Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
US Dollar Rallies Off Support But Is This A Top Or Bottom? - 19th June 19
Most Income Investors Are Picking Up Nickels in Front of a Steamroller - 19th June 19
Is the Stock Market’s Volatility About to Spike? - 19th June 19
Facebook's Libra Crypto currency vs Bitcoin: Five Key Differences - 19th June 19
Fed May Trigger Wild Swing In Stock Index and Precious Metals - 19th June 19
How Long Do Land Rover Discovery Sport Brake Pads Last? - 19th June 19
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19
US China War - Thucydides Trap and gold - 16th June 19
Gold Stocks Bull Upleg Mounting - 16th June 19
Gold Price Seasonal Trend Analysis - Video - 16th June 19
Fethiye Market Fruit, Veg, Spices and Turkish Delight Tourist Shopping - 16th June 19
US Dollar Gold Trend Analysis - 15th June 19
Gold Stocks “Launch” is in Line With Fundamentals - 15th June 19
The Rise of Silver and Major Economic Decline - 15th June 19
Fire Insurance Claims: What Are the Things a Fire Claim Adjuster Does? - 15th June 19
How To Find A Trustworthy Casino? - 15th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match - Video - 14th June 19
Gold and Silver, Precious Metals: T-Minus 3 Seconds To Liftoff! - 14th June 19
Silver Investing Trend Analysis - Video - 14th June 19
The American Dream Is Alive and Well - in China - 14th June 19
Keeping the Online Gaming Industry in Line - 14th June 19
How Acquisitions Affect Global Stocks - 14th June 19
Please Don’t Buy the Dip in Nvidia or Other Chip Stocks - 14th June 19
A Big Thing in Investor Education is Explainer Videos - 14th June 19
IRAN - The Next American War - 13th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match Contest - 13th June 19
Top Best VPN Services You Can Choose For Your iPhone - 13th June 19
Tory Leadership Contest Betting Markets Forecast - Betfair - 13th June 19
US Stock Market Setting Up A Pennant Formation - 13th June 19
Which Stocks Will Lead The Cannabis Rebound? - 13th June 19
The Privatization of US Indo-Pacific Vision - Project 2049, Armitage, Budget Ploys and Taiwan Nexus - 12th June 19
Gold Price Breaks to the Upside - 12th June 19
Top Publicly Traded Casino Company Stocks for 2019 - 12th June 19
Silver Investing Trend Analysis - 12th June 19
Why Blue-Chip Dividend Stocks Aren’t as Safe as You Think - 12th June 19
Technical Analysis Shows Aug/Sept Stock Market Top Pattern Should Form - 12th June 19
FTSE 100: A Top European Index - 12th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Cyprus Record Bank Heist Spells End Game For Your Wealth

Politics / Credit Crisis 2013 Mar 19, 2013 - 10:55 AM GMT

By: Jeff_Berwick

Politics

The emergency bank holiday in Cyprus has been extended through Tuesday and Wednesday in what as far as the team at Dollar Vigilante has researched, will be the longest emergency bank holiday in Europe or North America since the Second World War.

Marking the first time during the five-year-old global credit crunch, depositors may be forced to pay upfront for their nation's bailout. European finance ministers are reaching into Cypriot savings accounts to backstop a 13 billion euro bailout for Cyprus. The decision was made public early Saturday morning, shortly after which Cyprus banks closed to slow down withdrawals.


And then, news hit Monday that the bank holiday has been extended till Thursday.

I had prepared comments on the Cyprus bailout-by-bank-account-robbery on Saturday evening and Sunday, but something told me that Monday would bring potentially even bigger news (what's so surprising about governments and banks stealing from their serfs, anyway?), either market-wise or politically. Well that news came in the form of a nearly week-long bank holiday. To be fair, the papers have not exactly made it clear which Thursday we can expect the banks to re-open.

The banks always announce bad news on a Friday to paralyze the people. Then more bad news follows Monday, after a nation's oligarchs have been able to position themselves to benefit most from the crisis. It happened when US debt got downgraded a couple years ago.

Savers in Cyprus face a 9.9 percent tax on accounts greater than 100,000 euros. Those with less will be charged at a 6.75 percent rate. Big depositors are facing a potential 15.26% levy. The one-time “tax” (theft) is expected to raise 5.8 billion euros for the near-bankrupt country in stolen proceeds. As if 5.8 billion euros is anything for the bankers and their central bank printing presses as infantry. If anything, this move was made to show savers in the rest of the Western World their fate.

The first major banking holiday of the “Great Recession” has cutoff the Cyprus peasantry from their funds (but you can bet oligarchs are taking out their desposits as I type).

Accounts are locked. Money can't be withdrawn or transferred to safer locations. Under the central banking system, the money you put in the bank isn't really yours. As The End Of The Monetary System As We Know It (TEOTMSAWKI) continues, governments aren't even trying to maintain that illusion anymore. Why try? After all, their propaganda isn't working anymore thanks to the Internet. So, might as well step up the heist. This is a game of chicken, and the EU and big banks have stepped on the gas.

Germany, EU officials along with Anglo-American banks engineered this weekend’s wealth reallocation via Cyprus banks. These technocrats have had close allies in Washington and London since World War II. They knew that problems were going to crop up eventually in Cyprus, so why did they decide on what Forbes calls “the single most inexplicably irresponsible decision in banking supervision in the advanced world since the 1930s?” Well, no matter how "inexplicably irresponsible" this decision has been, something tells me things are going exactly as planned in Cyprus right now. The White House has already given its support for the theft:

"We're obviously monitoring the situation right now," White House spokesman Jay Carney told reporters at a briefing. "We believe it's very important for Europe to take steps necessary, as they have been, to both grow and deal with sovereign debt issues."

The White House wouldn't comment on the "levy" when pushed.

Cypriot finance ministry officials began discussions with lenders on Sunday ostensibly to lessen the theft from smaller savers, with sources close to the “consultations” telling Reuters that Cyprus bureaucrats were hoping to cut the lower theft threshold to 3.0 percent from 6.7 percent for deposits under 100,000 euros. The upper threshold on larger deposits would increase, however, to 12.5% from 9.9%.

But make no mistake about it; the Cypriot parliament has been called in order to ratify the robbery of depositors, just like what happened during the TARP bailout in the US. Remember when Hank Paulson threated martial law if banks didn't get nearly one trillion dollars of initial liquidity injection? This is the same sort of situation.

The Euro partners and the IMF have set the new tone. Troubled economies like Italy and Greece and Spain will begin to see an uptick in withdrawals. But it might already be too late for them. European authorities were prepared for the reaction of Cypriots. Over the weekend electronic money transfers had fallen under strict controls, and the levy amounts in Cypriot's bank accounts were inaccessible to the depositors.

Despite having to pay for the bailout, one can expect that this robbery won’t be too much different from other IMF-World Bank led robberies of the so-called “Third World”: In other words, this will in some ways be your standard “economic medicine” or “structural readjustment” with taxes going up and a firesale/devaluation of national assets.

Nation-states of Planet Earth must realize they are far from sovereign. Economically, at least, the EU is a prime example of what the future holds for much of the world. Savers are no longer safe in the supra-state of the EU. These actions by European central planners in Cyprus will lead citizens in the PIIGS to withdraw funds out of the bank, and possibly en masse. I know that is exactly what I would be doing if I banked anywhere in Europe – or, in fact, any Western nation. It is for this reason that we’ve always stated that you should never hold a large amount of your money in a Western bank account in fiat currency (and recommend instead having an offshore account in an unindebted tax haven).

The Russian-educated, three-weeks-in-office Communist President of Cyprus, Nicos Anastasiades, said the new tax was “an alternative to disorderly bankruptcy.” He told the nation through a televised address that it was painful but "will eventually stabilize the economy and lead it to recovery."

An ECB official said authorities in Cyprus had already prepared for the levy “to ensure that the levy can be collected.” In other words, mass withdrawals were anticipated and prevented. Savers suffering from the robbery would be “compensated” with shares in bankrupt commercial banks.

So, get screwed or get screwed. Communism or Communism. Socialism or Socialism. Supra-statism or Supra-statism. Wealth confiscation or wealth confiscation. We hear that parliament might not make the theft legal after today's negotiations. Well, in that case, Cyprus will default and the banks will close.

For any Cypriot Dollar Vigilante, hopefully you have taken our advice here at TDV and kept cash for a few months at home, as well as gold, silver and bitcoin, in case banks should close for extended periods (or forever).

Just as the Arab Spring all started with one person in a market lighting himself on fire, this one action could cause a run on banks throughout the PIIGS that could eventually collapse the whole EU banking system. Depending on how bad it gets it could even lead to the collapse of the euro and, if panic really sets in, could lead to The End Of The Monetary System As We Know it (TEOTMSAWKI). Southern Europe is done with the European banking system. Their confidence shattered, the illusion vanishes.

This is happening right now, in real time, right before our very eyes. There is no longer any time to waste being in denial, as this will happen all over the Western World. It will. It’s not a question of if, but when.

Subscribe to TDV to stay on top of the events of TEOTMSAWKI to not only survive but also profit from it.

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2013 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules