Monday, March 18, 2013

The Collapse of the Entire World’s Economic System has Begun! (Part 1)

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Fed Money Printing is No Longer Working: Karl Denninger Interview
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Mass Panic In Cyprus: The Banks Are Collapsing And ATMs Are Running Out Of Money
By Michael, on March 21st, 2013


European officials are openly admitting that the two largest banks in Cyprus are "insolvent", and it is now being reported that Cyprus Popular Bank only has "enough liquidity to cover the next few hours". Of course all banks in Cyprus are officially closed until Tuesday at the earliest, but there have been long lines at ATMs all over Cyprus as people scramble to get whatever money they can out of the banks. Unfortunately, some ATMs appear to be "malfunctioning" and others appear to have already run out of cash. You can see some photos of huge lines at one ATM in Cyprus right here. Some businesses are now even refusing to take credit card payments. This is creating an atmosphere of panic on the streets of Cyprus. Meanwhile, the EU is holding a gun to the head of the Cyprus financial system. Either Cyprus meets EU demands by Monday, or liquidity for the banks will be totally cut off and Cyprus will be forced out of the euro. It is being reported that European officials believe that the "economy is going to tank in Cyprus no matter what", and that it would be okay to let the financial system of Cyprus crash and burn if politicians in Cyprus are not willing to do what they have been ordered to do. Apparently European officials are very confident that the situation in Cyprus can be contained and that it will not spread to other European nations.
Unfortunately, European officials are losing sight of the bigger picture. If the largest banks in Cyprus are allowed to fail, it will be another "Lehman Brothers moment". The faith that people have in banks all over Europe will be called into question, and everyone will be wondering what major European banks will be allowed to fail next.
Meanwhile, European officials have already completely shattered confidence in deposit insurance at this point. Everyone now knows that when there is a major bank failure that depositors will be expected to share in the pain. Expect to see "bank jogs" all over southern Europe over the coming weeks.
The banks in Cyprus had been scheduled to reopen on Tuesday, but very few people expect that to actually happen at this point. In fact, Bloomberg is reporting that EU officials are actually thinking about shutting down the two biggest banks in Cyprus and freezing their assets...


Finance ministers for the 17 euro countries are considering a plan to shutter the two biggest banks in Cyprus and freeze the assets of uninsured depositors, said the four officials, who asked not to be named because the talks are ongoing. The ministers are holding a teleconference tonight.
Cyprus Popular Bank Pcl (CPB) and the Bank of Cyprus Plc would be split to create a so-called bad bank, one of the officials said. Insured deposits -- below the European Union ceiling of 100,000 euros ($129,000) -- would go into a so-called good bank and not sustain any losses, while uninsured deposits would go into the bad bank and be frozen until assets could be sold, said the four officials.
Losses to unsecured creditors, including uninsured depositors, could reach 40 percent under the plan, which has support from the International Monetary Fund and the European Central Bank. The proposal, a version of which was rejected last week, is considered a better option than taxing insured deposits or allowing Cypriot banks to collapse in a disorderly fashion if they lose access to ECB aid, the officials said.
Such a scenario would be an utter disaster.
How would you feel if you woke up someday and 40 percent of your life savings was suddenly gone?
According to Greek newspaper Kathimerini, European officials are also openly discussing the possibility of a Cyprus exit from the eurozone if a suitable bailout agreement is not worked out...


The possibility of Cyprus exiting the eurozone was discussed during teleconference involving technocrats from the Euro Working Group on Wednesday, Kathimerini understands.
A reliable source told Kathimerini that the technical implications of a euro exit, as well as the adoption of capital controls were debated by the Euro Working Group officials during the teleconference.

As I mentioned above, European officials seemed resigned to the fact that there will be an economic collapse in Cyprus "no matter what", and so letting Cyprus leave the euro would not make that much of a difference. Either way, the banks are going to have to be "reorganized" and capital controls will be imposed...


In detailed notes of the call seen by Reuters, the group’s chair Austria's Thomas Wieser said: “The economy is going to tank in Cyprus no matter what. Restrictions on capital will probably be imposed.”

Never before have we seen European officials impose such a harsh ultimatum with such a short deadline. It is almost as if they want to boot Cyprus out of the euro. The following comes from a recent CNBC report...


In stark twin warnings on Thursday, the European Central Bank said it would cut off liquidity to Cypriot banks and a senior EU official made clear to Reuters that the bloc was ready to see the bankrupt island banished from the euro in the belief it could then contain damage to the wider European economy.

And European officials are even publicly talking about the possibility that Cyprus will soon need to start using "their own currency"...


In Brussels, a senior European Union official told Reuters that an ECB withdrawal would mean Cyprus's biggest banks being wound up, wiping out the large deposits it has sought to protect, and probably forcing the country to abandon the euro.
"If the financial sector collapses, then they simply have to face a very significant devaluation and faced with that situation, they would have no other way but to start having their own currency," the EU official said.
This is absolutely shocking. Everyone always thought that Greece would be the first to leave the euro, but now it looks like it might be Cyprus.                 
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Farage: EU wants to steal money from Cypriots bank accounts 
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However, there is still a chance that Cyprus may find a way to comply with EU demands. Politicians in Cyprus are frantically searching for a way to raise the needed cash without raiding private bank accounts. The following is what CNN is saying about the latest efforts...


Leaders of Cyprus' political parties agreed Thursday to create an "investment solidarity fund," which would issue bonds backed by state and church assets.
The plan was due to be discussed by the Cypriot government and parliament on Thursday evening, but few details were available and it was not clear how much the fund would be worth.

According to Reuters, other proposals have been under consideration as well...


The government said a "Plan B" was in the works.
Officials said it could include: an option to nationalize pension funds of semi-government corporations, which hold between 2 billion and 3 billion euros; issuing an emergency bond linked to future natural gas revenues; and possibly reviving the levy on bank deposits, though at a lower level than originally planned and maybe excluding savers with less than 100,000 euros.

At this point it is unclear whether any of those proposals will turn out to be acceptable to European officials.
In fact, the tone of European officials has noticeably changed from previous bailout efforts. They now seem much more willing to play hardball. For example, just check out what German Finance Minister Wolfgang Schaeuble is saying about the situation in Cyprus...


German finance minister Wolfgang Schaeuble told the ZDF public broadcaster on Tuesday night (19 March) he "took note with regret" of the Cypriot parliament's rejection of the bailout deal, but insisted that the terms will stay the same.
Asked if the eurozone was willing to let Cyprus go bust, he answered: "Well, we are much more stable in the eurozone - we took measures to protect ourselves from the risks of contagion ... but I don't want to have any of this."
He added: "It is a serious situation, but this cannot lead to a decision that makes absolutely no sense, to rescue a business model that has failed. Cyprus has a banking sector that is totally oversized and this made Cyprus insolvent. And nobody outside Cyprus is to blame for it."

Schaeuble knows that the EU is holding all of the cards and that Cyprus is doomed without their help...


"The Cypriot state cannot fund itself on the markets. Its two largest banks are insolvent and are being kept afloat with emergency funding from the ECB, but only on the condition that there will be a long-term rescue programme. If this condition is no longer met, Cyprus will no longer be solvent and this is something Cypriot decision makers must know"

But the truth is that the EU can't really afford to allow major banks to fail or for a single member to leave the eurozone. If either of those things happen, the confidence game that has been holding the European financial system together will begin to rapidly evaporate.
If the EU thinks that they can abandon Cyprus without the crisis spreading to the rest of southern Europe they are just being delusional.
At least there are a few politicians in Europe that understand what is happening. Nigel Farage, a very outspoken member of the European Parliament, is telling people to get their money out of banks in southern Europe as quickly as they can. He is warning that a great collapse of the European financial system is coming and that people need to get prepared for it...
So what do you think?
Do you believe that we are on the verge of a major financial collapse in Europe?
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There are none so blind as he who will not see!
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The Cyprus Great Bank Robbery
James Hall
March 20, 2013
http://www.batr.org/negotium/032013.html
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When does banksters’ extortion become outright theft? The latest example and escalation by the placing a levy fee on bank deposits in the tax haven of Cyprus illustrates the bold step of seizing private liquid saving accounts, under the guise of a government tax. The prospects of an all out run on the banking system have jumped tenfold. Essentially, a government is using the power of the state, to steal funds not because of the bankruptcy of a banking institution, but because of a failure of the entire EU financial system. The forbidding precedent of a seizure of individual wealth, by a stroke of a pen, runs contrary to the shrinking confidence in fiduciary trust of cash placed in banking accounts.

The risk of pronounced turmoil in financial markets has just elevated, as the harsh reality of surrendering your economy to the demands of an untenable debt burden dictatorship, is obvious to anyone with a bank account. The savings of a lifetime is now subject to
confiscation. The pitiful explanation of Cypriots' president defends bailout deal, clearly reveals that the globalist financial central bank system is determined to impoverish individual nest eggs.


"President Nicos Anastasiades said Cyprus had little option but to accept the bailout deal, which imposes a levy on the country's bank deposits - an unprecedented step in the eurozone crisis. Without it, he said, Cyprus' banking system would have collapsed on Tuesday.
Anastasiades said that's when the European Central Bank would have stopped providing emergency funding to Cyprus' troubled banks. Such a collapse would have driven the country to bankruptcy and possibly out of the eurozone, he said."
A departure from the eurozone is a preferable alternative to a bank burglary of your saving
account. The interview in, 'Europe's Citizens Now Have to Fear for Their Money' admits the worsening plight of added debt. "The euro-zone partner countries seeking to provide Cyprus with a bailout view the participation of small-scale depositors as a necessary evil. This is because any aid provided by the long-term euro rescue fund, the European Stability Mechanism (ESM), would be added on top of Cyprus's national debt." Now the excuse used by the establishment press to soften the blow of systematic larceny points to the Russian Oligarchs Lose Friend In Cyprus Banks, as exoneration for tapping the pocketbooks of shady elements. "Cyprus is known as a hot bed of Russian money laundering." Well, that justification surely does little to make whole the struggling Cyprus natives that can ill afford the hit.
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The videoCyprus savers- EU bailout prompts run on Cyprus banks, tells a sad tale of financial enslavement.
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The article, Russian Ruble, Stocks Nosedive on Cyprus Debt Crisis outlines the initial response to the announcement. "Under the terms of the bailout deal, Cyprus will have to impose a levy of 6.75 percent on deposits of less than 100,000 euros and 9.9 percent on deposits with greater sums. Cypriots reacted with shock and rushed to cash machines to withdraw their savings, but many machines refused to pay out."
Not long thereafter, The Telegraph newspaper reports on plan B, a feeble attempt to gain legislative support to pass the measures. "The Cypriot government has submitted a draft bill to parliament scrapping a controversial levy on bank deposits up to €20,000, amid calls from its central bank governor and eurozone finance ministers to ramp the exemption threshold up to €100,000."



The perspective analysis from ZeroHedge warns of the unintentional consequences from this pompous scheme of outright larceny in the essay,



"As Monument Securities' Marc Ostwald notes "there's a 50/50 chance Cypriot bailout fails because of the 'massive danger' a large amount of Russian cash flees Cyprus following deposit tax plans." Russia has ~$60 billion exposure to Cyprus, including loans to companies registered in the country and after the haircut 90% of Russian deposits will still be free to leave the country if the levy is approved.
The critical point is that, should this occur (such a large outflow of Russian cash - dwarfing in fact the size of the bailout package itself) it is hard to see how the Cypriot banking system could survive (even with the assistance of the ECB's ELA)."
Predictably, Forbes waters down the unprecedented destruction of banking confidence that is so indispensable for the megabanks to rape sovereign nations. The Bailout For Cyprus: A FAQ To The Latest European Financial Crisis, makes it sound that the panic is simply business as usual.
"And here’s the larger picture. Cyprus is badly indebted. Its debt-to-GDP ratio pushed to 127% in the third quarter of 2012, the latest period tabulated by European Union officials. Such high debt reflects Cyprus’ ill financial health. Only Greece (at 153%) has a higher level. The bailout would begin to reduce its debt, sending it back below 100% of GDP within the year."
So what can be expected in future confiscation of depositor funds? Prepare for the ultimate run on the banks, before the formula from the great vampire squid -
Goldman's Cyprus Post-Post-Mortem: "A Depositor "Bail-In" – And/Or – A Wealth Tax", is applied on all deposits.
"Despite Cyprus being small, and arguably unique, a depositor in a peripheral bank is likely to ask the obvious question: how likely is a deposit tax for me? The answer to this question, we believe, will differ, depending on the peripheral country where it is asked. But it should, in essence, boil down to two issues: (1) how likely are savings to be bailed-in in any future bank rescues; (2) how likely are savings to emerge as a tax-base for any future wealth taxes?"
The Cyprus banking holiday is the forerunner of an international overt robbery by banksters.
The biblical relief of a Jubilee, that writes down and forgives debt, is desperately required to end the financial slavery to the shylock swindlers. The centralization of global banking has an inevitable financial collapse as the end game. Today Cyprus, Tomorrow the World. The Cypriot vote to reject the savings tax gives a short breather to a situation that only a breakup of the EU can resolve.
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Cyprus: "Daylight robbery"

Coming to a bank account near you
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National planning Cyprus-style solution for New Zealand

Tuesday, 19 March 2013
Press Release: Green Party
National planning Cyprus-style solution for New Zealand
The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.
Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.
“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.
“The Reserve Bank is in the final stages of implementing a system of managing bank failure called Open Bank Resolution. The scheme will put all bank depositors on the hook for bailing out their bank.
“Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.
“While the details are still to be finalised, nearly all depositors will see their savings reduced by the same proportions.
“Bill English is wrong to assume everyday people are able to judge the soundness of their bank. Not even sophisticated investors like Merrill Lynch saw the global financial crisis coming.
“If he insists on pushing through this unfair scheme, small depositors can be protected ahead of time with a notified savings threshold below which their savings will be safe from any interference.”
Dr Norman questioned the Government’s insistence on pursuing Open Bank Resolution when virtually no other OECD country uses it.
“Open Bank Resolution is unprecedented in the world. Most OECD countries run deposit insurance schemes which protect people’s deposits up to a maximum ranging from $100,000 – $250,000,” Dr Norman said.
“OBR is not in line with Australia, which protects bank deposits up to $250,000.
“A deposit insurance scheme is a much simpler, well-tested alternative to Open Bank Resolution. It rewards safe banks with lower premiums and limits the cost to taxpayers of a bank failure.
“Deposit insurance will, however, require the Reserve Bank to oversee and regulate our banks more closely– a measure which is ultimately the best protection against bank failure.”
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High Noon in Nicosia: what really went down in Cyprus?


By Anthony Migchels for Henry Makow and Real Currencies
March 19, 2013
http://realcurrencies.wordpress.com/2013/03/19/high-noon-in-nicosia-what-really-went-down-in-cyprus/
 (left: one of those Cypriots holding the bag)     In a stunning, but inevitable development, savers are getting a haircut in Cyprus. Raping depositors, however necessary if they insist on keeping the banks open, will only further erode confidence in the system. Did the Money Power miscalculate? Are they upping the ante in preparation for their endgame? Or was their hand forced by mounting German opposition?'The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks. - Lord Acton
It is not clear yet how things will go in Cyprus. The Finance Minister has resigned and the governing party is abstaining from the Parliamentary vote. The depositor bail-out seems doomed. After shrugging off the crisis Monday, world markets have adopted a more negative tone today.
The EU will bail out Cyprus to the tune of 10 billion euros if they comply.
The spin-machine came up with a story that the main target was Russian holdings in Cyprus, which is an off shore hub for all sorts of shady fortunes, including those of the Oligarchs. Putin denounced the package as 'unjust, unprofessional and dangerous'. However, the stakes involved here are way too high: grabbing a few Russian billions is not the agenda behind destroying depositor confidence worldwide. But apparently Putin's constituency is hurting, because a little later he actually offered to participate in the Cypriot bailout. Almost half of the $90 billion in Cyprus banks is Russian money, awaiting reinvestment in Russia. 40,000 Russians live on the island.
Apparently, the 'rescue' was forced upon Nicosia by the threat of being kicked out of the euro. It's amazing that this 'threat' still holds sway, after five years of this nightmare and with the clear example of Iceland. Cyprus, as a small nation, seems to be similarly positioned. Undoubtedly, behind closed doors, the threats were more strenuous.
Cyprus is probably just a test case, to monitor global reactions. The country is irrelevant, with only 0,2% of Euroland's GDP.
The euro may not fail, because if it does, they will never be able to sell World Currency. If they can't even make it work in Europe, how is it going to work on a global scale? That's the reason why all member states are kept on board at whatever cost, either to Brussels, Frankfurt, the national economies or even, it seems, the banking system itself.
It's not unfair
The story of today is about those poor savers that did absolutely nothing wrong, are indeed the backbone of the economy, and are now being mauled so badly. But this celebration of victimhood is not to the point. What is really absurd, is forcing the taxpayer to guarantee the holdings of savers. Meaning the poor guarantee those that actually do have money. The taxpayer guarantees of deposits always were a clear sign of banking supremacy. Banks have been going bust routinely for centuries and nobody would have kept a dime with them, without the depositor guarantees. It's just another example of how they privatize profit and socialize loss.
The truth is that the banking system could not exist without savers and the banking system is the scourge of the world. So savers are not only insanely irresponsible with their own money, they're backstabbing all the rest of us too with keeping their money in banks. True, very few will agree with this line, but it seems the inescapable conclusion of a clear cut analysis of our long term predicament as interest-slaves.


So what's the story?
What are the forces driving this seemingly suicidal step?
During the negotiations about the 'rescue', the issue of the Bond holders was of prime importance. Prime Minister Juncker of the small Bankster nation of Luxemburg warned against a Bond holder haircut and indeed they seem to have been spared. Although viper bank Barclays warned that even touching deposits was a clear threat to Bond holder confidence. The Bond market is everything in finance and we'll know the end is there if they quit the market. They paid in Greece, but it seems they managed to scare the Germans and the IMF away from their assets this time.
This is in fact a crucial trade off: lest we forget, the Bond holders are mainly the international banking cartel itself. So either it pays for the debt crisis they created themselves with direct haircuts, or by raping the depositors, whose confidence they need in the long run. And of course: making the banks pay just creates a new round of busts for the 'too big to fails', 'forcing' the taxpayer into a new round of bailouts.
The key driver behind the Euro crisis is the Money Power agenda of consolidating power in Brussels. The issue is fiscal union. Over the last few decades a lot of political power has been centralized in Brussels. About half of European legislation is already from there, instead of national capitals. But real political power is with those running the budget and that's what Brussels is after here. The Euro crisis' main goal, from the Money Power's point of view, is to sucker people into handing over the power over their budgets to Brussels. How this is achieved is of lesser import, there are several ways.
One of them is the infamous European Stability Mechanism (ESM), an utterly tyrannical outfit, financed by the Nations and run, without any democratic oversight, by a commission of finance ministers. The ESM's goal is to bail out any bank even before it becomes a problem. The ESM is backed by a law forcing the nations to cough up any sum the ESM demands within seven days.
The other is ECB money printing. The big difference between the Fed and the ECB is, that the Fed is backed by only one Government and the interests of the Fed and Washington are highly aligned. The Fed will always provide Washington with whatever liquidity needs. The US cannot go bust, because the Fed will always print whatever is needed. Nowadays, with nobody buying US Treasuries, the Fed simply provides the Government with all the money it needs at close to 0%. This is not possible in Europe, because if the Spanish need money, all other Governments, most notably the Germans, are on the hook for it.
This is the reason why the US has not found itself in the kind of debt trap that destroyed Spain, Italy, Greece, Portugal and Ireland. Had these nations still been able to print their own money, they would not have had these problems either.
Structural ECB money printing would make a mockery of 'fiscal independence' and would create an almost unstoppable driver for further fiscal integration, as all the nations would in effect be guaranteeing each other and the weaker nations would have to comply with the stronger nations' demands.
This was the real 'break through' behind ECB boss Draghi's 'we'll do whatever it takes' back in July 2012: what he was really saying was that the ECB, for the first time, would interfere in the sovereign debt market in a major way: printing to keep borrowing costs down for the PIIGS nations. However, although the Germans backed this statement, gnashing teeth and all, they are far from willing to go all the way. They are not going to allow a real debasement of the euro. Most certainly not if they are on the hook for it.
German support for the euro is still fairly strong. The country has benefited immensely from the crisis. Structural imbalances have provided Germany with great exporting opportunities throughout the zone. The nation has seen a massive capital influx from money leaving the South due to lack of confidence. This capital has generated a bit of a boom while the rest of the world burns. But while Germans love the upside of European Colonization through the euro, they hate the downside: backing Southern debt. Merkel is dealing with plummeting confidence and recently an anti Euro party was launched.
People like Merkel and Schauble (the German finance minister who also coordinated the Cyprus deal) are total NWO insiders, but most lower politicians are kept in check with 'political correctness' and with the mounting pressures of the crunch, this shallow veneer is becoming ever more fragile. Nationalism, a lethal enemy to Globalism, is rearing its almost forgotten head and the utter disgust with the bankers and local elites are becoming hard to avoid.
So we see two basic conflicts: one being the hard choice for the bankers of either being shorn themselves or to rape the depositors they need in the long run and on the other hand the German refusal to pay the price for the great benefits the euro has brought them.
Of course, the tensions in Europe's South continue to escalate also. Only a few days ago the Spanish police took to the streets to apologize to the people that they were fighting them, instead of arresting the Bankers. In the Netherlands, another key member, people are refusing austerity to destroy their economy like it did in the PIIGS nations.


Conclusion
The euro may not fail. If it does, it would be a devastating blow to the agenda of World Currency. Rest assured that the Cypriots were threatened with sulfur and brimstone.
The original German demand seems to have been taking 40% of deposits, to avoid further (German) tax payer or ECB involvement. Obviously this is not sustainable: just this Cyprus thing is going to have major consequences. Already we hear of taking 15% of Italian savings but this is not doable. It would mean war. The Italians just did away with Goldman Sachs alumni, Trilateralist and German backed strong man 'Super' Mario Monti . They went for Beppe Grillo and it's not hard to imagine what he would make of such a move. We would see quick new elections in Italy and the end of the current order.
Throughout the South local elites face extinction. In the US it is clear the Government is preparing for civil war, depleting national ammunition production, buying thousands of tanks for the DHS and the recent confirmation of manned and ready internment camps throughout the United States.
Of course, many rational real solutions are available to the credit crisis. But all of these imply the end of banker hegemony and that is, after all, what it is all about.
It remains impossible to fathom it all in real time. Their smoke and mirrors will always fool us and only with hindsight can it all be really understood. But the question of today is: is the Money Power still in control and preparing for a final showdown, or is all this a sign of weakness? It seems fair to say we will know the answer to this question perhaps sooner than most might have imagined.
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Cyprus: Your Money is Their Money

by Bernard Grover


The first thing we should all learn from this is that your money is not yours.
The second thing is don't put any of 'their' money in 'their' banks.
Keep it in your mattress and make them work for it just like you did.
What would you do if you found that your money was not yours? What if you found out that you were 10% poorer than when you went to bed?
If you live on a sleepy little island in the corner of the Mediterranean Sea, that is exactly what happened to you.
Yielding to pressure from the IMF and the EU, the Cypriot government agreed to steal nearly 7% of all Cyprus bank deposits up to 100,000 euro, and almost 10% of all deposits over that amount, and hand it over to the banksters. (gasp! shock!)
Why? Because the government of Cyprus had been arm-twisted into buying Greek bonds as part of an earlier bailout scheme. When Greece defaulted on the bonds, the banksters wanted their money back. Damn the little guy and his hard work and desire to save for some future reward.
The first thing we should all learn from this is that your money is not yours. The second thing is don't put any of 'their' money in 'their' banks. Keep it in your mattress and make them work for it just like you did.
CYPRUS
It's no small irony that Cyprus always has been a major cog in what Joseph Farrell calls "the international bankster class" operations. In his book, Babylon's Banksters, Farrell traces the history of money and banking from the dawn of recorded history.
What the whole thing comes down to is that the euro, like most of the world's currencies, is private money created by private banks. When they want some of it back, they are well within their theoretical rights to take back their 'property', which they only lent to you and me (at interest, of course). We mere mortals, having agreed to use their property to conduct our daily activities, have wittingly or not agreed to their terms. It's a simple, if rather obscure, contractual arrangement.
What causes me no end of head-slapping is that we just don't seem to get it. We are shocked when we realize that our 'money' really belongs to someone else and we have just been allowed to use it, like borrowing the neighbor's lawn mower or something.
A lot of conspiracy theorists talk about a 'one world currency' and how 'They' are driving us into it. Little do they know that a single global currency would not serve the bankster purposes. Since the beginning of our history, 'They' have fostered incompatible currencies and then sat back and reaped gobs of wealth by being the only group able to convert one to another. If there were a single global currency, it would put a major dent in their operations.
Rather, they want to simplify the math and create two or three (trilateral) currencies, which would need to be traded and converted in the course of commerce. It's little more than a carefully hidden private tax on business dealings.
As Farrell points out, even in the earliest times, the West used gold bullion, while the East used silver. Thus, the traders in the middle reaped a tidy profit converting them back and forth. And just like Sparta (then) and Libya (now), anyone who didn't play their game got a good ass-whuppin'.
Back to Cyprus. The Cypriots really don't have the right to be angry in strictly legal terms. They consented to use private paper to conduct their business transactions. Furthermore, they didn't raise a fuss when the IMF/EU arm-twisted their government into buying up a bunch of worthless Greek bonds. Now, when the chickens come home to roost, they are upset. Sorry Charlie, 'shoulda seen that one coming.'
The only way out would be to follow the Icelandic model and repudiate the debt, sever all ties with the IMF/EU and throw the banksters in jail.
One caveat: they had better arm every Cypriot to the teeth and be ready for an invasion. That's the bankster ace in the hole. They always have ready 'enforcers' for just those kinds of situations. The one thing Iceland had going for it is that there ain't much there to fight for, other than some principles.
Cyprus, on the other hand, has always been a key trading post between the Occident and Orient. Right now, Cyprus is a key base for launching attacks on Syria, Lebanon and other points of interest to the Zionists. It must remain within the Western hegemony.
BACKLASH?
What is worth watching is how the Cypriots react. Most likely, there will be some rioting and hording, but eventually folks will knuckle under or lose food and energy imports. If they continue to stand up to the banksters, then the island will be invaded by...say, the Muslim Brotherhood from Syria. Either way, the banksters seemingly hold the winning hand.
Really, the only way out of this mess is a tripartite attack on the bankster class: widespread democratization of hyper-dimensional energy (i.e.-zero-point energy); complete and utter rejection of GMO foods; and, the issuance of publicly-controlled currency in whatever form.
Short of that, we are all well on our way to the Cypriot model. The banksters have already seized north of $8 trillion in the US, and similar reclamations of private property are running apace worldwide. Cyprus is only the latest and currently most visible example.
The most likely outcome is that people will generally roll over and take it. Why? We've all been trained by religion to wait for some outside force to come in and clean things up for us. This mentality has been carefully fostered by the banksters over centuries to keep us all complacent and docile. In other words, Karl Marx was right on that score.
From the bankster pov, the ideal response will be that of the US, where folks stirred for a moment, grumbled, then went directly back to sleep. Instead of becoming angry, we will all run to the churches to listen to the bankster prophets tell us that our savior is coming...just wait (another 2,000 years)!
And so it goes...history repeats and rhymes and no one does anything really constructive to fix things. It is said that we use roughly 10% of our brains' capacity, which happens to be the same amount of money being confiscated by the IMF from the Cypriots. Maybe we are using the wrong 10%.
Bernard Grover is a freelance writer/producer/director living in Jakarta, Indonesia. His work has appeared in film, broadcast and major publications on- and off-line. Bernard publishes the Life on the Far Side blog and produces Radio Far Side.
Makow Comment: I am not as cynical as Grover. People will not fail to learn this lesson and the banking system will be irreparably damaged.
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DHS Insider update: It has begun
Our current financial situation was not bred out of incompetence, but by design
Doug Hagmann
Monday, March 18, 2013

Much like my high-level source within the U.S. Department of Homeland Security outlined in a series of interviews beginning last year, the orchestrated collapse of the U.S. dollar and the entire world’s economic system has begun. The first shots in a global economic take-over were fired in Cyprus as my esteemed colleague and founding editor of Canada Free Press, Judi McLeod laid out in
frank detail in her column yesterday and her follow up today.
Please read it and heed her advice, or suffer the consequences of your own normalcy bias that such an event will not happen in the United States, Canada, or from wherever you might be reading this. It will, and the plan appears to be on schedule for a shot across the bow later this spring here in the West, with a more aggressive take-over starting sometime this fall, according to my source.
The Plan
To those needing a quick refresher, the plan is quite simple and can be summarized by the Clinton-era quip attributed to political strategist James Carville, “the economy, stupid” and the June 9, 2010 statement by former Obama czar Van Jones, Socialist extraordinaire, “top down, bottom up, inside out.” It is a plan for a one world Communist economy where the “middle class” will be wiped out through a series of events that will have the same ultimate effect as we are seeing in present day Cyprus.
Based on the events in Cyprus, it should be quite clear to even the most vocal critic of the legitimacy of the information provided to me by my source within the DHS as published on this web site is no longer at issue. The U.S. dollar, the backbone of world currencies and the proverbial firewall preventing the erosion of our national sovereignty, is the ultimate target of a takedown by the global banking interests controlled by a handful of banks and families of the “royal elite.”
The plan for a global currency or a one world economic order is a matter that transcends political parties. Those who continue to argue in the Republican-Democrat meme are doing nothing more than providing entertainment to distract people from the real issue, that of the global elite versus the rest of us. The top of the pyramid in this Ponzi scheme is filled with members of both U.S. political parties who are systematically pillaging us and our future generations into financial debt, bondage and slavery. It is a plan that has been in the works for centuries. The problem, however, is that we have been conditioned not to think that big. Yet, the lie is that big.
The parties
Our current financial situation was not bred out of incompetence, but by design. The occupancy of Barack Hussein Obama as the putative President of the United States was a plan in the making long ago, to usher in this oppressive system where we will be left at the mercy of the global ruling class. It is not by accident that we have been prevented from knowing exactly who this man is, from the controversy of his birth records to his college transcripts and even his social security number. Contrary to what the state-controlled media wants you to believe, these questions have never been answered with any measure of authenticity.
For example, does anyone honestly believe that it is merely a coincidence that Obama’s alleged mother, Stanley Ann Dunham-Soetoro, just happened to work with Timothy Geithner’s father, Peter Geithner, at the Ford Foundation in Indonesia? Is it reasonable to believe that the Republican party had no knowledge of the background of Barack Hussein Obama? Yet not one word from the Republican establishment as they not only watched, but facilitated the takeover of the United States from within. As I’ve written before, our nation is a captured operation.
The plan was set into motion long ago, stemming back to the founding of the United States and the temporary resistance to the central banking system. In 1913, the creation of the Federal Reserve set the countdown clock in motion for the complete subjugation of the United States to the interests of the global bankers and the global elite. The secret supra-governmental cabals such as the Council on Foreign Relations and the Trilateral Commission worked behind the scenes, under the cover provided by the complicit media, to bring us to this point in history. Perpetual wars were induced to occupy the masses while the chess pieces were placed into their current positions. We are now about to pay the price for our inability or unwillingness to confront the establishment and incremental advancements leading to our own demise.
DHS source: Everything is not “coming up roses”According to the most recent information provided to me from my source within the Department of Homeland Security known as “Rosebud,” the final preparations are being made to deploy heavily armed federalized forces onto the streets of America. They will be deployed under the pretext of “restoring and maintaining order from the chaos brought about by the economic collapse,” adding that “many will demand and embrace their deployment on the streets of America. They will get what they ask for, and more.
Much like the security theater we have seen following the attacks of 9/11, we will be subjected to the jack-booted control of a federal army whose allegiance is not to the American people, but to the very architects of the chaos.
“This is the reason that drones are flying over U.S. cities and farmland, and gun control legislation is on the fast track for complete implementation,” stated this source. “How can people look at the situation in Cyprus and not think it won’t happen here? It will, and the blowback will be unlike this country has ever seen. Surveillance, disarming the public, and conditioning the people to believe it’s for their own safety is and has been part of the plan all along. Anyone owing a gun will be demonized and described as contributing to the problem.”
“What happens when the middle class loses much of their wealth, or it is confiscated, by the stroke of a pen or a keyboard? What will the stores look like when people, unprepared due to the damn lies of the corporate media and the shills for the ruling elite, run to empty out everything they can get their hands on as the world, as they know it, collapses around them?”
It was during my most recent contact with my source yesterday that he admitted that the situation will be blamed not on the bankers and the elected leaders who are raping us of our wealth and buying power, but on “right-wing, gun-toting Conservative ‘militia’ groups who believe that the situation is orchestrated.” And, of course, it is orchestrated.
“There is no Republican-Democrat argument to be made anymore. It’s all political theater to keep the majority of the masses occupied while the true enemy has already captured both parties,” he added. “They are all in on it, either knowingly or unwittingly, the takeover, that is. And it’s getting harder to believe that there are any who are unwitting accomplices at this point.”
“When the curtain is pulled back to reveal the true agenda of a single digital world currency, the people who have been yelling the loudest about such ‘conspiracy theories’ will be specifically singled out and demonized. They will be blamed for causing the panic we will see, and of course, dealt with by the army we asked for, accepted and even tolerated.”
Anyone who still believes that the information provided by this insider is “doom porn” or some self-created fantasy need to look at the events taking place in Cyprus. It’s coming to America. It has already begun.
Copyright © Douglas Hagmann
Douglas J. Hagmann and his son, Joe Hagmann host The Hagmann & Hagmann Report, a live Internet radio program broadcast each weeknight from 8:00-10:00 p.m. ET.
Douglas Hagmann, founder & director of the Northeast Intelligence Network, and a multi-state licensed private investigative agency. Doug began using his investigative skills and training to fight terrorism and increase public awareness through his website.
Doug can be reached at: director@homelandsecurityus.com
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EU theft of private bank accounts a “sacrifice” to mainstream media
Meanwhile, pray that what is happening in Cyprus this weekend is not precedent setting for other nations
Judi McLeod
Monday, March 18, 2013
The mainstream media downplaying of what is happening in the Mediterranean Island of Cyprus this weekend is already muddying the water.
Tens of thousands of unwitting little people have had their bank accounts ripped off over the long weekend by their own government, in a fashion where their ripped off funds were already a fait accompli before word began to leak out over social media.
Media downplaying notwithstanding, the unvarnished truth about what is happening in Cyprus is both precedent setting and staggering in dimension.
Yet mainstream media reports are already describing the robbery of ordinary depositor’s money as a “one-off levy”, and writing “the first time a deal has called for savers to sacrifice some of their cash holdings”.
As the Brits, who have already come to the rescue of their military personnel and ex-patriots would say: “Bollocks!”
The European Union is run by mainly socialist politicians whose agenda is based on the redistribution of assets and goods. America, on which so many other countries in the world are dependent, is now under the clutches of a Marxist president following the same playbook.
Outgoing President Demetris Christofias of Cyprus is a Communist. They say Christofias was the “only” Communist in the EU, but how far away from Communism is Socialism?
An indication about how the EU socialists feel about communists? Under the EU’s rotating chairmanship, Christofias, the communist, chaired EU meetings from July 1st until the end of 2012.
Describing the 9.9% levy on savings over C100,000 and a 6.75% levy on savings below C100,000 as a “one-off levy” would be akin to a caught-in-the-act bank robber saying he was only planning to rob the bank once. Stealing money from savers then describing it as sacrificing some of their cash holdings, is an outrage.
The governments of our day never sacrifice, many getting rich while serving public office.
The story of the Cyprus levy on savings is further clouded by media chatter about the Russian banks’ cross-board loans to Cypriot-based Russian companies which totaled $30-40 bn at the end of 2012, or equal to 15-20 per cent of Russian banks’ capital base in Russia, and 5-6 per cent of their gross corporate loans.
Ordinary bank depositors should not lose out no matter how many cross-board loans to Cypriot-based Russian companies exist.
Nor are big banks in bed with big government politicians an anomaly peculiar to the beleaguered Island of Cyprus.
The hypocrisy of socialists in bed with big banks is jaw-dropping.
Two days before Cyprus depositors were relieved of their cash, the Deutsche Bank’s global head of FX strategy, Bilaf Hafeez gave a speech indicating the euro area needs a role model that people across Europe can respect.
“I can only think of one figure that is respected by most Europeans and has never sinned, Jesus!” Hafeez said. (Business Insider, March 14, 2013)
Incredible to note that the Deutsche Bank’s research department transcribed Hafeez’s speech and sent it out to clients in a note.
The EU threw the image of the Savior over at their formation 14 years ago, replacing His image with that of Europa, Woman on a Bull, whose image is permanently parked in front of the EU Parliamentary Building in Strasbourg with a corresponding statue in front of the EU Commission Building in Brussels.
Meanwhile, pray that what is happening in Cyprus this weekend is not precedent setting for other nations. If this blatant EU rip-off of its own people is allowed to stand, unscrupulous socialist politicians in office will set policy that forces their populations to sacrifice some of their cash holdings to greedy governments the world over.
Copyright © Canada Free Press


Judi McLeod is an award-winning journalist with 30 years’ experience in the print media. A former Toronto Sun columnist, she also worked for the Kingston Whig Standard. Her work has appeared on Rush Limbaugh, Newsmax.com, Drudge Report, Foxnews.com, and Glenn Beck.
Judi can be emailed at: judi@canadafreepress.com
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Socialists ready to make power grab of world citizens’ money
What’s happening in Cyprus should send a chill over the entire world
Judi McLeod
Sunday, March 17, 2013
http://canadafreepress.com/index.php/article/53818
Get your money out of the banks. Due to an “emergency deal reached today in Brussels”, a one-time 9.9% tax is to be levied on Cypriot bank deposits of more than 100,000 euros effective Tuesday, March 19.
Virtually overnight and with no warning of any kind, the emergency tax deal was imposed on the people of Cyprus without vote or debate. People ran to ATM machines today only to discover that the taxed amount of their cash had already been frozen.
Monday in Cyprus is a national holiday, the first day of Greek Orthodox Easter.
Nor is this emergency only inflicted upon the so-called rich as even deposits under 100,000 euros will now be taxed at 6.7%.
“If it can happen in Cyprus, it can happen anywhere,” worried British correspondent Anna Grayson told Canada Free Press (CFP) in an overseas telephone call today.
“Is this why the U.S. Department of Homeland Security has purchased millions of hollow point bullets, is this why rumors of an underground bunker being built for Obama are circulating?”
The bottom line of the Cyprus story is that politicians are forcing a new 10 billion euro bailout—to be paid directly from the bank accounts of ordinary people.
The people of Cyprus, most of whom never saw this coming, never had a chance. Without social media they would not have known their accounts were frozen as of today.
People poured into the streets, making a run on ATM machines. A crowd of around 150 protesters massed in front of the presidential palace late in the afternoon at the beginning of the three-day religious holiday on the island.
Cyprus is the fifth country to seek a bailout following Greece, Ireland, Portugal and Spain but the terms of the deal are a radical departure from previous schemes.
No one will escape the bailout deal which will apply to everyone from pensions to Russian oligarchs, who are alleged to have billions stashed away in what officials claim is a bloated Cypriot banking sector. (Sky News, March 16, 2013).)
The blueprint laid by cunning EU Socialist finance ministers comes at a time when the USA is being led by a Socialist president.
This is how the EU robbed the people of Cyprus:
Banks first cooperated with the EU by sealing off the amount of the proposed levy—a 6.75 percent tax on deposits under €100,000 and 9.9 percent on those above —making it impossible for depositors to access their full amount. The only means bank customers have left is the ability to draw from the rest of their funds via ATM machines this weekend. Many depositors made their way to the machines on Saturday to drain their accounts. But the few banks that opened on Saturdays did so only briefly, and no international transfers will be able to go through until Tuesday, with Monday being the holiday. Cyprus’ Parliament is expected to meet Sunday to pass the required legislation., or after the deed was done. The deal also needs the approval of several eurozone parliaments; at the time of writing it was unclear how fast they can act and what will happen to bank deposits in the meantime.
What’s happening in Cyprus should send a chill over the entire world.
Politicians working with complicit big banks need no rule of law; no parliament debates to close in on the bank accounts of average people.
Get your money out of the banks wherever you are, and do it as soon as possible.
Judi McLeod is an award-winning journalist with 30 years’ experience in the print media. A former Toronto Sun columnist, she also worked for the Kingston Whig Standard. Her work has appeared on Rush Limbaugh, Newsmax.com, Drudge Report, Foxnews.com, and Glenn Beck.Judi can be emailed at: judi@canadafreepress.com
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Turmoil in Cyprus Over a Bailout Rattles Europe

NICOSIA, Cyprus — Europe’s surprising decision early Saturday to force bank depositors in Cyprus to share in the cost of the latest euro zone bailout set off increasing outrage and turmoil in Cyprus on Sunday and fueled fears that the trouble will spread to countries like Spain and Italy.
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While Cyprus extended a bank holiday, depositors flocked to A.T.M.’s on Sunday, like those at a Laiki Bank branch in Nicosia.
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Facing eroding support, the new president, Nicos Anastasiades, asked Parliament to postpone until Monday an emergency vote on a measure to approve the bailout terms, amid doubt that it would pass. The euro fell sharply against major currencies ahead of the action, as investors around the world absorbed the implications of Europe’s move.
In an address to the nation, Mr. Anastasiades painted an apocalyptic picture of what would happen if Cyprus did not approve the strict terms: a “complete collapse of the banking sector”; major losses for depositors and businesses; and a possible exit of Cyprus from the euro zone, the 17 countries that use the euro as their currency.
He said he was working to persuade European Union leaders to modify their demands for a 6.75 percent tax on deposits of up to 100,000 euros, a move that would hit ordinary savers.
“I understand fully the shock of this painful decision,” he said, speaking with a grim look on his face as he stood between the Cypriot and European Union flags in the presidential palace. “That is why I continue to fight so that the decisions of the Eurogroup will be modified in the coming hours.” The Eurogroup is made up of the 17 euro zone finance ministers.
By size, Cyprus’s economy represents not even half a percent of the combined output of the 17 euro zone countries. Yet the impact of this weekend’s decision by European leaders to impose across-the-board losses on bank depositors — from the richest Russian oligarchs, who have increasingly deposited their money in Cyprus’s banks, to the poorest Cypriot pensioners — in return for 10 billion euros, or $13 billion, in bailout money could not be more far-reaching.
After five years of bailouts financed largely by European taxpayers, wealthy European nations have decreed that when a bank or country goes broke, bond investors and perhaps even bank depositors will pay a significant portion of the bill.
The change is driven in no small part by the growing reluctance by residents of nations like Germany — whose chancellor, Angela Merkel, faces an election this year — to continue to finance bailouts of troubled neighbors like Greece, Portugal, Italy, Spain, and now Cyprus. The resulting turmoil could create a wave of investor contagion that will challenge Mario Draghi, the president of the European Central Bank, to make good on his promise to do whatever it takes to protect the euro.
On Sunday, it was clear that a majority of Cyprus’s 56 lawmakers would not approve the terms of the bailout, which would lead to a likely loss of the rescue money that Cyprus so desperately needs.
The government extended a bank holiday it had imposed over the weekend, meaning banks will not open Tuesday as planned. There was talk that they might not open Wednesday, either.
In response, the European Central Bank applied more pressure to have the deal approved, sending two representatives to Cyprus on Saturday night to assure Cypriot banks that the central bank was “here for them — as long as the bill goes through Sunday or Monday morning before financial markets in Europe open,” said Aliki Stylianou, a press officer for the central bank of Cyprus.
Mr. Anastasiades’s cabinet gathered early Sunday with the heads of the central bank and the finance ministry to discuss how to carry out the levy, should it pass.
But some analysts expressed skepticism about the measure’s long-term effects even if Cyprus approves it.
“Whether the Parliament approves the measure or not, the effect will be the same,” said Stelios Platis, the managing director of MAP S.Platis, a financial services firm, and a former economic adviser to Mr. Anastasiades. “As soon as banks in Cyprus reopen, people will rush to take all their money out” because they do not believe it will not happen again.
To some degree, this policy shift was foreshadowed last month when Jeroen Dijsselbloem, the finance minister for the Netherlands who was recently tapped to lead the Eurogroup, forced investors of a failing Dutch bank to pay their share by writing down 1.8 billion euros’ worth of high-risk bonds to zero.
But it is one thing to wipe out bond investors and quite another to force a loss on bank depositors, including Cypriot savers who had their deposits insured and, like people all over the world, had the impression that a government-backed savings account was inviolable.
This is the first time depositors have taken a loss in a euro-zone rescue, said Adam Lerrick, a sovereign debt expert at the American Enterprise Institute, who has long argued that debt-heavy countries in Europe must make private investors, including bank depositors if need be, share the cost of bank bailouts. “It prevented the insolvency from being transferred from the banking system to the government,” he said.
While such a notion may please the financial hard-liners, it carries significant financial risks.
Indeed, as many stunned Cypriots rushed to A.T.M.’s to remove their savings, Europe had to confront the prospect that savers in Spain and particularly in Italy — where cash-poor banks have been hit hard by loan losses — would do the same.
Public officials in Spain and Italy did their best over the weekend to say that the situation in Cyprus was unique and that deposits in those countries — especially Spain, which experienced a period of deposit flight last year — remained safe.
Also Sunday, George Osborne, the British chancellor of the Exchequer, said that Britain would compensate British government and military personnel based in Cyprus whose finances would be affected by the levy. About 3,500 British troops are based on the island.
The tax on deposits is sure to make small banks with bad loan problems in other countries seem all the more risky — to depositors as well as to investors holding the banks’ bonds.
Economists warn that the psychological consequence of such a shock could lead not only to a bank run but a devastating economic collapse and plunge in gross domestic product similar to what happened in Greece.
“There has been a huge shock, and fall in G.D.P. will be very large just as it was in Greece,” said Alexandros Apostolides, an economist based in Nicosia. “Why would someone keep their deposits in a bank here if he cannot be assured that there will not be another bailout?”
Indeed, throughout the weekend many Cypriots were withdrawing as much as they could from their bank accounts.
“Why should I leave my money in Cyprus?” said an investment banker who for the past two days had been withdrawing the maximum 2,000 euros he was allowed from his foreign bank account in Nicosia. “I have already instructed my bank to send my entire savings to London when the banks open on Tuesday. A precedent has been set — what is to stop them from doing this again?”
The contentious talks over how to rescue Cyprus have continued for more than six months and only accelerated in the wake of an election last month that brought into power a new government that promised to impose the austerity measures required by Europe.
But when it came to losses for depositors, the government had assured the public as late as this past Friday that this was a red line that would not be crossed.
In the capital, Nicosia, the long lines at cash machines Saturday disappeared temporarily — mainly because A.T.M.’s had been drained of cash. But on Sunday, at a main branch of Laiki Bank — one of Cyprus’s two major financial institutions — employees were seen inside the darkened building hovering over computers and filling machines with bills.
As word got out, groups of people arrived in a steady stream to withdraw money, but not before expressing anxiety over what they said were decrees from Brussels and Berlin that would have implications far beyond Cyprus’s shores.
The general feeling was that European leaders were using Cyprus to test whether confiscating deposits would work, before possibly applying it more widely.
“They are trying to make an experiment with a small country,” said Stefan Kourbelis, a manager at the Centrum Hotel in Nicosia’s main square, echoing a widely held view. “If it works, the next one could be Spain, Italy and others. If things go badly, they can just say, who cares about Cyprus?”
Liz Alderman reported from Nicosia, Cyprus, and Landon Thomas Jr. from London.
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