The Doc: In his interview with The Doc last week, Jim Willie stated that THE COLLAPSE IS ON OUR DOORSTEP! and made the case that the great financial reset will begin with a small trigger in Europe. The Cypriot depositor haircut to bailout the Cypriot banking system is beginning to look like it could be just that trigger, as the situation has turned from bad to worse.
With
the general public in an uproar, the ratification vote by the Cypriot
Parliament on the depositor haircut/ daylight robbery has been delayed
until 4pm local time Monday as the vote reportedly had lost sufficient
support to pass! Ahead of today’s scheduled vote, the plan was 9 votes
short in a 56 seat legislature!
In response, Cypriot Bankster Shill President Nicos Anastasiades threatened that if the depositor haircut is not passed, the entire Cypriot banking system will collapse, and former Central Bankster President Afxentis Afxentiou fear-mongered that if the bill is not passed, Cyprus opens the road to chaos, and that Cyprus will turn into Libya!
As Bloomberg reports, the Cypriot depositor haircut plan is at least 9 votes short in a 56 seat legislature!
Source
banzai7
Additional:
The Cyprus Deal is Already Under Threat (Of Course)
Raul Ilargi Meijer: One day after it was agreed on and announced by the Eurogroup and
Cyprus president Nicos Anastasiades, the deal that would turn the
Eurozone into a Pandora's box like no other EU measure to date has done
looks like it may never reach the finish line. The Cypriot parliament,
in which freshly elected Anastasiades holds just 20 of 56 seats, has
pushed a vote on the deal forward until Monday, a clear sign that the
president's political adversaries will not easily be locked into an
agreement that is obviously and for good reason hugely unpopular.
As I wrote yesterday in Bank Run In Cyprus; Who's Next?, this very curious looking deal has the potential to kill off confidence in the EU banking sector practically overnight. If bank deposits in Cyprus are not guaranteed (even if only up to a maximum), there is no reason for people in other Eurozone countries to trust their deposits will be treated any differently. In Cyprus, if the deal is voted through parliament, depositors will lose between 6.75% and 9.99% of their money, but there is nothing to keep the EU/IMF/ECB troika from imposing 20% or 40% (or you name it cuts) on deposits in Italy, Spain, France, take your pick.
There are reports that Anastasiades accepted the "agreement" because Germany made it a do or die deal, but that still doesn't explain why Berlin would take such an obvious risk with the entire EU banking sector. Although I have to admit the risk apparently wasn't recognized yesterday by 95% or more of the international press, so you might be tempted to believe that neither Germany nor the rest of the Eurogroup saw it either. But that would be excessively stupid. And incompetent as they are, even I don't think they're that far gone.
I would think it's more likely that the 37% of deposits in Cyprus banks that are "foreign", i.e. largely Russian, have pushed European politicians into a crowdpleasing mode - punish the criminals! - that made them overlook broader consequences. But, really, that doesn't totally convince me either. Though I was greatly amused to read that Britain will compensate the 3500 troops it has stationed on Cyprus that have bank accounts there.
Still, when you see things happening that seem this far out of field, there's often an ulterior motive behind them. Like if the Eurogroup counted all along on Cyprus not accepting the terms of the deal forced upon it. Or Anastasiades counting on the fact that the deal would never be ratified by parliament.
Meanwhile, I'm curious to know who the Cypriot politicians on all sides of the aisle are talking to today. And yes, Beppe Grillo comes to mind again, Niall Farage perhaps. Who else can they expect any support from?
More tomorrow (the vote coincides with a national carnival holiday) and Tuesday. Let’s be clear on one thing in the meantime: the deal as it is on the table is an unmitigated disaster for Europe, and the effects will spill to at least the rest of the western world. At the same time, if Cyprus says no, the implied threat is that Europe will let it fall like a stone, bankrupt the banks, and throw it out of the Eurozone.
And that would be the end of the Eurozone; if Cyprus leaves, so will others. Are they really going to take that risk after 5 years, 500 emergency meetings and €5 trillion in bailouts? Hell no, you kidding?, but they still threaten to do it, and in such a transparent fashion? Why would Anastasiades, or anyone else for that matter, fall for that? Something doesn't add up here.
Source
In response, Cypriot Bankster Shill President Nicos Anastasiades threatened that if the depositor haircut is not passed, the entire Cypriot banking system will collapse, and former Central Bankster President Afxentis Afxentiou fear-mongered that if the bill is not passed, Cyprus opens the road to chaos, and that Cyprus will turn into Libya!
As Bloomberg reports, the Cypriot depositor haircut plan is at least 9 votes short in a 56 seat legislature!
With his Disy party holding 20 seats in the 56-seat legislature, he needs at least nine more votes to secure approval and avoid the financial collapse of the region’s third- smallest economy. If he doesn’t get backing for the plan, the banks may stay shut starting March 19, state-run Cyprus Broadcasting Corp. said. Tomorrow is a bank holiday in Cyprus.The problem is that even if enough arms can be twisted by 4pm Monday, the European markets open in 16 hours, with no official agreement in place regarding the Cypriot bailout, and the rest of the southern Eurozone’s population likely headed to their local bank to empty their account first thing Monday am.
“If tomorrow Cyprus’s Parliament rejects the bill, Cyprus opens the road to chaos,” said Afxentis Afxentiou, who was governor of the Central Bank of Cyprus from 1982 until 2002, said on CYBC. If the bill is rejected, “Cyprus will turn into Libya. Even with the pain, we need to follow a normal course, with hope we’ll see better days.”
Source
banzai7
Additional:
The Cyprus Deal is Already Under Threat (Of Course)
Walter Crane Pandora Opens The Box 1892
As I wrote yesterday in Bank Run In Cyprus; Who's Next?, this very curious looking deal has the potential to kill off confidence in the EU banking sector practically overnight. If bank deposits in Cyprus are not guaranteed (even if only up to a maximum), there is no reason for people in other Eurozone countries to trust their deposits will be treated any differently. In Cyprus, if the deal is voted through parliament, depositors will lose between 6.75% and 9.99% of their money, but there is nothing to keep the EU/IMF/ECB troika from imposing 20% or 40% (or you name it cuts) on deposits in Italy, Spain, France, take your pick.
There are reports that Anastasiades accepted the "agreement" because Germany made it a do or die deal, but that still doesn't explain why Berlin would take such an obvious risk with the entire EU banking sector. Although I have to admit the risk apparently wasn't recognized yesterday by 95% or more of the international press, so you might be tempted to believe that neither Germany nor the rest of the Eurogroup saw it either. But that would be excessively stupid. And incompetent as they are, even I don't think they're that far gone.
I would think it's more likely that the 37% of deposits in Cyprus banks that are "foreign", i.e. largely Russian, have pushed European politicians into a crowdpleasing mode - punish the criminals! - that made them overlook broader consequences. But, really, that doesn't totally convince me either. Though I was greatly amused to read that Britain will compensate the 3500 troops it has stationed on Cyprus that have bank accounts there.
Still, when you see things happening that seem this far out of field, there's often an ulterior motive behind them. Like if the Eurogroup counted all along on Cyprus not accepting the terms of the deal forced upon it. Or Anastasiades counting on the fact that the deal would never be ratified by parliament.
Meanwhile, I'm curious to know who the Cypriot politicians on all sides of the aisle are talking to today. And yes, Beppe Grillo comes to mind again, Niall Farage perhaps. Who else can they expect any support from?
More tomorrow (the vote coincides with a national carnival holiday) and Tuesday. Let’s be clear on one thing in the meantime: the deal as it is on the table is an unmitigated disaster for Europe, and the effects will spill to at least the rest of the western world. At the same time, if Cyprus says no, the implied threat is that Europe will let it fall like a stone, bankrupt the banks, and throw it out of the Eurozone.
And that would be the end of the Eurozone; if Cyprus leaves, so will others. Are they really going to take that risk after 5 years, 500 emergency meetings and €5 trillion in bailouts? Hell no, you kidding?, but they still threaten to do it, and in such a transparent fashion? Why would Anastasiades, or anyone else for that matter, fall for that? Something doesn't add up here.
Source
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