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The "Cyprus Template" Comes to Honduras... Who's Next to Collapse?
As we have been noting, the “collapse/ bail-in” formula first implemented by Cyprus in dealing with bank crises has been embraced as a template by global elites.
For those of you who are new to this, the timeline in Cyprus is as follows:
· June 25, 2012: Cyprus formally requests a bailout from the EU.
· November 24, 2012: Cyprus announces it has reached an agreement with the EU the bailout process once Cyprus banks are examined by EU officials (ballpark estimate of capital needed is €17.5 billion).
· February 25, 2013: Democratic Rally candidate Nicos Anastasiades wins Cypriot election defeating his opponent, an anti-austerity Communist.
· March 16 2013: Cyprus announces the terms of its bail-in: a 6.75% confiscation of accounts under €100,000 and 9.9% for accounts larger than €100,000… a bank holiday is announced.
· March 17 2013: emergency session of Parliament to vote on bailout/bail-in is postponed.
· March 18 2013: Bank holiday extended until March 21 2013.
· March 19 2013: Cyprus parliament rejects bail-in bill.
· March 20 2013: Bank holiday extended until March 26 2013.
· March 24 2013: Cash limits of €100 in withdrawals begin for largest banks in Cyprus.
· March 25 2013: Bail-in deal agreed upon. Those depositors with over €100,000 either lose 40% of their money (Bank of Cyprus) or lose 60% (Laiki).
The most important thing we want you to focus on is how lies and propaganda were spread for months leading up to the collapse. Then in the space of a single weekend, the whole mess came unhinged and accounts were frozen.
One weekend. The process was not gradual. It was sudden and it was total: once it began in earnest, the banks were closed and you couldn’t get your money out (more on this in a moment).
The latest example of this template being used occurred in the Honduras last month.
Honduran bank caught up in a U.S. money laundering investigation will remain closed until Wednesday and will eventually be liquidated, government officials said Monday.
The Banco Continental is Honduras' eighth largest. Its owner, Jaime Rosenthal, has been charged along with a son, a nephew and a company lawyer with money laundering in a federal court in New York. The nephew, Yankel Rosenthal, was arrested last week in Miami.
U.S. prosecutors allege the Rosenthals used their network of businesses, including the bank, to launder money for Central American drug traffickers. The family has denied the allegations.
"All savings are going to be returned," said Roberto Carlos Salinas, commissioner of the National Banking and Insurance Commission…
The president said the more than 220,000 clients of Banco Continental will soon be able to withdraw at least $10,000 of their deposits and the remainder would be returned gradually.
The money laundering that lead to the bank being closed began in 2004 and lasted until September 2015. Throughout this period there were no warnings to the over 220,000 clients of the bank.
Then in a single day, the bank was closed and the money couldn’t be withdrawn.
Officials claim there is plenty of money lying around to insure everyone gets their full deposits back, but that is just an attempt to calm the public. There is no way anyone knows the banks liabilities that quickly.
Again, when banking collapses occur (whether due to insolvency of illegal activity) there are no warnings. It happens suddenly. And by the time it hits it’s impossible to get your money out.
This template will be used more and more in the coming months. Anyone with a functioning brain understands that the global banking system is just as if not more fragile than it was in 2008.
Heck, just last week, it was announced that US Banks are sitting on $10 trillion worth of “risky” trades. Do you really think they have the adequate capital to manage this mess if it goes wrong?
Another crisis is coming. And this time around the Central Banks will implement even more severe policies in dealing with it.
These policies will include Negative Interest Rates, carry taxes on cash, and possible even a full-scale cash ban.
Indeed, we've uncovered a secret document outlining how the Feds plan to take hold of savings during the next round of the crisis to stop individuals from getting their money out.
We detail this paper and outline three investment strategies you can implement right now to protect your capital from this sinister plan in our Special Report Survive the Fed's War on Cash.
We are making 1,000 copies available for FREE the general public.
As we write this, there are approximately 100 left.
To pick up yours, swing by….
http://www.phoenixcapitalmarketing.com/cash.html
Best Regards
Phoenix Capital Research
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Hymie Rosenthal owned a Honduran bank out of Miami - go figure??
John Kerry states they're to be wiped off the face of the planet too.
So, well done France. The people who are all lovey dovey, are likely the biggest threat to the body politic of indigenous nationals, in their own nations.
Obviously the denizens of ZH will be well ahead of any US banking bail-in and will have their cash safely stowed under the mattress. What we need to worry about is being suddenly surrounded by hundreds of clueless friends and relatives who didn't see it coming and find themselves pennniless, hungry and at our doorstep. Can we really turn away Aunt Mildred who poo-pooed our warnings and accused us of paranoia?
Are all these idiots new? The comments are appallingly uninformed. Stupidest comments in ages.
Dude,
When should I sell all those [uts you told me to buy five years ago?
Dog
Graham?
You still shoveling this effluvium?
CUT IT THE FUCK OUT.
100 LEFT.....fucking please.....try to remember the consortium here has an above average I.Q.
..and then there's MDB
Whatever Graham. Get with the Big Picture.
What BULLSHIT - only 100 left. LEFT?!?!?!?!
Most people forget that Turkey, the other Bastard of the Middle East, invaded Cyprus and occupies half the island to this day. A famous resort area is now abandoned and in ruin as the Turks have forbidden anyone to enter it.
The Day Turkey Invaded Cyprus
Cyprus- Britain's Grim Legacy
Yet another disaster thanks to British Imperialism and meddling. Why does the US Government still serve these old whims?
PoasterToaster
Read some history please. The Brits created the Cyprus mess then the Greeks decided to screw over the Turks so Turkey invaded. They have the north, NATO has the south. Can't say I saw much Greek investment in the south. Lots of old men playing board games whie drinking at the local cafe (hey, just like Greece). Lots of Russian properties. They have tried to work out a plan to unify the island but the Greeks reject everything. Now Turkey has built the pipeline under the long stretch of water to mitigate the water shortage. Of course the Greeks are mad even though the north has offered to share. For the Greek Cypriots it's all or nothing. I stayed in the Greek hotels and discovered the many Brits there think the Turkish Cypriots are more hospitable.
In this bankster world best to try and keep out a minimum of 1 months survivable cash just incase.
You need no more than that because a population not being able to access funds will be in revolt far earlier than one month.
Too many people caught up on the Phoenix capital copy crap. I don't care. I do like being informed about this instance. I'm sure its inconveniencing the crap out of a lot of people in Honduras. I'm also sure there are quite a few ex-patriots there. I'd like to hear from them.
I have a fellow classmate (just had 50 year reunion) who moved to Honduras. Wonder if this affected him. There's no place to run.
I am always number 1001. I never win a free copy, and wisely keep my wallet in my pocket rather than pay for a copy.
Some day, my princess will come.
OMG, only 100 copies of your shitty web page are left? I better hurry before you run out of bits. Is anyone really stupid enough to fall for this ridiculous "only 100 left" bullshit?
"Is anyone really stupid enough to fall for this ridiculous "only 100 left" bullshit?"
That's what blows up any credibility
Two of my US banks have gone out of business. In both cases my account was under the FDIC insurance limit and there were no problems.
One day you just got a letter saying your account was now sold to another bank, and everything else was the same. All done over a weekend with no disruption. Even your old checks and debit card still worked after the change.
There was no prior notice but it was all smooth as silk. Say what you want about the US gov, but FDIC has their shit together once something goes wrong.
FDIC is bankrupt.
Sheila Beir said FDIC has $500 mil credit w/ Treasury at all times, she's 1 of few honest left standing.
I agree about Sheila Beir, being upfront and honest. She has said the FDIC cannot back a large bankrun. 500 mil when it is needed,is such a small amount you won't even hear it make a poof sound.
$500 million is a fart in the wind compared to the trillions in liabilities.
The best we can hope for is that small banks continue to be consumed by bigger banks...until there is only ONE bank that is Too Big To Fail.
smooth as silk.
Silk makes great bullet proof vests until the bullets are to big.
FDIC is backed by the full faith and credit of the USA...reassuring, no?
It works until it doesn't.
" FDIC has their shit together once something goes wrong"
The FDIC has money in it's fund to cover a very small fraction of the money in US banks should there be a crisis that requires bail ins. And if there is such a crisis, you will not be bailed out by the FDIC. Dont dilude yourself.
Diludes must be like Quaaludes for the masses.
Yeah, but we have the IRS that can levy your account and make it disappear in 30 days.
They don't need to do that, they only have to "freeze it". Happened to me because I was margin trading the prior year and did not know I had to file an extended, EXPENSIVE extra IRS tax form which accommodated my LOSES. The bastards froze my main business account, checks bounced, bla bla bla and I got a tax attorney to correct the assholes in the IRS that fucking knew I dd not make anywhere near $860,000/yr. Actually got 1k back!