‘All The Conditions For A Total Disaster Are In Place’ In Eurozone

By Charles Wyplos
Professor of International Economics, Graduate Institute, Geneva; Director, International Centre for Money and Banking Studies; CEPR Research Fellow

Cyprus: The next blunder (VOX, March 18, 2013):

The Cyprus bailout package contains a tax on bank deposits. This column argues that the tax is a deeply dangerous policy that creates a new situation, more perilous than ever. It is a radical change that potentially undermines a perfectly reasonable deposit guarantee and the euro itself. Historians will one day explore the dark political motives behind this move. Meanwhile, we can only hope that the bad equilibrium that has just been created will not be chosen by anguished depositors in Spain and Italy.

The decision to tax all Cypriot bank deposits has attracted massive attention (Spiegel 2013) – and rightly so. It is a huge blunder:

Read more‘All The Conditions For A Total Disaster Are In Place’ In Eurozone

Cyprus Government Raids Private Checking And Savings Accounts As Citizens Panic … Now It’s Clear Why DHS Needs 1.6 Billion Bullets And Armored Assault Vehicles

Cyprus government raids private checking and savings accounts as citizens panic (Natural News, March 17, 2013):

The day is coming when the U.S. government will claim it “owns” a portion of all our bank accounts, and it will electronically drain our accounts of money in a grand theft scheme designed to pay off the banksters while decimating private savings.

Don’t believe it? That day has already arrived in the European nation of Cyprus, where the government made a secret deal with the IMF to loot private bank accounts of up to 10% of current deposits. Banks went along with the theft, sealing off the funds from account holders. The government now plans to initiate millions of funds transfers as early as Tuesday, draining private accounts of the money the government now claims it owns.

Read moreCyprus Government Raids Private Checking And Savings Accounts As Citizens Panic … Now It’s Clear Why DHS Needs 1.6 Billion Bullets And Armored Assault Vehicles

President Putin Brands Cyprus Saving Levy As ‘Unfair’ – Russian ‘Black Money’ In Cyprus Is KGB Money, Now In Business.

Putin brands Cyprus saving levy as ‘unfair’ (RT, March 18, 2018):

Russian President Vladimir Putin expressed his opinion that Cyprus’ plan to tax bank deposits is “unfair.”

If Cypriot authorities go ahead with the tax plan and levy every deposit placed in the country’s banks, it would be “unfair, unprofessional and dangerous,” Putin said, according to presidential spokesperson Dmitry Peskov.

Read morePresident Putin Brands Cyprus Saving Levy As ‘Unfair’ – Russian ‘Black Money’ In Cyprus Is KGB Money, Now In Business.

Cyprus Bailout Could Be The Start Of The Next Financial Crisis (Washington Post)

Nice test run to determine how dumb, mind-controlled and brainwashed the sheeple really are.

(Also a great way to check out any future resistance to the NWO, straight from their handbook ‘the art of war’.)


Why today’s Cyprus bailout could be the start of the next financial crisis (Washington Post, March 16, 2013):

“The challenges we were facing in Cyprus were of an exceptional nature,” said Jeroen Dijsselbloem, the Dutch finance minister who helped engineer the plan, according to the Financial Times. “Therefore, unique measures were determined to be necessary.”

The European Central Bank will now be on high alert, monitoring activity in Greece, Spain and beyond for evidence that the Cyprus precedent will result in new runs on those nations’ banks. Expect a flood of central bank liquidity into those nations if there is any hint that depositors across Europe seem to be thinking that Cyprus is the new normal and that their seemingly safe bank deposits could be reduced 10 percent without warning.

The best the rest of the world can hope for is that Cyprus’s case is sufficiently unique that it won’t spark panic in Athens and Madrid (or in Lisbon, Dublin and Rome).

For the past six months, the global financial markets have become increasingly complacent, convinced that the euro-zone crisis is, for practical purposes, over. Cyprus is the test of whether that is correct, or whether the complacency was instead misplaced.

In other words, if there is going to be a new wave of crisis in Europe, historians will be able to trace its starting point back to today’s Cyprus bank bailout.

After The Banksters Steal Money From Bank Accounts In Cyprus They Will Start Doing It EVERYWHERE

Don’t miss:

Reuters, March 6, 2013: Cyprus Finance Minister Says Bank Deposits Sacrosanct, Will Be Protected


 

After The Banksters Steal Money From Bank Accounts In Cyprus They Will Start Doing It EVERYWHERE (Economic Collapse, March 17, 2013):

Cyprus is a beta test.  The banksters are trying to commit bank robbery in broad daylight, and they are eager to see if the rest of the world will let them get away with it.  Cyprus was probably chosen because it is very small (therefore nobody will care too much about it) and because there is a lot of foreign (i.e. Russian) money parked there.  The IMF and the EU could have easily bailed out Cyprus without any trouble whatsoever, but they purposely decided not to do that.  Instead, they decided that this would be a great time to test the idea of a “wealth tax”.  The government of Cyprus was given two options by the IMF and the EU – either they could confiscate money from private bank accounts or they could leave the eurozone.  Apparently this was presented as a “take it or leave it” proposition, and many are using the world “blackmail” to describe what has happened.  Sadly, this decision is going to set a very ominous precedent for the future and it is going to have ripple effects far beyond Cyprus.  After the banksters steal money from bank accounts in Cyprus they will start doing it everywhere.  If this “bank robbery” goes well, it will only be a matter of time before depositors in nations such as Greece, Italy, Spain and Portugal are asked to take “haircuts” as well.  And what will happen one day when the U.S. financial system collapses?  Will U.S. bank accounts also be hit with a “one time” wealth tax?  That is very frightening to think about.

Cyprus is a very small nation, so it is not the amount of money involved that is such a big deal.  Rather, the reason why this is all so troubling is that this “wealth tax” is shattering confidence in the European banking system.  Never before have the banksters come directly after bank accounts.

If everything goes according to plan, every bank account in Cyprus will be hit with a “one time fee” this week.  Accounts with less than 100,000 euros will be hit with a 6.75% tax, and accounts with more than 100,000 euros will be hit with a 9.9% tax.

How would you feel if something like this happened where you live?

Read moreAfter The Banksters Steal Money From Bank Accounts In Cyprus They Will Start Doing It EVERYWHERE

Reuters, March 6, 2013: Cyprus Finance Minister Says Bank Deposits Sacrosanct, Will Be Protected

From the article:

“The cornerstone of confidence in the banking system is the integrity of deposits.”
– Finance minister Michael Sarris

Trust us!

Aaaaand it’s gone …

BREAKING NEWS: Cyprus Haircut ‘Bailout’ Is Directly STEALING Money From Depositors, Turns Into Saver ‘Panic’, Frozen Assets, Bank Runs, Broken ATMs

Cyprus ‘Haircut’: Germany And IMF Initially Demanded Stunning 40% Of Total Deposits!!!

You can’t make this stuff up!!!


UPDATE 2-Cyprus Finance Minister says bank deposits will be protected (Reuters, March 6, 2013):

* Cyprus says bank deposits sacrosanct

* Lenders start new contacts to craft bailout deal

* Government wary on central banker’s deposit levy idea

NICOSIA, March 6 (Reuters) – Cyprus insisted on Wednesday that people holding money in its banks – many of them Russian and British – must not take a hit in efforts to repair the island’s shattered finances.

Attempts by Cyprus to secure aid have been complicated by concerns about how the island could afford to pay back a debt burden which could potentially reach 17 billion euros ($22 billion) – almost the size of its economy, one of the euro zone’s smallest.

Read moreReuters, March 6, 2013: Cyprus Finance Minister Says Bank Deposits Sacrosanct, Will Be Protected

Cyprus: Bank Holiday Extended Through Tuesday As Confusion Spreads

Cyprus Bank Holiday Extended Through Tuesday As Confusion Spreads (ZeroHedge, March 17, 2013):

For those who read the previous article on the topic of last minute chaos and confusion in Cyprus, and Europe, it will come as no surprise that the previously scheduled Monday bank holiday (aka Green Monday) has been extended into Tuesday. So prepare to not be surprised.

From Kathimerini:

The Cypriot cabinet has declared Tuesday a bank holiday, for fear of capital flight, and this may even be stretched to Wednesday, as depositors are certain to withdraw huge sums from the Cypriot banks after the haircut imposed.

Read moreCyprus: Bank Holiday Extended Through Tuesday As Confusion Spreads

Cyprus ‘Haircut’: Germany And IMF Initially Demanded Stunning 40% Of Total Deposits!!!

… BUT …

Cyprus Government Thieves To The People: ‘The Situation Is Serious But Not Tragic, There Is No Reason To Panic’

Don’t miss:

BREAKING NEWS: Cyprus Haircut ‘Bailout’ Is Directly STEALING Money From Depositors, Turns Into Saver ‘Panic’, Frozen Assets, Bank Runs, Broken ATMs


Germany And IMF’s Initial Deposit Haircut Demand: 40% Of Total (Zerohedge, March 16, 2013):

As the President of Cyprus proclaims  to his people that “we’ should all take responsibility as his historic decision will “lead to the permanent rescue of the economy,” it appears that the settled-upon 9.9% haircut is a ‘good deal’ compared to the stunning 40% of total deposits that Germany’s FinMin Schaeuble and the IMF demanded. This action, his statement notes, enables the rescue of 8,000 banking sector jobs and ensuring the liquidity of the banks, “allowing the economy to proceed decisively to a new beginning.” Ekathimerini reports,” this is the first time in the eurozone that a levy has been imposed not on the interest of bank accounts but on the capital itself,” and was the only way to bridge most of the the gap between the EUR17bn Nicosia needed and the EUR10bn the ESM was offering, though tax on interest in Cypriot banks will also rise to 20-25%. It is the 40% haircut requirement that concerns us the most as clearly going forward that means other nations, starting Monday (or Tuesday given national holidays) see deposit outflows surge, as the willingness to take such steps is now painfully clear.

Statement by the President of the Republic of Cyprus,

It is well known that the deep economic crisis and the state of emergency in which the country has found itself did not come about in the last fortnight since we have undertaken the administration of the country.

The state of emergency and critical nature of the times do not allow me, as they do not allow anyone, to embark on a blame game.

Read moreCyprus ‘Haircut’: Germany And IMF Initially Demanded Stunning 40% Of Total Deposits!!!