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Did Greece Just Launch Capital Controls: "Mandatory Cash Transfer" Decreed Due To "Extremely Urgent Need"
We warned last week that capital controls were inevitable and it apears the first steps have been taken (very quietly):
- GREECE ISSUES DECREE: LOCAL GOVTS OBLIGED TO TRANSFER DEPOSIT RESERVES AT CENTRAL BANK
So, following the pension fund raid, the Greek government is now centralizing all Greek cash citing an “extremely urgent and unforeseen need.".
One wonders if this is per Krugman's advice?
As Bloomberg reports:
Govt decree issued today forces local govts, general govt sector entities to transfer cash reserves to the Bank of Greece.
*DECREE ON MANDATORY CASH TRANSFER POSTED IN GOVT GAZETTE
But fear not: you are being "fairly compensated" for this forced capital reallocation:
- GREEK CASH RESERVES INTEREST AT BANK OF GREECE 2.5%: OFFICIAL
From Reuters:
Greece issued a legislative act on Monday requiring public sector entities to transfer idle cash reserves to the country's central bank, as part of efforts to deal with a cash squeeze. Greece has been tapping into the cash reserves of pension funds and public sector entities through repo transactions as it scrambles to cover its funding needs.
Monday's act excludes pension funds and some state-owned firms. Cash reserves that are needed by these bodies for their immediate payment needs are also excluded from the regulation.
Athens' scramble for basic funds shows how extreme the financial constraints on Greek Prime Minister Alexis Tsipras have become as he tries to convince sceptical foreign creditors to extend his country new financial aid.
The cash-strapped country must repay the International Monetary Fund almost 1 billion euros due next month. It has said it wants to honour its debt obligations.
...if capital controls were imposed as a product of a stand-off between Greece and its creditors rather than in the context of agreement as to the way forward (as ultimately in Cyprus), Greek politics could lurch towards the need for a parallel / substitute currency rather than as hoped towards commitment to the euro at all costs.
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They have to,,,, no choice
Blueprint
Oh, here it comes. Greeks, please brace for imapact.
Yeah.. This is a holdup!
Hand over your cash now!
Throw those pathetic Greeks out of Europe already. It´s a worthless third world country.
Tzipris & Company Are Just Operatives And Enablers Of IMF Debt Collection ???
So you say you want a revolution? Then let's have a big one where everybody can play.
This is the slowest train wreck in history.
This is mercifully quick compared to Japan.
Death by a 1000 (paper)cuts takes awhile....
California and other states (as well as the Feds) do this all the time. A pool of funds devoted to schools meant to be legally separate for the intended purpose as enshrined in law and bond indentures, is taken and used for general fund welfare purposes. The Feds "borrowing" from the SS fund to meet daily expenditures, etc.
Nothing new here..
That does not make it right, moral, ethical, honest or legal
It stinks of Criminal Enterprise
But nothing new
we Cyprused some folks
We corzined some nations.
I'm amazed any greek still has MITB with so many oracles warning them in the zh comment section, do the greeks not read zh daily? Idiots!
Anyone who has the power to end bankster control over their country and does not is a bankster debt collector.
Meeting with the Kruginator... proof.
Desperation & Krugman Visits...
Krugman looks confused in the picture.............................
yes....it's Krugman
Krugman in Greece? You know there is roadkill when you see vultures circling. Soft flabby vultures with clamy hands. He is just waiting for Greece to soften up a bit before he buries his head in the soft rotting carcas
It's Krug-Bear-Pig!
Curious...
How much did the Greeks pay Krugman?
Did he get first class air fare and a suite at the Four Seasons?
Poor Paul Krugmanhttp://freebeacon.com/blog/poor-paul-krugman/
I think I just dropped a krugman in my pants, excuse me.
If anyone is stupid enough to still have cash in a Greek bank after this announcement, then they deserve everything thats coming their way, including getting ass-raped by a herd of goats...
I have no sympathy for them anymore. Literally none.
If all the Greeks lost every cent they own, I only hope it finds its way up here north of the Alps. Greeks can resort to cannibalization for all I care.
If the EU and the EUR are so important, they are willing to tolerate 30% unemployment and the destruction of their country, eating Grandma can't be that far off.
At least they still have the blue & yellow outside.
Worth it.
LOL .... GREEK BANKS ....
Now Thats A SAFE Place To STORE Your Fiats Paper Money...
...eating Grandma can't be that far off.
Let's eat, Grandma.
no
Let's eat Grandma.
They were stupid to have it in a Greek bank before this announcement....its to late now
“What the Fed is going on?”
and when paper currencies are on life support --- real money is at multi-year lows and crashing --- attention walmart shoppers - no lifeboats will be available - ....
Ramming speed.
Just in time..... .Ex-governor Corzine discussing plans to start hedge fund, report says
So they'll do capital controls and deposit confiscation to repay IMF.
Screwed.
Yep. Private deposits come next.
I've been yelling at Greek (citizens) to get their money the hell outta Greek banks for at least several months now. And yet, most probably won't.
Its interesting of robbing the municipalities to pay the bills.
You'll have widespread muni bankruptcies. As Orange County showed us in the early 90s -- a Greek Muni bankruptcy or a series thereof makes borrowing more expensive all Munis, thus pushing this farther down the road.
Evil fuckers -- those Bankers.
What I wonder is will the Greek population as a whole get MAF for robbing the Munis and riot & burn Athens to the ground -- or are they too busy drinking tea, eating Gyros, and smoking?
Greece has bigger problems than worrying about Muni bankruptcies. When the hammer comes down, they will steal everything in the country that isn't nailed down to try to keep the national-level government (somewhat) intact and (somewhat) in control. Will it work? No idea. Probably not. It's going to get ugly no matter what.
I am no Greek legal expert, but in many "EU" nations -- the central government is on the hook for the debts of Munis, so this isn't that way in Greece, or it is and they are going to change it.
The centralization of all Muni reserves is interesting.
I get the feeling the Muni's are going to get Greek debt or IOU's in return and not EUROs, although I'd prefer them get Drachmas in return.
Stupid EURO project.
Let's just skip to the end and evict the Greeks from Greece, repo the entire country, and then sell it at auction.
great comment
IMO -it has, is and will continue to be sold at auction via ongoing "slow burn" from the plebs point of view -to borrow C Austin Fitts turn of phrase (and we know many of the plebs have been feeling the unrelenting burn)
Also slum lords don't evict, they retain serfs in tighter shackles.
Moot point. The Greek government and local authorities have always been notoriously unreliable when it comes to paying domestic contractors. They have probably stopped all payments to the Greek private sector ever since this crisis began.
I don't think there's much of a private sector left and there certainly won't be one by summer....
There is a hierarchy. When debts are at such a level that they can never possibly be serviced by available GDP, the cash goes uphill. Shit rolls downhill.
One drachma for confiscation. One drachma for the stash.
They just get the confiscation drachma.
and unless the rules are different in Greece from the US, they are unsecured creditors. It's not *their* money. They gave it to the bank and are an IOU on the books. An IOU that is very last in line.
@NoDebt, actually the lines at the bank for withdrawals are long and constant. the brinks guys are running in and out bringing more cash. i think it's just kept quiet so as not to cause further panic. on days like this (or tomorrow) where you get a significant announcement the lines can be three hours long. of course if you want more than 3-5k (of "your" money!) you have to call in a day or two in advance...
US has gone Blue in the face printing Green.
Has not helped.
Pick a new colour...
Were not greenbacks green on the back and red on the front? Oh right, then Lincoln was assassinated. How about silver certificates? Shot Kennedy too.
Hmm.
Kennedy was not shot for anything to do with silver.
pods
True. After the Bay of Pigs fiasco in April of 1961, JFK said "I want to splinter the CIA in a thousand pieces and scatter it to the winds".
The CIA killed him with the help of Bush Sr and LBJ, among others.
I warned of this, and detailed step by step instructions for EU area residents to avoid it in yesterday's blog posts. Most timely, and it's still not too late to act (at least I don't think it is):
EU Area Residents' Step-by-Step Guide to Escaping the Upcoming Bank Bail-ins & Capital Controls
Oooops...
When fraud is the status quo possession is the fucking law, period.
That is all.
tomorrow in usa
Does this mean that, if you have Euro currency in Greece, and you stuff it in your mattress, that it will be like Confederate money after the Civil War? Wouldn't it continue to be recognized in the rest of Europe?
Ultimately, it means you won't be able to stuff it in your mattress, because they won't allow you to withdraw it from the bank.
so it has to be there already... correct?
Should have done that a long time ago.
Home safe or safety deposit box. Next to the gold and silver (for when the shit really hits the fan) and ammo.............
Even if you stuffed cash in the mattress they are making it harder to use it for purchases of any value.
Its becoming the perfect pig trap.......hat tip to the ZHr that posted that link it was a good read.
http://taxicabdepressions.com/?p=1193
There are codes on them that make it possible to differentiate the origin of the notes. So theoretically they could call a moritorium on all Greek notes and after that declare them void.
Looks like it would be difficult to do on a large scale though.
pods
Yep, there's a "single currency" union for you. All Euros are equal. But some are more equal than others.
like 6 types of usa dollars - A,B,C,D,E,F
Where they were printed
Reminds me of the Hawaii overprint notes.
The intent of the overprints was to easily distinguish US currency captured by Japanese forces in the event of an invasion of Hawaii and render the bills useless.
All euro's printed in Greece have an N in front of the serial number.
https://en.wikipedia.org/wiki/Euro_banknotes#Issuance_and_printing
Hmm, how hard would it be to alter the printing plates?
You would have to have a mattress for that plan to have any chance of working...
Wound't want to make it difficult to take it all, would they?
I'm sure that this would only happen in Greece though, not like it could happen to the SS trust fund here (oops) or soon to be MYRA accounts.
Decentralization works to protect liberty in more ways than one.
pods
It already happened to the SS trust fund. Thing hasn't had any actual cash in it since Clinton. Just a bunch of Congressional IOUs
Even worse, they are non negiotiable IOUs, so more treasuries will have to be issued to get the actual cash for them when the time comes to pay.
pods
Yeah, isn't debt wonderful?
I wonder how many trillion Euro coins Krugman debates minting with Tsipras.
They'll call them Krugmanrands--good as gold!
The banksters know all this stuff in advance. When the raid the US pensions they will be prepared for any protest because they are practicing Jade Helm this summer. They know the evil they are planning. Best to stop them ahead of time.
We are all armchair patriots.
And as such, you are an enemy of the state...
"Finally someone who gets it."
-Wrote Mercuryquicksilver in his online Diary
After reading the responces to the ZH story of that young lady who had the guts to get out of her armchair and protest, by disrupting Draghi's pathetic press conference, I'd say you have promoted most readers here above their station. Comments such as. "I'd tap that." or "She wore a thong (giggle, giggle)", were enough to make any real patriot puke. Zh posters in the main are a mob of juvenile followers, inactively waiting for someone else to change the world for them but denigrate the hero or heroine even when it happens. Hardly a Bravo! to be heard. Pathetic.
So you've been here less than three months and you can make that kind of call on the ZH community at large?
It is like many things in the world. Discoverers/Contributors vs. Blind/Follower
Regrettably ZH has been overrun recently by the mouth breathers who got bored predicting the imminent end of the world on Infowars or Dahbo0077's Youtube channel.
There are a few of us who are active in finance who post on here pretty consistently.
That being said -- ZH has been a paradise when compared to the arm of oldmarine1 equivalents trolololing the libertarian right.
Despair not.
Sure, I get it. Like any site you get your share of goofballs, idiots and trolls. Sweeping generalizations are rarely accurate.
Plenty of good posters still around here.
By all means, lead the way. Oh wait...
Fair credit to miss thang for standing up to the man, but she's a commie so I'd hesitate before counting her among your allies. Further, as I think I pointed out in that comment thread, it's not daring greatly if you know there will be no consequences. Witt, who lives in Hamburg, was quickly dragged off by security guards and arrested but later released. It is unclear whether the ECB will press charges against her. (I'd bet a Mexican Coke that they don't.) It is important to recognize the function of professional agitators. Remember to wear a thong if you plan to emulate her shenanigans.
Addendum,
The root (patris) of patriotism concerns me so I prefer not to identify as a patriot, nationalist suits me better.
"Best to stop them ahead of time."
I agree. This sounds good on a keyboard, but... I've yet to see a ZHer host an Activist meeting or party. Almost any group I can think of, has more balls and "bias for action" than ZH bloggers.
Sad to say that the Std. M.O. around here is: "Be the Lone Complainer -- stacking, stocking and hiding -- lest there be real personal risk involved."
Fight Club? My ass! More like a Debate Club. Until I see more Walk than Talk, it's just cheap typing and venting.
All the ZHers Ive ever met are pretty solid people with their heads screwed on tight. Goes for some of my old crew at Turds (before we were all banned) and over at Silverdoctors too. We're talking about guys that heavily armed and well trained in shooting, prepping, and survival tactics. Many are vets.
Activist? You've got to be fucking kidding me? For who and what?
elections matter /SARCASM
ZH patrons make a difference /ditto.
"Yes, we can!"
Now the central bankers are going to pump the crap out of the Euro because that is what should not happen in a real FOREX market where prices are determined by something other than CB agreements.
Over $5 trillion per day are transferred thus will swamp all CB attempts to purchase and manipulate price differentials. They've had to concede defeat each time and I would say it's now like a fart in Katrina. Yes, I know that the psychopaths will not give up trying.
Well, suffice it to say, I disagree with your assessment of where the numbers on your screen come from, and what they are really used for.
"Unforeseen"
LOL
Whether people like Gold or not, never forget that one of its great features is it's an asset that's designed to disappear.
For example, many on this board have lost their Gold, it fell out of the boat by mistake and the lake/river is very deep and muddy...
Sadly many in Greece don't own Gold, probably put off by the old chesnuts, barbaric, doesn't pay a yield, can go down in value etc. Can't say they didn't have years of time to pick up some.
For 99.9% of known human history, Gold was the pinnacle in wealth storage, and has been accepted by all known cultures.
It has never been worthless.
At various times food has surpassed it in value, But if the present world gets to that point, preservation of life will render preservation of wealth to a meaningless exercise.
As has been said by those far wiser than I...
Hedge accordingly.
Yeah, but now we have IPhones, and so, we're like, way smarter than anyone in the history of the world. You should get out more, and like, buy stuff.
When they start mining asteroids for gold that may change but until then gold is the king of money.
Gold is nice but: https://www.youtube.com/watch?v=7qIhDdST27g
Perhaps the medium is less important but control is more important.
... the only way you can face these hyenas is by surprise. If you understand this message [Alexis] you know what you can do and we hope you are doing it already ...
Nice link. I like the tone.
But not news
Yup.... greece is the test monkey. Here will be the real deal. Cant wait for jade helm and for it to go live.
If Greece goes drachma count me in for a vacation!
Krugman is a complete jackass. Why even mention him? He's an idiot, and everyone knows it. So what?
I think it's important. I keep saying it here, that Krugman has always said he thinks Greece should leave the EZ. Which makes sense because his answer to every problem is devaluation, and Greece can't do that in the EZ. Krugman likely advised Tsipras to leave the EZ.
"How to Rob People Without a Gun" -- by Paul Krugman
"What a read. It's insane, he's a total cunt" - NYT
"Really, come on, that's not how money works...honestly" - Micheal Bloomberg
"Shut the fuck up Krugman. You're really damaging the hits on my blog!" - Ben Shalom
I just heard the tv people explain that the blame for everything, including this, belongs to ISIS.
The solution is for the US to invade Syria. But, that will be hard right now because the military has been "eviscerated".
Ukraine should also be invaded ASAP because they're bad too. Unchecked this will cause bank runs and contagia because of instability.
"The TV People"
How generous of you to elevate this filth
If you're not careful you might mistake them for regular, normal humans.
They look a lot alike but they aren't real. Never believe what they say...it's a trick.
+10,000
Skill-testing question for ZHers: "How do you rob a bank, and get away with it?"
Take a line of credit, max it out buying shiny metal objects and a boat, declare bankruptcy when your boat capsizes.
I like The Replacement response, but the sarcastic answer I was looking for, was: "Own it".
When the posturing and photo-ops are concluded, I expect Blankfein and Dimon to own the Acropolis and Corfu for a day ,or two before transferring it to their owners and puppeteers.
OPA.
www.mogulsandmushrooms.com
.
Someone tell me why silver is droping down so badly?
http://www.kitco.com/charts/livesilver.html
because it's a day of the week ending in "y"
It won't last. Not even in the paper world. There are not enough spec longs to bother with it.
Because I just made my biggest purchase yet. Oh well, as long as the dollar cost average keeps dropping...
For me this image of Tsipras and Krugman says heaps.
I assume Tsipras is trying to look "economically responsible" (for the insane/uninformed).
To the rest of us it looks like a visit to the Oracle of Delphi.
Robbing Petros to pay Paulos.
The faster they leave, the better the EU and rest of world will be. Greece has fked around with the world economy with it's blackmail games for way too long..time to let it revert to what it is...a bunch of a 4th world country.
Greece is fucking around even worse than that. They are about to release convicted terrorists on grounds of "ill health". US embassy right here is fuming
http://athens.usembassy.gov/amb_statement2.html
Greece should be kicked out of every Western organization period. Enough with that third world place masquerading as part of the West. And don't get your hopes up about the Russians either. They are laughing their heads off at these assclowns.
Next up: Spain and Portugal.
Coming over the short horizon.........soon
I had some Gold but i spent it all on Hookers & Blow to try to stimulate the economy.. /s
my chances of getting any gold into Greece to stimulate theirs is about nil.
I wonder how many Greeks are now regretting that they bought gold coins and buried them in a hole in the garden!
I would guess -- exactly ZERO
Long roving tax collectors with metal detectors, roaming suspects' backyards.
OTOH, Greek do own a lot of boats, and there is no shortage of islands of places where boats could capsize...
You need not better reason to keep zero cash on your bank account.
Christian Noyer of Banque de France and BIS (chairman of both) says that the BCE has "advanced" Greece 110 billion Euros as loans; forgetting to mention tha >90% is to repay eurozone banks of which Deutsche is #1.
How can you say that loan is to the country when it just goes back to lender institutions + interest??
He warns that Grexit will have contagion just like Yanis says.
His words : Unchartered waters not only for EZ but for the whole international financial system... from the Horse's mouth!
Schauble has now been warned by the head of BIS and Banque de France!
http://www.lefigaro.fr/conjoncture/2015/04/19/20002-20150419ARTFIG00131-...
It never ends no matter the country since we are separated by Languages, Culture, different ideologies, slightly different systems. I remember being told that Deutsche Bank was not good due to it's risky behavior ... maybe 10-15 years ago.
- All people kick the can down the road hoping to come out on top through hard work or career
"forgetting to mention tha >90% is to repay eurozone banks of which Deutsche is #1."
- Maybe the Tower of Babel story is about Financiers confusing the citizens and slaves??
- Maybe the Tower of Babel story is a teaching story about Propaganda used by the property owners, owners of Capital
- Maybe all you need to know about Elites is the Story of Babel and people being divided and sent away in different directions
- Maybe this is the view of Elites, Governments, Lobbyists, and Wealth that should be taught throughout the 21st Century, about war, military strength, search for resources, Free (Slave) Trade Agreements, High Labor Supply Efforts, Open Borders, Outsourcing, Off Shore Production & Havens, World Record National Government Spending to be paid back by helpless Taxpayers who are losing wealth and Jobs...
Ya think?
Damn, love me some Tower of Babel, not to mention deciphering hiSTORY. Like for e.g. I think 'The Pied Piper' was probably a story from around a time when military conscription was widespread. A man appears in town, tells the kids what they want to hear, and next thing you know, all the young ones have enlisted/been conscripted. And the 'Emperors New Clothers', but I think we are all familiar with that one 'round here!
Krugman can see a print fest coming soon..and he loves that..that is why he is there...to watch up close as it happens....long wheelbarrows...
Next step will be going house by house to confiscate people money.
Since the beginning of this SNAFU, a parallel currency for domestic use has been the sole solution. WTF are they waiting for??
Possible solution #2 is external - Eurobond issuance. Ain't gonna happen...
How is krugman supposed to help Greece? He already knows Greece can't print their own money. They also can't tax their way out of this because that would cause capital flight. He will never ever suggest cutting spending to balance the budget.
Exactly Greece is the Example Conservatives, Fiscal Conservatives, need to End Drunken Behavior in the Morning following VICHY DC Cocktail Parties.
Private Wealth Confiscation will never occur in Merica'. We learned all about the Constellation in school.
Everyone, sing in the key of Baahh ....:
She's a grand old flag,
She's a high flying flag,
And forever in peace may she wave.
She's the emblem of,
The land I love,
The home of the free and the brave.
Every heart beats true,
For the red, white, and blue,
With never a boast or a brag.
(reaching for the Hydromorphone)
Complete with Christian Salute so admired by the Nazis??
O'Ryan is a grand Constellation. S/
https://en.wikipedia.org/wiki/Bellamy_salute
https://www.youtube.com/watch?v=m3a1DEoB59k
http://www.cnn.com/2013/12/22/opinion/greene-pledge-of-allegiance-salute/
https://www.youtube.com/watch?v=m3a1DEoB59k
Saw this recently on an old US Movie or TV Series...
"Private Wealth Confiscation will never occur in Merica'"
Sorry, but this has been going on since Aug. 1971. It will only get worse -- like a spreading cancer, and just as devious in resisting counter-measures. They will simply tax gold buys/sells, until the sheep get turned off by the Price Spread, which is already climbing.
TPTB know damn well that if they can't beat you on Principle, that they can beat you on Procedure. Hedge/Allocate and stack accordingly.
p.s. The only rescue is if the BRICS get away from the USD, and they back their own currencies with Precious/Real Assets (PM, Oil). And I just don't see that happening soon, if ever.
Well, that explains gold's pummeling at the open today. In perilous time like these you need to be in the safety of the stock market.
Which can only go up.
You're right about that! Stock market's the best play for preservation of wealth now, at least until Corzine gets his hedge fund up and running where asset appreciation will be the name of the game.
And from the greek central bank to the IMF and eventually to Putin's pockets. In these days is profitable to be "isolated"
Of course there is a "need"; the "need" to steal your money so the politician's asses will be covered and then in the future they can do it again becuase you are too fucking stupid to realize you are too fucking stupid. Coming eventually to the U.S. of Detroit & Chicago so you Sheeple in Amerika just move on and be happy. WTF.
www.traderzoo.mobi
They are so fucked and it's not consipiracy theory, it's conspiracy fact.
And all of it is just preview of coming attractions for the rest of us. Looking more and more like deliberate provocations to bring on a crackdown and martial law. They know full well there's always a breaking point.
Krugman will work his magic -
He can pull a trillion Drachma coin out of Tsipras's asshole, put it in his mouth & suck on it for a while to get all the flavor out of it before he swallows it and then 20 minutes later poop out 2 dimes and a nickel.
Which is exactly what a trillion Drachma will be worth.
This is the equivalent of searching between the couch cushins for change.
Putin will kick Greece some cash, so the can will get kicked down the road a bit further. This will drag out for a few months at least, if not longer.
Now I'm positive Syriza is the Greek version of the Tea Party, a total joke that never saw a funding package it didn't like, or at least okay in the end.
They will do what Italy used to do back in pre Euro Lira days. First off anything that could take cash of books was reduced to essentially IOU's.
You go to a toll booth and pay cash and guys would give bubble gum or some local script. Utter worthless and I still have a draw ful them - some are quite beautiful.
The same will happen writ larger in Greece (which they also used to do back in Drachma days). But on a larger scale to husband what few Euros they have left.
The sad thing is they will still default but when they do the economy and society will have been burnt down to the foundation and that country will most likely collaspe into social disintergration.
Chrysó Skýles!
(Gold Bitchez)
Greece = the Detroit of the Mediterranean.