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As A Reminder, This Is What Capital Controls In Cyprus Looked Like
A week of capital controls apparently wasn’t painful enough to compel the majority of Greeks to concede to more austerity. In the run up to the referendum, preliminary polls had the “no” votes losing ground to the “yes” camp, a situation which quite a few commentators suggested was the direct result of Greeks’ willingness to fold if it meant regaining access to their cash and taking the prospect of a depositor bail-in off the table.
As it turns out, polling companies, to use Soc Gen’s dry humor, “are of little use” and should probably be sold “if listed anywhere”, because when the actual votes were cast, it was no contest — “Oxi” was the resounding battle cry heard loud and clear in the streets of Athens on Sunday evening.
It seems likely that most Greeks who cast a “no” ballot realized that “yes” offered the quickest path out of capital controls. As such, it appears that some two-thirds of the Greek populace is prepared to stick it out, although (former) FinMin Yanis Varoufakis’ contention that the banks would open on Tuesday (that's already been postponed) may have led some voters to underestimate how difficult it is to lift restrictions once they’re imposed.
Confidence and trust in the government’s negotiating stance is one thing, but suffering through a depositor haircut is quite another and with a bail-in looking increasingly likely by the day, we thought it an opportune time to recap the Cyprus experience which visually, looks like this:
For those who require a slightly more in depth recap, we bring you the following from Goldman:
Capital controls in Cyprus took >2 years to reverse
Cypriot authorities implemented capital controls on March 27, 2013 in order to safeguard the stability of its financial system. These measures were gradually eased and finally lifted on April 6, 2015, over two years after initially implemented.
- The introduction of capital controls occurred in the context of the rescue package agreed between Cyprus and the Troika, first announced on March 17, 2013. The program included measures necessary to recapitalize the local banking sector.
- As part of the program, Cyprus agreed to introduce a one-off tax on deposits. The initial proposal suggested a levy of 6.7% on deposit amounts of < €100k and a 9.9% tax on deposit amounts > €100k. Given disagreements over losses on small retail deposits, the scheme was revised. The final agreement applied a 47.5% haircut to all balances >€100k and incorporated a bail-in of equity holders, bond holders, and large deposits at Laiki Bank.
We can only hope that Greeks have not placed too much faith in the idea that things will return to normal in the banking sector anytime soon. A crisis of confidence is nearly impossible to reverse in the short-term and if there is any place on earth where confidence is in short supply, it's at Greek banks.
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All wars are Bankster Wars!
Feeble bullshit.
In PNG men have a war with the men from the next valley.
None of them have ever seen a banker in their life, and don't know what a bank is.
People are killed in battles all the same though.
Big difference between banskster wars and blood feuds.
No real profits in a blood feud, but war? The bigger, the better.
Those banker wars are government sponsored theft...
http://galeinnes.blogspot.com/2015/07/a-license-to-steal.html
And even then, the raiding of the next valley was often for cattle. Let's cut to the chase: The history of the world is the history of economics, and who is trying to loot who.
Liberty, we weep for thee.
The example given shows that humans are prone to fighting conflicts, regardless of financing. People make weapons and sell them, like any other business. The State makes sure it has the most, and the most effective weapons, of any organization, and the best trained people to use them.
Banks have nothing to do with that, a properly function state spends on a military force out of tax revenue.
Stupidly repeating lines like, "all wars are banker wars", is no different to saying all rifle makers should not be given loans to operate their legal businesses, because gunshot wounds are all banker gunshot wounds. And all car accidents are banker car accidents. And all house fires are banker house fires. Just because people were engaged in economic activities using finance and doing what humans tend to do, is the bank responsible for their choices, actions and events?
People are responsible for what they do. Governments are elected by people (ideally), and no one has to fight in war, you can object and say you won't participate. People do that and it's your choice (emigrate to Canada, like they did during Vietnam). So quit this lame immature blather that mere bank loans create all wars.
Bankers provide loans for whatever purpose. Bankers are not the electorate. Bankers are not the elected politicians in the State security Cabinet. And bankers are not the Generals and Admirals who deploy forces and give fire orders. And bankers are not the people showing up to fight.
Armaments may be a business investment opportunity, and yes, war increases the volume of trade, but that does not make all wars banker wars. That sort of conclusion does not follow. Bankers play no part in the choice to fight the war. They finance the business investment needs of the MIC to make weapons - so what?!
The next fool to come along will be saying that some dismal jew-family in earlier centuries, claimed to control all warfare. Well, have any of you ever considered how stupid and ego-maniacal, as well as deliberately and clearly self-seeking such a claim is?
That family of dipshits was talking pure pretentious arse, for a reason, it was to try and make people around them, to all think that their wretched family actually did have such power and deep state access and influence on all geopolitical events.
That was the confidence game they were playing!
They were using international influence-pedaling to gain access and privileges to make more money and garner more power. And it worked! It worked because many people were actually stupid enough to believe it and they LEND it 'credence'!
And if you're stupid enough to believe that stuff, then you will have little problem also failing to process things like, "all wars are banker wars", and you will just believe it to be so. So if a person can't see how utterly moronic that sort of statement is, it's necessary to point out how bloody feeble-minded they are and what silly bullshit they've simply swallowed and are peddling, FOR BANKERS NO LESS, thus making such shithead bankers seem so geopolitically 'important', and 'vital' to state or national interests. Which they most certainly are not.!
And which is exactly why it was said to foolish easily duped people in the first place. DOH! And creating that sort of air of fake importance and power access mystique, (an as advisers and white house staffers, ect.), is precisely how the manage to not get prosecuted and tossed into prison, for their ACTUAL CRIMES, almost ever.
You are helping them to maintain that mystique, you bloody fools, so quit it, they want you to maintain that mystique, its how you help to keep them in business. Stop fawning to their con!
So we have this flock of zheep, who keep repeating that sort of absurd old banker con-game nonsense, and they are not even interested in honestly examining its veracity, to see if it is in fact so, or not. Simple hand-waving and a few self-satisfied one-liner quips is all it takes for them to reassure themselves of their inner truthiness, and dismiss out of hand the possibility that they've been fooled so easily, and by such feeble-minded incognizant slobbering crap. :D
If you refuse to think things through for yourself or to reality check, you are very simply and easily rendered a sucker. ;-)
For the thinking crowd (not sure it applies here at ZH)
http://fofoa.blogspot.com/2011/07/does-fiat-produce-endless-sea-of-wars....
I was saddly surprised at the down votes I got in suggesting science is a process not a belief system last week. My guess is that the religious among us are driven by belief and do not see how a process of discovery is different than believing in the discovery. Oh well, not all are able to understand. It is best for those who can to simply be aware of the people we live amongst.
As you might already know, religion itself is a contrivance, meant to control the masses. The problem is, the last thing a large segment of the population wants to hear is that they are fools, so instead of dealing with their own ignorance, they try to force that ignorance upon YOU.
The powers that be only have power if they can divide the people and make us fight each other, and they have becomes masters of this practice in America. And the more the fight is about intangibles, the greater the ability to divide.
We see this most profoundly with racial issues, gender issues and sexuality. Each of these issues taken logically are just, blacks should have the same rights as whites, as should women and gay people. But the media does not stop their, they push it, purposely. So its not just about black equality, they make it about "southern racism", its not about female equality, they make it about misogyny and "equal pay", its not about gay rights, but a whole "gay agenda". And they use symbols to help identify this manipulation, this polarization: The Confederate flag = "racism" (but really its about state's rights), Lincoln was not about slavery, he was all about preserving the Union. MLK was not just about black rights, he was anti-war, anti-bank...The gay flag, if you will, is now being used to strike fear into the hearts of the far right, even being placed over the White House. All to produce the division, our masters must have.
If Americans ever stopped buying into the division, we could fix every problem in one day, force OUR politicians to do OUR bidding: Shut down the Federal Reserve and print our OWN money, close the BORDER, don't deport anyone, just enforce work place illegibility laws, close down most of our overseas military bases, stop being the world's police (of course what we really are is the global corporations police), terminate ALL "free trade" deals, put American workers first not immigrants or corporate profits...OK, I know I am ranting, but we are witnessing the destruction of our great nation, because we are listening to our demons not our angels, and we will pay a price.
xxx
And you have hit on the real concern, if things ever do go south for the bansters, they will indeed start another war. All they need to do is create another false flag anywhere, blame it on anyone, and watch the sheeple get in line. One of the greatest YouTube videos I have even watched was called "All wars are bankers wars", and it shined a light on their actions over the centuries. What is amazing is how naive people can be about the rich in general. Do people think they got rich from being good and honest, please.
They own the press and the politicians, and for all intensive purposed they own the American people. I mean why did we attack Iraq, how was that in America's interest? Why do we back Israel, how is that in America's interests? And why now are we backing Ukraine, with guns and money, is that in America's interests? Its over, at least for America, we are too easily manipulated, always ready to pull the trigger, even when it is against our own people.
I'm kind of disappointed the Greece vote didn't blow everything up.
Give it time, the ECB is still building up to full retard......
Never go full retard.
Don't even think about "Going Full Retard" the academy never awards it
https://www.youtube.com/watch?v=X6WHBO_Qc-Q
If voting blew things up I'd participate more often but I do admit, it's nice to see a gauntlet thrown down for once. I hope they can hold it.
I feel frustrated I can't help them having no connections in Greece. We should stand in solidarity knowing we could be facing the same thing soon. I have a german Shepard that would make a great riot dog.
Miffed
"I'm kind of disappointed the Greece vote didn't blow everything up."
The collapse is a process, not an event. -- Some ZH'er I cannot remember the name
#Greece - Putin & IMF
One major Greek bank is near collapse
Russian President Vladimir Putin and Christine Lagarde, the managing director at the International Monetary Fund, discussed the Greek referendum on Monday
Real Live Ticker:
https://tersee.com/#!q=greece&t=text
At the time the big hype was that Putin was going to take Cyprus. Cyprus was going to Putin. Russia was going to build major military bases in Cyprus. Putin wins by playing chess.
Now we hear the same things about Putin taking Greece.
How did it work out in Cyprus?
IIRC, it worked out pretty well because Cyprus then renewed an agreement allowing Russian planes and ships to use a couple of bases. That couldn't have been what the USSA wanted.
Please explain.
Some Russia naval ships were allowed to tie up at an existing dock. Along with other ships from around the world. There is no naval base, unless you refer to a NATO country one.
Please reference what air base that Russia is landing or housing military combat air craft. There is none.
After all the big talk it turned out that Cyprus signed an extension to an existing contract with Russia. It seems it centered around allowing maintenance personnel to be present and for Russia to dock ships at times at commercial non military docks.
Anyone with any money in a Greek bank is a FOOL! I hate to say it but I really don't feel sorry for anyone standing in line for their daily 60 euro allotment, the Greek depositors have had YEARS to figure this out; anyone paying attention knew this was coming back in 2010.
Businesses don't have a choice. Neither do the pensioners/workers who have a mandatory Direct Deposit.
Sometimes the little guy has nowhere to run.
You do know in many western countries more than half the people live hand to mouth with savings less than $500
This is whose money is still in a Greek bank anyone with enough to worry about has taken it out..
Oh and pensioners & sme's
But... But... But... my deposits were insured up to $250,000!
But not up to 100% - it's the Sex Panther of insurance...
60% of the time, it works everytime.
Do the banks take a haircut, too?
Only if Greece nationalizes them......
"In a HUGE loss for standardized Pracy Greeks perfectly common sensical finance minister was forced to resign.
His advocacy of a "Helicopter Ben" approach to saving Greece as it did the United States was deemed too sneaky and underhanded by the sneaky and underhanded types."
The banksters will want their pound of flesh after the NO vote:
Greece news live: Banks to remain shut for another two days as creditors squeeze country after No vote
Brussels says Greece's referendum is "neither legally nor factually correct" after more than 60pc vote to reject lenders bail-out terms
Merkel: now is not the time for new bail-out talkshttp://www.telegraph.co.uk/finance/economics/11719974/Greece-news-live-B...
We can't know what is actually happening in Greece. Was this part of a bigger plan? We can't know. We only know that it will BE USED, and that WE ARE BEING LIED TO. Because telling lies is WHAT THEY DO. Support each side, and make it impossible to get to the bottom. Non-linear disinformation. http://www.thetruthaboutthelaw.com/non-linear-disinformation-makes-it-im...
Watch the radical parties in the EU, they can create a disaster much faster than the governments can react. But if the governments decide to create a few martyrs things will disintegrate completely....
Well Greece has other issues....How do you separate the Greek boys from the Greek men at a Greek BBQ? With a Crowbar!!!!!...
A Greek and Italian were sitting down one day debating who had the superior culture. The Greek says, "We have the Parthenon"The Italian says, "We have the Colosseum"The Greek says "We had great Mathematicians"The Italian says "We had the Roman Empire"...and so on and so on and then the Greek says: "We invented sex"The Italian says "That is true, but it was the Italians who introduced it to women."
Indeed, and now Italy is run by the mafia...
And America the self-appointed “Christian Nation and moral leader of the world”, fears gay marriage and Sharia law, yet can’t seem to grasp Christ’s actually teachings, which spoke not at all about gays, or Sharia law, but spoke in great detail about the sins of greed and money, something America knows a whole lot about. Hypocrites to the end.
Not disagreeing with your sentiment, but I'd like to point out it would be highly impressive if the bible knew what Sharia law was, given that it didn't emerge till centuries later.
It would be so refreshing, but certainly uncharacteristic, to have comments that actually tried to add to the conversation and not distract.
My comment states Christians OF TODAY, fear gay marriage and Sharia Law. Now, Christ’s teachings did not speak of gay marriage or Sharia Law, and the reasons why Christ did not speak of either is inconsequential, since the hypocrisy I speak of is directed to the Christians of today, not the Bible or Christ. The fact IS Christ spoke of the sins of greed and wealth and yet, America’s self-righteous seem to ignore HIS teachings and focus on their own brand of religion, but still call it Christianity.
Coincidently, those who consider themselves “Christian” are far more likely to support war, even those wars built on lies, than will the general population. This of course is most likely built on the psychological phenomenon called priming: if you can make yourself believe in one lie of convenience, you can do it again and again.
So, even though Christ did not speak of running red lights, NSA spying, and the “global war on terror”, American Christians still have many rules he did speak of, principally the use of money and helping one’s neighbor, and thus, regardless of the inception of any of today’s contrived boogieman, the right-wing Christians are hypocrites, to put it lightly.
All fiat holders are cipriots now..
RE: Greek jokes.
I've not read anywhere that the Gay & Lesbian Community decision and acceptance will go a long way in addressing what many agree is a true problem. Population growth that might not be well assimilated into the economy/society. I've read many pieces about controlling population growth.
Not sure where you are going with this, but judging by the history of ZH's comment section, I am sure there must be some homophobia involved. Interesting site, but lots of fascist bigots comment here.
As for population control, few in the advanced world have a problem with native population growth, most growth come from immigration from highly religions (superstitious) third world nations, such as Mexico. The very religious Mexicans will soon replace Europeans as the dominant nationality in America. So while hateful bigots fear Muslims and Gays, they will nevertheless be replaced my Mexicans.lol.
I find this comment of yours rather amusing when considering a little upstream you lamented the divisive approach used in this country to polarize the population. Generally, calling a group of people homophobic and fascistic bigots is not very unifying IMHO.
Miffed;-)
This might have to be sorted by tonight. If the banks are done, then the nation should be drachmatized. It's not convertible and its not international, but it's sort of inevitable.
"Oxi"
Greece can just start loaning fiat to themselves like the FED does in USA
Exactly
"And we'll call it Banking!"
Greece is just another example of Socialism failing in epic fashion, as it always done given enough time. They always run out of other peoples money.
Leftists refuse to learn from history and example, they always think they just didn't do enough, next time it will work!
and which advanced industrial country hasn't run out of 'other peoples money'?
"Socialism", lol, is that what you call socialism, the EU...And what was the bailout of Wall Street banks, to the tune of TRILLIONS of dollars? "Lefties", you really are drunk on the corporate media koolaid.
You don't think the EU is a socialist state?
And those "wall street banks" and corporations you cry about? Also socialists. It's a LOT easier to make money if you can get government to raise taxes on your business, and then lobby for a special loophole for your business in exchange for "Green Energy" credits (see also: General Electric).
Socialism is Death.
Greece is no more a good example of a socialist state, than America is a good example of a democratic or capitalist state. Socialism can be a very good thing (social security), done right, just as capitalism can be when it is done correctly. Neither nation is in very good shape, regardless. Funny no one has a problem with socialism when it’s someone else child dying to protect our cheap gas (petro dollar). But offer free schooling and it’s the “end of the world”.
But seriously, "Greek socialism" as an example of poor governance is insignificant to the sham of American democracy and our “capitalist” economic system. MY GOD. Greece's only short coming is it can't print its own money like America, but rest assured, when OUR chickens come home to roust, your ilk won't be so worried about Greece, that’s for sure.
Americans are so big on accountability, “those evil socialists” (just parroting corporate media propaganda), yet the US tax payer paid trillions to bansters, and no bankster went to jail. But steal a pack of cigarettes and this system would have the villain beat up by police and through into jail. Americans have been conditioned to fault the individual, not the system, it supposes we all have the same opportunity, so if you have a problem it’s not the system it’s your failings.
The problem is accountability, you place it on people, who basically have no power what so ever, just like we have no power in America, our politicians do NOTHING that we demand, but they are very good at making us think what they want, we do too, like their fight against “terrorism”. Those who make the most should have the greatest responsibility, not the least. Our system lacks any moral or social justice, so we are hardly in a place to point the finger at anyone.
I think Americans who are critical of the Greece are simply jealous that they stood up to tyranny, why Americans bow down to our oppressors, like the sheep we are.
US has a epidemic of low savings. I wouldn't call social security a great program, because such programs are condusive to spending, rather than savings. Wall Street bail outs are not capitalism. Failure is a very important part of capitalism, without failure, there must lie in nature where there is abundance, or simply bureaucrats refuse to acknowledge failure. Failure guides economic decisions just as they do in life in general.
Socialism only deals with consumption, not production, that's the main emphassis, but production in itself is condusive to consumption.
Problem with europe is too many labor laws. Too much government. US is not free from this at all. US is not the capitalist powerhouse that made it a super house. That era was long gone. This is why Europeans don't want to acknowledge that government is the problem, so they want to blame the Euro, and view printing money as a solution. This is why the EU was doomed to fail to begin with. They blame sluggish growth on capitalism, thus bureaucrats in Europe are calling to the end of the Euro. Euro is not the problem, it's really bad anti-capitalist policies of EU's banking system, ECB creating out of control debt. Greeks were accustomed to borrowing on low interest rates as if interest rates are fixed, so naturally politicians took advantage of low rates and accustomed the economy to government spending. EU experiment is over, because there is not only any discipline, but EU was merely a test of how well anti-capitalism can survive on a unified hard fiat currency that was meant to compete with the US dollar and have a lot of purchasing power. Doesn't work.
Capital controls are the direct result of a money system with no reserves. It's plain robbery and really eliminates the purpose of a banking system.
Here we have shysters that routinely print up billions and trillions telling some poor schmuck there's not enough liquidity to return the monies that are rightfully his,,, regardless of the insane illegal laws that allow banks the indiscriminate use or loss of this money. A thief in the street that robs you is being more honest than the entire gaggle of putrid banksters.
In past days these rogue banksters would be hung. Oh, do I yearn for the good ole days.
Those Greeks that did not already get their money out deserve what's coming. We at ZH have all seen it and have obtuse freinds that won't listen either.
In a few months, when SHTF for real, they'll call us up in a panic (if cell phones still work) and ask us WTF is going on, and what should they do? Ima get rid of them for good by asking them if they have any extra food to spare.
My line is : everyone is welcome at my house...if they come with one million calories per person....food or fuel...we'll accept either.
That number of calories will feed them for a year...After that they'll be so tired of me they'll yearn to leave.
Or...on a six month timeline (so about half that) For the mathematics challenged that is 100 pounds of cooking oil or 215 pounds of rice or beans or flour. Best to substitie some of that with dried milk if you have kiddies.
6 months preps may even be too much...BUT... Anyone without 3 month of food storage is begging to become a beggar. Get fit, get ready. It is showtime!!
For about $1 per person per day anyone with slight nutrition knowledge can be ready...do not become someone else's problem. Be the man. Be the one that is ready. Prepare your family for the obvious.!!
Capital controls already in the US, see how much you can withdraw from the ATM per day. Go to the teller and ask them for a $1000 cash withdrawal, and you'd think you just grew another head.
Not a problem. Only about 33% of Americans even HAVE that much money in the back.
Serfdom sucks.
Don't even think about "Going Full Retard" the academy never awards it
https://www.youtube.com/watch?v=X6WHBO_Qc-Q