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EU membership has brought Cyprus to the edge of bankruptcy so what to do? That’s right – insist on staying in the EU at all costs!

 

Cypriot president Nicos Anastasiades has assured civil servants that “in no way will we experiment with the future of our country” by exiting the euro.

Oddly enough he and his associates were VERY happy to experiment with the future of Cyprus when it came to ENTERING the Euro zone!!!

He said that while the current situation on the country is “tragic”, that the bail-out “averted the risk” of bankruptcy.  Mr Anastasiades – known for his fiery temper – was reported to have threatened a euro exit during the fraught all-night negotiations on Sunday which resulted in a deal forcing heavy losses on uninsured depositors in the island’s two largest banks. But on Friday he declared that while the eurozone lenders made “unprecedented demands that forced Cyprus to become an experiment”, an exit from the currency union is not on the table.

The likes of Anastasiades will accept any humiliation visited upon their people rather than confront reality and Berlin. The only chance Cyprus has of recovery, just like Greece, is to EXIT the Eurozone but instead the political class insist that come what way it will be the Euro uber ales.

“We have no intention of leaving the euro,” he said, addressing civil servants in Cypriot capital Nicosia.

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24 thoughts on “EURO UBER ALLES

  1. It looks as though Cyprus won’t be allowed to leave the Euro – and the people will be stripped of everything that they have. Btw, don’t doubt that it will happen here:

    http://www.alternet.org/economy/think-your-money-safe-think-again-confiscation-scheme-planned-us-and-uk-depositors

    Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.

    Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.” The bank will get the money and we will get stock in the bank.

    Stock in a failed bank, imposed by the bank and rendered legal by the politicos whom the bank own – that’s robbery.

  2. Ah, a heading about a EU bailout with reference to Germany’s Nazi past?
    Clever, that.

    David, you must by now be inured to political disappointments and setbacks on Good Friday, but really there was never any doubt that Cyprus would go this way.
    Many like to show a bit of nationalist macho by walking to the edge and looking over the cliff, but none like what they see there and will find some way, any way, back to the comfort of the Euro.

    //It looks as though Cyprus won’t be allowed to leave the Euro //

    Not only is nobody trying or willing to leave the Euro, some countries not even in the EU are now using it as a currency and more will soon follow.

  3. CYprus is in the trouble it’s in because of its write-downs on their holdings of Greek government bonds and losses on their Greek and domestic private-sector loans…

  4. And what’s this?

    Cyprus-Style Bank Account Confiscation Is In The New Canadian Government Budget

    In Canada one reads that:

    the Canadian government is actually proposing that a “bail-in” regime be implemented…

    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. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.

    So if the banks take extreme risks with their money and lose, “certain bank liabilities” (i.e. deposits) will rapidly be converted into “regulatory capital” and the banks will be saved.

    In other words, the banks will just be allowed to grab money directly out of your bank accounts to recapitalize themselves.

    And for Europe….

    A senior lawmaker told Reuters the Cyprus model may not be an isolated case, and is perhaps a future template in dealing with troubled European banks.

    What it really means is…

    Now, according to the Washington Post, those with deposits over 100,000 euros at the second largest bank in Cyprus may lose as much as 80 percent of those deposits…

    But hey, as Noel above writes, the Euro is such a success that other countries wish to mkae use of it. If that is so, then the financial world isn’t just evil, it’s utterly insane.

  5. Yep

    That’s one of the reasons the problems are so hard to fix. A connected world means that you’re very likely to be connected to your problems, too. It was of course correct to write down the Greek bonds etc – they are worth less now. And that’s why Cyprus’ numbers don’t add up. And that’s why nothing has been stolen from anyone.

    The Cypriots and Greeks are angry, and who could blame them, but I’ve not seen evidence that they want out of the Euro. The only thing worse than the Euro might be no Euro in their opinion. If the Euro survives the next few years, it will survive anything.

  6. //the Euro is such a success that other countries wish to mkae use of it. If that is so, then the financial world isn’t just evil, it’s utterly insane.//

    Insane or not, it is so. Montenegro unilaterally introduced the Euro as their official currency, despite protests from the ECB. Bosnia uses the old German Deutschmark, and has it pegged to the Euro at the rate the DM was fixed to the Euro when the single currency was being made, so they effectively have the Euro as official currency too. It’s also the currency of Monaco, and, finally, when Pope Francis gets his pay or pays his bills in the Vatican, they too are in the Euro.

    How could a currency go wrong with such divine backing?

  7. If the Euro survives the next few years, it will survive anything.

    But will the peoples who are subject to the Euro survive? As is seen from links which I posted above and elsewhere, the Cyprus-shakedown is now going to become the template for seizing depositors’ funds in the rest of Europe including the UK.

  8. Allan wrote:

    “And what’s this?
    http://theeconomiccollapseblog.com/archives/cyprus-style-bank-account-confiscation-is-in-the-new-canadian-government-budget

    Some crappy blog?

    At the top a stock photo informs us “A horrific economic collapse is on the way and once it strikes none of our lives will be the same” At the bottom “If you came here looking for hope, you just found it.”

    LOL!

    Please also enjoy “Should You Move To Another Country To Escape The Collapse Of America? 10 Questions To Ask Yourself First”.

    Apparently, among the questions you should ask yourself are “When The Global Economy Collapses, Will You And Your Family Be Okay For Food?”. Oddly enough, that’s not the first question (it’s “Do You Speak The Language? If Not, How Will You Function?”).

    Thank you theeconomiccollapseblog.com!

  9. I like the book “Revolutionary Realty – North Idaho Survivalist Land & Homes”

    “Why North Idaho is quickly becoming America’s Number One Choice For Survivalists & Preparedness Folks
    As many are discovering, North Idaho is an IDEAL location to escape to..”

  10. The Euro has condemned its southern European members to permanent recession. GDP in Cyprus will fall by at least 10% in the next year and unemployment will exceed 20%. It will join the club already joined by Greece, Portugal, Spain, Italy and Ireland. Youth unemployment averages 30% in those states. This is the price of the Euro – mass unemployment, human misery and a lost generation. But its cheer-leaders are certain that this is a price worth paying to achieve their dream of a federal Europe.

  11. Noel

    I assume you are aware that Slovenia is likely to be the next bail-out, probably followed by the “tax haven” of Luxemburg. Oh the irony, if Amazon takes a hit.

  12. Nah…not Slovenia. Slovenia might be headed for some rough times but it isn’t going the way of Cyprus.

  13. Note that Frank, who is the Establishment’s equivalent of ‘Agent Smith’ on this site, doesn’t dispute any of the details reported by the sites which he mocks. I suppose that if it’s not reported in his favoured ‘mainstream’ outlet, then it just shouldn’t be mentioned. But let’s review what Frank doesn’t dispute:

    The (Canadian) 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. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.

    So if the banks take extreme risks with their money and lose, “certain bank liabilities” (i.e. deposits) will rapidly be converted into “regulatory capital” and the banks will be saved.

    In other words, the banks will just be allowed to grab money directly out of your bank accounts to recapitalize themselves.

    Not disputed.

    A senior lawmaker told Reuters the Cyprus model may not be an isolated case, and is perhaps a future template in dealing with troubled European banks.

    Not disputed.

    Now, according to the Washington Post, those with deposits over 100,000 euros at the second largest bank in Cyprus may lose as much as 80 percent of those deposits…

    That looks like an economic collapse to me – the banks seizing depositors money. How do those on the receiving end see things?

    The following reactions from outraged depositors in Cyprus are from Sky News…

    “They have stolen our money,” Milton Loucas told Sky News.

    “I have been working for 60 years. I am 80 years old. I cannot work again for my living – they have cut the lot.

    “Our money, our social insurance – they have cut them. How are we going to live?”

    Another Cypriot, Stelios, came out of the bank empty handed.

    “I tried to get my February wages and they gave me a piece of paper only,” he said.

    “I have two children in the army and they asked for money – I don’t have money to give them.

    “The Government didn’t pay anybody. My old parents didn’t get their pension.”

    Frank – why don’t you tell them not to be so ridiculous?

  14. “Not disputed.”

    Not read.

    Lift is too short to read every turd you bring in here like a cat bringing in a dead bird, expecting everybody to be pleased.

    Certainly I will dispute that your ravings have any merit until I see some actual evidence. (tinfoilhat.com isn’t evidence.)

  15. Now, according to the Washington Post, those with deposits over 100,000 euros at the second largest bank in Cyprus may lose as much as 80 percent of those deposits…

    But Allan you told us two days ago that the big depositors had removed all their money beforehand. Can you please make up your mind?

  16. Certainly I will dispute that your ravings have any merit until I see some actual evidence

    No ravings from me but simply a link to a site which has taken source reporting and joined it to provide a coherent picture of what the corporate banking sector which Frank serves is up to. Let’s read directly from the Canadian Government’s Economic Action Plan 2013-14

    http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf

    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.
    This will reduce risks for taxpayers.

    That’s clear enough. Depositors’ monies are simply IOUs which will be seized and ‘converted’ to stock in that failed bank. Within the report to which I linked at 10.02pm March 29th are sub-links which state:

    A senior lawmaker told Reuters the Cyprus model may not be an isolated case, and is perhaps a future template in dealing with troubled European banks.

    The new template is now likely to turn into a full-scale EU law, letting taxpayers off the hook in case a bail-out is needed, but imposing major losses on bigger savers on a permanent basis.

    “You need to be able to do the bail-in as well with deposits,” said Gunnar Hokmark, member of European Parliament, who is leading negotiations with EU countries to finalize a law for winding up problem banks, Reuters reported.

    “Deposits below 100,000 euros are protected … deposits above 100,000 euros are not protected and shall be treated as part of the capital that can be bailed in,” Hokmark told Reuters, adding that he was confident a majority of his peers in the parliament backed the idea.

    No ravings from me there at all, but I can see why a corporate lackey would be alarmed by the prospect of such information reaching those of the public who still have brains and money.

  17. But Allan you told us two days ago that the big depositors had removed all their money beforehand.

    Phantom – the big Russian depositors had removed their funds as you know because you linked to the same report in one of your posts. The people who are being hit are Cypriots who kept their pensions and savings in the bank.

    I note that you were disputing a) how serious the situation is for those affected and b) that the Cyprus-shakedown would be viewed by the corporates as a template for use in Europe and beyond. Do you continue to dispute these points?

  18. I don’t know that the bug Russian depositors did get the money out.

    I do know that Russia is angry at the haircut.

    Which they would not be if all the money had been removed

  19. Phantom, on March 27th, 2013 at 11:49 PM Said:

    http://www.zerohedge.com/news/2013-03-25/have-russians-already-quietly-withdrawn-all-their-cash-cyprus

    This backs up Allan’s point on what are apparent large, recent, Russian withdrawals.

    Hmm.

    As you say, we can’t possibly know for absolutely certain that the main Russian depositors got their money, but Russia’s apparent opposition to the Cyprus-shakedown has receded somewhat so it looks as though the only people getting seriously robbed are Cypriots. Back to the questions above, these being that you were disputing a) how serious the situation is for those affected and b) that the Cyprus-shakedown would be viewed by the corporates as a template for use in Europe and beyond. Do you continue to dispute these points?

  20. The situation is terrible for many who will lose money or who will be suffering from disruptions caused by the crisis.

  21. It’s good to be in the gang.

    Which Cypriot banks just took some 60% of deposits? Laika and the Bank of Cyrus I recall.

    EU Observer: Greek daily Ethnos has published a list of people and companies whose loans, worth several millions euros, were forgiven by three Cypriot banks – Bank of Cyprus, Laiki and Hellenic Bank – over the past five years. The list includes MPs and local officials from all of Cyprus’ main parties.

  22. Pete – that’s the political ‘in-crowd’. I would advocate those treasonous bastards being hanged from lamp posts – after due process, of course.

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