Tag Archives: Cyprus

“There’s a Term for This…”

9 Aug

It’s Called Capital Controls Communism….

We’ve been discussing in this column lately how the modern banking system is a total fraud– that dictatorial control of 70% of the world’s money supply has been awarded to just four central bankers.

And that the vast majority of banks, especially in the western world, are laughably illiquid… and very thinly capitalized.

There’s a term for this. It’s called capital controls. And it’s something that almost every bankrupt government in history has resorted to using.

Capital controls are essentially a restriction on the free-flow of capital. It can take a number of different forms– gold criminalization, bank account confiscation, foreign exchange restrictions, etc.

But at the end of the day, the effect is the same– capital controls are just another way of transferring wealth from citizens to the government, like dairy cows to a farmer.

Sovereign Man

Advertisements

First They Come For Your Guns…

7 Aug

Or is it the Jews? …  Either Way Time to Stock Up

Charles I of England infamously commandeered 200,000 pounds of his own citizens’ gold right before the English Civil War in 1638. Roosevelt confiscated his entire nation’s gold holdings roughly three centuries later.

And of course, Cyprus raided domestic bank accounts earlier this year in a desperate attempt to bail-in the national banking system.

It’s foolish to think that these things cannot happen, especially when you look at the numbers.

The Age of Obama..

When Merkel says “Europe” she means Germany…

22 Apr

Merkel To Europe: “Prepare To Cede Sovereignty”

We seem to find common solutions when we are staring over the abyss,” Merkel said. “But as soon as the pressure eases, people say they want to go their own way.

“We need to be ready to accept that Europe has the last word in certain areas. Otherwise we won’t be able to continue to build Europe,” she added.

What could possibly go wrong…

Zero Hedge

EU – “Nothing they say is true…”

18 Apr

Cyprus bail-out vote

Green MP George Perdikis told the Cyprus Mail that he would vote against it to uphold the “freedom” of his country. “It is a crime to deliver Cyprus into the hands of the troika and allow it to become a colony.”

It is also a crime to steal people’s money…

Meanwhile the EU slips further into depression…

In a defiant statement, an alliance of the ECB, Commission and Eurogroup said the “evidence is clear” that EMU crisis policies have been a success and recovery is in sight.

Steen Jacobsen from Saxo Bank accused EMU leaders of dangerous complacency. “Nothing they say is true. Reality has never been further away. It’s scary,” he said. “We think the eurozone is in far worse shape than they realize. We will see contraction of 1pc this year but it could be as bad as 2pc.”

Citigroup cut its forecasts drastically, warning that EMU will shrink both this year and next, with a quasi-slump dragging on until 2017.

Socialism at work…

Telegraph

Cyprus Was a “Unique” Case…Could NEVEEEEER Here…

5 Apr

Because it was so small…the rest are bigger…

Global Deposit Confiscation Called For By Influential CEO Of Italy’s Largest Bank

The CEO of Unicredit Federico Ghizzoni said yesterday that it is “acceptable to confiscate savings to save banks.” He said that the savings which are not guaranteed by any protection or insurance could be used in the future to contribute to the rescue of banks who fail and that uninsured deposits could be used in future bank failures provided global policy makers agree on a common approach.

The.Banks.Must.Be.Saved…

Meanwhile, on the “it could NEVER happen here” front…

Canada’s “ Economic Action Plan”… pg 144…

The Government proposes to implement a bail in regime for
systemically important banks. This regime will be designed to ensure that,
in the unlikely event that a systemically important bank depletes its
capital, the bank can be recapitalized and returned to viability through the
very rapid conversion of certain bank liabilities into regulatory capital.

.The Government will consult stakeholders on how best to implement a bail – in regime in Canada

Systemically important banks will continue to be subject to existing risk
management requirements, including enhanced supervision and
recovery and resolution plans.
Right….
By “certain liabilites” they mean “your money” and by  “stakeholders” they mean” bankers”…
Zero Hedge

The EU Bank Run Update…

30 Mar

Today its Italy…

Italy’s Monte Paschi Admits To Billions In Deposit Outflows

In a somewhat wishy-washy, ‘hide-the-truth’-like statement on Monte dei Paschi’s website, the CEO admits to, “the withdrawal of several billion in deposits.” Of course, the reasons why these depositors withdrew their capital from the oldest bank in the world will never be known though of course he blames it on “reputational damage” from their derivative cheating scandal. Apparently the fact that this happened to come about six week after said scandal and the bank’s third bailout, and that the prior two bailouts did not result in such an outflow of unsecured liabilities (at least not to the public’s knowledge), was lost on the senior management, as was lost that a far greater catalyst may have been the slightly more troubling events in Cyprus in the second half of March.

Maybe France by May?….

Meanwhile…Eight steps to watch for….

“Brothers, don’t betray us!”

25 Mar

I don’t understand why it is money laundering when it’s in Cyprus, when in London it’s a perfectly respectable company.”

Seriously? Isn’t it self evident…?

When the Russians leave who is going to stay at the Four Seasons for $500 a night? Angela Merkel?” one wealthy Russian asks rhetorically, as The FT reports, they are receiving a deluge of overseas phone calls from helpful Swiss bankers looking to swoop up the deposit transfers. “The locals should understand: as soon as the money leaves, the people who go to restaurants, buy cars and buy property leave too. The Cypriots’ means of living will disappear,”

It’s already gone…

Zero Hedge

 

Let’s hope there is a run on Spanish banks….

25 Mar

The sooner this mad experiment in the eurozone ends, the better.

Mr Farage said: “Even I didn’t think that they would stoop to actually stealing money from people’s bank accounts.

“There is going to be a big flight of money and that flight of money won’t just be from Cyprus, it will be from the other eurozone countries, too. There are 750,000 British people who own properties, or who live, many of them in retirement, down in Spain.

“Now that we see the EU are prepared to resort to anything to keep alive their failing euro project, our advice to expats living down in the Mediterranean must be, ‘Get your money out of there while you’ve still got a chance’.”

Telegraph via Mish’s

Yesterday Cyprus, Today Spain, Tomorrow UK…

25 Mar

If you have any investments in the EU – get out while you can…

Spain Brings the Pain to Bank Investors

The government had warned that the losses imposed on investors at the nationalized banks would be significant. The FROB had ordered external valuations, which found that their liabilities far exceeded their assets. In Bankia’s case, an evaluation found that it had a negative value of €4.15 billion.

Nonetheless, imposing losses on investors is one of the politically difficult steps required of Spain in exchange for just over €40 billion in EU aid because most of those who made investments in the troubled lenders were small depositors.

Many of these small savers have taken to the streets to protest their expected losses in recent months, claiming they were misled into believing that that they were buying low-risk savings products, not risky bonds or shares.

Should be a full blown EU banking “crisis” by Friday…

WSJ, BBC

“Cyprus a Template For EU”

25 Mar

And probably the US…

A Word Out Of Place Sends Europe Tumbling

…wasn’t it a special case, inside a unique case, wrapped in a one-time case? We will ignore the rather hilarious Freudian slip, and focus on what he was explicitly talking about with Reuters, which is the resolution model which was just put in place in Cyprus:

And now, every European depositor is going to their local financial dictionary to look up the definition of General Unsecured Claims, only to see a picture of… themselves.

Coming to a Bank near you…

Zero Hedge

%d bloggers like this: