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Cyprus ! ! Bank Run ! ! Haircut ! ! Nationalization


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#1
NasaJoe

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I'll admit, im a little confused. But if you asked me.. I would tell you that.

Cyprus' banks are closed and are possibly not considering re-opening or are considering being nationalized. If nationalized they would only refund 40% of all funds above the insured rate (of 100K euros / or usd or w/e).

So what went from a possible 9.9% levy on funds over $100k turned into a 40% levy on funds over $100k.

As we speak people are raiding ATM's to withdraw what little funds they allow.. Cyprus parliament has yet to vote on anything..

When I told this to my grandfather his response was.. that could never happen here...

#2
trixman22

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I'll admit, im a little confused. But if you asked me.. I would tell you that.

Cyprus' banks are closed and are possibly not considering re-opening or are considering being nationalized. If nationalized they would only refund 40% of all funds above the insured rate (of 100K euros / or usd or w/e).

So what went from a possible 9.9% levy on funds over $100k turned into a 40% levy on funds over $100k.

As we speak people are raiding ATM's to withdraw what little funds they allow.. Cyprus parliament has yet to vote on anything..

When I told this to my grandfather his response was.. that could never happen here...


Never say never.

#3
NasaJoe

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Cyprus decides on nationalization..

The legislation includes one bill that allows the government to divide the wobbling lenders into good and bad banks -- a law that would likely to be applied first to Cyprus Popular Bank. The goal is to restructure without hurting small depositors.

Among the other bills being brought forward is one that imposes a tax of less than 1 percent on all bank deposits, Averof Neophytou, deputy head of the governing DISY party told The Associated Press.


It doesnt explicitly say whether deposits over the insured amount will be levied and in what amount.. but that very well may be to come in future legislation.

And a 1% tax on all bank deposits.. Effectively negative bank interest rates considering they give you almost no apr on savings accounts.. who would be so stupid?

forgot to link: http://worldnews.nbc...k-branches?lite

Edited by NasaJoe, 23 March 2013 - 04:46 AM.


#4
Limecat

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I'd remind gramps that:

1- Commercial banks are only obliged by law to hold reserves, in the form of Federal Reserve notes, of 10% to back all demand deposits that they have. Ninety percent of their demand deposits are backed by nothing.
2- The FDIC holds just half of 1% of all the deposits it insures.

#5
letsmokeasweet

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and peole wonder why i do not like banks

#6
tokinITguy

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#7
DR K

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Russian Leader Warns, “Get All Money Out Of Western Banks Now!”

Submitted by Michaelwiseguy on Fri, 03/22/2013 - 03:14in

Russian Leader Warns, “Get All Money Out Of Western Banks Now!”
"A Ministry of Foreign Affairs (MFA) “urgent bulletin” being sent to Embassies around the world today is advising both Russian citizens and companies to begin divesting their assets from Western banking and financial institutions “immediately” as Kremlin fears grow that both the European Union and United States are preparing for the largest theft of private wealth in modern history.
According to this “urgent bulletin,” this warning is being made at the behest of Prime Minister Medvedev who earlier today warned against the Western banking systems actions against EU Member Cyprus by stating:
“All possible mistakes that could be made have been made by them, the measure that was proposed is of a confiscation nature, and unprecedented in its character. I can’t compare it with anything but … decisions made by Soviet authorities … when they didn’t think much about the savings of their population. But we are living in the 21st century, under market economic conditions. Everybody has been insisting that ownership rights should be respected.”
Medvedev’s statements echo those of President Putin who, likewise, warned about the EU’s unprecedented private asset grab in Cyprus calling it “unjust, unprofessional, and dangerous.”"
----------------
"The facts which state that the only way to resolve the massive debt load is through a global coordinated debt restructuring (which would, among other things, push all global banks into bankruptcy) which, when all is said and done, will have to be funded by the world’s financial asset holders: the middle-and upper-class, which, if BCS is right, have a ~30% one-time tax on all their assets to look forward to as the great mean reversion finally arrives and the world is set back on a viable path.
But not before the biggest episode of “transitory” pain, misery and suffering in the history of mankind. Good luck, politicians and holders of financial assets, you will need it because after Denial comes Anger, and only long after does Acceptance finally arrive.”
To the evidence that the masses of Americans or Europeans average citizens will begin protecting themselves against this apocalyptic outcome their remains little evidence as their so-called “mainstream” media continues to cover-up this coming catastrophe. But, and as Russia has now warned, the time for protecting oneself is fast running out, and the only survivors will be those who listened."
http://www.eutimes.n...rns-get-all-...
is it wrong to try and convince people worldwide to start a huge bank run:D




#8
ProvidencePlant

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Cyprus weighs big bank levy; bailout goes down to wire | Reuters

Cyprus conceded on Saturday to a one-off levy on deposits over 100,000 euros in a dramatic U-turn as it raced to satisfy European partners and seal an 11th-hour bailout deal to avert financial collapse.



#9
Limecat

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Not a bad idea:

Ukip urges Brits to withdraw their money from Spanish banks - Telegraph

#10
xmaspoo

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#11
ProvidencePlant

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Activist Post: International Bankster Enslavement Plan Revealed to Cyprus Over the Weekend

#12
NasaJoe

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INSIGHT-Money fled Cyprus as president fumbled bailout | Reuters

While ordinary Cypriots queued at ATM machines to withdraw a few hundred euros as credit card transactions stopped, other depositors used an array of techniques to access their money.


If they raise taxes high income earners leave, if they attempt to levy banks, high income earners use their political ties to avoid paying back into the system. Their attempts to attain wealth will never work..

If you acquired your money honestly, but do not have your thumb on a politician you will get squeezed. The game is rigged.

#13
ProvidencePlant

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http://www.telegraph...zone-chief.html

Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe's single currency by propping up failing banks, a senior eurozone official has announced.


Edited by ProvidencePlant, 26 March 2013 - 06:16 PM.


#14
halcyone

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^link is 404

#15
ProvidencePlant

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fixed

#16
DR K

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How about a worldwide bank run:hello::hello::hello:

#17
NasaJoe

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How about a worldwide bank run:hello::hello::hello:


If bank runs start occurring its going to be because of the threat the banks face to the depositors similarly to what is happening in Cyprus, not sporadically and for no reason. Once the banks start posing a more serious threat to the depositors they will attempt to move their money, rest assured.

But attempt is highlighted because in the future, when this surely starts to happen, there will be capital controls in place making it near impossible for the people to get access to their money. Using force and coercion, the gov will be ahead of the people everytime..

Because nothing like this could ever happen here :rolleyes:

Here's a good article from zerohedge that discusses the various forms of what is most likely to come once things start heating up.

To anyone paying attention, reality is now painfully obvious. These bankrupt, insolvent governments have just about run out of fingers to plug the dikes. And history shows that, once this happens, governments fall back on a very limited playbook:

Direct confiscation

As Cyprus showed us, bankrupt governments are quite happy to plunder people’s bank accounts, especially if it’s a wealthy minority.

Aside from bank levies, though, this also includes things like seizing retirement accounts (Argentina), increases in civil asset forfeiture (United States), and gold criminalization.

Taxes

Just another form of confiscation, taxation plunders the hard work and talent of the citizenry. But thanks to decades of brainwashing, it’s more socially acceptable. We’ve come to regard taxes as a ‘necessary evil,’ not realizing that the country existed for decades, even centuries, without an income tax.

Yet when bankrupt governments get desperate enough, they begin imposing new taxes… primarily WEALTH taxes (Argentina) or windfall profits taxes (United States in the 1970s).

Inflation

This is indirect confiscation– the slow, gradual plundering of people’s savings. Again, governments have been quite successful at inculcating a belief that inflation is also a necessary evil. They’re also adept at fooling people with phony inflation statistics.

Capital Controls

Governments can, do, and will restrict the free-flow of capital across borders. They’ll prevent you from moving your own money to a safer jurisdiction, forcing you to keep your hard earned savings at home where it can be plundered and devalued.

We’re seeing this everywhere in the developed world… from withdrawal limits in Europe to cash-sniffing dogs at border checkpoints. And it certainly doesn’t help when everyone from the IMF to Nobel laureate Paul Krugman argue in favor of Capital Controls.

Wage and Price controls

When even the lowest common denominator in society realizes that prices are getting higher, governments step in and ‘fix’ things by imposing price controls.

Occasionally this also includes wage controls… though wage increases tend to be vastly outpaced by price increases.

Of course, as any basic economics textbook can illustrate, price controls never work and typically lead to shortages and massive misallocations.

Wage and Price controls– on STEROIDS

When the first round of price controls don’t work, the next step is to impose severe penalties for not abiding by the terms.

In the days of Diocletian’s Edict on Prices in the 4th century AD, any Roman caught violating the price controls was put to death.

In post-revolutionary France, shopkeepers who violated the “Law of Maximum” were fleeced of their private property… and a national spy system was put into place to enforce the measures.

Increased regulation

Despite being completely broke, governments will dramatically expand their ranks in a last desperate gasp to envelop the problem in sheer size.

In the early 1920s, for example, the number of bureaucratic officials in the Weimar Republic increased 242%, even though the country was flat broke from its Great War reparation payments and hyperinflation episode.

The increase in both regulations and government officials criminalizes and/or controls almost every aspect of our existence… from what we can/cannot put in our bodies to how we are allowed to raise our own children.

War and National Emergency

When all else fails, just invade another country. Pick a fight. Keep people distracted by work them into a frenzy over men in caves… or some completely irrelevant island.


Expect These Eight Steps From The Government

Edited by NasaJoe, 26 March 2013 - 09:21 PM.


#18
NasaJoe

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Check out this little 1984 newspeak via no other than Krugman, who if i recall just a few days ago was praising these levy measures..

Cyprus bail-out: as it happened - March 26, 2013 - Telegraph

20.56 Economist Paul Krugman hasn't pulled any punches. He believes Cyprus should quit the euro. Immediately.

"The reason is straightforward: staying in the euro means an incredibly severe depression, which will last for many years while Cyprus tries to build a new export sector. Leaving the euro, and letting the new currency fall sharply, would greatly accelerate that rebuilding."


Cyprus really should leave the union...

Edited by NasaJoe, 27 March 2013 - 12:16 AM.


#19
DR K

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im just sayin that it would be a really fun trend to get started:D why let the scum make the best moves first?

#20
NasaJoe

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'I went to sleep Friday as a rich man. I woke up a poor man' | smh.com.au

He had left Cyprus in the early 1970s at the height of its war with Turkey, taking his wife and young children to safety in Australia. He built a life from nothing and, gradually, a substantial nest egg. He retired to Cyprus in 2007 with about $1 million, his life savings.

He planned to spend it on his grandchildren - some of whom live in Cyprus - putting them through university and setting them up. There would be medical bills; he has a heart condition. The interest was paying for a comfortable retirement, and trips back to Australia. He also toyed with the idea of buying a boat.






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