A truly grim Ministry of Finance (MOF) report circulating in the Kremlin today says that a state of “horror and shock” has descended upon the European Union this weekend after the unprecedented announcement that all of the bank depositors in Cyprus will be forced to give up a percentage of their savings in order to bailout their EU bankster overlords.
According to this report, EU officials demanded on Saturday that Cypriot savers pay up to 10 percent of their savings deposits as a condition for the €10 billion ($13 billion) bailout of their banking system. Newly elected Cypriot President Nicos Anastasiades, according to Western news sources, stated that refusing the bailout would lead to the collapse of the island’s two largest banks, badly singed by their exposure to bailed-out neighbour Greece.
“Late last night, after markets closed for the weekend, following an extended discussion the European finance ministers announced their “bailout” solution for Russian oligarch depositor-haven Cyprus: a €13 billion bailout (Europe’s fifth) with a huge twist: the implementation of what has been the biggest taboo in European bailouts to date – the impairment of depositors, and a fresh, full blown escalation in the status quo’s war against savers everywhere.
Specifically, 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, Dutch Finance Minister Jeroen Dijsselbloem, who leads the group of euro-area ministers, said.
But it doesn’t stop there: a partial “bail-in” of junior bondholders is also possible, as for the first time ever the entire liability structure of a European bank – even if it is a Cypriot bank – is open season for impairments. The logical question: why here, and why now? And what happens when the Cypriot bank run that has taken the country by storm this morning spreads everywhere else, now that the scab over Europe’s biggest festering wound is torn throughout the periphery as all the other PIIGS realize they too are expendable on the altar of mollifying voters and investors in the other countries that make up Europe’s disunion.”
Aside from ordinary Cypriot’s, this MOF report says, the “main target” of this shocking EU theft appears to be Russian banks who had between €23-31 billion ($30-$40 billion) in cross-border loans to Cypriot companies tied to Moscow and around €9 billion ($12 billion) on deposit with Cypriot banks at the end of last year.
Cyprus is officially the third largest foreign investor in the Russian economy with most of its foreign direct investments coming from Russian capitals hidden offshore for tax and legal protection purposes, but which pales in comparison to the €127 billion ($166 billion) being kept in similar circumstances by 60 of the United States largest corporations in offshore accounts to avoid paying American taxes.
While worried Cypriot investors have been queuing outside banks this weekend to withdraw their savings from cash machines, this report continues, Cyprus’s parliament has postponed an emergency session on a controversial bailout deal until tomorrow, but further announced that their banks will remain closed until Tuesday and no electronic transfers of monies will be allowed.
British Chancellor of the Exchequer George Osborne said earlier today that the UK government would compensate their troops and civil servants affected by this outright EU bankster theft saying that “anyone doing their duty for our country in Cyprus will be protected”. About 3,500 British military personnel are based in Cyprus, but those among the 59,000 British residents of Cyprus not working for the UK military or government would still be out of pocket.
The Washington Post news service in their article titled “Why Today’s Cyprus Bailout Could Be The Start Of The Next Financial Crisis” further warns:
“It is a bad day to have your money deposited in a bank in the Mediterranean island nation of Cyprus. And it may just mean some bad days ahead for the rest of us.
What makes this important for people who couldn’t locate Cyprus on a map is this: It is one of the 17 nations using the euro currency, the fact that it’s a lot closer to Beirut than to Paris notwithstanding. European officials have spent the past six years moving heaven and earth to ensure that no depositors with the continent’s banks suffer a loss despite the financial strains the banks have been under.
Most dramatically, the Irish government in the fall of 2008 backstopped its banks, putting its public finances through a wringer. Even as the Greek economy has fallen into depression and Spanish bank losses on real estate have reached dangerous levels, the European Central Bank and the continent’s government have ensured that bank deposits were safe. They have feared that if depositors in any country were forced to take losses, it would spark a destructive cascade of withdrawals across Europe.
The European Central Bank will now be on high alert, monitoring activity in Greece, Spain and beyond for evidence that the Cyprus precedent will result in new runs on those nations’ banks. Expect a flood of central bank liquidity into those nations if there is any hint that depositors across Europe seem to be thinking that Cyprus is the new normal and that their seemingly safe bank deposits could be reduced 10 percent without warning.”
Aside from all Europeans savings accounts now being threatened, this MOF report says, the American people are, perhaps, those in the greatest danger of this happening to them as Forbes financial magazine warned in their 29 December 2012 article “Watch Out: Your 401(k) Is Being Targeted” that “Washington has a bull’s-eye on every American’s 401(k)”.
A 401(k) account is the common name in the United States for the tax qualified defined contribution pension plan which a vast number of Americans use to secure their retirement and currently holds nearly €2.5 trillion ($3 trillion) of these peoples wealth, and is ripe for the taking by their bankster elites.
Even worse for the American people, this report says, was the Obama regime revealing its shocking plan this past week to give all US spy agencies full access to a massive database that contains financial data on their citizens so even more monies can be plundered from these already economically weary peoples.
And in a stunning admission for a nation that has locked up and jailed more of its citizens than any other country in history, US Attorney General Eric Holder, in testimony before the US Senate Judiciary Committee last week, admitted that the Obama regime is unable to prosecute American bankers for their crimes, and stated, “I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them, when we are hit with indications that if we do prosecute – if we do bring a criminal charge – it will have a negative impact on the national economy, perhaps even the world economy…”
Top US Federal Reserve official Richard Fisher echoed Attorney General Holder’s concerns yesterday and further stated that “The largest U.S. banks are “practitioners of crony capitalism,” [and] need to be broken up to ensure they are no longer considered too big to fail, and continue to threaten financial stability.”
Above all, this MOF report concludes, and applying to both Europeans and Americans alike, the events in Cyprus this weekend “prove conclusively” that the entire Western banking system is beyond repair and irretrievable corrupt as it can no longer protect its depositors monies from theft… and theft of the worst kind… from those whom these ordinary people have entrusted their life savings and personal wealth to in order to protect it in the first place.
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