Cyprus Church Loses EUR100 Million, Curses Those Responsible

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– Cyprus Church Loses EUR100 Million, Curses Those Responsible (ZeroHedge, March 25, 2013):

Perhaps it was their comment last week that “with the brains in Brussels… the Euro can’t last,” but the Orthodox Church of Cyprus has lost over EUR100 million reacted to its holdings in Bank of Cyprus. Church leader Archbishop Chrysostomos II, in comments on TV, noted that “Cyprus asked for ‘crumbs’ compared to large size of Europe’s budget,” and that those responsible in Cyprus should be punished (he blames the outgoing government, Ministers of Finance, the Central Bank, and the Executive Directors of Banks) – “those that brought the place into this mess, should sit on the stool.” He noted that people will lose jobs and the state will be poorer but that the Church is prepared to help; and his first step – to send invitations to the heads of various Russian companies on the island.

Via Church of Cyprus,

Heads of Russian companies operating in Cyprus will call a working lunch, next Thursday, March 28, 2013, His Beatitude Archbishop Chrysostomos Mr. to encourage them to remain in Cyprus.

Read moreCyprus Church Loses EUR100 Million, Curses Those Responsible

Merkel ‘Very Happy’, Russian PM Furious: ‘The Stealing Of What Has Already Been Stolen Continues’

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– Merkel “Very Happy”, Russian PM Furious: “The Stealing Of What Has Already Been Stolen Continues” (ZeroHedge, March 25, 2013):

First, it is Merkel’s turn, which last week was furious at Cyprus for daring to reject the first flawed Eurogroup plan impairing insured depositors, only to praise it for now… rejecting said plan. To wit: Chancellor Angela Merkel, “as well as the government, is very happy that the troika, the euro group and Cyprus were able to reach an agreement,” German government spokesman Steffen Seibert says in Berlin. He added that difficulties will arise in the short term because of measures aimed to scale back Cyprus’s banking sector, “but in the long run it will lead to a healthier” industry. That remains to be seen, especially when factoring in the Russian response.Which wont be pleasant.

The official Russian line is one of a typical professional chess player – calm, cool, collected: Russia doesn’t see need to take any additional steps now, may still agree to restructure loan, First Deputy Prime Minister Igor Shuvalov told reporters earlier. Shuvalov, unlike Merkel and ECB’s Mersch who sees nothing but green shoots (literally) everywhere in Europe, said that Russia is concerned Cyprus crisis may have negative effect on euro. The deputy PM says that he has no estimate for Russian losses in Cyprus but added that Russian money in Cyprus is “legal.”

The unofficial line comes from former president, and current PM and Putin mouthpiece, Dmitry Medvedev. From Reuters:

Moscow reacted with anger on Monday to a European Union bailout of Cyprus that will result in heavy losses for foreign depositors at the Mediterranean island’s banks, many of which are Russian.

“The stealing of what has already been stolen continues,” Prime Minister Dmitry Medvedev was quoted by news agencies as telling a meeting of government officials.

Read moreMerkel ‘Very Happy’, Russian PM Furious: ‘The Stealing Of What Has Already Been Stolen Continues’

Société Générale: Depression For Cyprus – 20% Drop In Real GDP By 2017

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– Next Up For Cyprus: Depression (ZeroHedge, March 25, 2013):

From SocGen:

Depression for Cyprus: Our Cypriot GDP forecast entails a drop of just over 20% in real GDP by 2017. This forecast had already factored in much what was agreed, but did not account for the additional uncertainty shock generated by the past week’s appalling political mess. Risks are clearly on the downside and Cyprus will in all likelihood require additional financial assistance further down the road. Accounting for less than 0.3% of euro area GDP, any downward revision to Cyprus will be barely visible on the euro area aggregate.

So much for the hope of recreating Iceland, and actually growing in 2-3 years. Congratulations Cyprus – you may have a depression for the next four years, but at least you have the € (and helped Merkel win the September election).

El Pais Retracts Article Alleging “Merkel, Like Hitler, Has Declared War On Europe”

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– El Pais Retracts Article Alleging “Merkel, Like Hitler, Has Declared War On Europe” (ZeroHedge, March 24, 2013):

What does it take for the Spanish “first amendment” journalistic override to kick in? Apparently, in the case of local media leader El Pais, putting up the following in print: “Merkel, como Hitler, ha declarado la guerra al resto del continente, ahora para garantizarse su espacio vital económico.” For the Spanish-challeneged this translates as follows: “Merkel, like Hitler, has declared war on the rest of the continent now to secure their economic living space.” Ah yes, the touchy verboten topic of German “Lebensraum” – its invocation, and ostensibly the unflattering Merkel comparison (seen so often in Greece) were enough to get the article by Juan Torres López in the Andalusia version of El Pais titled simply enough “Alemania contra Europa” taken down.Is it perhaps because unlike in Greece, where articles like that are a daily occurrence, Spaniards still have something to lose should they also lose the good graces of the German chancellor? Something that is more than one Spiderman towel per depositor in the nation’s just as insolvent banking system, where apparently unlike in Cyprus, the ESM actually does work to preserve liquidity and stability?…

A cached version of the article:

In its place one only now sees the following:

Read moreEl Pais Retracts Article Alleging “Merkel, Like Hitler, Has Declared War On Europe”

Red-Tape Tower: 20,000 Pages Of Obamacare Regulations, Wrapped In A Neat Red Ribbon (Video – Photos)

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– 828 pages of new ObamaCare regulations… in one day (FOX News, March 12, 2013):

– Red-Tape Tower Makes Its Way Around D.C. (National Review Online, March 20, 2013):

A tower of 20,000 pages of Obamacare regulations, wrapped in a neat red ribbon and first unveiled publicly by Senate minority leader Mitch McConnell at last weekend’s Conservative Political Action Conference, made its way to the Senate floor today as the upper chamber debated the continuing resolution to fund the government. It took several GOP aides to haul the paper tower through the Capitol to make its appearance; the National Journal’s Shane Goldmacher captured the scene:

With the hashtag #redtapetower trending on Twitter, McConnell stood next to the regulations as he called for repealing Obamacare. At CPAC, where staff members set up the tower on stage the night before McConnell’s address, he called for dismantling the program “root and branch” and vowed to fight the legislation and “every other assault on liberty the Left throws at us.”

The “red-tape tower” has been making its way around Washington, D.C. At a press conference earlier today, GOP senator Mike Johanns, flanked by senator Orrin Hatch, stood next to it as he called for the repeal of the regulations. The tower reportedly stands a whopping 7 feet, 3 inches high.

– Obamacare: Seven Feet of Job-Killing Regulations (Breitbart, March 11, 2013):

Senate Republican minority leader Mitch McConnell sent out a shocking photo showing what it looks like if you stack every page of Obamacare regulations one on top of the other. The stack reaches to more than seven feet in height and is so big it might take a 3-D printer to print it all.

“This is over 20,000 pages and measures 7′ 2.5″,” McConnell said of the amazing photo. “These are all the Obamacare regulations published in the Federal Register up through last week. Then last Friday they added another 828 pages.”

These additions seemingly come on a monthly basis as Congress finally starts finding out, as Rep. Pelosi said, “what’s in the bill” and more rules are added, clarified, and altered.

Read moreRed-Tape Tower: 20,000 Pages Of Obamacare Regulations, Wrapped In A Neat Red Ribbon (Video – Photos)

The Importance Of Owning Your Own Bullion And Storing It Outside The Banking System

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Related info:

– RED ALERT: World’s Biggest Gold Storage Company Dumps US Citizens

– Government Cracks Safe-Deposit Boxes

– US DEPARTMENT OF HOMELAND SECURITY HAS TOLD BANKS – IN WRITING – IT MAY INSPECT SAFE DEPOSIT BOXES WITHOUT WARRANT AND SEIZE ANY GOLD, SILVER, GUNS OR OTHER VALUABLES IT FINDS INSIDE THOSE BOXES!

– James G. Rickards of Omnis Inc.: Get Your Gold Out Of The Banking System

– The Importance of Owning Your Own Bullion (ZeroHedge, March 24, 2013):

Quite a few articles have been written about the importance of owning Gold and other precious metals as a means of maintaining one’s wealth in the face of rampant money printing by the world’s Central Banks.

Today I’m going to share some ideas on how to actually buy bullion.

As far as precious metals go, you need to:

  1. Own actual Bullion
  2. Store it yourself (not in a bank)

I do not recommend owning a paper gold-based ETF because frankly the custodial risk is high (that is, there’s no telling if the Gold is even there or who would get it if the ETF is liquidated).

In comparison, physical bullion, stored outside a bank, is literally money in hand. You know where it is and you can find out what it’s worth. Compare that to a Gold ETF in which you’re hoping that the bank actually has the Gold and that it could actually send it to you if you requested (fat chance).

Read moreThe Importance Of Owning Your Own Bullion And Storing It Outside The Banking System

Cyprus Reaches Bailout Deal: Deposits Above €100,000 Will Be Frozen And Used To Resolve Debts – Laiki Bank Will Be Shuttered, With Thousands Of Job Losses

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From the article:

Deposits above 100,000 euros, which under EU law are not guaranteed, will be frozen and used to resolve debts, and Laiki will effectively be shuttered, with thousands of job losses.

…

The revised bailout plan may not require further parliamentary approval since the idea of a levy was dropped.

The tottering banks hold 68 billion euros in deposits, including 38 billion in accounts of more than 100,000 euros – enormous sums for an island of 1.1 million people which could never sustain such a big financial system on its own.

– Cyprus Reaches Bailout Deal With International Lenders (Huffington Post/Reuters, March 25, 2013):

* Deal to shut Laiki bank, transfer insured deposits

* Clinched hours before Monday deadline to seal EU bailout

* Without deal banks faced collapse, possible euro zone exit

BRUSSELS, March 25 (Reuters) – Cyprus clinched a last-ditch deal with international lenders on Monday for a 10 billion euro ($13 billion) bailout that will shut down its second largest bank and inflict heavy losses on uninsured depositors, including wealthy Russians.

The agreement emerged after fraught negotiations between President Nicos Anastasiades and heads of the European Union, the European Central Bank and the International Monetary Fund – hours before a deadline to avert a collapse of the banking system.

Read moreCyprus Reaches Bailout Deal: Deposits Above €100,000 Will Be Frozen And Used To Resolve Debts – Laiki Bank Will Be Shuttered, With Thousands Of Job Losses

Cyprus Bailout: Deal Reached In Eurogroup Talks

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– Cyprus bailout: Deal reached in Eurogroup talks (BBC News, March 25, 2013):

Eurozone finance ministers have agreed a deal on a bailout for Cyprus to prevent its banking system collapsing, officials say.

Reports suggest the deal will include a levy on deposits of more than 100,000 euros in Cyprus’ two biggest banks.

The levy on accounts in Laiki Bank – the country’s second-biggest – could be as high as 40%, correspondents say.

Read moreCyprus Bailout: Deal Reached In Eurogroup Talks

Dutch Megabank ABN Amro To Halt Physical Gold Delivery – Another Gold Shortage?

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– Another Gold Shortage? Dutch ABN To Halt Physical Gold Delivery (ZeroHedge, March 24, 2013):

Based on a letter to clients over the weekend, it appears Dutch megabank ABN Amro is changing its precious metals custodian rules and “will no longer allow physical delivery.” Have no fear, they reassuringly add, your account will be settled at the bid or offer price in the ‘market’ and “you need to do nothing” as “we have your investments in precious metals.”

 

Via Google Translate,

Changes in the handling of orders in bullion

On 1 April 2013,. ABN AMRO to another custodian for the precious metals gold, silver, platinum and palladium. This we your investments in precious metals otherwise handle and administer. In this letter you can read more about it.

Read moreDutch Megabank ABN Amro To Halt Physical Gold Delivery – Another Gold Shortage?

Rampapalooza As Cyprus-Troika Reach Deal (Updates)

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– Rampapalooza As Cyprus-Troika Reach Deal (Updates) (ZeroHedge, March 24, 2013):

UPDATE: It appears the ‘deal’ to default/restructure the banks has been designed to bypass the need for parliamentary votes, since it is theoretically not a tax.

While we have little color on what kind of carnage the President of Cyprus had to accept to his fellow countrymen, the news is that :

  • *CYPRUS, TROIKA REACH AGREEMENT IN PRINCIPLE, EU OFFICIAL SAYS
  • *DEAL MADE AT DINNER WITH DRAGHI, LAGARDE, VAN ROMPUY, BARROSO

The terms, unsurprisingly what zee Germans wanted, are:

i) Laiki to be wound down;

ii) Bank of Cyprus to survive but with deposit haircuts, and

iii) deal would see secured deposits in Laiki moved to Bank of Cyprus.

In other words, a deal far worse then the original on proposed by the Eurogroup last week – when the banks still existed. The key appears to be the ‘saving’ of the insured depositors (crucial to avoid a pan-European bank run) and the crushing of the ‘whale’ depositors.

Read moreRampapalooza As Cyprus-Troika Reach Deal (Updates)

Cyprus Bailout Needs Rise By €2 Billion As Conditions Deteriorate Rapidly

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– Cyprus Bailout Needs Rise By €2 Billion As Conditions Deteriorate Rapidly (ZeroHedge, March 24, 2013):

A week of closed banks, depositor angst, and economic malaise is creating an increasingly vicious circle for Cyprus (and implicitly the European Union). As Die Welt notes, because the economic data of the tiny ‘irrelevant’ island could be considerably worse than previously thought (or forecast by Troika) thanks to the distortions created this week by bank closings, several people around the Troika said the exact amount of the bailout remains uncertain and could amount to EUR2bn more than expected. With the Troika capping their handout at EUR10bn of the current EUR17bn needed (and the deposit levy reportedly filling EUR6bn of that EUR7bn hole), the need for a bigger bailout – which seems increasingly likely – will fall on Cyprus banks’ depositors (or taxpayers) leading to a hard-to-beat downward spiral. Simply put, the more deposits are pulled, the more deposits need to be confiscated; and with retailer stocks running low (“will last another 2-3 days”) and cash-on-delivery demanded, the real economy will “have a problem if this is not resolved by next week.”

Via The Guardian,

Retailers, facing cash-on-delivery demands from suppliers, warned stocks were running low. “At the moment, supplies will last another two or three days,” said Adamos Hadijadamou, head of Cyprus’s Association of Supermarkets. “We’ll have a problem if this is not resolved by next week.”

Via Die Welt (and Google Translate),

Cyprus needs a lot more money than expected

A few hours before the emergency meeting of the situation seems to capture from bankruptcy Cyprus to deteriorate: From Troika says that money could not exceed the estimated range.

Cyprus needs for information of the “world” more money to bail out its banks and the stabilization of its national budget. Not initially agreed 17 billion euros were enough states in the field of negotiations. The exact amount is not certain. Several people around the troika said the “world” that the increased demand would amount to around two billion euros.

Read moreCyprus Bailout Needs Rise By €2 Billion As Conditions Deteriorate Rapidly

With Russia “Demanding Cyprus Out Of The Eurozone” Here Is A List Of Possible Russian Punitive Reprisals

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– With Russia “Demanding Cyprus Out Of The Eurozone” Here Is A List Of Possible Russian Punitive Reprisals (ZeroHedge, March 24, 2013):

As has been made abundantly clear on these pages since the breakout of the latest Cyprus crisis, the Russian policy vis-a-vis its now former Mediterranean offshore deposit haven-cum-soon to be naval base, has been a simple one: let the country implode on the heels of the Eurozone’s latest humiliating policy faux pas, so that Putin can swoop in, pick up assets (including those of a gaseous nature, much to Turkey’s chagrin) for free, while being welcome like the victorious Russian red army saving Cyprus from its slavedriving European overlords (a strategy whose culmination Merkel has very generously assisted with).

Curiously there had been some confusion about Russia’s “noble” motives in Cyprus (seemingly forgetting that in Realpolitik, as in love and war, all is fair). We hope all such confusion can now be put to rest following the clarification by Jorgo Hatzimarkakis, the German Euro deputy of Greek origin, who told Skai television on Sunday morning that Russia did not want Cyprus to stay in the eurozone.

From Kathimerini:

Read moreWith Russia “Demanding Cyprus Out Of The Eurozone” Here Is A List Of Possible Russian Punitive Reprisals

Why Cyprus 2013 Is Worse Than The KreditAnstalt (1931) And Argentina 2001 Crises

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– Why Cyprus 2013 is worse than the KreditAnstalt (1931) and Argentina 2001 crises (A View from the Trenches, March 24, 2013):

The Cyprus 2013, like any other event, can be thought in political and economic terms.

Political analysis: Two dimensions

Politically, I can see two dimensions. The first dimension belongs to the geopolitical history of the region, with the addition of the recently discovered natural gas reserves. The historical relevance goes as far back as 1853, the year the Crimean War began. The Crimean War took place in the adjacent Black Sea, but the political interest was the same: To avoid the expansion of Russia into the Mediterranean. The relevance of this episode was the break-up of the balance of power established after the Napoleonic Wars, with the Congress of Vienna, in 1815. From then on, a whole new series of unexpected events would lead to a weaker France, a stronger Prussia, new alliances and a final resolution sixty years later: World War I.  It is within this same framework that I see Cyprus 2013 as a very relevant political event: Should Russia eventually obtain a bailout of Cyprus (as I write, this does not seem likely) against a pledge on the natural gas reserves or a naval base, a new balance of power will have been drafted in the region, with Israel as the biggest loser.

The second political dimension refers to a point I made exactly a year ago, precisely inspired in the KreditAnstalt event of 1931. In an article titled: “On gold, stocks, financial repression and the KreditAnstalt of 1931” I wrote:

Read moreWhy Cyprus 2013 Is Worse Than The KreditAnstalt (1931) And Argentina 2001 Crises

iPad WiFi Radiation With Wireless Router On (RF Meter with Sound) (Video)

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YouTube Added: 07.03.2013

Description:

Doctors groups around the world have spoken up to call for Precaution against wireless radiation and for reduction of exposure, especially on Children, Youth, Pregnant Women and Babies.

Medical Advisory: Statements from 14 Agencies on Wi-Fi Radiation and Children’s Health
http://www.safeinschool.org/2013/02/m…

Harvard Neurologist Warns: WiFi Radiation can Damage Children’s Brain Function
http://goo.gl/Okafv

This Video: Measuring the pulsed microwave radiation from an iPad with an Acoustimeter. The rapid and continuous pulsing is the beacon signals emitted by the router (similar to celltower beacon signals). The irregular spikes are emitted by the iPad.

Swisscom, Switzerland’s largest IT services provider, recognized the genotoxic effects of WiFi routers. In 2003 they attempted to reduce this danger through an automatically-deactivated router design. Unfortunately, North American manufacturers have not adopted this patent, but continue to produce WiFi routers which bombard humans and all living beings with microwave beacon signals, 24/7. The Swisscom document with the explanation on the genotoxicity can be found here:
http://patentscope.wipo.int/search/en…

The maximum measuring threshold of the Acoustimeter is 6.0 V/m and the radiation from the iPad exceeded this level often while actively on WiFi. We measured a WiFi-iPad and found that its signals peak every few seconds at levels that are several times HIGHER than an iPhone on talking transmission. See:
http://www.safeinschool.org/2012/01/i…

Here are some exposure limits in other countries which correspond to the levels indicated on the Acoustimter.

Read moreiPad WiFi Radiation With Wireless Router On (RF Meter with Sound) (Video)

Two US-Led Wars In Iraq Have Left Behind Hundreds Of Tonnes Of Depleted Uranium Munitions and Other Toxic Wastes

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Flashback:

– MUST-SEE: Former Head Of Pentagon’s Depleted Uranium Project Dr. Doug Rokke On Depleted Uranium (Video)

– Iraq: War’s legacy of cancer (Al Jazeera, March 15, 2013):

Two US-led wars in Iraq have left behind hundreds of tonnes of depleted uranium munitions and other toxic wastes.

Fallujah, Iraq – Contamination from Depleted Uranium (DU) munitions and other military-related pollution is suspected of causing a sharp rises in congenital birth defects, cancer cases, and other illnesses throughout much of Iraq.

Many prominent doctors and scientists contend that DU contamination is also connected to the recent emergence of diseases that were not previously seen in Iraq, such as new illnesses in the kidney, lungs, and liver, as well as total immune system collapse. DU contamination may also be connected to the steep rise in leukaemia, renal, and anaemia cases, especially among children, being reported throughout many Iraqi governorates.

There has also been a dramatic jump in miscarriages and premature births among Iraqi women, particularly in areas where heavy US military operations occurred, such as Fallujah.

Read moreTwo US-Led Wars In Iraq Have Left Behind Hundreds Of Tonnes Of Depleted Uranium Munitions and Other Toxic Wastes

Why Cyprus Matters (And The ECB Knows It)

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– Why Cyprus Matters (And The ECB Knows It) (ZeroHedge, March 23, 2013):

WHEN THE RED QUEEN IS AFTER YOUR HEAD

When Zig turns to Zag and the Red Queen is after your head then extraordinary care is necessitated. To quote Holmes, “The game is afoot” on the Continent.

I have been asked, with some frequency, why the bondholders have not been tagged in the Cyprus fiasco. That answer is simple. Most of Cyprus’s bonds are pledged as collateral at the ECB or in the Target2 financing program. Then one may also ask why the bonds of the two large Cypriot banks are not being hit. The answer is the same; most are held as collateral at the ECB or Target2. In both cases, remember uncounted liabilities, the government of Cyprus has guaranteed the debt. Consequently if the two Cyprus banks default it is of small matter as the sovereign has guaranteed the debt. However if the country defaults and leaves the European Union then it will matter and matter significantly as the tiny country of Cyprus would wipe out the entire equity capital of the European Central Bank. While it is not a matter of public record it is estimated that Cyprus has guaranteed about $11.6 billion of collateral at the ECB.

Read moreWhy Cyprus Matters (And The ECB Knows It)

Russian Billionaire In Exile Boris Berezovsky Commits ‘Suicide’

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– Russian Billionaire In Exile Boris Berezovsky Commits Suicide – The First Cyprus Casualty? (ZeroHedge, March 23, 2013):

Just your ordinary run of the mill Russian billionaire oligarch in exile who had so much money he was terminally depressed… or just the opposite, and the first tragic casualty of the Cyprus capital controls which are about to eviscerate a whole lot of Russian wealth (and ultraluxury Manhattan real estate prices)?

From RT:

Exiled Russian tycoon Boris Berezovsky has died at the age 67, according to a Facebook post from his son-in-law Egor Schuppe. Details regarding the nature of his death are yet to be released.

His death has not been officially confirmed, and details have not been disclosed.

According to Schuppe, Berezovsky was recently depressed. He failed to keep in touch with friends and acquaintances, and often chose to stay at home rather than go out.

Damian Kudriavtsev, the former CEO of Kommersant Publishing House also commented on the businessman’s death saying he passed away at 11:00 GMT in London.

On his twitter account, Kudriavtsev said there were no signs of a violent death.

Aleksandr Dobrovinksy, a famous lawyer and head of Moscow-based The Alexander Dobrovinsky & Partners law firm has said that Berezovsky committed suicide.

“Just got a call from London. Boris [Abramovich] Berezovsky committed suicide. He was a difficult man. A move of disparity? Impossible to live poor? A strike of blows? I am afraid no one will get to know now,” the lawyer said on his social network page.

BBC confirms the death:

Berezovsky has been found dead at his home in Surrey.

The circumstances of the death of Mr Berezovsky – a wanted man in Russia, and an opponent of President Vladimir Putin – are not yet known.

Read moreRussian Billionaire In Exile Boris Berezovsky Commits ‘Suicide’

Texas Wants Its Gold Back From The Federal Reserve

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– Texas Moves to Repatriate its Gold from the Federal Reserve (Liberty Blitzkrieg, March 22, 2013):

This is one of the most interesting stories I have read regarding the precious metals market in quite some time.  It appears that Texas Rep. Giovanni Capriglione has a bill in play that would move the state’s gold from New York (where its under the “safekeeping” of the ultra shady Federal Reserve) to a depository within the state of Texas itself.  The reason this would be such a big deal if it happens, is because a lot of the gold bought and sold globally is very likely not actually owned by those that “buy” it.  From my perspective, pretty much the only countries that actually buy gold and bring it within their borders are China, Russia and Iran.  Most other nations that claim they “bought” gold, most likely hold a certificate that states they have gold in London or New York.  So in other words, they have no gold.  It looks like Texas is wising up.  From the Star-Telegram:

Freshman Rep. Giovanni Capriglione, R-Southlake, is carrying a bill that would establish the Texas Bullion Depository, a secure state-based bank to house $1 billion worth of gold bars owned by the University of Texas Investment Management Co., or UTIMCO, and stored by the Federal Reserve.

“If you think gold is a hedge, or a protection, you always want it as close to the individual and the entity as possible,” Paul told The Texas Tribune on Thursday.” Texas is better served if it knows exactly where the gold is rather than depending on the security of the Federal Reserve.”

You’ve gotta love Ron Paul.  The guy is still raising hell even after he left Congress.

Read moreTexas Wants Its Gold Back From The Federal Reserve

Former Cyprus Central Bank Head And Senior Fed Economist: “The European Project Is Crashing To Earth”

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– Former Cyprus Central Bank Head And Senior Fed Economist: “The European Project Is Crashing To Earth” (ZeroHedge, March 22, 2013):

Back in August 2011, one of the most prescient European (ex) central bankers, Cyprus’ very own Athanasios Orphanides was optimistic, but with a caveat: “I am optimistic that with the right actions and effort by all we will pull through this,” Orphanides told reporters after a meeting with Finance Minister Kikis Kazamias. They were Orphanides’ first public comments since warning authorities in a July 18, 2011 letter that Cyprus ran the risk of requiring an EU bailout unless urgent action was taken to shore up its finances.”

Two years later, following endless dithering and pretense that just because the ECB has stabilized the markets, all is well, and “action was being taken” when none was (because in the New Normal the lack of market collapse is somehow supposed to represent structural changes are taking place, which never actually happen), Cyprus is beyond the bailout stage – it is now quite literally on the verge of total collapse. This is also why Orphanides, who recently (and perhaps prudently) quit as Central Banker of Cyprus following a clash with the new communist government (and was replaced by a guy named Panicos), no longer is optimistic. “The European project is crashing to earth,” Athanasios Orphanides told the Financial Times in an interview. “This is a fundamental change in the dynamics of Europe towards disintegration and I don’t see how this can be reversed.”

It can’t. Which is what we have been saying all along. But it apparently takes a former Federal Reserve senior economist to say the perfectly obvious, and for reality to finally hit front and center.

More from the FT’s interview with Orphanides:

This week’s events had made “a mockery” of EU treaties, he added. “It suggests that in Europe not all people are equal under the law.”

“We have seen other eurozone countries, the Netherlands, for instance, put national interests ahead of the European interest by trying to bring down the economic model of countries such as Cyprus or Luxembourg.”

Read moreFormer Cyprus Central Bank Head And Senior Fed Economist: “The European Project Is Crashing To Earth”

Cyprus Deposit Levy Vote Delayed, Will Go ‘Down To The Wire’ As Up To 70% Deposit Tax Contemplated For Some

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– Cyprus Deposit Levy Vote Delayed, Will Go “Down To The Wire” As Up To 70% Deposit Tax Contemplated For Some (ZeroHedge, March 22, 2013):

While GETCO’s algos were poised to set off a buying tsunami yesterday the millisecond a flashing red headline hit Bloomberg with even the hint or suggestion that Cyprus is fixed, we said to sit back and relax because Cyprus “will get no resolution today, or tomorrow, and may at best be resolved on Sunday night following yet another coordinated global bailout, (although our money is on a last, last minute resolution some time on Monday when Cyprus is closed but the European markets are widely open).”As it turns out, we were right, following reports by major newswires that the vote on the deposit levy will only take place (if at all) on Sunday night, after the Eurozone finance ministers’ meeting on Sunday.

As it also turns out, and as noted previously, the votes taken yesterday were the easy ones – obviously Cyprus will now need capital controls in perpetuity to slow down the terminal unwind of its banking system which is now, for all intents and purposes, over and will only exist, if at all, entirely though ECB liquidity injections, but the difficult decision – to complete U-Turn on the Tuesday vote just saying no to deposit tax levy – has been delayed.

The reason for the delay? Deciding how to best bring the news to Russian, and other wealthy depositors, that not only will they not have access to their funds for a long, long time, the ultimate haircut on what they thought was safe, easily accessible cash as recently as a week ago, may be a stunning 70%!

From Xinhua:

Read moreCyprus Deposit Levy Vote Delayed, Will Go ‘Down To The Wire’ As Up To 70% Deposit Tax Contemplated For Some

JPMorgan On The Inevitability Of Europe-Wide Capital Controls

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– JPMorgan On The Inevitability Of Europe-Wide Capital Controls (ZeroHedge, March 22, 2013):

With the Cypriot government still ‘undecided’ about what to ‘take’ and the European leaders very much ‘decided’ about what to ‘give’, the fact of the matter is, as JPMorgan explains in this excellent summary of the state of affairs in Europe, that because ELA funding facility is limited by the availability of collateral (and the haircuts applied to those by the central bank), and cutting the Cypriot banking system completely from ELA access is equivalent to cutting it from the Eurosystem making an exit from the euro a matter of time. This makes it inevitable that capital controls and a capital freeze will be imposed, in their view, but it is not only bank deposits that are at risk. A broader retrenchment in funding markets is possible given the confusion and inconsistency last weekend’s decision created for investors relative to previous policy decisions. Add to this the move by Spain, which announced this week a tax or bank levy (probably 0.2%) to be imposed on bank deposits, without details on which deposits will be affected or timing, and the chance of sparking much broader deposit outflows across the union are rising quickly.

Via JPMorgan,

Capital Control Risks

What was widely viewed as an ill-conceived Cyprus deal last weekend renewed fears of a re-escalation of the euro debt crisis. The original proposal to hit insured depositors below €100k caused a bank run and set a new precedent in the course of the Euro area debt crisis, with potential negative consequences for bank deposits not only in Cyprus but also in other peripheral countries. Once again, as it happened with the Greek crisis last May, the Cyprus crisis exposes the fragmentation of the deposit guarantee schemes in the Euro area and its inconsistency with a monetary union.

Read moreJPMorgan On The Inevitability Of Europe-Wide Capital Controls

Cyprus Officially Passes Capital Controls Into Law

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– Cyprus Officially Passes Capital Controls Into Law (ZeroHedge, March 22, 2013):

While it is unknown if the Cypriot parliament will agree to, and enact into law, the Troika-demanded deposit haircuts, after the shocking vote of mutiny against Merkel earlier this week that saw not one politician vote for the Europe suggested deposit tax levy (and even the ruling party abstained), a vote which will once more take place tomorrow, moments ago Cyprus became the first Eurozone country to officially implement governmental capital controls into legislation. At this point it had no choice: whatever happens with the deposit haircut, or with everything else, it is now inevitable that the local Cypriots will do all they can to pull as much money from domestic banking system as possible following the complete loss of faith and trust in banks, which is why the government had no choice but to intervene with its own “controls.”

Sadly, this marks a milestone in the development of the Eurozone – it’s all downhill, and accelerating, from here.

There are various other proposals which are currently being voted on, all of which are secondary to the Capital Controls one (the restructuring of the broke banks is perhaps the next most important one), until tomorrow’s vote on deposit haircuts.

Read moreCyprus Officially Passes Capital Controls Into Law

Paying With A Hundred Dollar Bill? Prepare To Fill Out A Form!

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– Paying With A Hundred Dollar Bill? Prepare To Fill Out A Form (ZeroHedge, March 22, 2013):

While depositors in Europe are having their money confiscated outright by their less than friendly governments and despotic, tyrannical politicians who will do everything in the name of “equality, fraternity and of course liberty” or, said otherwise, preserving their careers and the status quo while throwing their taxpayers and voters into the firepit of Keynesian and monetarist idiocy, in the US a different form of capital control may be taking shape.NBC reports from Rhode Island, where a local restaurant chain is now demanding that any clients paying with $100 bills also provide their name, phone number, and drivers’ license.

By doing this – supposedly in the name of avoiding counterfeiting but don’t you dare mention fake bill spotting markets or UV light – it eliminates the only upside that paper money had over electronic transactions: anonymity. How soon before all other retailers and vendors decide that it is a good idea to demand their clients’ personal info, for the sake of avoiding counterfeiting of course, first in all $100 bill transactions, then $50, then $20, and so on?

Read morePaying With A Hundred Dollar Bill? Prepare To Fill Out A Form!

Troika Hikes Cyprus Bailout Demands From €5.8 Billion To €6.7 Billion, Says ‘Conditions Worsened’

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– Troika Hikes Cyprus Bailout Demands, Says “Conditions Worsened” (ZeroHedge, March 22, 2013):

Just when you thought you knew the rules, the Troika has changed them… (via MNI)

  • TROIKA SAID CONDITIONS WORSENED, WANTS BILL TO REFLECT
  • TROIKA HIKED CYPRUS CONTRIBUTION TO E6.7 BN VS E5.8 BN:
    SOURCE
Moar Bigger Haircuts for the rich please – and following Schaeuble’s veiled threat (leave – we can handle it)…
  • *SCHAEUBLE: MARKET SEES EURO-ZONE BETTER PREPARED FOR TURBULENCE