IMF forced savings cut

[kingsolomon]

There is more political background than the forced cut itself.

Cyprus is the home of off-shore companies. It is been used for many years for 'suspecious' activities.

Since Cyprus is a member state of EU, the benefits of this country are even more.

Russians, British, Greeks, etc, create companies there for tax purposes (company tax is 10%) so they can avoid taxation in their countries.

Russians lost 3,5 billions overnight. Greeks have major problem because they have many companies there.

By cutting savings accounts, Greeks start to fear for losing even more money in other areas too. IMF proposed to raise company taxation to 12,5% (now its 10%).

Russians start to worry because they dont know what will happen next.

By saing all these I conclude to the following two points.

- Banks in Germany will have even more money because people will afraid that even more countries will follow in cutting savings bank accounts in their coutries and will trust German banks.
That will give a tremendus boost to German economy even further and dominate 100% in European continent.
- Rest of the world (yes US, you too) should start to afraid. Remember the last time Germany were strong? YES, WW1+WW2.

If you want to invest your money to gold or silver, that's fine. But MY money will invest in solar power, by an electric car later on (or electric bike) and invest the rest in property and in my business. Gold is good but the risks are huge.

 

[microphone head]

What about opening an anonymous corporation in Belize? Their government and banking system seems pretty stable.

Ha Ha ha... corruption you say?!

 

[hellblazer]

How does a move like this not trigger a run on the banks?

 

[Kiopa_Matt]

How does a move like this not trigger a run on the banks?

Because the banks are closed?

 

[productionhead]

How does a move like this not trigger a run on the banks?

The cry of the European Tuesday shall be heard shortly.

 

[hellblazer]

Because the banks are closed?

If I lived in Cyprus, I would be lined up Tuesday morning to withdraw every single penny I had.

So again I ask, am I missing something? How does this not trigger a huge bank run on Tuesday?

Are the Cyprus citizens just gonna sit there like bitches and take it?

At this point, they would be better off stashing 1 million euros under their floorboards than in the bank where the IMF can steal it whenever they feel like it.

 

[dmnEPC]

If I lived in Cyprus, I would be lined up Tuesday morning to withdraw every single penny I had.

So again I ask, am I missing something? How does this not trigger a huge bank run on Tuesday?

Are the Cyprus citizens just gonna sit there like bitches and take it?

At this point, they would be better off stashing 1 million euros under their floorboards than in the bank where the IMF can steal it whenever they feel like it.

Its already started.

Banks & ATM's only keep a limited amount of cash on hand. When its gone its gone.

 

[microphone head]

The banks aren't even opening on Tuesday. Everything is frozen at the moment. Basically anyone with money in a Cypriot bank is fucked by this. Other EZ bailout countries will be watching this closely and I expect to see a certain amount of panic in those places too.

 

[WickedJoe]

If I lived in Cyprus, I would be lined up Tuesday morning to withdraw every single penny I had.

So again I ask, am I missing something? How does this not trigger a huge bank run on Tuesday?

Are the Cyprus citizens just gonna sit there like bitches and take it?

At this point, they would be better off stashing 1 million euros under their floorboards than in the bank where the IMF can steal it whenever they feel like it.

I read something that said some of Cyprus citizens were actually ok about it because most of the money the government is getting is actually coming from foreigners with money in their country - like Russian oligarchs. I'm not sure how many are ok with it but obviously many are pissed too.

But I'm really not surprised at much of anything anymore as far as what effects the market and what doesn't. And people have very little options as far as places to store their wealth. Nobody wants to store 100k+ of Euros or even gold in their house especially in neutered countries where firearms are illegal.

Plus these days cash is just irritating to work with. If you can't even write an old school check for things life gets limited.

Other common sense questions like you asked are..
- Why didn't the market tank when we got the sequester? It will likely hit our GDP but since the GDP numbers aren't officially in yet people don't give a fuck.
- Why didn't the market tank when the US's credit got downgraded?
- Why didn't the market tank when we've shown we aren't capable of passing a budget or agreeing on anything in congress?
etc etc

 

[CCarter]

If I lived in Cyprus, I would be lined up Tuesday morning to withdraw every single penny I had.

So again I ask, am I missing something? How does this not trigger a huge bank run on Tuesday?

Are the Cyprus citizens just gonna sit there like bitches and take it?

At this point, they would be better off stashing 1 million euros under their floorboards than in the bank where the IMF can steal it whenever they feel like it.

Several sources have stated ATM were running out of money cause people where pulling as much as possible. The government shutdown all electronic transfers already. They are running, but shit is frozen. Once source said they extended the holiday one more day so parliment can vote on it, and in theory could continue extending the bank holiday to avoid a physical run. It's been a big hectic weekend for alot of people cause of this foolishness.

 

[lukep]

There is a bank holiday on Monday so the banks are closed anyway.. but they just extended the bank holiday even further (till Tue) to give parliament more time to vote. They may actually keep increasing the bank holiday time.. some say up to a week or more depending. This means Cypriots wont be able to bank that entire time!

EXCELLENT.

My plan to force the country of Cyprus into using Bitcoin is proceeding exactly as expected! :banana_sml:

If there isn't a 2%+ drop on the S&P on Monday I quit.

Quit what? Speculating about foreign government's actions on a gay webmaster forum?

The question is - where do you put your money? I'm interested in hearing which countries people are using to hold their cash because as far as I know most of the places that I could withdraw using a debit card are packing enormous debts and deficits.

Thoughts?

I think that the best COUNTRIES to help protect your money right now would be the same old favorites mentioned here many times; HK, Singapore, Chile, etc.

However this is madness; Governments ARE the problem, no matter how nice they are playing individually.

Gold & silver are good wealth protectors, but like the US demonstrated in 1933, they are not as safe as many think.

Bitcoin really is the one true hedge right now, because, (imagine princess Leia saying this to obama: ) "The more you tighten your grip, the more star systems will slip through your fingers!"

Everytime I hear disturbing news like this, there is an uptick in bitcoin's price. BTC's at $47.25 right now... Let's just watch and see what it is the night that the banks are open again in Cyprus. I'm hoping it blows past $50.

This is all bullshit. Its no different than when the bankers stole trillions in the US. Here is the play.

1. Leak a story prior to weekend about .gov taking money from citizen bank acts.
2. Freak out the world.
3. Pour fuel on fire and say it would take an act of god to fix.
4. ????
5. Wait for the US to "bailout" with trillions going to the banks.
6. Golden parachutes to the bankers.

These guys are so obvious in what they are doing. There wont be a nickle taken from the citizens. The US is going to somehow give a few trillion to save the Euro.

This could certainly happen too... I hope it doesn't though, I'd rather see Cypriots wake the fuck up, so it it could very well go down that way if the leadership there realizes this.

If this is the case, BTC won't move too much, but hopefully still upwards anyway from the scare we're experiencing right now.

Gold is good but the risks are huge.

Don't tell me then; You recommend Diamonds, amirite?

If I lived in Cyprus, I would be lined up Tuesday morning to withdraw every single penny I had.

So again I ask, am I missing something? How does this not trigger a huge bank run on Tuesday?

Because all day today they're media is going to be bombarding them with the news: "You're too late; The damage will already be done when the banks open again tomorrow. No point it taking your cash out at all."

At this point, they would be better off stashing 1 million euros under their floorboards than in the bank where the IMF can steal it whenever they feel like it.

Sounds familiar. Are your savings out of american banks yet?

 

[productionhead]

Guns, water, food, shelter, clothes, energy reserves, transportation vehicles, women.

These are what you need to convert your dollars to.

If shit hits the fan, the first item on the list is your currency to the rest.

 

[hellblazer]

I read something that said some of Cyprus citizens were actually ok about it because most of the money the government is getting is actually coming from foreigners with money in their country - like Russian oligarchs.

Even if that were true, you'd have to assume the Russians are moving their money. It might not be under their mattress, but they have to be looking at other countries' banking systems right now. The authorities can freeze transfers, but they can't do so indefinitely.

Why didn't the market tank when we got the sequester?

I don't really think these are comparable questions to this current scenario. The sequester was nothing, and in addition most people think it's a good thing when the government trims its' bloated budget.

Why didn't the market tank when the US's credit got downgraded?

Because there is no other currency to go to. China is working on setting one up, I believe, but they're not there yet and the pros don't outweigh the cons.

Give the U.S. a couple more downgrades, which will absolutely happen as long as the administration doesn't muzzle the ratings agencies, and I think you'll start to see cracks appear in the markets. But that's the final domino to fall.

This is different, though. This is the first time I can recall in recent years where the government literally stole 10% of their citizens' wealth. It's just so blatantly thuggish. They must have anticipated that people are gonna be pissed as fuck and will move their money immediately.

So what was the IMF's calculation? That the citizens will take it? Or is the Cyprus financial situation so dire that they had no choice? That doesn't seem plausible.

 

[Dwight Schrute]

Ammunition, water, food, ammunition, ammunition, energy reserves, ammunition, women.

These are what you need to convert your dollars to.

FTFY

 

[microphone head]

Guns & Ammo are certainly no problem in Cyprus! haha!

 

[WickedJoe]

Even if that were true, you'd have to assume the Russians are moving their money. It might not be under their mattress, but they have to be looking at other countries' banking systems right now. The authorities can freeze transfers, but they can't do so indefinitely.

Definitely agree.

This is different, though. This is the first time I can recall where the government literally stole 10% of their citizens' wealth. It's just so blatantly thuggish. They must have anticipated that people are gonna be pissed as fuck and will move their money immediately.

I agree but the markets are already open. The Euro is only down 1.42% right now.. not like you'd expect. S&P futures are only down 1.11%. So far it's not a big deal. If the market thought confidence on the whole EURO was shattered it would be much worse.

Maybe a lot of people are thinking that they won't go through with it or something. It's still not a 100% done deal.. but there are no good solutions for these people.. well unless Bill Gates stepped in.. it's really not a ton of money for a full on bailout. I'm thinking the market thinks someone will throw money at it like they have done with every other financial problem we've had in the last 5 yrs.

 

[hellblazer]

They're now sending out trial balloons about a 15% "wealth tax" on Italy:

While some argue that Cyprus was "one of the biggest money-washing machines for Russian criminals," and others that Cyprus ex-Pat community and energy resources brough deposits (not to say their high deposit interest rates), it seems the European Union (IMF et al.) have decided that the route to crisis stabilization, just as we outlined here over a year ago and updated here, is through a wealth tax.

However, as Handelsblatt reports, the gross distortions of wealth distribution among both core and peripheral nations (evident in the chasm between 'mean' and 'median' net assets - or wealth) makes some nations more 'capable' of 'giving' and as Commerzbank's chief economist notes, median wealth in Italy is EUR164,000 (as opposed to Austria's median of around EUR76,000 and mean of around EUR265,000) meaning that in theory Italy has no debt crisis (with net assets at 173% of GDP) - significantly more than the Germans at 124% - "so it would make sense, in Italy a one-time property tax levy," he suggested.

"A tax rate of 15% on financial assets would probably be enough to push the Italian government debt to below the critical level of 100% of gross domestic product." So there you have it, the 'new deal' in Europe, as we warned, is 'wealth taxes' and testing the "capacity of Cypriots" appears to be the strawman on what the public will take before social unrest becomes intolerable.

 

[CCarter]

It's like they are trying to make every single person in the EU pull out all their money.

We now live in a world where we turn to lukep for answers. Lukep masterminded this shit. Had to, this is to brilliant. It's too perfect. Lukep, me and you are still cool right? We each other's back right?

Right????????

 

[mattseh]

They're now sending out trial balloons about a 15% "wealth tax" on Italy:

inb4 EU3

 

[hellblazer]

So this is either a calculated provocation or they really have no choice but to start stealing people's money.

"The ECB officials were very blunt," said one Cypriot official familiar with the discussions. "There are serious fears of contagion regarding Italy and Spain if this legislation doesn't go through."

"If this is successful then it will be used in the future," said the dejected official, predicting Spanish and Italian banks could face similar levies. "If this is not successful then who cares about Cyprus."

And the best part:

One senior Cypriot official involved in the talks said that because about 35 percent of all deposits are below the threshold, exempting them would mean a rate so high for the rest that it would no longer be viewed as a tax...