Cypriot president says he was forced to accept EU bailout

This is a terrible move with potentially terrible consequences further down the line. The rational thing to do for individuals with money in banks in peripheral Eurozone countries is to withdraw their money from the bank as fast as possible and deposit it somewhere else, even stuffing under the mattress or buying something tangible like gold or diamonds.

Cyprus might be cited as a special case because of Russian money, but other struggling peripheral Eurozone countries could now also become special cases on any basis you wish to invent.

For banks in peripheral countries it potentially means their borrowing costs could go up & they'll pass those costs on to their struggling customers, it potentially destabilises them the minute the country they're situated in is nearing a potential bailout. That means the Eurozone may have to bailout more banks as there won't be any depositor confidence.

It helps further deepen economic divisions in the Eurozone, but I suspect German, Dutch, Austrian even Swiss & UK banks will benefit from a flight of capital seeking safety.

Also, in Cyprus's case why were small depositors also targeted? That seems unjust to say the least as the vast majority are not Russian Mafia or money launderers, just ordinary people trying to get by.

A very worrying and unhelpful precedent has been set.

I use the term "fictitious capital" to describe what the Big Bankers, public and private, are attempting to inflict on the ordinary 99% people who through their entrepreneur led labour create ALL REAL value, capital included.
In the middle of the 19th century Karl Marx coined this term to describe the notes and loans that governments and gentry used to finance wars, luxuries, estates and otherwise living beyond their REAL means. Only his term was really new, Aristotle and many who followed him before Marx, elaborated on the dangers of worthless money. Democratic Athens and militaristic Sparta supplied the concrete examples of value and fictitious (worthless).
At Marx’ time such paper would accrue during "Boom" times as the economy expanded and would usually max out at around 10-12% of a countries GDP. As long as the good times rolled on it was not a problem, but came a crisis of over production (of all the wrong things) there would be the day of reckoning. Ergo, the bill collectors came and cash not paper promises was the order of the day. This resulted in a variety of ways to settle; some were paid in part or in full but more often bankruptcies and swindles resulted. Then the stage was set for the next cycle - boom bust.
Today though the situation with 'fictitious' or 'counterfeit capital is vastly different.
100 years of pumped up growth for growths sake first based on the now discredited ideas of John Maynard Keynes has produced a situation where some 20 times the worlds gross product exists as fictitious capital, a counterfeit collection of deficits, bills, bonds, exchanges, derivatives, bubbles (real estate) swaps and the latest fraud, "quantitive easing". (Le Monde Diplomatique puts it at 50 times)
$$Dollars, Єєuros, RRubles, Ль, &с…all the same!!
To grasp the idiocy inherent in these figures imagine approaching your friendly personal banker for a loan, line of credit or mortgage some 20 times your net collateral worth; how far do you suppose that might fly?
Yet with the above listed gimmicks, that is precisely what members of the bankster clique, supported by military-industrial complexes do amongst themselves.
Every day we read of new Central and private bank meetings, "Increasing capital base" is their current fad.
OFF THE WALL! There is not a farthing of REAL capital in all of this rat-bag of lies, swindles and manipulations.
REAL capital is ONLY accumulated labour dedicated to enhancing future production. Ergo entrepreneur led LABOUR (of the 99%) is the only source that can augment existing capital or create new.
The banksters, led by the IMF, USA FED, and British "financial services" are well aware of this fact but that will not stop them from attempting to download this fraud onto the REAL product of Labour in the form of "bailouts" of "sovereign" debts, to be serviced by taxes on the REAL producers.
The 99% will be robbed of (much prepaid) social services and benefits to service "debts". “Austerity” it is called when those who had NO hand in running up this fraud are required to pay interest that will amount to 40-60% of the future product of their labour. Gone will be pensions, good schools, decent medical care, infrastructure (e.g. utilities that work reliably), environmental protection; even adequate diets will be history.
"Let them eat cake!" exclaimed La Royale Marie Antoinette.
Let them eat (genetically modified) garbage, implies La Grande Dame Christine La Garde, of the International Monetary Fascists(IMF)
So Greece, you are the front line today, Italy and Spain may be next, but do not think that any country, including the relatively well off Germany or the resource rich Canada and Australia will be forever exempt. Ms Merkel, beware!
The "poor little ones" are but appetizers; they will whet the appetites of these financial service vultures and jackals. For certain, like buzzards flocking to road kill. if they succeed in the beginning the taste of financial carrion will make them hunger for more, and they will finish only when the 99% of humanity is subject as debtors to enslavement by the 1%.
But this does not have to be!
Greece, Cyprus, you can repudiate the fraud! Lead the way! DEFAULT, Repudiate, is the way to go!
99%; be inclusive! Occupy-Idlenomore, Support Greece and Slovenia today, Italy Spain, …, &c. tomorrow and.../?/ the world in future.
Hold on to your souls! Hang tough!
You have a WORLD to WIN!!
P.S. For those of you who may have read this comment previously, Churchill’s advice immediately springs to mind:
“When you have an important point to make, don’t try to be subtle or clever. Use a pile-driver. Hit the point once. Then come back and hit it again. Then hit it a third time – a tremendous whack.”

Well I have just transferred my savings from my Spanish bank back to the UK. I am sure I'm not the only one to do it either. Any person who lives in Spain Greece Ireland or Portugal that doesn't take most of their cash out of the banks is taking a big risk. The only reason that Germany has done this to Cyprus is just to test the water. The next EU country that needs a bail out?......well! Just make all efforts to put your savings in a safe place, out of reach of the EU.

@ Philip royle
Good decision Philip. My worry is that they haven't thought this through.

Could be a good time to buy up the world's supply of second hand mattresses!!

Thank you George Mc. As this story was unfolding I rang one of my Spanish brother in laws. He is one of the few people I know that has an large lump of money in a bank. I told him what was being reported on the British press. It just so happened that he was watching the same story on the Spanish press. The stories were completely different.
While the UK press and news outlets were telling what we now know to be the truth. The Spanish news was saying it's all rubbish and nothing to worry about It was only extra bank charges and nothing more, an extra charge on the rates! and made no mention of the 6.75% tax on people with under €100,000. So he dismissed my claim.
It must have played on his mind as this morning I got a call from him and an apology. As I type he is sorting out his money so it's save and telling as many of his friends to do the same as quickly as possible.
This Cyprus thing is just to test the water. The next bail out, and there will be another, will be very interesting. How will the EU and Germany deal with the inequality of taking money from Cypriot private bank accounts and not from Spanish or Irish or Greek?

George Mc!! How bitter and twisted I must have become!! When I read your comment about buying up second hand mattresses, I immediately thought of the Mafia phrase "going to the mattresses". This refers to the scene in the Godfather when Sonny mobilises his forces agains the other Families and the Tattaglias for the attempts on Don Corleone's life - in effect, going to war and oh, how my heart leapt!! And then I realised that, yours being the voice of reason was referring to a hidey-hole to secrete one's savings!! I just need to calmmyself down now and wait for a genuine (no offence intended) "call to arms"!!
PS. I bet I get a visit from Britain's answer to the Stasi (we have got them now, you know!)

I would think your neighbour is in a very difficult position. I have recently retired and only lately have I developed an interest in things EU. I must admit to not being a natural political animal I find some of the things I read a tad over my head. But what I do read and understand very often leaves me quaking with rage!
My take on thing quite simple is that the EU is running at full speed just to stand still.
I have the benefit of having input from three EU countries. France where my sister in law has lived for over 40 years and all her children are French. My own family in the UK and of course my family here in Spain. What I know and what I hear from ordinary people fly's in the face of the EU and member states government propaganda.
For me the EU is like communism, a political ideal that doesn't work. The problem is that the big countries like Germany and France are keeping the whole thing going but it's all artificial. I have no doubt that somewhere in a German government building there is a document on Germanys exit from the EU. The same in France.
All their doing now is prolonging the agony.

Hey welcome to euroextremism. The brussels bankers are worse than the mob. I feel for the people of cyprus, we in the netherlands are starting to feel the crunch to. Our economy is in the second spot just in front of the greeks,gotta love the euro huh.
This is all a game , the bankers hold the purse strings in europe , and who are the bankers. Bilderbergers!!
They are empire building period, and all the countries in hotel california are just pawns. Get used to it folks euroextremism is not democratic and countries like cyprus are just going to loose for the bigger picture. Its one big created bailout show .
The next move from brussels will be,(we have to move swiftly with fiscal integration then all these problems will go away)??
Its good that van rumpass is going ,although i still dont know whos president he thought he was, and i dread the though of what his replacement will be .
They need to listen to the people and not the banks. Give us our countries and democracy back!!!!
And no im not a nationalist or populist or whatever they like to call people who dont agree with their beliefs. We in the netherlands are just as ripped of by brussels as the rest, and its time to stop the plundering...

George, Philip - you put me to shame. I only had my CCF uniform (RAF) which I had to return after leaving (being de-mobbed!) when I entered the sixth form. But what I lack in miltary training I can make up with a calm, well-controlled honicidal fury. Running berserk, I think the Vikings called it!!

By :klassen- Posted on : 18/03/2013

Really ! You just talked as one populist or nationalist!..

Klassen. You have me confused. You call me a nationalist and a populist (whatever that is?)
And yet you say 'The Brussels bankers are worse than the mob' and 'Give us our countries and democracy back' and then you say your not a nationalist ??????

Cyprus: A paradigm for Spain, Greece, Portugal and Italy
When the European historical leaders proceeded with the creation of the European dream, they had in mind a family which will respect human rights, freedom and of course its citizens. A family, which will look after its people, despite their ethnicity. A family, through which, solidarity, will create a better and a more prosperous future. It seems that, those European leaders, understood half a century ago that in order for a European country to prosper, their neighbours should proposer as well.
The economic crisis in Cyprus was mainly created by the exposure of the Cypriot banking sector to the Greek debt, which, as agreed by the EU leaders, was reduced with a haircut. The truth is that one month prior to this decision of the Greek haircut, and while the EU officials where assuring that the Greek bonds are guaranteed, the German banks were selling those bonds to the Cypriot banks with a discount.
Last Friday, the Eurogroup decided to send a small member state to an ongoing recession, while ignoring that the outcome of this decision will soon backfire to other EU members which are facing similar economic problems.
Last Friday, the European leaders acted as national leaders and not as Europeans, neglecting the fact we are all sailing in the same boat, adding to the slow death of the European dream.
Last Friday, the European leaders violated fundamental human and European laws and values, and imposed to the Cypriot government an all-out haircut on Cypriot deposits. This, naturally, created a panic which resulted in many depositors expressing their willingness to withdraw their deposits from the country. This will create an even bigger economic problem to Cyprus, with unforeseen outcome which will probably lead to more austerity measures. It is difficult for us to believe that Eurogroups decision was made in order to server the interest of the Cypriot and the European people, and everybody will have to wonder that once this decision was implemented to a small economy such as Cyprus, what will be the measures that will be introduced to Italy or Spain?
As a European and Cypriot citizen I believe in the dream of a united Europe, as it was perceived by Shuman, Monnet, Adenhaur and Spinelli. As a European citizen I am asking from my national parliament to act today as a European body and reject this agreement for the sake of the Spanish, the Italians, the Portuguese, the Greek and the Cypriot people. I am asking from our national members of Parliament to reject this agreement for the sake of the future of EU and for the sake of our children.

First priority for the EU is to purge itself of the British and their "financial services pimps of Wall st!

Only then will the EU be able to get away from fictitious capital - quantitive easing and all the rest of the sleazy Bankster tricks!!

Well said Justin and very true!

@ Don Latuske
Don, Please don't encourage Mr Tarbuck. Unless he is cut and pasting large articles from Pravda and the Morning Star he usually confines himself to short consistent sentences of Bollocks.

Lets start of again by saying im not a nationalist or anything of the sort. What i am is worried, i see a form of extremism developing and its in the zealous defence of a currency that is just to costly , not only financially ,but people are also suffering, and its not worth it.
Whats developing is euroextremism, and this by itself is worrying. They will do what it takes to defend this rotten currency. Country after country have fallen because of the euro. Poverty is on the rise, democracy is starting to stumble, and were all going bankrupt.
Whats wrong with this picture folks?
Any kind of extremism is just plain bad, regardless of origin.
The euro was create to stop extremism and is having the opposite effect, its just a disaster , and there are some countries whom seek opportunity and profit at the expense and downfall of some countries, this is so wrong, just plain wrong.
And yes to my countrymen from the netherlands, a referendum is a crok. In the 80s the dutch goverment signed into law a bill which states,(regardless of which constitution ,dutch integration into europe cannot and will not be stopped). The outcome of a referendum in holland is nonbinding, these are games rutte/samson are playing and are biding for time to fullfill their obligations to brussels.
The have sold the shop , lock stock and barrel , problem is most people in NL dont know it yet.

@ Justin Pugsley

Justin, no disagreement there. In addition because the EU foreign policy is guided by someone with no experience (Ashton,) with a strong guiding arm from Germany. They have not realised that the Russians may be looking for a replacement for their only 'warm water' port in Syria if that all goes belly up.
The Russians are many things but stupid is not one of them.

Philip, you're asking whether it is cock-up or conspiracy. I'd suggest the former. I don't think these people running the show are smart enough to conspire.

I agree though that events are providing real-world tests of various solutions, but to suggest this is all planned out, would be stretching the ability of Europe's leaders to think beyond their re-election.

terreverte and Justin thank you. But I am, like many scratching my head. If it is a cock up it's a monumental one and says more about the intelligence of the EU elite. They must be thick as pig s--t! Even I could see the problems, possible consequences and out comes as soon as I saw the deal. I just cannot for the life of me think that the EU elite or 'Them' are that thick. And may I add I am a complete Euro sceptic and wouldn't trust a politician as far as I could throw one! Which leads me back to a meticulously conceived plan by 'them'.
If it turns out to be a cock up, even the most die hard Europhile must have a moment of pause and think WTF!

Agreed 'an European' But I would say that Cyprus isn't the only EU country with buckets of Russian Mafia money. I would also suggest that Russia isn't the only country that has money hidden in EU banks. China?

Philip royle - Posted on :20/03/2013
Do you mean Secret Banking ?
Switzerland YES ! NOT the EU because the EU doesn't tolerate such secrets banks apart one EU-state Luxembourg!