businesstrade.jpg

The Cyprus Great Bank Robbery

$
Daily Business Report
M A R K E T S
Mercantile
Article Archives
US Economic Forecast for 2012 and the Election Year Cycle
Shop the Local Merchant Economy
Right to Work vs Union State Economies
Rational Tariffs Lower Irrational Trade Deficits
International Business - Davos Style
Banking, Housing and Mortgages
David Stockman's Viewpoint on the Obama Budget Disaster
Regulations Harm Small Business and Protects Corporations
Gas Prices as an Indicator of Energy Costs
Governments Acting as Venture Capitalists
College Education Economics
Industrial Wind and the Production Tax Credit
Medicare and the Ryan Budget
U.S. Corporate Tax Rate Consequences
Corporate Spying and Intellectual Theft
The Foolish Exporting Natural Gas Policy
A Matter of Time for a VAT Tax
Big vs Small Bank Loans
Bankruptcy Trends in the Post Meltdown Era
Money Center Banks and Stricter Financial Oversight
Electric Power Generation under NYS Article X
Growth in the National Debt
Advantages of Chinese Trade Policy
Unemployment as a Lifestyle
Immigration Hurts American Employment
Bank for International Settlements on Big Banks
Small Business Assault from Obamacare
Compound Interest and the Debt Bubble
The Federal Centralization Economy
Parking Offshore Profits Hurt the Domestic Economy
The Record of Olympic Economics
Financial Algorithmic Trading
Goldman Sachs Above the Law
The MF Global Magical Mystery Tour
Destroying Internet Freedom by Taxation
The Permanent Unemployment Economy
Jackals of Jekyll Island - Federal Reserve Audit
QE3 Blowing Up the Debt Bubble
Riots Over Rotten Apple Mania
Gap Between College Costs and Inflation
Counterproductive Minimum Wage Mandates
Derivative Meltdown and Dollar Collapse
Central Banks Game Plan: One World Currency
European Commission Single Supervisory Mechanism
Lunacy of FEMA Hurricane Insurance Subsidy
Taxmageddon Holding Hands while Jumping Off the Cliff
The Direction of Equities in the Obama Economy
Is it FAIR to Tax the Rich out of Business?
California Dreaming: Bankruptcy, Pensions and Taxes
Pay Differential - Private Sector and Federal Government
Long History of HSBC Money Laundering
Swan Dive of 2013 Economy
Federal Reserve May Pause Quantitative Easing
The Economics of Sequestration
The state-owned Bank of North Dakota
Chinese Takeover with Free Trade Zones
Low Interest Rates Impoverish Savers
Bond Bubble Expectations
Currency Wars - Race to the Bottom
Government Subsidizes and Bankrupt Companies
Economics of Gun Control
Refuse to Buy or Sell with the Federal Government
The Cyprus Great Bank Robbery
Keystone Pipeline Blockage
Move Over IMF for the BRICS Development Bank
Obama Budget Proposes Cuts to Social Security and Medicare
The Risk and Reward of Bitcoins
Farm Supports and Social Welfare
Internet and Sale Taxes Dialectic
The Warren Buffett House of Cards
IRS as a Political Hit Squad
Revenue Budget Projections
Google and the NSA Connection
The Roubini - Faber Debate
Hydrofracking Boom or Bust
Goldman Sachs - first learn, then earn and serve
The Federal Reserve after Ben Bernanke
Implications of a Pyrrhic Real Estate Rebound
The New Normal: Part-Time Employmentyment
U.S. & Europe Trade Deal Honeymoon
Detroit City Bankruptcy Blues
J P Morgan and Commodity Manipulation
Strange Business Success Ventures
Business of Evangelism Religion
NFL Marketing Machine
Privacy Gone on Offshore Assets
Chinese Banks Quasi Government Institutions
Forecasts of a Doomed Economy
Financial Meltdown Five Years After
Corporate Profits and Worker Unemployment
Renminbi Soon to Be a Reserve Currency
Rehypothecation of Collateral
IMF Proposal to Tax Bank Deposits
Transfers excluded, JP Morgan Chase is Wired
Insurance Companies Profit from Obamacare
Climate Change by Executive Order
Economics of Non-governmental Organizations
Why Business Franchising is a Bad Deal
The Business of the Christmas Season
China Becomes Largest Trading Nation
Obamacare as a Jobs Killer
Does a 100 Trillion Debt Total Matter?
Underground Commerce is the Real Economy
Technology and the Future of Jobs
The Japanese Debt Economy
Individual Wealth in Perspective
Inevitability of Financial Bubbles
Russian Sanctions Backfire
Is the Dollar and Equities Ready to Crash?
Economic Reality of a Wealth Tax
How stable is the Bond Market?
Are International Stocks Safer than U.S. Equities?
David A. Stockman - The Great Deformation
BREAKING ALL THE RULES
BREAKING ALL THE RULES Forum
BATR Index
hub
Corporatocracy
Reign of Terror
Stuck on Stupid
Totalitarian Collectivism
Global Gulag
Inherent Autonomy
Radical Reactionary
Strappado Wrack
View from the Mount
Solitary Purdah
Dueling Twins
Varying Verity
911 War of Terror
HOPE

cprusbailout.jpg

The Cyprus Great Bank Robbery

When does banksters’ extortion become outright theft? The latest example and escalation by the placing a levy fee on bank deposits in the tax haven of Cyprus illustrates the bold step of seizing private liquid saving accounts, under the guise of a government tax. The prospects of an all out run on the banking system have jumped tenfold. Essentially, a government is using the power of the state, to steal funds not because of the bankruptcy of a banking institution, but because of a failure of the entire EU financial system. The forbidding precedent of a seizure of individual wealth, by a stroke of a pen, runs contrary to the shrinking confidence in fiduciary trust of cash placed in banking accounts.

The risk of pronounced turmoil in financial markets has just elevated, as the harsh reality of surrendering your economy to the demands of an untenable debt burden dictatorship, is obvious to anyone with a bank account. The savings of a lifetime is now subject to confiscation. The pitiful explanation of Cypriots' president defends bailout deal, clearly reveals that the globalist financial central bank system is determined to impoverish individual nest eggs.
"President Nicos Anastasiades said Cyprus had little option but to accept the bailout deal, which imposes a levy on the country's bank deposits - an unprecedented step in the eurozone crisis. Without it, he said, Cyprus' banking system would have collapsed on Tuesday.

Anastasiades said that's when the European Central Bank would have stopped providing emergency funding to Cyprus' troubled banks. Such a collapse would have driven the country to bankruptcy and possibly out of the eurozone, he said."

A departure from the eurozone is a preferable alternative to a bank burglary of your saving account. The interview in, 'Europe's Citizens Now Have to Fear for Their Money' admits the worsening plight of added debt. "The euro-zone partner countries seeking to provide Cyprus with a bailout view the participation of small-scale depositors as a necessary evil. This is because any aid provided by the long-term euro rescue fund, the European Stability Mechanism (ESM), would be added on top of Cyprus's national debt."

Now the excuse used by the establishment press to soften the blow of systematic larceny points to the Russian Oligarchs Lose Friend In Cyprus Banks, as exoneration for tapping the pocketbooks of shady elements. "Cyprus is known as a hot bed of Russian money laundering." Well, that justification surely does little to make whole the struggling Cyprus natives that can ill afford the hit.

The video, Cyprus savers- EU bailout prompts run on Cyprus banks, tells a sad tale of financial enslavement.

The article, Russian Ruble, Stocks Nosedive on Cyprus Debt Crisis outlines the initial response to the announcement. "Under the terms of the bailout deal, Cyprus will have to impose a levy of 6.75 percent on deposits of less than 100,000 euros and 9.9 percent on deposits with greater sums. Cypriots reacted with shock and rushed to cash machines to withdraw their savings, but many machines refused to pay out."

Not long thereafter, The Telegraph newspaper reports on plan B, a feeble attempt to gain legislative support to pass the measures. "The Cypriot government has submitted a draft bill to parliament scrapping a controversial levy on bank deposits up to €20,000, amid calls from its central bank governor and eurozone finance ministers to ramp the exemption threshold up to €100,000."

The perspective analysis from ZeroHedge warns of the unintentional consequences from this pompous scheme of outright larceny in the essay, Will Russia Kill The Cyprus Bailout?

"As Monument Securities' Marc Ostwald notes "there's a 50/50 chance Cypriot bailout fails because of the 'massive danger' a large amount of Russian cash flees Cyprus following deposit tax plans." Russia has ~$60 billion exposure to Cyprus, including loans to companies registered in the country and after the haircut 90% of Russian deposits will still be free to leave the country if the levy is approved.

The critical point is that, should this occur (such a large outflow of Russian cash - dwarfing in fact the size of the bailout package itself) it is hard to see how the Cypriot banking system could survive (even with the assistance of the ECB's ELA)."

Predictably, Forbes waters down the unprecedented destruction of banking confidence that is so indispensable for the megabanks to rape sovereign nations. The Bailout For Cyprus: A FAQ To The Latest European Financial Crisis, makes it sound that the panic is simply business as usual.

"And here’s the larger picture. Cyprus is badly indebted. Its debt-to-GDP ratio pushed to 127% in the third quarter of 2012, the latest period tabulated by European Union officials. Such high debt reflects Cyprus’ ill financial health. Only Greece (at 153%) has a higher level. The bailout would begin to reduce its debt, sending it back below 100% of GDP within the year."

So what can be expected in future confiscation of depositor funds? Prepare for the ultimate run on the banks, before the formula from the great vampire squid - Goldman's Cyprus Post-Post-Mortem: "A Depositor "Bail-In" – And/Or – A Wealth Tax", is applied on all deposits.

"Despite Cyprus being small, and arguably unique, a depositor in a peripheral bank is likely to ask the obvious question: how likely is a deposit tax for me? The answer to this question, we believe, will differ, depending on the peripheral country where it is asked. But it should, in essence, boil down to two issues: (1) how likely are savings to be bailed-in in any future bank rescues; (2) how likely are savings to emerge as a tax-base for any future wealth taxes?"

The Cyprus banking holiday is the forerunner of an international overt robbery by banksters. The biblical relief of a Jubilee, that writes down and forgives debt, is desperately required to end the financial slavery to the shylock swindlers. The centralization of global banking has an inevitable financial collapse as the end game. Today Cyprus, Tomorrow the World.

The Cypriot vote to reject the savings tax gives a short breather to a situation that only a breakup of the EU can resolve.    

James Hall – March 20, 2013  

Discuss or comment about this essay on the BATR Forum

a free speech forum open to the public
BATRforum.gif

This site  The Web 

marketslogo.gif

tumblr page counter