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Bailout approved! - The Cyprus Situation Room
03-23-2013, 02:22 PM #91
Octo Mother Superior
Posts:42,612 Threads:1,469 Joined:Feb 2011
That will be hugely popular. Mark my words. fatman.gif
03-23-2013, 02:30 PM #92
Shadow Mrs. Buckwheat
Posts:12,782 Threads:1,182 Joined:Feb 2011
Spanish banks must be awful desperate to consider a savings tax, even 0.2% which is more than interest earned on deposits. Capital controls are the last stage of kicking the can. It'll be a complete collapse of banking once that's in place. Or the mechanism is in place to confiscate paychecks, savings, and the gov and banks will allow you enough to pay your bills. Tuesday will be very ... interesting lol.
03-23-2013, 02:33 PM #93
Octo Mother Superior
Posts:42,612 Threads:1,469 Joined:Feb 2011
Well it undermines the whole idea of banking so yeah it'll be interesting.

popcorn2.gif
03-23-2013, 03:41 PM #94
DaJavoo If looks could kilt
Posts:1,851 Threads:45 Joined:Mar 2011
Now, I'm beginning to question if the motive is saving the Euro or letting it collapse. It would appear they really have no alternative and are muddling through with this test case.

I suspect, as I usually do, that this is the show for consumption and the real action is taking place with the other hand in the hidden pocket. This talk from the politicians in and out of Cyprus is either spoofery ochestrated from the puppet masters or it is clutch-button-grab-ass from the bought and paid for assholes who are ad libbing off script.

The Germans have the most to lose if the Euro shits the bed.
03-23-2013, 04:04 PM #95
Octo Mother Superior
Posts:42,612 Threads:1,469 Joined:Feb 2011
Cypriot Finance Minister Michael Sarris says there has been "significant progress" in talks with the EU and IMF aimed at securing a bailout.

Mr Sarris was also quoted by Reuters as saying Cyprus was considering a 25% levy on deposits of more than 100,000 euros (£85,000) in its biggest bank.

http://www.bbc.co.uk/news/world-europe-21909673

25%??? damned.gif
03-23-2013, 04:08 PM #96
DaJavoo If looks could kilt
Posts:1,851 Threads:45 Joined:Mar 2011
Here's a compelling piece from Before It's News... http://beforeitsnews.com/economics-and-p...50996.html


Secret IMF Cyprus Agenda Blown by LaGarde-Threats, Gas Politics and Russia

Only 4 days after clumsily bobbling an IMF attempt to enslave and bankrupt the Cyprus government and its citizens in yet another bailout scheme with impossible conditions, IMF Chief Christine LaGarde has been sent a loud and clear message. “You are expendable!” Repeating the pattern begun when LaGarde’s predecessor, Dominique Strauss-Kahn was humiliatingly arrested and charged with rape in New York in 2011, LaGarde’s Paris home was publicly ransacked by EU authorities under the pretense of investigating a decades old case of corruption. The timing of this action leaves little to the imagination while revealing that the nature of the Cyprus situation is much more important to the power elites than has been heretofore advertised. LaGarde should probably be thankful for her high profile position which makes it more difficult to have her “disappeared” or “suicided”. You see, the problem in Cyprus is not merely a financial problem; it is also a geopolitical problem.

It can be said that nearly all geopolitical problems are financial in nature, but not all financial problems are geopolitical. This one is however, and it is one attached to the very heart of the future plans of the European power structure. LaGarde has just endangered it by causing uproar over whether the depositors of the troubled Cypriot banks should have their money seized in order to save the banks as a condition of an IMF bailout. She has in essence lost the forest while chopping at the tree right in front of her. As this drama has unfolded and continues to quickly develop, we have seen the notion of deposit theft resoundingly rejected by the island country’s citizens while at least three bad outcomes have been created by LaGarde’s ineptitude: 1) The financial markets have been roiled over the idea that bank deposits may be seized, 2) Cyprus has been driven into Russia’s arms for help, and 3) The current generation of world citizens have forever had their perceptions altered as to their relationships with banks and governments. All three of these outcomes have severely damaged the long term agenda of the power elite, which explains the swift retaliation against LaGarde. But there is a fourth outcome that has not yet been widely discussed in the overt media and which is probably the most important.

As mentioned above, the Cyprus agenda involves much more than finances, it also encompasses the long term economic prosperity of greater Europe as well as the containment of Russia and Vladimir Putin, who is seen as a threat. Why? Because of Europe’s inability to produce and supply for itself sufficient natural gas to power its industries. Europe currently imports the majority of its gas energy, mostly from Russia, who in the past has proven willing to hold its gas hostage to extract higher prices or other concessions from the EU. By the year 2020, the amount of gas imported by the EU is projected to rise to 68%. This energy vulnerability would be enough to effectively hold the EU economy hostage by those who control the supply of gas, namely Russia. Recently though, it has been estimated by scientists that the exclusive economic zones (EEZ) of Greece and Cyprus contain enough untapped gas resources to power the EU’s energy needs at projected 2020 levels for at least the next 120 years. This means that in order for Russia to maintain its enviable position of leverage over the EU it must figure out how to either gain control over those gas supplies, or come up with a way to prevent them from ever coming on line. So long as things remain turbulent in the Greek and Cypriot EEZs, time is on Russia’s side. EU demand for gas will continue to rise, and Russia’s influence over the EU will proportionately increase. But if things stabilize in the area and the EU is able to come to long term agreement over the infrastructure and supply of gas from Cyprus and Greece, then their prosperity is all but assured while Russia’s influence and profits will dramatically wane.

Having learned of the proposition by LaGarde to steal depositor’s savings to save their banks and obtain a bailout, Cyprus’ Financial Minister made a hasty visit to Russia to see if a deal could be reached, but Russia rebuffed those advances. This was a most interesting development but it reveals Russia’s possible strategy. Although it is possible Russia is playing a hardball game of negotiation, whereby they demand ironclad rights over the gas supplies, which probably were not offered at this early stage by the Cypriot minister, it could also mean that Russia is intent on keeping things in turmoil to prevent a deal being made by anyone, including the EU. I rather think they are doing both, with negotiations being the first plan, and prevention of a calm investment environment to scuttle any rival deals being the backup plan.

By targeting the small island country’s depositors, LaGarde virtually guaranteed the measure would fail because the Icelandic model of throwing all the politicians out of office and storming the castle was a possibility not accounted for by her. As anyone who follows politics knows, the best time to enact controversial change is just after an election, which gives the incumbent time to ride out the hostile reaction and rehabilitate his public image in time for the next election. Cyprus had just held their elections less than three weeks prior to LaGarde’s demands on its government, so LaGarde must have wrongly assumed that now was a good time to act. What LaGarde failed to realize was that the amount of bailout money being asked by Cyprus is a pittance when compared to the future earnings and leverage to be had when Cyprus’ gas holdings are developed. This meant that the Cyriots had options, including striking a deal with the Russians, going bankrupt and minting their own currency to pay debts, or driving a harder bargain with the Europeans, which is probably what will be attempted.

There are already indications that Europe is going to further cave in their demands. Although hard-edged talk of letting the Cypriot banks collapse continues, it seems doubtful that this will actually be allowed to occur because of the options already mentioned that are at Cyprus’ disposal. Furthermore, even if the other options never panned out, the resulting turmoil would only serve to benefit the status quo, and therefore Russia, while further weakening the EU financial markets. True, Russian depositors and the Russian government would initially suffer immediate losses because of their deposits in Cypriot banks, but in the long term, they would probably benefit by keeping the Cypriot gas supplies off line. Ultimately, the best course of action for the EU in light of the damage caused by LaGarde will be to offer the bailout anyway, and then immediately forge agreements for the exploration, development and sale of Cyprus’ gas, viewing the bailout money as grease for the skids. Germany has taken the position that they do not support the nationalization of Cypriot pension funds, which seems to show they do not wish to repeat LaGarde’s mistake, and is an indication of softening of their position.

From Russia’s perspective, once it is confirmed that a deal can’t be reached with the Cypriot government, it then becomes a matter of disrupting the political environment to the point where the gas lines simply can’t be developed. In a small island country where 36% of the Island calls itself the Turkish Republic of Northern Cyprus and is recognized only by Turkey as a legitimate political entity while being viewed by the rest of Cyprus and the world as occupied territory, it is not hard to imagine how Russia might foment political unrest.

LaGarde attempted to have her cake and eat it too. It didn’t work, and now she is paying the price. Europe is scrambling to repair the damage she has caused and align things so that the gas lines can be developed while Russia makes its own bid to gain control of those resources or stop them from ever being developed. The Turks may yet play a part in this drama as a foil to the power elite in the EU. Military action can’t be ruled out.


Although this article is protected by copyright (© 2013 Rich Rose Productions), it may be copied, transmitted, downloaded, republished so long as it is done so in full without any alterations and with full attribution to the author. This author can be contacted for freelance work at: author_for_hire_richrose@yahoo.com
03-23-2013, 04:27 PM #97
Shadow Mrs. Buckwheat
Posts:12,782 Threads:1,182 Joined:Feb 2011
(03-23-2013, 03:41 PM)DaJavoo Wrote:  Now, I'm beginning to question if the motive is saving the Euro or letting it collapse. It would appear they really have no alternative and are muddling through with this test case.

I suspect, as I usually do, that this is the show for consumption and the real action is taking place with the other hand in the hidden pocket. This talk from the politicians in and out of Cyprus is either spoofery ochestrated from the puppet masters or it is clutch-button-grab-ass from the bought and paid for assholes who are ad libbing off script.

The Germans have the most to lose if the Euro shits the bed.


That's why I 'go woo-woo' trying to piece together the money and the motives. dunno.gif Germany lost the war but Fascism still won.
03-23-2013, 04:31 PM #98
Octo Mother Superior
Posts:42,612 Threads:1,469 Joined:Feb 2011
Going after both Russia and LaGarde indicates there's a bigger game being played.
03-23-2013, 04:39 PM #99
Shadow Mrs. Buckwheat
Posts:12,782 Threads:1,182 Joined:Feb 2011
A man from Cannibal I knew
His country was run by a shrew
with high savings tolls
And capital controls
We just called his town Eeeyewwww

EU has turned cannibal.
03-23-2013, 04:49 PM #100
DaJavoo If looks could kilt
Posts:1,851 Threads:45 Joined:Mar 2011
(03-23-2013, 04:31 PM)Octo Wrote:  Going after both Russia and LaGarde indicates there's a bigger game being played.


Exactly.

Per the above article, the Russians are looking out for number one and by delaying the infrastructure development of the only thing Cyprus has going for it (LNG) they are pre-feathering their nest, which gives them a plus in the strategy column. (Guess they've had a long enough time to think on that one...)

The IMF logically thought that the Ruskies would keep their eyes on the rubles collecting dust in the bank drawers in Nicosia. However, looks like the agit-proppers intend to get it all.

Meanwhile, the Euro is sliding down the shït chute ~ gonna be fun watching wtf they pull out of their asses for a soft landing.
03-23-2013, 04:57 PM #101
Shadow Mrs. Buckwheat
Posts:12,782 Threads:1,182 Joined:Feb 2011
I think the IMF hasn't learned that pissing off Putin isn't a good idea. Georgia learned that in S Ossetia lol.gif
03-23-2013, 05:12 PM #102
DaJavoo If looks could kilt
Posts:1,851 Threads:45 Joined:Mar 2011
(03-23-2013, 04:57 PM)Shadow Wrote:  I think the IMF hasn't learned that pissing off Putin isn't a good idea. Georgia learned that in S Ossetia lol.gif


Oh, I think they conceptually knew about it but LaGarde was as eager as a junkie heating a spoon to keep the IMF in "charge" of the situation and by making ALL Cypriots shoulder the burden. The rest of the EU says 'hell yeah' because they are tired of their ox being gored with these "investments" aka bailouts. She thought of it as Kaopectate for the Euro.
03-23-2013, 05:17 PM #103
Shadow Mrs. Buckwheat
Posts:12,782 Threads:1,182 Joined:Feb 2011
iagree.gif Merkel is on thin ice too, Germans tired of bailing out other countries and a crucial election looming.
I hope they both have their big girl pants on.
03-23-2013, 05:19 PM #104
DaJavoo If looks could kilt
Posts:1,851 Threads:45 Joined:Mar 2011
(03-23-2013, 05:17 PM)Shadow Wrote:  iagree.gif Merkel is on thin ice too, Germans tired of bailing out other countries and a crucial election looming. I hope they both have their big girl pants on.


Or, their Depends. chuckle.gif
03-23-2013, 05:21 PM #105
Shadow Mrs. Buckwheat
Posts:12,782 Threads:1,182 Joined:Feb 2011
rofl.gif figured you'd catch that



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