Bank Run in Cyprus; Who's Next?


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    Overnight last night, the Eurogroup (Eurozone executive committee) negotiated a deal for a bailout of the banking system in Cyprus. As part of the dea
    [See the full post at: Bank Run in Cyprus; Who's Next?]

    Golden Oxen

    Say’s much about storing ones wealth in Legal fiat tender and trust in it’s issuers.

    “Gold Will Win”


    Black Swan?


    Bank run?!
    Sorry, but most people (hard working or not) have nothing to withdraw except a few hundred euros. The bank runs have already happened, electronically, by the cargo-ship-load.


    Ilargi, can you elaborate a little for me how high (or low) deposit-to-GDP ratios affect a country’s prospects going forward?


    6.75% isn’t so bad in the big scheme of things. I sort of think one way or another, currency and/or flation, in or de, are set to give most everyone a 50% haircut but I can’t define a timeline. If I were a big shot Global Strategic Thinker my plan would be for a haircut like that in steps. Over a decade would be good. Little steps people and the system can tolerate and adjust to. It’s the big leaps that can’t be tolerated. What could be a smaller step than Cyprus?


    Meh, still no bank runz at 1130 EST. Same pics of those 4 people in line at Da ATM.
    This depression will skip the physical bank runs, in Da Periphery. Maybe we’ll get some action in Da Core next week?
    Popcorn on!


    Ilargi (or Stoneleigh): Is there any safety in alternative currencies; I´m thinking Bitcoin for example, or in local barter type currencies, as another example. Or what is it that you would recommend in a world increasingly susceptible to MF Global type heists?


    yyy post=6858 wrote: Ilargi (or Stoneleigh): Is there any safety in alternative currencies

    From personal experience, I can attest that ANY alternative currency will be outlawed, and one could do (serious) time for possessing alternative (Western, in our case) currency. We used Kent cigarettes as alternative currency (google: Romania Kent Currency).
    Of course, YMMV depending on were you live, because peripheral countries usually get that kind of treatment; if you’re blessed to live in [strike]Da Core[/strike] the land of freedom, then your currency might do more than fine, except it might be extremely scarce.

    Mark T

    The following information is from a credit market summary data table on Statistics Canada’s web site:

    The total debt outstanding in Canada at the end of December 2012 (bottom line of the data table) was $5.25 Trillion. From the end of December 2011 to the end of December 2012 the total debt outstanding in Canada increased by $269 Billion. For that 366 day period the total debt outstanding in Canada increased at a rate of $735 Million per day.

    With a total credit market debt of $5.25 Trillion and a gdp (at current prices) of $1.83 Trillion Canada’s total credit market debt is 2.86 times the size of its gdp.


    In principle I agree, we will all lose in the long run. This measure is at least less insidious than us savers losing it gradually over years though low interest rates and high inflation due to QE.

    But what about those reckless and criminal banks and their shareholders bearing the loss? What about a transaction tax across Europe to pay back these banking losses, it desperately unfair that innocent savers which don’t purse high leverage risky deals get to pay up.


    Well done raul . A precursor to the euro collapse.?


    absolutely bob. a shattered trust window.

    TAE Summary

    * Gold will win

    * The bank run has already happened; The black swan is already out of the barn

    * A 7% solution is not as bad as 50% haircut unless you are already bald

    * Cigarettes serve as an alternate currency; A wheelbarrow full of Kents buys a lot of bread; Alternative currencies will be illegal and violators will go to jail; Don’t spend the dime if you can’t do the time

    * Canada’s debt is 2.86 time GDP, Eh

    * Happily in the long run we will all lose but until then it just isn’t fair to the first victims

    * The Euro will collapse and the trust window has been shattered; This is good for printers and glaziers and should help the economy

    * I am altering the deal. Pray I don’t alter it any further.


    TAE Summary,

    It’s great to see you back.

    Regarding your new avatar, , I always liked “Eats, shoots, and leaves.”


    TAE Summary – glad you are back!


    Just like Superman, TAE summary shows up just when everyone has given up hope.


    Regarding bitcoin, a post over on TFMR that I think makes sense:
    Submitted by tmosley on March 18, 2013 – 9:24pm.
    Bitcoin will serve as an excellent temporary money to move cash out of countries despite capital controls. For this reason, I am now bullish on it, though I would not hold it for the long term. It is best held during times of ever spreading capital controls ONLY. If I wanted to get dollars out of the USA after the SHTF, Bitcoin would be my first choice, with gold hidden in clothing and such a distant second.


    good advice:
    Get Your Assets Out Of The Banks – NOW
    Egon von Greyerz
    March 18 2013
    For well over ten years I have advised investors to get their assets out of the banking system. This doesn’t mean just their money but also all other investments (stocks, bonds, gold etc) which are likely to be lost when banks go bankrupt…. Gold (and silver) will continue to reflect the total destruction of paper money that the unlimited money printing will lead to. But investors must hold physical precious metals and they must be stored outside the banking system.


    Well it seems they chickened out and the deal won’t go down. At first I thought they did it out of a belief in their strength. Then I started to think they did it because of frustration and exhaustion. Unable to think of a real solution, because there isn’t one, and sick of pretending and just wanting to go home. It looks like the second and now they look weaker. Still they have a knack for winning even when they lose. In this case it does bring Russia into the mix and so perhaps a new source of some money to throw at the banks.


    Hi All,

    Its seems that most have missed the most important thing we can be doing while the Debt Money Tyrants run theiri beta test on Cyprus – analyze the mechanisms used to defraud the people of their Zombie Money.

    1. It looks like people who hold bonds aren’t being asked to take a haircut.
    2. If someone has bonds linked to their bank account, how can one go about getting access to the money? Is their bond money locked up, too – even if they aren’t asking for a haircut?
    3. Does Cyprus have credit unions that don’t leverage their deposits? Are they shut down as well?

    We really need someone with boots on the ground to sift through the details of the Biggest Finance Capital tactic to achieve their ultimate strategy of ruling the world through an abstract (to most), at least temporarily, anyway, mega corporate structure.

    Also, this is excellent data and analysis by Denninger…

    The Failure Of Debt-Leveraged Faux “Growth”

    While he doesn’t know it, he’s applying the Trivium method – he’s gathering the relevant data, he’s applying logic to it and identifying contradictions and fallacies in order to remove them. Finally, he’s communicatiing the results of his research in a way that’s pretty easy to understand.

    The problem is that very few people understand this intellectual self defense technique, a mental anti-virus if you will, and so they are led to believe that the unreal (the false narrative) is real.

    This cognitive tool set was purposefully removed when the education system was turned into the schooling system because it is such a powerful tool. Research John Taylor Gatto podcasts and Youtube videos to fill in the details with source documents and analysis.

    Easily deceived people will be run into the ditch regardless of any other circumstance, the distinction is the time frame.

    The Trivium For The Win.


    I can’t help wondering why Berezovsky chose this moment to disappear from the stage and whether this was an assisted disappearance.

    In any event, I don’t think Putin did it as Berezovsky was a spent force in Russia. At one time, he more or less bought up their parliament – but that was a long time ago.

    I would not put it past the British – but they prefer do do this things on foreign soil. What can be more convenient than for the mother of the future king – who had an Egyptian lover – to have a car accident abroad and disappear. I am sure the French demand these sorts of quid pro quo, when they have a similar need. Security services are really legalised gangsters.

    A long while ago, I thought that someone ought to think of a way where people can swap murders – A kills X for B, and in return B kills Y for A. The job of the police would be quite impossible if A does not have any link to X and B does not have any link to Y. It would make a good screen-play, IMHO.


    @Nassim: The title sould be Banksters VS Russian Oligarchs: Fatality!

    Somebody finally realized there’s probably no tax to be made in the under 100k savings category. A “deal” was made.
    Banksters win.
    Round 2: FIGHT!


    The banks never had 28 billion euros of the russian money sitting in the banks.

    It was lent to the Greeks.


    jal post=6938 wrote: The banks never had 28 billion euros of the russian money sitting in the banks.

    It was lent to the Greeks.

    jal, it is a giant money laundering scheme, isn’t it?

    The mega banks get the cashola from the busted banks and the German pension funds are put on the line to eventually default so the Germans eat the losses.

    These banksters will aim their media at the different nation states and then get the ignorati all worked up for war without ever realizing they are being manipulated by Biggest Finance Capital – the Debt Money Tyrants.

    The solution is the Trivium mental self defense.

    The problem is explained by John Taylor Gatto’s body of work.


    Reminder: have you gotten your assets out of the electronic system yet? If not, why not?

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