The proposed Cyprus bailout is just all-round bad news. Not only for the Cypriots because as a condition of the bailout 10% of all individuals bank deposits are to be confiscated by the government to pay a share of the bailout by the IMF and the Euro bankers but also for any citizen of the Eurozone. For them it shows that your bank deposits are not safe and can be commandeered at any time. As we might say only in Europe eh. Don't count on it.
The situation is complicated partly because the exposure of Cypriot banks to the Greek economy and partly because Cypriot banks hold a lot of Russian money. Money that is rumored to be laundered. Consequently the European bankers did not want the European tax payers to put the bill for Russian organized crime. Hence the money grab which the government is calling a 'tax'. From the Cypriots view this is very unfair, affecting only one segment of society. The very rich have their money in off-shore banks and the very poor do not have any money in the banking system.
What must be particularly frustrating for the Eurozone countries that have severe economic woes is that every time a country requests aid they are dealt with in different ways. There is no consistency and there is no apparent fairness to the system Greece and Cyrus drawing the particularly short straws.
When will we learn? The system is broken all over the world and especially in Canada, we've been sheltered from a lot of it. I sadly suspect the Cyprus situation is just the beginning and if their government survives this, then how long do you want to bet that Greece and other cash strapped European countries will follow this example, and finally cross the pond to NA/Australia/like minded countries.
The DH and I woke up late in the game but we're agressively paying off any remaining debts we have and investing in self-sufficiency means so we can minimize exposure to the banking system.
How about the others out there, do you see Cyprus as a one-of, or are what are you doing to prepare for a possibly demise in the banking system?
For those unaware, here is one of many links that talks about it http://www.bbc.co.uk/news/world-europe-21819990
If life hands you lemons, be sure you have a battery backed up juicer to make some good ol' fashioned lemonade! 😉
The proposed Cyprus bailout is just all-round bad news. Not only for the Cypriots because as a condition of the bailout 10% of all individuals bank deposits are to be confiscated by the government to pay a share of the bailout by the IMF and the Euro bankers but also for any citizen of the Eurozone.
Minor correction: Cyprus will impose a levy of 6.75% on deposits of less than €100,000 - the ceiling for European Union account insurance, which is now effectively gone following this case study - and 9.9% above that. The measures will raise €5.8 billion, out of a 13 billion euro bailout.
In other words, if you're in the EU, your deposits are not 'your' money, but belong to those who choose to take them.
Disgraceful. 😡
I trust no bank or government, withdrew all my savings long ago for a number of reasons that should become more obvious over time.
These are a couple of interesting articles published today from the Natural News website
http://www.naturalnews.com/039522_Cyprus_government_looting_bank_accounts.html
http://www.naturalnews.com/039523_Cyprus_bank_robbery_runs.html
How about the others out there, do you see Cyprus as a one-of, or are what are you doing to prepare for a possibly demise in the banking system?
That is the only reason we prep, we are not in a big natural disaster area...we recently had major floods biggest since 1968 and it causes little more than temporary inconvenience 😉
We are doing the same, trying to wipe out our debt...so far we have subdivided our land and we have a buyer, just waiting on the final inspection for the subdivision to go through. That gets rid off more than half our debt and still leaves us with 100 acres.
Then we can make double, triple or more on the repayments, I want to put the remaining mortgage on fixed rates for 5 years so if we are ahead and if the banks fail or interest rates go through the roof we at least have years worth of payments ahead, but hope to have it totally paid for in about 3 years...assuming the banks last that long 😕
We have been working at becoming self sufficient for years...some years are good, some not so good. If we had to rely on it we would be eating almost nothing but chilli's this year...drought, heat waves then major rain falls pretty much destroyed most of the veggies this year!
http://www.stuff.co.nz/business/market-data/8440793/Market-falls-on-Cyprus-bailout-fears
Barely mentioned in the NZ papers - they're too busy talking about Pumpkin Patch not doing well.... This is major theft by governments and banks, in collusion, and barely gets a mention!! Call themselves journalists...! 👿
found this this morning http://news.sky.com/story/1066004/cyprus-bailout-terms-shift-amid-russian-offer
CBC>CA is stating that there is a run at the banks but I couldn't really find anyone else saying that so I did not bother to link to it.
Just my rant...thanks for listening/reading
Proud prepping Canadian...Beh Wii Eh?
found this this morning http://news.sky.com/story/1066004/cyprus-bailout-terms-shift-amid-russian-offer
CBC>CA is stating that there is a run at the banks but I couldn't really find anyone else saying that so I did not bother to link to it.
What they were reporting was a run on the ATM machines over the weekend and now all accounts are frozen and the banks are closed until this is completed.
Here's one article of many: http://www.forbes.com/sites/kenrapoza/2013/03/17/russian-oligarchs-lose-friend-in-cyprus-banks/
If life hands you lemons, be sure you have a battery backed up juicer to make some good ol' fashioned lemonade! 😉
The banks are closed today as it is a holiday there. However the Government has halted electronic transfers. Banks are now closed until Thursday as per BBC.
No surprise that Germany shipped all their gold back home well before this, It would have been planned for quite some time with Eurozone leaders. Not an overnight decision by any means.
No surprise that Germany shipped all their gold back home well before this, It would have been planned for quite some time with Eurozone leaders. Not an overnight decision by any means.
I was under the impression that Germany had requested the return of their physical gold, held in New York, and that they had been told some of it would be returned to them over a period of seven years....?
"A full and complete repatriation of gold assets, however, is not envisaged:
“The Bundesbank plans to transfer 300 tonnes of gold from the Federal Reserve in New York and all of its gold stored at the Banque de France in Paris, 374 tonnes, to Frankfurt. beginning this year,
By 2020, it wants to hold half of the nearly 3,400 tonnes of gold valued at almost 138 billion euros – only the United States holds more – in Frankfurt, where it stores about a third of its reserves. The rest is kept at the Federal Reserve, the Banque de France and the Bank of England. (Reuters, January 16, 2012)"