the kids held him down and gave his face snow washes.
Sort of like saying in 1990 my computer will go nowhere near the internet.
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.
fonestar seems to be flustered.
i get a bit flustered too when the price of my holdings drops all month.
And ofcourse that applies to everything except gold.
Sort of like saying this time it will be different. Gold sunshine. You stick with the digits.
Well you're going to have to raise digits if you want to explore for gold.
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.
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".
I got zee debt! Yaaaay!!
They seem to be attracted by the reckless immorality, corruption and denial.
The West is the BEST!
$1500 is not insignificant money, at least to the non-management class.
I wipe my ass with it
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®"?
Bagdad Bob, is that you?
Crash the hryvnia then bring in the Euro.
The EU has got them by the shorthairs now.
pods
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.
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.
its just a matter of time untill they inact pog confiscation. i have a shit ton of gold and silver slammers
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.
This I agree with.
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.
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.
So does a stupid S&P portfolio held with an online international brokerage account. BTC is nothing but a hyped up digital stock cert.
"the only thing that can get through an airport".......
Not for long: http://www.infowars.com/tsa-detains-libertarian-blogger-after-seeing-bitcoin-in-his-bag/
so sell Gold then the market says
The market always says sell gold.
what happened to the other one... NATO only cashing up odd numbered ATMS now?
if you like your attack helicopter, you can keep your attack helicopter!
Welcome to Goldman Sachs Ukrainian bitchez.
They already have a Department of Homeland Security too. I am not joking.
Have they made everyone enroll in ObamaCare yet?
So the foreign-owned central bank passes laws by decree and parliament is irrelevant.
..."So the foreign-owned central bank passes laws by decree and parliament is irrelevant."
America? Oh, you meant Ukraine.
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?"
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.
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
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.
"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.
to be able to install NATO bases in Ukraine
If the banks like your foreign currency, they can keep your foreign currency.
And now the dumb money gets caught, they thought that it was all going to be roses after Yulias speech.
It escalated rather quickly.
And they want to join the EU?
Out of the frying pan - into the fire.
welcome to Polar Vortex of the Rothschild klan, at least they are dressed appropriately
any currency folks on here? Euroheading towards 1.40 and the pound heading towards 1.7? or no?
It's hard to say, fonz. My opinion is that euro will probably reverse again before it breaks through 1.40.
thanks, that is probably correct.
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.
Cant put capital controls on Bitcoin...
Nope you can just hack them all away and you do not need to control them
Are you suggesting that a government could hack away all it's citizens bitcoins? How exactly?
didn't Russia outlaw BTC? if so, that's most def a capital control.
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...
Mt Gox did.....
Capitol controls?
It must be Friday afternoon.
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?
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.
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.
Like Saudi oil is loing relevance in the US?
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.
They will be beging for Putins helicopters..
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??
you would be a fear monger if you told me you went diving in the lake near my house.
Time for BitRubles!
Ukraine got Cyprus'ed
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.
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
Does fiat really still count as "capital?"
Someone should lend the New Ukrainian leader a Nail Gun. The F-in Puppet.