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Cyprus Bank Holiday spurs run on ATM's British ex-pats will be hit for Millions

Discussion in 'Preparedness & Survival' started by erudne, Mar 17, 2013.

  1. erudne

    erudne The Pie Matrix PPL Say Sleeping W/Your Rifle Is A bad Thing? Bronze Supporter

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    --------------------------------------------------------------------------------

    Indeed.
    http://dailymail.co.uk/news/article-...s-EMPTIED.html
    Osborne vows to protect Britain's armed forces in Cyprus as cash machines are EMPTIED and 60,000 British savers face losing millions in 10% bank account tax

    Quote:
    Up to 60,000 British savers are to lose thousands of pounds each as expats in Cyprus have their savings decimated in part of a painful bid to bail out the bankrupt island.

    . . .Britons have about £1.7billion of deposits in Cyprus and could lose up to £170million. The Cypriot government has agreed to seize up to ten per cent of savings and use the money to bail out the island’s crisis-hit banking system.

    . . .If savers in other troubled nations fear their accounts might be next, they could withdraw their money and spark a catastrophic run on the banks.

    __________________
     
  2. erudne

    erudne The Pie Matrix PPL Say Sleeping W/Your Rifle Is A bad Thing? Bronze Supporter

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    http://www.businessinsider.com/cypru...nk-runs-2013-3



    You can be forgiven for thinking that you don't need to give a hoot about what's going on in Cyprus this weekend. After all, it's just a little island somewhere in the Mediterranean.

    But what's going on in Cyprus could actually matter--not just to the rest of Europe, but to the rest of the world.

    Here's the short version of what's happening:
    Cyprus's banks, like many banks in Europe, are bankrupt. Cyprus went to the Eurozone to get a bailout, the same way Ireland, Greece, and other European countries have. The Eurozone powers-that-be gave Cyprus a bailout--but with a startling condition that has never before been imposed on any major banking system since the start of the global financial crisis in 2008. The Eurozone powers-that-be (mainly, Germany) insisted that the depositors in Cyprus's banks pay part of the tab.
    Not the bondholders. The depositors. The folks who had their money in the banks for safe-keeping.


    When Cyprus's banks reopen on Tuesday morning, every depositor will have some of his or her money seized. Accounts under 100,000 euros will have 6.75% of the funds seized. Accounts over 100,000 euros will have 9.9% seized. And then the Eurozone's emergency lending facility and the International Monetary Fund will inject 10 billion euros into the banks to allow them to keep operating.


    en.wikipedia.org

    Cyprus's government tried to explain this deal by observing that it was better than the alternative: Immediate bankruptcy and closure of the major banks. In that scenario, depositors would lose a lot more of their money. Businesses would go bankrupt. And tens of thousands of people would be instantly thrown out of work.

    But, still, not surprisingly, news that deposits in Cyprus's banks would be seized triggered an immediate run on the banks. Depositors rushed to ATMs and tried to withdraw their money before it could be seized.
    But the ATMs weren't working. And the government has now made it impossible to transfer money out of the country.


    So, assuming Cyprus's government approves the deal (still pending), depositors will have some of their money seized on Tuesday morning.
    Now, half of these depositors are said to be Russian oligarchs and other non-residents. And unless you happen to have the misfortune of having an account in a Cyprus bank, you may not care much whether these depositors have their money seized.


    After all, that was the risk they took for storing their money in bankrupt banks, right?
    Well, yes, that was the risk they took.
    But ever since the Great Depression wiped out a big percentage of the world's banks, vaporizing the bank depositors' savings in the process, banking system regulators have tried to do everything they can to protect bank depositors. And they are smart to do so. Because the moment depositors think that there is risk to their savings, they rush to banks to yank their money out. That's called a run on the bank.


    And since no bank anywhere has enough cash on hand to pay off all its depositors at once, runs on the bank cause banks to go bust.
    That's what happened to hundreds of banks in the Great Depression.
    And it's what happened to Bear Stearns, Lehman Brothers, and other huge banks during the financial crisis (though, with Bear and Lehman, the folks who yanked their money out weren't mom and pop depositors but other big financial institutions). It's what threatened to bring the entire U.S. financial system to its knees. And it's why the US and European governments have been frantically bailing out banks ever since.
    But now, thanks to Eurozone's bizarre decision in Cyprus, the illusion that depositors don't need to yank their money out of threatened banks because they'll be protected has been shattered.

    Depositors in Cyprus banks will lose some of their deposits. They will be furious about this. And they will, rightly, feel that it is grossly unfair--because depositors in the bailed-out banks in Ireland, Greece, etc. didn't lose their money. And they will feel like fools for not having taken their money out.


    And...here's the important part...
    Other depositors at weak banks all over Europe, in places like Spain, Italy, and Greece, will rightly wonder whether this is the beginning of a new era of bank bailouts, an era in which bank depositors are going lose some of their money.
    What do you think those other depositors in Spain, Italy, Greece, etc., are going to feel like doing when they realize that, if their banks ever need a bailout, they might have their deposits seized? That's right.

    They're going to feel like yanking their money out of their banks.
    And if some of them yank their money out of their banks, well--then the financial condition of those banks will go from weak to insolvent.
    And the banks will go rushing to their governments and the Eurozone for help. And if, god forbid, the Eurozone decides to seize the deposits of more bank depositors...


    Well, then, a good portion of Europe is going to suddenly experience a good old-fashioned bank run. That, to put it mildly, could be a disaster.
    It could bring the European financial crisis, which has lurched from one flare-up to another for most of the past five years, to a rather sudden head. How much would it cost for the powers-that-be to bail out all of Europe's weak banks at once? A lot.

    More than the Eurozone has in its emergency lending facilities, certainly. And more than the International Monetary Fund has on hand.
    So the U.S. would probably have to get involved. And, regardless of whether the U.S. needed to get involved, the European economy would likely suffer the equivalent of a heart attack. That wouldn't be good for the U.S. economy. Or the Chinese economy.
    Or any other economy that sells things to Europe.
    So, you can see, this little decision to seize a little money from bank depositors in the little island of Cyprus could be a much bigger deal than you think.

    It could conceivably precipitate a run on weak European banks.
    And a run on weak European banks could hammer the European economy and then the economy of Europe's trading partners. And it could cause global markets to crash.
     
  3. knuckle Head

    knuckle Head southeast Well-Known Member

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    The banksters often use, small seemingly insignificant places, people and things, to see what they can get away with just like tyrannical governments / dictators do with the what the peoples reactions are both locally and internationally, to see the rest of the worlds reactions are so they can tweek their porcess.

    I bet they come back and want to negotiate a lesser fee thus the people will accept it thinking they have no choice.

    Only a matter of time before the government in some fashion says we have to do something to pay for our the debt, just like they have in the past with sin taxes, tourist taxes, fuel taxes etc,, etc all the while do they ever slow down the spending no, they always find way to not only spend it all but to go further into debt.

    Not to say these people are insignificant to the contrary they are not, what is happening here will most likely come to a bankrupt city, state or Obams way of think to a place near you.

    What was that saying death by a thousand papercuts, What did Russians say in the 1960's they would take the U.S. without firing a shot by slowly demoralizing us and nipping away at our constituion and civil rights.

    One peck at a time like a woodpecker
     
  4. erudne

    erudne The Pie Matrix PPL Say Sleeping W/Your Rifle Is A bad Thing? Bronze Supporter

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  5. PolishedBrass

    PolishedBrass Gresham, Oregon Active Member

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    A quick read between the lines from my well researched eco/politico view.


    1. Germany is pulling their Gold back to "The Fatherland"
    2. Germany has become Comfortable with Russian Borders. (Gold is back in Frankfurt hence its focus will be France next.)
    3. Warnings of Gold returning to Germany by America Britain and France (German / Charlemagne anti-Aggression Doctrine insurance policy being ignored.)
    4. Germany is flexing it's muscles behind the scenes with economic aggression in Cyprus.


    This is much worse than it seems ... I see it as a test. (Look out France ... You are in the German Sights.)

    Mark My Words and heed the warning. And go Long on German Currency. Very bad ... German Eco/Militarism is rising.

    Plus it looks as though sites in Britain are being taken down quickly as they report the news.
     
  6. knuckle Head

    knuckle Head southeast Well-Known Member

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    This also tells me one other thing and should not be taken lightly the lenders have given up on getting their money back from the gooberment and have pulled out all stops to get their money back before the country defaults.
     
  7. erudne

    erudne The Pie Matrix PPL Say Sleeping W/Your Rifle Is A bad Thing? Bronze Supporter

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  8. chariot13

    chariot13 Near Eugene/Springfield Well-Known Member

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  9. erudne

    erudne The Pie Matrix PPL Say Sleeping W/Your Rifle Is A bad Thing? Bronze Supporter

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    Shock, Anger, & Fear: Here’s the International Reaction to Cyprus’ Shock Tax on Bank Deposits

    Mar. 17, 2013 9:55pm Erica Ritz
    People withdraw money from a cash-point machine in the Cypriot capital Nicosia on March 17, 2013. (Photo: AFP/Getty Images)

    The world was stunned on Saturday when Cyprus announced that it planned to levy a harsh one-time tax on bank deposits as part of a bailout agreement with its European partners and the International Monetary Fund (IMF).
    Nervous depositors rushed to ATM machines to drain their accounts only to find that the banks had already sealed off either 6.75% or 9.9%, depending on whether they had more or less than €100,000 in the account.
    The Cypriot bailout follows those for Greece, Portugal, Ireland and the Spanish banking sector, but it’s the first that dips into people’s savings to finance a bailout. Analysts worry the move could roil international markets and jeopardize Europe’s fragile economies.
    Reuters reports that lawmakers are working to soften the blow for those with less money in the bank, changing the rates from 6.75 percent and 9.9 percent to 3.0 percent and 12.5 percent, respectively.
    But regardless of whether they succeed, the move to tax private deposits has sparked controversy around the world:
    (The BBC has more on the story, including interviews with irate Cypriots (video via ZeroHedge):
    Shock, Anger, & Fear: Here?s the International Reaction to Cyprus? Shock Tax on Bank Deposits | Video | TheBlaze.com
    ​The Associated Press contributed to this report.
     
  10. erudne

    erudne The Pie Matrix PPL Say Sleeping W/Your Rifle Is A bad Thing? Bronze Supporter

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    It's a normal 3 day holiday but the Bank Hoilday is now streached out to 4 days
     
  11. unionguy

    unionguy Portland Active Member

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  12. Jamie6.5

    Jamie6.5 Western OR Well-Known Member

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    Gee, the "union guy" thinks like the IMF, that socialist policies are the answer!

    I'm shocked I tell ya, just shocked! /sarc

    But alas, it seems even the socialists aren't happy with the situation, and won't be until they enter into a period of bonafide communist rule:
    A crisis continues in Iceland | SocialistWorker.org
    Ahh yes, the wisdom of minority rule!

    Then:
    It's easy to dig your way out of a financial crisis when you order the government to confiscate ALL NATURAL RESOURCES so they can add them to the assets side of the balance sheet.
    Especially when the government OWNS ALL THE BANKS!

    Yes, the IMF and the socialists agree.
    Doesn't that tell you something about the IMF America?
     
  13. AMProducts

    AMProducts Maple Valley, WA Jerk, Ammo Manufacturer Silver Supporter

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    It's great that everyone can pull up stories from all over the internet about this, however this is nothing new. Back when european countries were starting to institute a VAT (Value Added Tax) on all transactions, there was quite a bit of debate after vat was instituted as to exactly what it applied to, in certain countries like britain and ireland at least for a while VAT was charged even on ATM transactions. which meant that if you pulled cash out of your account, you would be charged anywhere from 10-20% VAT.

    For a number of reasons this didn't stick around for too long, mostly because people were refusing to put money in banks, refusing to take money out of banks, and it created so much friction in the system the whole thing nearly ground to a halt. This is the same thing as near as I can tell, It's just new to cypress which used to be a tax shelter, this would be like the bank of grand cayman instituting a VAT... yea it would be a big deal for some people, however it would be nothing new to many others.
     
  14. Just Jim

    Just Jim Well-Known Member

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    :bluelaugh: and yall wonder why the stores where run empty of ammo.:paranoid::bluelaugh::bluelaugh:
     
  15. knuckle Head

    knuckle Head southeast Well-Known Member

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    Any way you slice it VAT TAX or Wealth TAX, it is theft, stealing from the people who were smart enough to earnit and save it to give those who were not. Redistribution is all it is.

    I still believe it is a last ditch effort by the lenders to get back some of the money they loaned to these idiots in gooberment who cannot live within the means and promise everything to everyone and then everyone winds up with nothing.
     
  16. knuckle Head

    knuckle Head southeast Well-Known Member

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    I would rather have brass and lead that goes up in value by25% over night vs a fiat $$$$ that goes down in value by 25% in 18 months, that is what I figured my household operating went by without changing what I buy and how I live.

    Add a 22 furloughs days into the mix for the year or 20% pay cut for 22 weeks out of 52, which is a 8.5% cut for the year.

    YEEEEEEEEEEEEEEHHHHHHHHHHHH ha, 33.5% decrease in spending power, whats wrong with this picture
     
    mosinguy1 and (deleted member) like this.
  17. Just Jim

    Just Jim Well-Known Member

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    "Finally, the Russian response to the discovery that haircuts on big deposits just rose from 9.9% to over 15.6% will hardly be warm and cuddly. Now may be a good time to ban gun (and plutonium) sales to angry Russian billionaire oligarchs."
     
  18. AMProducts

    AMProducts Maple Valley, WA Jerk, Ammo Manufacturer Silver Supporter

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    I don't disagree at all, VAT is one of the stupidest things I've ever heard of, and it's one of those stupid progressive taxes that if it's followed to it's logical end means you will pay more in tax making something than that object will ever be worth... you pay vat borrowing money, you pay vat buying the materials, you pay vat buying the tools, you pay vat buying the machines, and once it's ready for market, the consumer again pays vat buying the object, which means it's already been taxed 5 times before it ever sees the light of day, and quickly wipes out most of the profit you would have made from that object, or it makes it so expensive that imported goods are cheaper because they only paid an import vat.

    European style progressive socialism has been an unmitigated failure, all the taxing schemes they come up with as ways of paying for it should be all the proof that's needed, unfortunately, there are a group of idiots out there who look at the failures of others as an opportunity to try the same thing with a few small tweaks somehow expecting a different result. It may not be the definition of insanity, but in my experience it sure comes pretty close.

    The biggest problem, is those same idiots have convinced a significant enough portion of the electorate that these social experiments will somehow pay dividends, the problem is, there is no culture in the history of the world that has succeeded without some form of hardship to enforce their work ethic, and few things create a stalwart work ethic quite like the fear of starvation.
     
  19. knuckle Head

    knuckle Head southeast Well-Known Member

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    Cyprus Buys Time, Keeps Banks Closed Until Thursday | Video | TheBlaze.com

    [video=youtube;h9AJr7QhJzg]http://www.youtube.com/watch?v=h9AJr7QhJzg&feature=player_embedded[/video]


    The freaking world is upside down!!!!!!!!!!

    Everytime I go on the drudgereport or the blaze, it seems like all I hear about is stupidity, ignorance and a bunch elected and un-elected embysols in the spotlight trying to see who make a bigger @$$ out of themselves.

    has anyone heard any good news lately??
     
  20. EZLivin

    EZLivin SW of PDX Well-Known Member

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    John Gault and (deleted member) like this.