EU: Daylight robbery in Cyprus will come to haunt EMU

The Telegraph ^ | 3/18/2013 | Ambrose Evans-Pritchard

[reformedliberal]

Cypriot banks were paying out 7% on deposits.

That screams risk.

[Carry_Okie]

Thanks again. I’ve been writing on the topic of the Levitical economic system (as designed, not as implemented). This should help with lending perspective.

[Quick Shot]

Agree, but 9.9% is negative, where do they go from here, back under the mattress

[Sal]

Great post. One of the comments had to do with why we use banks instead of hiding our money at home and the answer is to protect from the danger of being robbed and also (used to be) to earn interest.

The interest motive has been pretty small for quite some time and now EU members can be robbed through the banks, a little at a time. Why wouldn't anyone/everyone in the EU take their money out ASAP.

They have been given an entirely untrustworthy promise that other countries won't be involved. The check is in the mail, I promise I'll still respect you in the morning. That may slow it down, but the runs will start and move fast with the next country that is “taxed” in this manner.

IMO this will spread way past the EU—the only question is how fast.

I can't help but wonder if the geniuses in charge are really this dumb or if somebody thinks a world wide depression is in his interest.

[Revel]

The Latest:

New Zealand planning to rob small depositors

http://tickerforum.org/cgi-ticker/akcs-www?post=218911

[MeganC]

This is why it is wise to have some savings in the form of silver and gold as both are relatively immune to inflation unlike paper currency.

[Tzimisce]

So the people in Europe are mad that the the Socialists they elected are Socializing?

Sounds like what is going on in the US....

[IllumiNaughtyByNature]

Why in the world would they steal the Russians money? that's asking for trouble.

I believe that if Putin does nothing (publicly) then it's a green light for others to start doing it too.

[Greysard]

I believe that if Putin does nothing (publicly) then it's a green light for others to start doing it too.

Robbing Russian Mafia is a task not for the faint of the heart. But that's minor details; the proposal failed to pass anyway. I think Putin now has a good possibility to position Russian banks as a safe haven - safe from EU's turbulence, at least. Russian economy is stable, thanks to high oil and gas prices. Additionally, the same well known team is in power - and they are not likely to do something exceptionally stupid with other people's money. At least because they don't need to. Perhaps Mafia figures won't be so interested to keep their ill-gotten gains in the country; however plenty of foreign (EU) clients might not care that Putin can look into their accounts.

Probably China and other major non-EU players are also interested to get into this game. They are a bit farther geographically, though - however little it matters today, in the age of instant secure communications.

[Carry_Okie]

OK, so I finished it. A thoroughly researched but not well presented work. Hence, it resulted in a search for trees in the forest. Not enough was made of the connections between industrialists gaming the system and the Reichbank. The explanation as ignorance, ideology, or stupidity, just doesn't wash. Such a mechanic can only go so long before the people running it understand what is happening. After that responsibility becomes culpable.

It did teach me to be more aware of the warning signs that the system is about to go unstable. Yet what to do when the dollar loses its reserve currency status isn't any clearer than it is now. Somehow, in an era in which nearly every transaction is traceable, I don't think a flight to gold will work.

[Carry_Okie]

The above post was to be for you. Thanks again, CO