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Cyprus crisis deepens: Bailout rejected, banks may not reopen

Cypriot leaders held crisis talks on Wednesday to avert financial meltdown after rejecting the terms of a controversial European Union bailout, turning instead to Russia for help.

Banks on the Mediterranean island may never reopen, Germany warned after lawmakers late Tuesday turned down a $12.9 billion deal that would have seen Cypriots lose up to 10 per cent of their bank deposits.

Thousands of Cypriots withdrew savings over the weekend fearing the deal might pass, emptying ATMs and sending global money markets into a steep dive.

Banks were ordered to remain closed after finance officials predicted a run on savings and a huge outflow of capital if they were to reopen.
Germany's finance minister, Wolfgang Schaeuble said major Cypriot banks were "insolvent if there are no emergency funds,” according to a BBC report, meaning savers might lose all their money if no deal was reached.

http://worldnews.nbcnews.com/_news/2013/03/20/17384301-cypru...



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you would think they would

you would think they would just inflate the currency and let them have their money back, afterwards

lawrence

They gave up their currency

They gave up their currency to the Euro. They'd have to leave and issue their own currency again.

But yes, that is a time honored way for the banks and government to steal your money.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

Joining Euro same as joining Mafia

I am sure Greece would prefer dropping out of the Euro and that a few other countries would do the same including Cyprus (which is basically a British & Turkish protectorate).

Reality: it is a one way street. Countries can get into the Euro but they will not be allowed to get out under any circumstances short of armed revolt or outright war.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

"Time Honored"

Good one.

"Its easier to fool people than to convince them that they have been fooled."
Mark Twain

The banks are not reopening? Lame...

I was looking forward to the bank run on Thursday.

Check out the Laissez-Faire Journal at LFJournal.com


"The State is a gang of thieves writ large." - Murray Rothbard

No Run, access will be managed.

Next announcement: withdrawals are limited to "X" amount per week "until the situation stabilizes".

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

What about debit card use?

What are the restrictions on that?

Check out the Laissez-Faire Journal at LFJournal.com


"The State is a gang of thieves writ large." - Murray Rothbard

Restriction on transactions

Limit the amount of cash withdrawn or spent. Easy to do with any card.

They could go a step further and invalidate debit cards for a period.

They can and will place restrictions on banking customers if they sense a run.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

No I mean, what is the status of debit cards right now...

are they already restricted?

Check out the Laissez-Faire Journal at LFJournal.com


"The State is a gang of thieves writ large." - Murray Rothbard

Probably inactive

If they are freezing accounts that would be all transactions: over the counter, electronic transfer, ATM, Wire, ACH and EFTPOS (electronic funds transfer at point of sale - checking cards & credit cards).

It seems to be a total lock-down. Look at this article, the UK is flying cash into Cyprus to give short-term loans to British Forces Cyprus. That indicates a total freezing of assets & access considering the British rule half of Cyprus. http://www.bbc.co.uk/news/uk-21847013

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

Thanks for the info!

I was hoping it was a scenario where even though bank withdrawals may be impossible, people might still be able to use their debit cards to empty their accounts by buying Gold, Silver or Bitcoin.

Check out the Laissez-Faire Journal at LFJournal.com


"The State is a gang of thieves writ large." - Murray Rothbard

No worries

The article answers it: "The money is to be used for British personnel and their families if cash machines and debit cards stop working."

So it seems ATMs and debit cards are working but ATMs will empty and debit cards won't be much good if points of sale can't get access to the cash.

I'd say the UK is pretty certain cash machines and debit cards will "stop working"... not "if".

People are going to suffer.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

Nice how they wait untill the last minute ...

... "Umm ... hey guys ... looks like the banks are gonna be broke by day after tomorrow if we don't get massive money in the till."

They didn't KNOW how bad the top 2 largest banks in their country were until they were 48 hours away from insolvency???

It's a bad situation all around ... but it's more than that ... something is fishy about this whole thing.

I hope the banks open up and every last depositor pulls their money out and the whole thing blows up in the government's face.

At this point, people are going to lose money. Let's just hope that people figure out it was the lying politicians IN ADDITION TO the lying bankers who WERE OBVIOUSLY HIDING the problem.

I hope people see it is the GOVERNMENT in addition to the bankers who created this mess and who should be facing prison time.

And then ... I hope they figure out that free market solutions are the only answer (I know, I know ... but I feel like dreaming a little tonight).

"They didn't KNOW how bad the

"They didn't KNOW how bad the top 2 largest banks in their country were until they were 48 hours away from insolvency??? It's a bad situation all around ... but it's more than that ... something is fishy about this whole thing."

Banks will be insolvent because the Russians get to withdraw all their money, because the Russians aren't under gun control.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

Cyril's picture

You are evidently and totally spot on.

You are evidently and totally spot on.

"They didn't KNOW how bad the top 2 largest banks in their country were until they were 48 hours away from insolvency???"

It's freaking outraging. Freaking absurd.

It's impossible to fathom how far they can go in their insulting people's intelligence.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Common Story Line

The US banking system was going to come to a halt in September-October 2008 unless the US taxpayer bailed them out.

Apparently our government and the banks didn't see it coming until September 08'...

Put the people in fear, don;t give them enough time to comprehend or decide, give them one option and ram it through.. then make a statement that the day has been saved and that everyone should forget about it since everything is fine.

Outrageous for sure.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

UK flies cash to Cyprus troops

Article:
http://www.independent.ie/business/world/uk-flies-cash-to-cy...

British Forces Cyprus: http://en.wikipedia.org/wiki/British_Forces_Cyprus

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

SteveMT's picture

Cyprus bank reopening now delayed until Tuesday.

Limitations on withdrawals will be in place also. The stuff that bank runs are made of.
http://www.dailypaul.com/278937/cyprus-banks-to-reopen-next-...

Cyprus should follow

Cyprus should follow Iceland's example when they had a financial crisis.

Which colonial power will get the gas reserves?

With Sarris in Moscow, there was mounting speculation that Russia might seek to exploit the crisis, having reacted angrily to the proposed bank levy.

Some reports suggested Russian oil and gas behemoth Gazprom had mooted its own assistance plan, in exchange for exploration rights to Cyprus's offshore gas deposits.

Noble Energy reported a natural gas recovery of 5 to 8 trillion cubic feet of gas south of Cyprus in late 2011, in the island's first foray to tap offshore resources.

http://www.dailymail.co.uk/news/article-2296234/Cyprus-finan...

Wonder what the Russians are proposing?

Whatever it is they are better to take the loss imo. The Russians will be just as merciless I think.

donvino

Yes Cyprus!

Now....eliminate your central bank and print your own money interest free and make sure your money is backed by something. And..Your FREE!

It's not what backs the money, it's who controls its quantity.

It's not what backs the money, it's who controls its quantity.

Support the Daily Paul by using this link when you visit Amazon.com... http://www.amazon.com/?_encoding=UTF8&tag=bullnotbull-20&lin...

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So what happens

If Russia steps in??

"Its easier to fool people than to convince them that they have been fooled."
Mark Twain

Cyril's picture

"meaning savers might lose their money if no deal was reached"

FANTABULOUS.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Stand tall Cyprus!

Do not surrender to this extorsion! Start your own private credit systems NOW and END central bank tyranny!

http://www.bart-mart.com/how.mp3
http://www.bart-mart.com/vincent

meekandmild's picture

Should I take my money out of Savings?

Like it drawing a lot of interest.

I work for a bank

And it's embarrassing having to tell people that their $100,000 in savings generated a few cents in interest for the month.

Cyril's picture

I can believe that !

I can believe that !

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

A blatant new attack in in the "War on Savers"

Another must read found courtesy of Zero Hedge comments:

http://www.economicpopulist.org/content/war-savers-heats