It doesn’t get any more insane than this. Tiny Cyprus had the audacity to ask the European Central Bank (ECB) and the International Monetary Fund (IMF) for a bailout of $10 billion. They should have asked George Soros. They would have gotten better terms. Instead, the ECB and IMF, with the complicit government of Cyprus, plan a sneak attack against all Cypriots and end up shooting themselves in the foot or maybe a different part the EU anatomy. Teresa Monroe-Hamilton, writing for Trevor Louden;s New Zeal was one of the first to break the story.
Very few things give me nightmares… Yesterday’s event in Cyprus was one of them and the media is conspicuously silent. What do you get when you combine worldwide Marxist elitists, bankers and the media? A worldwide depression and a new dark age. The IMF (in case you are wondering who they are) is using Cyprus as a proving ground for the rest of us. It is a fascist Petri dish. They just implemented an across the board tax on all bank accounts over a holiday with no warning and no recourse. 9.9% if you have over 100,000 Euros in the bank, 6.75% is you have less than that. This is money being seized by the IMF, the European Union and the government of Cyprus to attempt to cover some of their debt. It is theft and it could have been a lot worse. The IMF had proposed a 40% haircut on all accounts. This is how it went down:
Banks first cooperated with the EU by sealing off the amount of the proposed levy—a 6.75 percent tax on deposits under €100,000 and 9.9 percent on those above —making it impossible for depositors to access their full amount. The only means bank customers have left is the ability to draw from the rest of their funds via ATM machines this weekend. Many depositors made their way to the machines on Saturday to drain their accounts. But the few banks that opened on Saturdays did so only briefly, and no international transfers will be able to go through until Tuesday, with Monday being the holiday. Cyprus’ Parliament is expected to meet Sunday to pass the required legislation., or after the deed was done. The deal also needs the approval of several eurozone parliaments; at the time of writing it was unclear how fast they can act and what will happen to bank deposits in the meantime.
What’s happening in Cyprus should send a chill over the entire world.
Politicians working with complicit big banks need no rule of law; no parliament debates to close in on the bank accounts of average people.
Zero Hedge noted:
The problem is that while for Cyprus tomorrow is a national bank holiday (yes, ironic), the EUR opens for trading in a few hours, with the global equity futures markets, and Japan cash to follow shortly thereafter. And with absolutely no clarity on what the “pre-determined” outcome from the Cyprus bailout will be heading into Monday open, where one of the outcomes is the possible collapse of the country’s entire banking system, which would certainly have contagious effects on all of the mainland, Europe is starting to freak out.
Yes, they planned their attack around a Bank holiday on Monday(today). A bank holiday in Cyprus, that is. So, while the Cypriots are emptying the ATM machines in their country, what do think the folks in Italy, Spain, Portugal, and Ireland would be doing today? Do you think they might want to move their money some place safer? Oops!
CNBC this morning is reporting what you would expect. Stocks are off in early trading and the Euro fell to $1.2890 down from $1.3054. Well, American exports just got more expensive. That should help our trade imbalance, right?
As The Commentator so astutely put it:
It shouldn’t have taken a genius to predict that the immediate reaction of depositors in Cypriot banks would be to get every last penny out of them as soon as humanly possible. Since it is the weekend, and since tomorrow is a national holiday in Cyprus, they can’t actually get through the front door. Surprise, surprise, they are therefore withdrawing everything they can from the ATMs, most of which have by now run out of cash.
It should be no surprise that Cyprus’ Parliament postponed their Sunday emergency session to rob all depositors (including foreign depositors, by the way) until today and the bank holiday has been extended through Tuesday and maybe into Wednesday.
I am going to enjoy watching how ECB President, Mario Draghi, and IMF President, Christine Lagarde, scrape the egg off of their faces. This has to be the most stupid thing either of them have ever done. It just goes to show how far central bankers will go to protect the banksters.
Well, that’s what I’m thinking. What are your thoughts?