Cyprus “saved”;
The most positive aspect of last night’s deal was that a deal was reached at all, and that some steps have been taken to counter moral hazard. However, overall, this is a bad deal for Cyprus and the Cypriot population. Cypriot GDP is likely to collapse in the wake of the deal with the possible capital controls hampering the functioning of the economy. The large loan from the eurozone will push debt up to unsustainable levels while the austerity accompanying it (along with the bank restructuring plan) will increase unemployment and cause social tension. There is a strong chance Cyprus could become a zombie economy – reliant on eurozone and central bank funding, with little hope of economic growth. Meanwhile, the country will remain at the edge of the single currency as tensions increase between members with Germany, the ECB and the IMF now looking intent on a more radical approach to the crisis.
Duly noted: Amazing what you can do to an unarmed populace.
From the comments…
Last week:
– it’s a one-off they say
– it’s unique, never need happen again
– special case, doesn’t apply anywhere else
Today:
It’s a good template for Europe.
Here is the latest on the Cyprus deal. Listening to commentary this am on BBC. And things are BAD. It basically means that they will follow FDIC rule limits on losses. Under the 100,000 Euro limit you will get your funds in an IV drip of 100-125 Euro’s per day limit. Over 100,000 Euro deposits will get hammered. This will cripple local business. They will have to layoff, because they will not be able to cash flow suppliers and pay wages. Same will happen in Canada or US in a bank failure. More details will emerge I am sure. The death of socialism is nasty. The central planners and the socialist trough feeders and leeches do not want to shut down the taxpayer funded money machines. The grip of the TAXFarmers on their hosts the (TAXPAYER) is a death grip. Same in Canada. The Good Old Slave Ship Canada. We have become slaves at the oars of the Slave Ship Canada. The TAXFARMERS have us all by the throat. http://www.reuters.com/article/2013/03/25/us-cyprus-parliament-idUSBRE92G03I20130325
To repeat – all the idiots had to do was balance the budget and the crisis would be over immediately. Financing a continuing deficit simply makes it next year’s problem. When you’ve borrowed all the money you can and then stolen all you can, there is nothing left except begging or balancing the budget. Further theft will not be possible as there will be no banking system left.
How much oligarch insurance can the $13 billion of aid buy?
Because sooner or later yo run out of . . .
ahhhhhh you know the rest.
Thank goodness the euros are so smart that they can suspend the economic laws so they can pretend to be progressive.
An emergency loan of 13 Billion or $13,000.00 per citizen. All producing citizens, with funds actually capable of helping their economy, will loose an unknown amount from their previously safe bank accounts.
I can hear war drums in the distance.
Pity that Cyprus could not print their own money as the USA is currently doing. Just crank those presses and all your problems can stay hidden. Only soothing words required to keep the citizens docile. No problem if you owe $168,000 on your $10,000 limit credit card as long as you own the money printing press. Think I’ll invest in wheelbarrow stock. Wheeee. Love that Socialism.
I wonder if anyone is tracking the price of a black market AK47 in urban Nicosia.
New template indeed. It’s always been this way. The sovereign of any realm who lets his right to issue money slip out of his hands and into the hands of bankers almost always finds, sooner or later, that those who issue the money are the ones who make the laws. If he resists them, the bankers will cut off his credit, his soldiers will desert or mutiny and he will be soon overthrown by people willing to rule as the bankers think best. What they think best, of course, invariably involves making the realm and its people their property, to farm for taxes and dispose of as they see fit.
If, like your average bankster, you believe there’s no God and everything is permitted, the limits of depravity to which you may sink are set only are whatever your wealth, power and influence will let you get away with—and the banksters have demonstrated, once more,that they can get away with just about anything. Cyprus’ banksters robbed their countrymen of their life savings (on behalf of their cousins the Greek kleptocrats), taking in exchange the connections they’ll need to find their feet in London, Zurich, New York and Toronto. Not one will ever answer for this in any meaningful way. Consequences are for peasants.
By the way, don’t think Canada’s banksters will hesitate to help themselves to your life savings when Chinese gangsters stop laundering their money in Vancouver condos, or that the Conservatives will lift a finger to stop them. At this stage only a madman would have a red cent in any bank on earth that he couldn’t afford to lose.
(Oh yes, very good. Guns. There are more people in Ottawa than in Greek Cyprus. What chance do you suppose they had against a real army even if they’d had proper guns? And ammo costs money. What would they buy it with? Worthless bits of bank-confetti with pictures of Aphrodite on them?
The European banksters knew that, and that’s how they could give the Cypriot government their ultimatum: give us what we want, or the only questions left will be whether you stand in front of a Turkish firing squad or a Russian one, and how much money your daughters will make for brothels from Dubai to Tokyo working as “priestesses of Aphrodite.” Of course they signed everything put in front of them in the end. What choice did they have?)
Don’t point and laugh. Pray for Cyprus, and that the Lord may yet deliver her, and spare our Dominion the same fate.
Why would anyone in their right mind now leave any money in a Cyprus bank or transfer money there.
You can shear a sheep or skin it; they chose to skin it.
After generations of successful theft from the public, why would anyone expect them to stop voluntarily?
We will soon see by various omens, if people got the message.
And Cyprus may be stopping people from taking more than €10,000 cash out of the country:
htt://ace.mu.nu/archives/338611.php
The worst part of this deal for Cyprus is not the looting of bank accounts. The worst part is the capital controls. This means you can put your money into a Cyprus bank but you can’t get it back. This ends Cyprus’s economy as an offshore banking haven.
The northern Europeans (Germany, Netherlands) got what they really wanted: an end to Cyprus scooping up off-shore banking business from eastern Europe. And of course, because of the wind-down of Laiki, the depositors will end up losing much more than the nominal 20% levy.
There will be payback for this. My bet is that if Germany thinks its gas from Russia was expensive last winter…
Cyprus went broke when Greece defaulted two years ago. We knew there would be consequences and they are starting to fall out now. When I hear how the Euro is fixed, Obama is killing it, or the US economy is fine, I know that it is only a matter of time. You can’t solved a debt problem with more deficit spending.
Cyprus is finished, the next up is Spain and Italy followed by France and the UK. The US will come crashing down before Obama leaves office, I wonder how history will look back on him? And yet today, I read how PEI and NFLD don’t want to reduce spending even though their revenues are down. They don’t want to damage the economy, but they can see what will happen if they don’t rein in the public sector today (they must be avoiding the Cyprus articles). When will the sheep wake up and see the media, and the liberal politicians, for what they are?
The bankers who issue the money are government. Its just that by joining the Euro the power has gone from the Cypriot government to the European government. I think we were better off when governments were not in the money creation game. In the old days governments had to tax or borrow, now they can promise all things to all people and print.
The purpose of money is to be a store of value. Governments with massive debts have no incentive at all to maintain the value of money. I don’t know how exactly it worked in the old days, so I won’t pretend I do, but in old Canada banks issued their own notes. Banks had a vested interest in maintaining the value of their currency, because if they didn’t no one would use it. People had a choice. Governments can force people to use their money and then inflate it out of existance.
Personal funds being seized by a private bank with government connections/approval – text book Kleptocracy – coming to But this IS the future people.
“We now live in a nation where doctors destroy health, lawyers destroy justice, universities destroy knowledge, governments destroy freedom, the press destroys information, religion destroys morals, and our banks destroy the economy.” – Chris Hedges
I don’t see how any Cyprus Politician can steal Russian mafia money, or any EU Members either. A year or so from now we will see a few mysterious deaths, maybe sooner. But, for a country to go broke and then confiscate the citizens personal wealth to keep on spending, well, seems that’s how America came to be.
Politicians in PEI and Nfld don’t wan’t to become unemployed. Any politician in Canada who runs on a policy of not giving people free stuff will find themselves looking for a real job. What is happening in Europe and the US (and here in Canad) will happen to any government with a not to bright population and universal suffrage.
Sorry hit the send button too soon. I meant to say that this bankster-government unholy alliance is well established in the western nations and certainly this Kleptonomic junta will soon be looting private accounts near you.
I notice the favoured government connected Bank which was allowed to swallowed the other Cypriot bank had it’s stock soar today – f’ing mobsters in Fioravanti suits.
Be interesting to see if American depositors wise up and start bank runs.
Angela Merkel was seen running around frantically and yelling “I am the great Cornholio!”
We knew before that the “leaders” of the “Free World” were incompetent bunglers.
Now we know that they are common thieves.
How long, O Lord, how long?
“Amazing what you can do to an unarmed populace.”
Yeah. But… lets not forget how many years the Canadian Forces wore the blue helmet over there. Something about the Christians not getting along with the Muslims, Turks vs. Greeks kinda deal.
Over all this whole thing has the feel of the five ton chicken coming home to roost, and the hen house just ain’t up to it. Besides, I think I can live with the idea of the Russian Mob getting fleeced by the even -bigger- Eurotrash bankster mob.
Apparently there’s still a Canadian blue helmet (beret) in Cyprus. I wonder how he draws his pay these days.
http://www.cjoc.forces.gc.ca/exp/snowgoose/index-eng.asp
Speaking “truth to power”: in 2013… saving is for suckers.
I think Cyprus is going to get much, much worse, and very quickly. Per ZeroHedge, it’s looking like the “eeeeevil Russians” managed to use this past week to get the bulk of their money out of the Cyprus banks. I’m thinking that now, a 100% tax on whats left of the uninsured deposits may not be enough.
Hi Occam,
Chris Hedges is a (self-confessed) Marxist idiot.
But, in the paragraph you’ve excerpted, he’s also correct.
Niall from Winnipeg
“from The Royal Canadian Dragoons mounted in Ferret scout cars that were transported to Cyprus by HMCS Bonaventure.”
The Bonny! The retard Trudeau didn’t understand that a supply ship could have a flight deck and probably didn’t appreciate the fact that it was used in a defensive role (anti-submarine)and not used, far ashore, to topple his Communist dictator buddies.
Banking was the #1 Cypriot industry. This killed it.
It would have been better to, if possible, boot Cyprus out of the European Union rather than to bail it out.
European Union = Titanic…and the band played on.
-and the baler rolls-
http://tinyurl.com/2ckvatp
non sequitur pun
Well done video but I hope he sticks to his day job because his voice will never make him a living:)
Newfoundland has a Conservative and fairly conservative government, circled by Liberal and NDP hell-hounds. Every cut, every conservation measure brings forth their baying.
To top it all off, the Conservative government has overestimated its oil revenues. Combine a not-very-competent Government, a vicious Opposition, and a really genuinely stunned electorate, and disaster awaits at the next provincial election.
Sorry to say it.
Off.
And the capital controls will have to be put in place in the EZ by Friday or they are cooked.
Oz-
Watch those html closes.
Updated into the Reader Tips for today… it ain’t over yet! Imagine the Cyprus banks had hired Microsoft for virus protection, and left the back door open? hint hint…
Thank you Melinda, sorry about that Kate and SDA folks.
Bank runs have a way of spreading like a fever. http://www.youtube.com/watch?feature=player_embedded&v=DYsLixDNIKI#at=98
cgh, the Germans don’t need Russian gas. After all they have windmills and will likely build enough solar power capacity so that they’ll have all the winter power that they need. Those 7.5 hours of sunlight Berlin gets in December are more than enough to sustain a N. Korean lifestyle. Think of all the employment this will create for Germans to sweep snow off the solar panels.
If that doesn’t work, then they can always burn euro notes in their home stoves. Likely by this time next year, the euro will be worth less than the same weight of scrap paper. Time to get those printing presses fired up to give people their wheelbarrow loads of money just before the winter heating season.