Bank runs, bank holiday & 10pct bailout tax on deposits in Cyprus

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Unbeatable said:
This is their gift to Russia -The planned outcome of this is that Cyprus will accept a bailout from Russia, giving Russia a strategic island & the Aphrodite gas field.
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This won't happen. There is no way that either Europe or the Muslim world will allow Russia to establish a strategic presence in the Mediterranean. Such an attempt would be dealt with militarily with a hot war.
 
I think what US of A should do next, is to invade Cyprus - after all, el Presidente(s) are always first to fight for "freedom and democracy", and clearly, people of Cyprus are getting dictatorial, tyrannical treatment. We won't have that injustice! Oh wait - there isn't any oil nor gold to be seized there, is it? Well then, screw them.
 
Der Speigel explains how the the IMF (purportedly at the USA's behest) is forcing the issue:
When euro-zone finance ministers meet in Brussels on Monday, a welcome guest will be missing. Christine Lagarde, 57, the French managing director of the International Monetary Fund (IMF), is currently unwilling to discuss giving aid money to ailing euro-zone member Cyprus. For some time now, the Americans in particular have been eyeing the IMF's involvement in Europe with suspicion, causing the Frenchwoman to hit the brakes time and again. "I have no mandate for that" is a statement that the euro-zone finance ministers have heard only too often from Lagarde.

As such, it remains to be seen whether the IMF will ultimately participate in a loan program for Cyprus. A number of countries, Germany first and foremost, have said that IMF participation is crucial. The statutes of the European Stability Mechanism (ESM), the euro zone's €700 billion ($931 billion) permanent backstop fund, stipulate that the IMF must rubber stamp a country's debt sustainability before any cash can flow.

But this time around, the IMF is hesitating. A member of the troika which is currently negotiating the bailout deal with the Cypriot government, the IMF has an entirely different notion as to how the program should look.
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http://www.spiegel.de/international...ld-delay-cyprus-bailout-package-a-878773.html
 
...remember what has happened to Greek & Italian Parliaments, when they started ruffing the feathers, and hinting at referendum, re: bank bailouts, etc? Reminder: they were replaced with Eurocrats.
 
Ambrose Evans-Pritchard said:
One's first reflex is to gasp at the stupidity of the EU policy elites, but truth is that most EU officials handling the Cyprus crisis know perfectly well that their masters have just set the slow fuse on a powder keg – and they can only pray that it is slow.

The decision to expropriate Cypriot savers – even the poorest – was imposed by Germany, Holland, Finland, Austria, and Slovakia, whose only care at this stage is to assuage bail-out fatigue at home and avoid their own political crises.
...
The EU creditor states have at a single stroke violated the principle that insured EU bank deposits of up $100,000 will be guaranteed come what may, and in doing so they have more or less thrown Portugal under a bus.
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They have demonstrated that the rhetoric of EMU solidarity is just hot air, that they will not force their own taxpayers to share a single cent of clean-up costs for the great joint venture of monetary union – in which northern banks, insurers, pension funds, and indeed governments, were complicit.

Their refusal to pay is entirely understandable in one sense – and if I were a German taxpayer, I would not care to swallow these losses either – but then the leaders of these creditor countries can hardly expect the world to believe that they will in fact do whatever it takes to hold EMU together. Quite obviously, they will not.

The sooner this is made clear, the better. The sooner they take the proper course of withdrawing from EMU and organise the break-up the euro in the least disruptive way, the sooner Europe can recover.
...
What is clear is that Angela Merkel will not risk defeat in the elections in September by ceding a single vote to Social Democrats determined to hold her feet to the fire over a bail-out for "Russian oligarchs, money-launderers, and tax evaders" in Cyprus, or by ceding votes to the new anti-euro party Alternative fur Deutschland. She will look after her own political interests, and all the rest is humbug.
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The creditor powers appear to think that the contagion risk is manageable now that the ECB has its bond rescue mechanism in place for Spain and Italy. But they made just such an assumption when they imposed a haircut so cavalierly on private investors in Greece, only to precipitate a full-blown crisis across Club Med. And don't forget, the reason why Cyprus has gone belly up is because of the knock-on effect on Cypriot banks from the Greek haircuts.

It is far from clear that the ECB backstop for Italy still exists, given that there is no compliant government in Rome able to meet the rescue conditions.

Portugal is not safely out of the woods. Its slump has been deeper than expected. Its debt dynamics are nearing the danger zone faster than feared. Citigroup, Nomura, and many others think it almost certain that Portugal will need a second rescue, and probably debt-restructuring. What happens then? Are savers going to wait patiently for their own scalping as this becomes clearer?

As for Spain, we learn from leaks in the Spanish press that officials from the ECB and the Commission warned Eurogroup ministers that the raid on Cypriot savers posed a grave contagion risk to Spanish banks, threatening to set off deposit runs.

EMU commissioner Olli Rehn promised that there will be no losses imposed on depositors in other countries, but the decision will be made in Berlin, the Hague, Helsinki, Vienna. He has no authority to make such a pledge. He is just a civil servant.

The danger may not be immediate but if the economies of Portugal, Spain, and Italy languish through this year in deep slump with no green shoots of recovery starting to sprout in the second half – as many fear – this new dispensation will be tested. The fatal precedent of haircuts for depositors will start to matter a great deal. Hell hath no fury like a saver robbed.
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http://blogs.telegraph.co.uk/financ...ght-robbery-in-cyprus-will-come-to-haunt-emu/
 
several Bitcoin-related apps started spiking on the Spanish iPhone market over the weekend. Bitcoin Gold shot up in the Spanish iPhone Finance category from 498 to 72, and another app called Bitcoin Ticker zoomed from 526 to 52 in just one day. A leading service called Bitcoin App jumped from 194 to 151 between Friday and Sunday as Spaniards brooded over the Cyprus crisis.
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http://news.yahoo.com/bitcoin-apps-soar-spain-cyprus-shocker-boost-virtual-124020102.html

Bitcoin hitting new highs today. This means loads of money moving into gold and silver obv. But they can keep a lid on those prices but not bitcoin.

Re Bitcoin: I think it is a risky play - had major incident last week/two weeks ago but still what I love is that any money moving into it gets fairly translated into the price. I think def worth having a little something something in there.

Edit: Just read bullionbypost - UK's no. 1 bullion dealer - on Mon they had their biggest day of trading ever! (Thats the UK reaction to Cyprus can u imagine whats going on right now in Southern Europe!)
 
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Be carefull with BitCoins. You think it is easy to manipulate Silver market - BitCoin is a child's play in comparison. I mean, the size of the market is absolutely nano-scale, no regulations AT ALL, potentially, high anonymity of the manipulators - all in all, it is open season for anyone willing to spend a (relatively) small change to take it on the ride. It has happened already (I think that BitCoins have gone all the way down to few cents at some stage, after enjoying some great rally, AFAIR)

I am not saying it is not worth looking at, especially, if you have amount of money to loop over some unfriendly border, but you need to be aware, that this is crazy risky thing (ie: don't put your whole life savings in it, unless you can afford to lose it/wait undetermined amount of time, for flash-crashes, to recoup)
 
Absolutely a VERY risky play. Literally risk only what you can afford to lose.

I've been looking into it for a few weeks now so might start another thread looking at the pros and cons.
 
BCs are the antithesis of pms: Their value is relational (p2p) due to artificial scarcity and disinflationary supply growth, pms are valuable due to the difficulty of mining them. Their scarcity is natural, but supply growth is not artificially managed (central banks activity and paper pms aside).
I do own some BCs, but they're about 1/50000 of my pm holdings.
 
I found this post on another site and thought it important enough to post here as well. NewZealand may be considering a Cyprus Solution of their own, albeit a preemptive one.

That didn't take long. Who is next?

http://www.voxy.co.nz/politics/national-planning-cyprus-style-solution-greens/5/150410




The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.

Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.
“The Reserve Bank is in the final stages of implementing a system of managing bank failure called Open Bank Resolution. The scheme will put all bank depositors on the hook for bailing out their bank.

This is the banks of the Rubicon here, and if we're not careful we will wipe out ALL confidence in the system and take out our entire financial system. When the trust is irrevocably broken, it all collapses. When the people fear the theft of their money, it is truly the end.
 
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...exactly, ancona! Why I don't see people around me running scared with their hair on fire, to the nearest coin dealer, is beyond me - well, if not for the fact, that I got used already, to the utterly, absolutely, 100% irrational behavior being passed as normal in today's world.

But I still think, it must get A LOT worse, because it starts getting better (if ever)
 
I believe this starts in slow motion Bushi. I think many in Euroland are simply waiting to see if something this in-your-face audacious can really be forced upon the citizens of Cyprus. these bastards had better be careful what they wish for here, because if this insidious move happens, we will see mass flows of money shooting through the banks doors. When their capital is trounced, there will be mass hysteria in Brussels and the Eurozone will collapse in upon itself. then, after all the once European Union nations all return to their respective currencies, the race to debase begins in earnest. Within a year, most currencies will have gone Zimbabwe.

However, no one but folks like us here on PMBug seem to be able to solve that particular cipher [for now]. When it is happening and cannot be dismissed by the controlled media any longer, no one will have seen it coming. It took us by surprise, they will say. We thought the contagion was under control, they will say. and they will say it against a backdrop of burning cities and mass crowds protecting martial law.

a world currency crisis is not childs play; millions and millions will die as a result. through government violence, starvation, anarchy, religion, whatever. There will be violence when all the money is looted through direct confiscation and through mass devaluation.

It will not be televised until it is too late. Just like Greece, they will dismiss it as a blip on the radar until it's too late.
 
EUR/CHF intraday, flight to safety:

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I think 1.2 is the line in the sand they committed to defending.
 
bushi said:
...interesting, I thought you guys were (effectively) pegged to the Euro? Seems that once SHTF, money printing powers are powerless, nah?
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Technically we're floored at 1.20. Upside moves are allowed. The complacency of the last 10 weeks has briefly pushed EUR/CHF to 1.25 and short term Swiss government bonds out of negative interest rate territory. That has changed, too, over the last days.
The SNB is trying to fight the move back to 1.20 via rhetoric of negative interest rates on deposits for foreign depositors. It's not gonna work.
 
Looks like it's official:
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•CYPRUS BANK LEVY BILL DEFEATED WITH 36 VOTES AGAINST
•CYPRUS BANK LEVY BILL DEFEATED WITH 19 ABSTENTIONS
•CYPRUS PARLIAMENT VOTED IN SHOW OF HANDS IN NICOSIA
•ANASTASIADES FAILS TO SECURE VOTES FOR DEPOSIT LOSS BILL
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http://www.zerohedge.com/news/2013-...bailout-proposal-36-voting-against-19-abstain

So they called the Brussels' bluff. Is Brussels going to let them out of the Euro? haha/Nelson Muntz

... the ECB uttered the magic words, saying it would provide "liquidity within existing rules." What this means is unclear, ...
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http://www.zerohedge.com/news/2013-...rovide-liquidity-cyprus-within-existing-rules
 
Cyprus banks could stay closed until Tuesday March 26th according to sources

Says:
- Capital-control plans necessary contingency for when banks open.
- Contingency plans include limit on daily bank transactions.
- Under capital-control plans border checks for cash over certain amount will be introduced.
- Cyprus banks could stay closed until Tuesday March 26th according to sources
- Plans are in place to fly in EUR notes from other countries to feed Cyprus ATMs.
- Control plans could be in place for weeks.
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http://ransquawk.com/headlines/cypr...ay-march-26th-according-to-sources-19-03-2013
 
Just a reminder about fences and border controls in times of financial desasters, Ron Paul's warning:

 
Closed for another week? Let them eat cake nothing!
 
bushi said:
...remember what has happened to Greek & Italian Parliaments, when they started ruffing the feathers, and hinting at referendum, re: bank bailouts, etc? Reminder: they were replaced with Eurocrats.
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This is the way all of Europe is headed, unelected Eurocrats running roughshod over everyone, and this is just the next step down that road. Soon the whole of Europe will be that way.
 
Cyprus-Russia talks yield no result, to be continued, according to RIA

Says:
- Russia to continue talks with Cyprus today and tomorrow.
Update details:

- Despite this comment there has been recent market talk of a Cypriot deal with EUR 3bln from Russia linked to gas field and EUR 2bln from depositors - Unconfirmed

'Market talk’ – Signifies information that has not been formally tested through traditional journalistic channels and therefore is to be treated as unsubstantiated. Any interpretation of the talk is taken at the readers own risk and is a representation of the rumours within the market place and never generated by ourselves.
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http://ransquawk.com/headlines/280730

Cyprus central bank preparing law to curb deposit outflows and also preparing a law on bridge bank, according to CYBC

Says:
- Cyprus central bank laws are in event no solution found.
- Cyprus needs to find a solution by tomorrow.
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http://ransquawk.com/headlines/280732
 
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