This page has been archived and commenting is disabled.
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.
»
- 90249 reads
- Printer-friendly version
- Send to friend
- advertisements -
It's the imf who SHOULD be worried. besides the Cat being out of the Bag (TRUTHS) they are short the money loaned. Oh well, the American Tax Payer are funding the Economic War trying to aquire all assets World Wide and I hope the IMF FAILS and the Central arrogant Banksters Get their Just Rewards..........
A Guillotine Manufacturer "Stock".....Any known company that produces them?
I'd like to take the temperature of the board - does anyone not think cap controls and bail ins are *not* coming to the US?
I'm not sure about gold confiscation since it would suggest gold has some intrinsic [or at least well-settled and historic] value as a token of exchange possessing its own value... basically central bankers' power is in the Dark Magick of fiat they print.
I dunno - I keep waiting for the American people to notice how hard they are getting fucked, and how bad its getting.
The Romans had their distractions and diversions, too, but now and then, they would stand up and riot - and not merely by looting local businesses.
Government is nothing but theft and violence, and all they have is theft and violence.
So they will come for EVERYTHING not nailed down.
The banksters need to repay us.
lol, locals will be paid in the new local currency which you can only use internally because it is not worth crap, while the IMF etc insists on being paid still in any Euros that are earned....Poor Greeks, it just gets worse and worse for the workers, its a bit like strip mining the economy for anything of value.
Stop thief! So the answer is theft. Great plan. The same as the old plan.
For what it's worth, Krugman is opposed to Grexit.
To the extent Keynesian economic policies work at all, they only do so by screwing workers and those who save their own money out of their wages and savings through inflation, instead of wage cuts and bank failures, because wage cuts make the proles (and the army) restless. Greek wages have already fallen like a rock of course, and the Greek economy is still uncompetitive---and presumably would have been even after a huge devaluation.
"If Greece can negotiate a halfway reasonable compromise, one that more or less pauses further austerity, it’s hard to see that the risks of exit would be worth it." Aye, Paul, and if your Robin had wheels she'd be a bus. Stiffing Greece's creditors on their theft bonds to a degree with any chance of doing much good would give them the perfect excuse to start strategic bombing of Athens.
It's all right for Paul. He can leave the Fourth Reich alive. Pity the Greeks can't.
http://krugman.blogs.nytimes.com/2015/04/19/notes-on-greece/
It is mind-boggling to me that there are any deposits left in Greek banks.
They are moving the money to safety, the cabal bankers want the debt payment which is a fraudulent debt to begin with... to prevent the cabal bankers from stealing the Greek citizens money, the Greek government is transferring the accounts to the Greek central bank, so once it exits, the bank will no longer be Rothschilds controlled, and the cash safe. The people will get their money back as soon as the new gold backed Drachma is issued.
Maybe. But I think 11 million Greeks just felt their sphincters tighten.
The good news is the coupon rate is 2.5%... the bad news is your money is gone forever.
Greece & Euro central bank explained by Al Murray ; www.youtube.com/watch?v=GBVTDLtTLtE
Truth through comedy.
Hey Greece: Its best if you don't clinch.
Quit yer bitch'n - it's just a "we want it all" tax.........
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
Is this a dress rehersal for the US Dollar?