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Europe Brings Out The "Capital Controls" Bazooka

Tyler Durden's picture


Here we go:


In other words, that money you thought you had... You don't really have it. We can only hope this message was not meant to restore confidence and prevent future bank runs. Because if Europe wanted a continental bank run, it may have just gotten one.

This is getting scary very fast.

Full piece from Reuters:

European finance officials have discussed as a worst-case scenario limiting the size of withdrawals from ATM machines, imposing border checks and introducing capital controls in at least Greece should Athens decide to leave the euro.

EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasised that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen - no one Reuters has spoken to expects Greece to leave the single currency area.

Belgium's finance minister, Steve Vanackere, said at the end of May that it was a basic function of each euro zone member state to be prepared for problems. These discussions appear to be in that vein.

But with increased political uncertainty in Greece following the inconclusive election on May 6 and ahead of a second election on June 17, there is now an increased need to have contingencies in place, the EU sources said.

The discussions have taken place in conference calls over the past six weeks, as concerns have grown that a radical-left coalition, SYRIZA, may win the second election, increasing the risk that Greece could renege on its EU/IMF bailout and therefore move closer to abandoning the currency.

No decisions have been taken on the calls, but members of the Eurogroup Working Group, which consists of euro zone deputy finance ministers and heads of treasury departments, have discussed the options in some detail, the sources said.

As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union.

"Contingency planning is underway for a scenario under which Greece leaves," one of the sources, who has been involved in the conference calls, said. "Limited cash withdrawals from ATMs and limited movement of capital have been considered and analysed."

Another source confirmed the discussions, including that the suspension of Schengen was among the options raised.

"These are not political discussions, these are discussions among finance experts who need to be prepared for any eventuality," the second source said. "It is sensible planning, that is all, planning for the worst-case scenario."

The first official said it was still being examined whether there was a legal basis for such extreme measures.

"The Bank of Greece is not aware of any such plans," a central bank spokesman in Athens told Reuters when asked about the sources' comments.

The vast majority of Greeks - some surveys have indicated 75 to 80 percent - like the euro and want to retain the currency, something Greek politicians are aware of and which may dissuade them from pushing the country too close to the brink.

However, SYRIZA is expected to win or come a strong second on June 17. Alexis Tsipras, the party's 37-year-old leader, has said he plans to tear up or heavily renegotiate the 130-billion-euro bailout agreed with the EU and IMF. The EU and IMF have said they are not prepared to renegotiate.

If those differences cannot be resolved, the threat of the country leaving or being forced out of the euro will remain, and hence the need for contingencies to be in place.

Switzerland said last month it was considering introducing capital controls if the euro falls apart.

In a conference call on May 21, the Eurogroup Working Group told euro zone member states that they should each have a plan in place if Greece were to leave the currency.

Belgium's Vanackere said two days after that call that it was a basic function of each euro zone member state to be prepared for any eventuality.

"All the contingency plans (for Greece) come back to the same thing: to be responsible as a government is to foresee even what you hope to avoid," he told reporters.

"We must insist on efforts to avoid an exit scenario but that doesn't mean we are not preparing for eventualities.


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Mon, 06/11/2012 - 11:39 | 2514809 ITrustMyGut
ITrustMyGut's picture


this is all purposeful... planned...  how fucking whack is that!

back to the soap business for jooo~

Mon, 06/11/2012 - 11:47 | 2514788 Marco
Marco's picture

This is why the only viable way forward is an European deposit guarantuee ... if we had not squandered so much money on bail outs we would already have close to enough money for it to begin with.

Let the sovereigns and banks default, let the bond holders and investors take the hit ... but protect the depositors, they are far more important to the functioning of the economy.

PS. I don't care about the morality of wealth transfer ... it's not worth the collateral damage to me to let everything burn. I have a job in a trade surplus nation in the EU, but I'm not insane enough to think letting half the Euro zone burn won't hit me here as well. The problem is the bailout of the rich, not the concept of solidarity. Even now we are saving Spanish banks, not Spanish depositors ... we're still doing it wrong.

Mon, 06/11/2012 - 11:55 | 2514900 NooooB
NooooB's picture

Not according to the propaganda machine... According to them it's Banks, Eggs, THEN chickens...

Mon, 06/11/2012 - 11:36 | 2514789 holdbuysell
holdbuysell's picture

Those in the US: take heed and learn. You're going to need it.

Mon, 06/11/2012 - 11:40 | 2514812 Thomas Jefferson
Thomas Jefferson's picture

And consider yourself lucky that we get a front row education by watching Europe implode.

Mon, 06/11/2012 - 11:48 | 2514863 Al Huxley
Al Huxley's picture

Sure, if only anybody was watching.

Mon, 06/11/2012 - 11:53 | 2514886 BalanceOrBust
BalanceOrBust's picture

What happens when people start dumping US bonds? Capital controls? Would the US dare?

I don't understand as it is why anyone wants 1.6% on the US ten year rather than just holding cash. Isn't cash safer and more liquid than bonds?

Mon, 06/11/2012 - 14:21 | 2515496 Cthonic
Cthonic's picture

Depends on what you mean by cash.  If you mean physical cash, there's only a trillion or so in circulation (mostly overseas), whereas M2 is closer to ten trillion... not enough physical bucks to go around.  If you mean electronic cash 'equivalents' like now accounts, money market funds, etc., there are all sorts of arbitrary restrictions now in place that can be invoked in an emergency situation.

Speaking of physical cash, was returning home through a major texas city on an interstate the other weekend and was pulled over for, ah, excessive speed.  Probably the only time I've ever received a warning for this; officer told me flat out that he was only interested in 'interdiction' and in response to my quizzical look further explained 'you know like contraband, people smuggling, large sums of cash'.  At this point I wouldn't say cash is something safe for an individual to be hauling about; if you aren't robbed by a common thug, you might still be relieved of your loot by another under the color of law.

Mon, 06/11/2012 - 15:06 | 2515653 Cathartes Aura
Cathartes Aura's picture

these are the new trrrst laws people might want to investigate, in that police are tasked with confiscating monies & property - all the rage now. . .

Mon, 06/11/2012 - 15:48 | 2515797 kekekekekekeke
kekekekekekeke's picture

tried to pm you

what blogs or books do you recommend reading please re: present state and future amrka

Mon, 06/11/2012 - 12:17 | 2515033 Pairadimes
Pairadimes's picture

They're watching alright, they just don't understand what the hell they're seeing.

Mon, 06/11/2012 - 11:41 | 2514820 maxw3st
maxw3st's picture

US has a real fiscal/monetary structure behind its currency. We're not in the same position as the EZ. We also have increasing, not declining growth. US did not implement policies doomed to failure the way the EZ has.

Mon, 06/11/2012 - 11:58 | 2514841 bdc63
bdc63's picture

dude ... whatever you're smok'in, you need to share ...

Mon, 06/11/2012 - 11:59 | 2514928 DogSlime
DogSlime's picture

Don't share it - you'll end up chewing someone's face off (but you won't swallow).

Mon, 06/11/2012 - 12:32 | 2515095 Cruel Aid
Cruel Aid's picture

Max is kidding-Unfunded Liabilities for starters.

Mon, 06/11/2012 - 12:34 | 2515103 krispkritter
krispkritter's picture

Sounds like a girl I used to date...

Mon, 06/11/2012 - 11:45 | 2514848 j.tennquist
j.tennquist's picture

Two people can have completely different diets and still have a heart attack.   Patient A is vegan.  Patient B eats donuts.  They both suffer from massive heart attacks.  

In a complex world, made more complex by foolish self-serving political stunts, the paths to disaster can be infinite.  Just because we haven't made the exact same mistakes as the EZ is of no comfort at all.  

Mon, 06/11/2012 - 11:49 | 2514870 Al Huxley
Al Huxley's picture

That's fantastic!  From where do you get your news?

Mon, 06/11/2012 - 11:53 | 2514875 Marco
Marco's picture

I'll readily admit, we screwed the pooch in the Euro zone ... the federal fiscal unity, and stuff like federal minimum wage, with it's implicit wealth transfer to pay for the trade imbalances caused by free interstate trade gives the US a stability the Euro zone lacks.

The Euro zone still has something which the US doesn't though, balanced external trade ... the Euro zone economy is competitive but internally imbalanced, the US is "at mercy" of the house of Saud (ignoring the Military side of the equation).

Mon, 06/11/2012 - 11:51 | 2514877 Tirpitz
Tirpitz's picture

Max, I enjoy your humor.


Mon, 06/11/2012 - 17:29 | 2516088 mkkby
mkkby's picture

This is really easy folks.  When treasury rates start spiking and the USD takes a dive -- withdraw your money from banks and get into gold or a recently "saved" currency.  You'll have months and years after this signal.  Just look at the europe slow train wreck. 

Rates are still record low and trending lower.  Chill for now with popcorn and your fav beverage.

Mon, 06/11/2012 - 11:36 | 2514790 j.tennquist
j.tennquist's picture

It was always scary.  Now it's getting real.

Mon, 06/11/2012 - 11:36 | 2514791 Zola
Zola's picture

EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasised that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen 

Using the Rosetta stone for EUSS newspeak where the opposite of what is said is true...Sounds like this will get ugly fast...

Mon, 06/11/2012 - 11:46 | 2514851 Mitzibitzi
Mitzibitzi's picture

Almost has to, now. Otherwise they run the risk of Greece's dynamic, young new guv'nor Alex telling them to go fuck themselves if they think they're getting any of that money back; but we're sticking with the Euro, thanks!. Sets an unfortunate precedent, since there'd be sweet Fanny Adams they could actually do to Greece in that case.

Mon, 06/11/2012 - 11:58 | 2514924 stocktivity
stocktivity's picture

I'm sure Benny, Timmy, and the boys are also discussing contingency plans...but they aren't stupid enough (even for their already low standards) to publicize the fact.

Mon, 06/11/2012 - 15:00 | 2515619 Non Passaran
Non Passaran's picture

Hehe, the euro bozos weren't either.

Security thru obsurity was a great plan - until the news leaked out.

Mon, 06/11/2012 - 11:37 | 2514793 Cone of Uncertainty
Cone of Uncertainty's picture


Mon, 06/11/2012 - 11:37 | 2514798 Jlmadyson
Jlmadyson's picture

Been warned for over 5 years now. We still have no idea how bad it really is out there.

Mon, 06/11/2012 - 11:45 | 2514843 goldfish1
goldfish1's picture

As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union.

Your world just got smaller.

Mon, 06/11/2012 - 11:37 | 2514801 sunny
sunny's picture

DON'T STAND IN FRONT OF ANY EUROPEAN FANS!!  Something strange might be hitting them soonish.


Mon, 06/11/2012 - 11:52 | 2514803 firstdivision
firstdivision's picture


Mon, 06/11/2012 - 11:38 | 2514804 carbonmutant
carbonmutant's picture

Is this the path to Fiscal Unity?

Mon, 06/11/2012 - 11:38 | 2514805 Broomer
Broomer's picture

European finance officials have discussed as a worst-case scenario limiting the size of withdrawals from ATM machines, imposing border checks and introducing capital controls in at least Greece should Athens decide to leave the euro.

Now seriously, are the Europeans insane?

It's like they want the system to melt down.

Mon, 06/11/2012 - 11:42 | 2514825 ITrustMyGut
ITrustMyGut's picture fact.. they do... yes.

single global electronic currency ... incoming!!!!!!!!!!!!!!!!!!!!

Mon, 06/11/2012 - 11:39 | 2514806 canardo
canardo's picture

Whoa! Reminds me, one of the first things the now defunct Dutch government did in 2010 was to make it illegal for people to call for bank runs. This was after the dsb bank debacle where someone did just that, and it worked, dsb went under. Thought that was pretty scary at the time ...

Mon, 06/11/2012 - 11:39 | 2514808 Mugatu
Mugatu's picture

Problem with Greece - no problem:  Just spray it with windex!

Mon, 06/11/2012 - 11:40 | 2514813 Lost Wages
Lost Wages's picture

Seems like a good day for everyone to go to the atm.

Mon, 06/11/2012 - 14:53 | 2515600 Non Passaran
Non Passaran's picture

Yeah, let's see a Webcam of that Swedish ATM now!

I'd love to be in the employee in charge of the ATM network (or at least its key databases or security cameras) at some major European bank right now :-)

Mon, 06/11/2012 - 11:47 | 2514815 ebworthen
ebworthen's picture

Let's see who in the MSM reports this.

"Attention, your money may be confiscated and any ATM access denied, because the banks need your money as they gambled and pissed away your mortgage payments and deposits and bailouts that you gave them before."

Doubt it, more like:

"Europe imposes Capital controls, which is another way of saying that your money is guranteed."


Mon, 06/11/2012 - 11:40 | 2514817 Dapper Dan
Dapper Dan's picture

Eurozone crisis

  @CNBC tweeted: Fitch ratings cut long-term credit ratings for Spanish banks Banco Santander & Banco Bilbao Vizcaya Argentaria to BBB-plus from A. -Reuters
Mon, 06/11/2012 - 11:42 | 2514818 TomGa
TomGa's picture

I had heard that one country (Greece, Ireland??) had already limited ATM withdrwls to 300 euros / week. Anyone?

Mon, 06/11/2012 - 11:45 | 2514836 ebworthen
ebworthen's picture

An unconfirmed rumor last I heard; or an idea floated that was quickly squelched - but maybe that has changed (this was last Fall).

I wouldn't doubt it happening though.

Story:  last DecemberI cashed out some retirement (under $10K), had a check FROM J.P. Morgan Chase account, and the Chase branch WOULD NOT CASH IT. said they were not allowed to.

How's them apples?

Mon, 06/11/2012 - 11:51 | 2514874 Village Smithy
Village Smithy's picture

Stealth capital controls. They implement a policy with a seemingly small effect but multiplied out over millions of customers it shores up the balance sheet signifigantly.

Mon, 06/11/2012 - 12:03 | 2514957 azzhatter
azzhatter's picture

I ran into same thing. Deposited it and withdrew $500 per day for 3 weeks

Mon, 06/11/2012 - 12:21 | 2515048 Temporalist
Temporalist's picture

Hmm, after surcharges and bankster fees, plus taxes and regulatory compensation, with a quick bit of math...that amounts to $17.54.

Welcome to Zimbabwe.  Got gold?  Uganda need it!


Mon, 06/11/2012 - 11:41 | 2514822 lailapa
lailapa's picture

Global Debt Crisis - The greatest private fraud of human history.

Who are the great fraudsters who are becoming the murderers of the human kind?


The Eastern gates of Europe at risk: How Northern Europe shoots itself in the leg

Germans plunge Europe into a new Medieval Era... Are they ready to take that risk ?

Mon, 06/11/2012 - 11:41 | 2514826 firstdivision
firstdivision's picture

Welcome to modernized 1920's Europe. The new SS=Securities Salesman?

Mon, 06/11/2012 - 11:42 | 2514831 Jason T
Jason T's picture

Rauol Pal... No Bond markets, No Stock Markets .. only dollars and gold.  Bitchez

Mon, 06/11/2012 - 11:43 | 2514833 Bobportlandor
Bobportlandor's picture

So what does this say about storing bullion internationally?


Unless it's under your control you have no control.


Mon, 06/11/2012 - 11:45 | 2514844 Lost Wages
Lost Wages's picture

There is no escape from their tentacles.

Mon, 06/11/2012 - 11:44 | 2514839 azengrcat
azengrcat's picture

It's Always Sunny in Fiatdelphia

Mon, 06/11/2012 - 11:45 | 2514846 Nawaralsaadi
Nawaralsaadi's picture

"This is getting scary very fast."

Things were supposed to be getting scary real fast since 2008; there is nothing fast here, this is a slow motion train wreck and will continue to be with up and downs along the way.

Mon, 06/11/2012 - 11:56 | 2514905 Tirpitz
Tirpitz's picture

But now they added boosters to the engine.

Mon, 06/11/2012 - 11:48 | 2514861 ebworthen
ebworthen's picture

Europe!  Get your cash out NOW!

It will be safer as cage lining for your parakeets and parrots than with bankers and politicians!

Mon, 06/11/2012 - 11:49 | 2514865 virgilcaine
virgilcaine's picture

Wake me up when VIX goes over 80.. someone.

Mon, 06/11/2012 - 11:49 | 2514868 monopoly
monopoly's picture

How come so little of this is being printed in the WSJ IBD NYT or Cnbc. I just, do not understand?

Mon, 06/11/2012 - 11:57 | 2514914 Tirpitz
Tirpitz's picture

Capital control

Media control

Mind control

Mon, 06/11/2012 - 11:49 | 2514869 Catullus
Catullus's picture

So does that mean bank runs have moved from black swan to white swan status because now they're anticipating them and creating contingencies? Just like how you draw yourself closer to nuclear war as you make prepariations for it.

I wonder if they discussed banking holidays. That's really the only way to stop a bank run. Just don't open the bank. Of course, if a bank does not open does the money really even exist? Existentialist M1.

Mon, 06/11/2012 - 11:50 | 2514873 Zero Govt
Zero Govt's picture

"These are not political discussions, these are discussions among finance experts who need to be prepared for any eventuality," the second source said. "It is sensible planning, that is all, planning for the worst-case scenario."

restricting peoples access to their own money is "sensible" ?

these "finance experts" represent who precisely, not consumer groups??

and so the ivory towers of Europe bring us to the ultimate conlcusion of Govt, robbery and thieving of other peoples money, restricting their freedoms both financial and physical

Govt is anarchy everyone crystal clear?

Mon, 06/11/2012 - 11:57 | 2514906 Temporalist
Temporalist's picture

It's true, these are not political discussions; polticians don't dicuss anything without approval of their financial masters.

Mon, 06/11/2012 - 13:18 | 2515287 ParkAveFlasher
ParkAveFlasher's picture

Yeah they need master financiers and economists on the scene.

expert 1: You guys need money?

expert 2: Yep.

expert 1: oh fuck, you too?  alright I'll send a truck.

expert 2: you know maybe we shouldn't ... nah forget it.  See you at Spago's this weekend?

expert 1: yeah buddy!

Mon, 06/11/2012 - 11:51 | 2514876 junkyardjack
junkyardjack's picture

Cool, I was getting worried for a second. Bullish!

Mon, 06/11/2012 - 11:53 | 2514883 ZeroPoint
ZeroPoint's picture

Let me guess, it will only apply to retail banking. Corporate banking will be free to relocate all their resources to 'safer' shores.


Mon, 06/11/2012 - 11:55 | 2514885 slewie the pi-rat
slewie the pi-rat's picture

well, if the report that they were discussing putting everybody on electronic money didn't do the job a coupla weeks, this could be tougher than they thought, getting the panic up to proper levels to accept what marioECB will propose in less than 2 weeks

the europeons are on vacation

the banksters will hafta hire stunt doubles to stand in line;  they can hire young chicks and make it look trendy, maybe...?

Mon, 06/11/2012 - 12:05 | 2514971 potlatch
potlatch's picture

I remarked on this before and got downvoted.  Nothing will happen till after labor day.





Mon, 06/11/2012 - 12:20 | 2515044 slewie the pi-rat
slewie the pi-rat's picture

the point isn't that "nothing will happen" imo, b/c plenty is gonna happen b4 september

plenty by june's end:  funding stuff which needs 2B dealt with after the 20th

there are tons of planning and changes on the breeze;  but inducing a bank panic among the europeons isn't working so far [but there are still almost 3 weeks left in june] 

did you see where tyler wrote this:  "Because if Europe wanted a continental bank run, it may have just gotten one." ???  ??? ???

i was trying to relate to what tyler wrote...  we send little notes to each other all the time...


Tue, 06/12/2012 - 00:56 | 2517059 potlatch
potlatch's picture

I still think giving up those months off Ibiza.... man, you just can't get those back, ya know?



Mon, 06/11/2012 - 11:55 | 2514899 Temporalist
Temporalist's picture

Everyone is poor, why care about capital controls?

Mon, 06/11/2012 - 11:59 | 2514930 Tirpitz
Tirpitz's picture

They just want to avoid pictures of wheelbarrows lining up at the borders showing up in the media outlets.

Mon, 06/11/2012 - 12:09 | 2514992 potlatch
potlatch's picture

it's just so they can make a show-stop of the more egregious convoys of limousines.


Mon, 06/11/2012 - 11:57 | 2514912 The Credible Hulk
The Credible Hulk's picture

brb, atm.

Mon, 06/11/2012 - 11:57 | 2514913 dingoj
dingoj's picture

"should Greece decide to leave the EZ"

More like EZ is figuring a way to boot Greece out. There will be blood. I hear the boots marching.

Mon, 06/11/2012 - 11:58 | 2514921 LULZBank
LULZBank's picture


Mon, 06/11/2012 - 12:16 | 2515024 GMadScientist
GMadScientist's picture

I feel it is my duty to inform you that your shoes have melted.


Mon, 06/11/2012 - 11:58 | 2514923 narnia
narnia's picture

All of the smart money in Greece, Spain, Italy & the rest of the Med have undoubtedly already had deposit sweeps into banks in those countries with record 10y yields.  The capital controls will only affect the common depositor and pension funds run by the state.  They'll learn first hand the value of insolvent government bonds.  

Mon, 06/11/2012 - 11:59 | 2514926 MacedonianGlory
MacedonianGlory's picture

Reuters clearly involved in Greek elections.

Mon, 06/11/2012 - 12:01 | 2514941 IMA5U
IMA5U's picture

vxx is flat and s&p is down only 17 bps


stocks aint scared


IG18 almost 3 wider

spanish bond yield 30 bps wider

credit scared

stocks vs credit: A55et class warfare

Mon, 06/11/2012 - 12:04 | 2514946 razorthin
razorthin's picture

Chairsatan to usher in massive QE sooner than June 20 as only hope keep things "together" a few months more.

Today should have been a +300 point day.  Today's action is equivalent to a -200 point day.  That's really bad news for the PTB.

Mon, 06/11/2012 - 12:04 | 2514964 uno
uno's picture

What's the government buying these days? Hollow point bullets, hardened checkpoint booths and radiation pills

Learn more:
Mon, 06/11/2012 - 12:33 | 2515098 lakecity55
lakecity55's picture

Barry X was selected because he has no allegiance to the Republic.

The oncoming financial crash will be used as the excuse to install a soviet-style regime in the US.

as described in the WU's Prairie Fire, Wm. Ayers will have his chance to liquidate millions of Americans.

The one Republic which must be destroyed in order to start the one-world regime is America.

Hope for the best- but prepare for the worst. The communist termites have eaten the foundation of America away. The Financial storm will bring about open civil war.

Mon, 06/11/2012 - 12:06 | 2514976 Shizzmoney
Shizzmoney's picture

#bankrun #ftw

There are already capital ATM withdrawals in France, and some even say the "computers" are down all the time, and the French allege it is a stall tactic b/c....they don't have the money!

Mon, 06/11/2012 - 12:06 | 2514978 Mark123
Mark123's picture

God forbid that there should be any impact to international trade (ie free movement of goods from slave labor in Asia).  What would we do without all those critical Halloween and Christmas decorations, not to mention 500 pairs of shoes for every teenage girl, and storage boxes full of toys for all our children (so important to their development).  Our civilization will fall apart if we don't have a 50" minimum 3d TV in every trailer park dweller's "home".


I always wonder what those Chinese workers think of us as they churn out all the useless crap they ship to us.  Sad.

Mon, 06/11/2012 - 12:25 | 2515070 Temporalist
Temporalist's picture

They think "I wish they didn't put that net out on the ledge to prevent me from jumping.  That last bastard was so lucky. Drowning myself is much harder.  I guess I could always just drink the water and end it that way."

Mon, 06/11/2012 - 12:07 | 2514979 Fix It Again Timmy
Fix It Again Timmy's picture

Capital controls?  But look what's coming down the tracks....


Mon, 06/11/2012 - 12:14 | 2515000 Miles Kendig
Miles Kendig's picture

Capital controls that include human capital.  Folks who are under the mistaken belief that they have alternate physical location plans had better reassess them.  The governments of the OECD will stop at nothing to vaporize what folks consider to be personal property and individual liberty.  Remember folks, the state believes you are their property, to do with as they please.  For those of you that believe the government doesn't care about every individual remember countries like the US have, for DECADES, physically removed supposed transgressors from the streets of foreign countries (often without that nations knowledge or consent)and returned them to the US to face the "Bar of injustice".  Alternately, many countries have and will refuse entry to lawful citizens.  Just imagine what "due process" rights one will be left with if one is on the outs until inaccessible phantom assets are repatriated.  It looks like third class is locked below while those in first class continue under the false premise that the good ship lollypop is unsinkable.

Meanwhile, political and financial elites everywhere are reaching The Ends....

Mon, 06/11/2012 - 12:11 | 2515010 Zen Bernanke
Zen Bernanke's picture

Sadly, the central banks have created a system whereby the financial markets will not rally based upon fundamentals any more.  With their stimulus, the markets go up, without it they go down. Total crack addict action.   Furthermore, each round of TARP, QE, EFSF or TWIST  comes complete with diminishing returns.    The  people are no longer buying the bullshit the central bankers are peddling.  it will take a full reset with major sovereign defaults to remedy this situation.  this will get much worse before it gets better. 

Mon, 06/11/2012 - 12:14 | 2515017 blindman
blindman's picture

and then there was ....
Former 'God’s Banker' could blitz Vatican with cache of secret documents
Published: 10 June, 2012, 20:21

"..While the leaks were a weapon with which to attack his enemies, Gotti Tedeschi was also preparing a last resort option if the battle was lost – a ‘suicide belt’ that would blow the lid off Vatican."
"..Allegedly, Gotti Tedeschi keeps a list of personal enemies in the Vatican – people who he had felt would stop at nothing to prevent him from reforming the Institute for Works of Religion. His friends have told the media he is shaken and scared.

Police are now considering putting the whistle-blowing banker under armed protection."
comment: no rush?
makes one wonder what is really going on that this
diversion is supposed to mask? the rabbit hole goes
on forever, the party never ends. even God can't
do any decent banking down here anymore.
when my father died my mother told her children
that god needed a good man, god speed to you
mr. tedeschi.
when the vatican is the fall guy and public "event"
you have to know that there is something very ugly
going on in the vault. no?

Mon, 06/11/2012 - 12:15 | 2515019 walcott
walcott's picture



Here's what complete communism is. RFID chips do what we say or die. Wake up this is real.

Pt. 7 - Jonestown: The Life and Death of Peoples Temple

Pt. 8 - Jonestown: The Life and Death of Peoples Temple

watch these and see what's coming.
There are 8 parts if you want to see how they do this shit. Jim Jones was a CIA trail run to see how far people will go. How much bullshit they'll take. Drink the Kool-Aid Take the Chip give us all your possessions. Or die. That was a trail run.

Mon, 06/11/2012 - 12:18 | 2515036 kekekekekekeke
kekekekekekeke's picture

Jesse Ventura did a bit on one of his ebooks (I listen to them on road trips) it blew my mind!  thanks for the links

Mon, 06/11/2012 - 12:21 | 2515049 Pairadimes
Pairadimes's picture

Well, at least this will make the planners jobs easier. They can discard all the scenarios based on an orderly demise of the EZ, and focus on the chaotic ones.

Mon, 06/11/2012 - 12:21 | 2515051 kekekekekekeke
kekekekekekeke's picture

I only keep enough in my bank account to pay my bills... bad when there's a pullback in pms but did the bulk of my stacking in 2009.  convert the rest to goods and physical cash 

Mon, 06/11/2012 - 12:24 | 2515060 Winston Smith 2009
Winston Smith 2009's picture

"has said he plans to tear up or heavily renegotiate the 130-billion-euro bailout agreed with the EU and IMF. The EU and IMF have said they are not prepared to renegotiate"

Which is exactly what Greece should do.  "90% haircut or nothing. That's your choice."  Of course, at that point, they won't be able to borrow money at any reasonable rate, but the long term solution to the problems of all of the PIIGS (as well as the US, UK, Japan, etc.) is simply for their government to spend no more than it brings in in revenues.  Wipe the debt slate clean and then start over with more debt discipline. Of course, the far left government won't want to do that, but at least they have the part about telling the EU banks to go F themselves correct.

Mon, 06/11/2012 - 12:22 | 2515061 daxtonbrown
daxtonbrown's picture

Capital controls, also known as financial repression, will head to the United States eventually too. It has already started. These countries are all bankrupt and will need to confiscate wealth. Time to Go Galt.

Mon, 06/11/2012 - 12:31 | 2515092 Central Wanker
Central Wanker's picture

Bought another 125 ounces of silver.

Mon, 06/11/2012 - 14:44 | 2515577 Non Passaran
Non Passaran's picture


Damn, I have to wait until next paycheck.  I bought less than that earlier this month.

Mon, 06/11/2012 - 12:35 | 2515112 erheault
erheault's picture

If you really want to see our decline look no further that the Baltic Dry goods and the Import/Export figures they pretty well tell the story,  We have been buying more than we are selling for years and the tide has turned you cannot spend more that you earn no matter who tells you diffrent, eventually the pocket book turns up empty. 

Mon, 06/11/2012 - 12:35 | 2515114 VonSalza
VonSalza's picture

"mit dem angriff steiners wird das alles in ordnung kommen"

Mon, 06/11/2012 - 12:40 | 2515124 magpie
magpie's picture

What if they send Col.Klink or Sgt. Schulz instead ?

Mon, 06/11/2012 - 12:50 | 2515161 walküre
walküre's picture

Where is Steiner or any of those guys with real guts and looking for glory?

We could use a few strong willed and strong minded characters right about now to end the shit show and bury the bankers.

Mon, 06/11/2012 - 12:35 | 2515115 grapeape
grapeape's picture

new e-mail scam.

hello kind sir. i big fat rich greek. all monies traped in bank under goverment control, but i send money to you by e-deposit in us of a. then we split. just need you account numbers. hurry send fast. thank you so much. mr. panalopoluss.

Mon, 06/11/2012 - 12:36 | 2515118 JackT
JackT's picture

Ze Flogging Vill Continue Unktil Moral Improves!!

Mon, 06/11/2012 - 12:39 | 2515122 Peter K
Peter K's picture

Scaring the prols shitless: Sounds like an Obama Get Out the Vote drive :)

Mon, 06/11/2012 - 12:40 | 2515126 Quinvarius
Quinvarius's picture

Not a hope in Hell of maintaining gold suppression now.  You cannot announce you are going to assume control over everyone's visible wealth without that wealth being buried.

Mon, 06/11/2012 - 12:46 | 2515146 WTF_247
WTF_247's picture



Do not pass Go if it involves crossing a border.

Do not collect $200 from the ATM.

Report to the reorganization camps immediately.


Mon, 06/11/2012 - 12:47 | 2515150 nick howdy
nick howdy's picture

Greece, you get  just one more chance to be saved (In this context, saved = Greek genocide) and then that's it, no more loans for you!  You'll get no more breaks from the EU...You'll have to stand on your own, outside of our helping hands..

Mon, 06/11/2012 - 12:47 | 2515153 walküre
walküre's picture

The complacent masses will always be the last to know what is going on.

Bank Run is on and it's not the folks who are glued to the TV watching soccer that governments and banks are concerned about.

Those who have something in German bank accounts are not waiting for the official announcement that their accounts are frozen or that their savings are protected but at the end of the bank holiday and subsequent hyperinflation, the savings are worth ZILCH.

See, when government and banks are trying to stem the tide because CONfidence is LOST, then they will overreact and overreach.

3 days of bank holidays and massive money printing. End result, the savings accounts are worthless.

That's how it's done, folks.

Mon, 06/11/2012 - 12:48 | 2515156 Poor Grogman
Poor Grogman's picture

Almost time for some gold hem sowing lessons for uncle wazza...

Mon, 06/11/2012 - 13:03 | 2515237 Dead Canary
Dead Canary's picture

The stoopids are at it again. I just watched a segment on CNBS about how it will take six months for Greece to get Drachma currency and coins into circulation if they bail on the Euro. Pah-leeze!
Greeks have been quietly stuffing their mattresses with Euros for three years now. There's plenty of currency around to conduct commerce. (If there is any commerce left, that is.)

In two weeks they will be at the dog eating stage. After that.....  well they have lots of children, right?

tater TOTS
BABY back ribs
JUNIOR mints
mmm.... fine holiday eating!

Mon, 06/11/2012 - 13:08 | 2515250 sudzee
sudzee's picture

I think we are about due for a 2pm flash crash.

Mon, 06/11/2012 - 13:14 | 2515270 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

How are you gentlemen !!



You are on the way to destruction...


Mon, 06/11/2012 - 13:24 | 2515309 earnulf
earnulf's picture

So just WTF does currency controls have to do with suspending free travel in Europe?   Sounds like a lot of ELECTRONIC currency is about to do a vanishing act that would make Houdini's jaw drop in amazement!

Mon, 06/11/2012 - 14:15 | 2515468 Broomer
Broomer's picture

To avoid cash and gold smuggling.

There are 1,000 Swiss Franc notes.

Note, metal detectors are not used in airports to detect guns.

It's the gold, stupid.

Mon, 06/11/2012 - 13:37 | 2515349 Grand Supercycle
Grand Supercycle's picture

Rally Warning from last week:

'Daily chart now gives bullish warning and significant
SPX rally & USDX retracement should commence in a week or so'

Mon, 06/11/2012 - 14:38 | 2515562 Non Passaran
Non Passaran's picture

He's back!


Mon, 06/11/2012 - 14:33 | 2515550 Legolas
Legolas's picture

This could go on forever.  I've seen an awful lot get poured into "Spandex" without breakage.


"Bottom Line":  Go long on Spandex


Mon, 06/11/2012 - 14:46 | 2515568 Oldrepublic
Oldrepublic's picture

In the 1950s and later UK subjects were unable to take more than 50   pound sterling out of the country. I recall stories of how wealthy British were forced to stay at the YMCA in New York City because of exchange controls!

In some countries at the airports customs officials make all departing passengers count out the money they are taking out of the country. Mostly 3th world type countries, but seems to moving to the so called first world.

Mon, 06/11/2012 - 14:50 | 2515591 Blkhat117
Blkhat117's picture

"One often meets their fate on the path they choose to avoid it"

The clock is ticking.......

Mon, 06/11/2012 - 18:24 | 2516219 Oldrepublic
Oldrepublic's picture

The Appointment in Samarra

Mon, 06/11/2012 - 15:41 | 2515771 JohnKozac
JohnKozac's picture

Panic is seeping into every corner of the EU out of the little cat feet, creeping forward into the light....

Mon, 06/11/2012 - 16:50 | 2515999 xcehn
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