Cyprus “Euro experiment” – The Cyprus ‘Haircut’

This isn’t just a banking disaster. It’s a democratic disaster.

 
The real targets of the “haircut” are businesses, entrepreneurs and the middle class.
 

In a speech laden with criticism of Europe’s currency union for “experimenting” with the island’s fate, the president of Cyprus has said the risk of bankruptcy has been contained and it has no intention of leaving the euro.

Read more:
President of Cpyrus says country was a euro ‘experiment’

Cypriot president Nikos Anastasiades ‘warned’ close friends of the financial crisis about to engulf his country so they could move their money abroad, it was claimed on Friday.

Read more:
Cypriot president ‘warned his friends to move money abroad’ before financial crisis hit

“A company owned by in-laws of Cypriot President Nicos Anastasiades withdrew dozens of millions from Laiki Bank on March 12 and 13, according to an article published in Cypriot newspaper Haravgi,” reports EnetEnglish.

Lawmakers in Cyprus on Tuesday rejected a bailout plan that would have rescued the country’s banks but forced savers to chip in for the cost, throwing down a gauntlet to the rest of Europe over the financial fate of the tiny island nation.

Read more:
Cyprus rejects bailout plan that would make savers pay, raising anxiety in euro zone

“While ordinary Cypriots queued at ATM machines to withdraw a few hundred euros as credit card transactions stopped, other depositors used an array of techniques to access their money.”   Reuters reports.

Big depositors in Cyprus’s largest bank stand to lose far more than initially feared under a European Union rescue package to save the island from bankruptcy, a source with direct knowledge of the terms said on Friday.

Read more:
Big depositors in Cyprus to lose far more than feared

Cyprus on Monday said it was formally requesting a bailout from the European Union in a bid to bolster its struggling banks, making it the fifth euro zone country to request a rescue.

Read more:
Cyprus Becomes 5th E.U. Member to Seek Rescue

The Euro is a Big Success – No Kidding
By Greg Palast

Bankster squad: What’s happening in Cyprus has struck terror into the hearts of all who live under the unaccountable rule of politician-bankers.

… That’s like telling car mechanics that to pay their debts, they should feel free to seize any car they’re working on in their shop — as long as it’s a fancy car.

This isn’t just a banking disaster. It’s a democratic disaster.

When asked about the amount of money that had exited Cyprus before the bailout deal, German Finance Minister Wolfgang Schaeuble refused to provide figures.

“Perhaps because if he did, it would become clear that the only entities truly punished by this weekend’s actions are not evil Russian billionaires, but small and medium domestic companies, and other moderately wealthy individuals, hardly any of them from the former “Evil Empire,” remarks Zero Hedge.

As Business Insider reports, the fact that the mega-rich – the supposed targets of Cyprus “haircut” – have already removed most of their money from the system means that, “upper middle class/entrepreneur types will feel most of the pain if the Cyprus tax is enacted.”

Middle class families are also amongst the worst affected. The Telegraph recently reported on a family who sold their villa in Cyprus for 200,000 euros right before the “haircut” was announced only to see the desperately needed cash disappear.

So, What’s It Like To Have a Business in Cyprus Right Now?

Cyprus Parliament President Says “No Future” Under Troika, Calls For “Iceland” Solution
‘Troika-imposed’ responsibility will, “turn Cyprus into a colony of the worst possible type.”“if we remain bound by the Troika and the memorandum Cyprus’ destiny is already foretold and there will be no future.”

Bank of Cyprus depositors could lose up to 60% of their savings

Cyprus’s financial minister Michalis Sarris warned the “haircut” could even be as much as 80%

Given that the looting of bank accounts has now been established as the template for future “bank recapitalizations” across Europe as well as Canada
Cyprus-Style “Bail-Ins” Are Proposed In The New 2013 Canadian Government Budget!.

Could the Banksters Grab Your Bank Deposits?

Canadian Deposits As Safe As Cypriot Deposits

 
 
 

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About benvitalis

math grad - Interest: Number theory
This entry was posted in Banking and tagged . Bookmark the permalink.

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