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Are They About To Confiscate Money From Bank Accounts In Greece Just Like They Did In Cyprus?
TEC ^ | 05/24/2015 | Michael Snyder

Posted on 05/24/2015 3:53:23 PM PDT by SeekAndFind

Do you remember what happened when Cyprus decided to defy the EU? In the end, the entire banking system of the nation collapsed and money was confiscated from private bank accounts. Well, the nation of Greece is now approaching a similar endgame. At this point, the Greek government has not received any money from the EU or the IMF since August 2014. As you can imagine, that means that Greek government accounts are just about bone dry. The new Greek government continues to insist that it will never “violate its anti-austerity mandate”, but the screws are tightening. Right now the unemployment rate in Greece is over 25 percent and the banking system is on the verge of collapse. It isn’t going to take much to set off a panic, and when it does happen there are already rumors that the EU plans to confiscate money from private bank accounts just like they did in Cyprus.

Throughout this entire multi-year crisis, things have never been this dire for the Greek government. In fact, Greece came thisclose to defaulting on a loan payment to the IMF back on May 12th. And with essentially no money remaining at all, the Greek government is supposed to make several large payments in the weeks ahead

Athens barely made its latest payment (May 12) to the International Monetary Fund (IMF), and it managed to do so only when the government discovered that it could use a reserve account it wasn’t aware of, according to the Greek media.

Kathimerini, a Greek daily newspaper, reports that Prime Minister Alexis Tsipras wrote to the IMF’s Christine Lagarde warning that Greece would not be able to make that May payment, worth €762 million ($871 million, £554.2 million).

Pension and civil-servant pay packets are due at the end of the month, and based on this news Athens may struggle to pay them. Even if it does manage that, on June 5 the country owes another €305 million to the IMF.

In the two weeks following June 5 there are another three payments, bringing the June total to the IMF to over €1.5 billion.

The Germans and the other financial hawks in the EU are counting on these looming payment deadlines to force Greece into a deal.

Meanwhile, Greek banks also find themselves in very hot water. Many of them are almost totally out of collateral, and without outside intervention some of them could start collapsing within weeks. The following comes from Bloomberg

Greek banks are running short on the collateral they need to stay alive, a crisis that could help force Prime Minister Alexis Tsipras’s hand after weeks of brinkmanship with creditors.

As deposits flee the financial system, lenders use collateral parked at the Greek central bank to tap more and more emergency liquidity every week. In a worst-case scenario, that lifeline will be maxed out within three weeks, pushing banks toward insolvency, some economists say.

“The point where collateral is exhausted is likely to be near,” JPMorgan Chase Bank analysts Malcolm Barr and David Mackie wrote in a note to clients May 15. “Pressures on central government cash flow, pressures on the banking system, and the political timetable are all converging on late May-early June.”

If no agreement is reached, by this time next month Greece could be plunging into a Cyprus-style crisis or worse.

And if that does happen, there are already rumblings that a “Cyprus-style solution” will be imposed. Just consider what James Turk recently told King World News

The troika of the EU, ECB and IMF have not yet pulled the plug on the Greek banks, but the following quote in the Financial Times from this weekend should be a warning to anyone who still has money on deposit in that country: “The idea of a “Cyprus-like” presentation to Greek authorities has gained traction among some eurozone finance ministers, according to one official involved in the talks.”

The ECB is up to its eyeballs swimming in unpayable Greek debt that it holds. The ECB is not going to take a loss on this Greek paper on its books. Because Greece does not have the financial capacity to repay what is now about €112 billion of credit exposure to Greece on the ECB’s books, the ECB has only two alternatives.

It can push the €112 billion of Greek debt it holds to the national central banks of the Eurozone and on to the backs of the taxpayers in those countries, which it politically untenable. Or it can confiscate depositor money in Greek banks, like it did in Cyprus and as the FT has now reported.

Needless to say, such a move would be likely to set off financial panic all over Europe.

Could we actually see such a thing?

Well, let’s recall that back in April we already saw the Greek government forcibly grab “idle” cash from the bank accounts of regional governments and pension funds. The following is from a Bloomberg report about that event…

Running out of other options, Greek Prime Minister Alexis Tsipras ordered local governments and central government entities to move their cash balances to the central bank for investment in short-term state debt.

The decree to confiscate reserves held in commercial banks and transfer them to the Bank of Greece could raise as much as 2 billion euros ($2.15 billion), according to two people familiar with the decision. The money is needed to pay salaries and pensions at the end of the month, the people said.

“It is a politically and institutionally unacceptable decision,” Giorgos Patoulis, mayor of the city of Marousi and president of the Central Union of Municipalities and Communities of Greece, said in a statement on Monday.“No government to date has dared to touch the money of municipalities.”

Grabbing cash from the bank accounts of private citizens is just one step farther.

And what happened in Cyprus just a couple of years ago is still fresh in the minds of most Greeks. That is why so many of them have been pulling money out of the banks in recent weeks. The following comes from Wolf Richter

Greeks remember very well what happened in Cyprus in 2013, when local banks were given a big thumbs-up from Europe to help themselves to their depositors’ accounts. Cyprus and Greece are very closely tied, and many Greeks consider the island a “sister-nation.”

What little trust remained in banks in Greece died that day. People have been nervously looking for signs something similar may happen again in their home country. And they resolved to act at the first sign of danger: banks cannot confiscate money you have under your mattress. Cash can be hidden away.

Let’s certainly hope that what happened in Cyprus does not happen in Greece.

But right now, both sides are counting on the other side to fold.

The Germans believe that at some point the economic and financial pain will become so immense that it will force the new Greek government to give in to their demands.

The Greeks believe that the threat of a full blown European financial crisis will cause the Germans to back down at the last moment.

So what if they are both wrong?

What if both sides are fully prepared to stand their ground and take us over the cliff and into disaster?

For a long time I have been warning that a great financial crisis is coming to Europe.

This could be the spark that sets it off.


TOPICS: Business/Economy; Government; Society
KEYWORDS: alexistsipras; bankaccounts; confiscation; cyprus; europeanunion; greece; greececrisis; greecedebt; syriza

1 posted on 05/24/2015 3:53:24 PM PDT by SeekAndFind
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To: SeekAndFind

Soon to be coming here to the us


2 posted on 05/24/2015 3:55:19 PM PDT by al baby (Hi Mom)
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To: SeekAndFind

I think they will when we abandon cash.


3 posted on 05/24/2015 3:56:18 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: SeekAndFind

And people said grandpa, who lived through the great depression, was crazy for keeping his money stashed under the mattress and refusing to deal with banks his entire life...


4 posted on 05/24/2015 3:58:21 PM PDT by apillar
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To: SeekAndFind

Isn’t this normal and expected for ALL DEBT BASED currency systems? Yes it is.


5 posted on 05/24/2015 3:59:04 PM PDT by eyeamok
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To: Jonty30
I think they will when we abandon cash.

I heard on a radio show the other day that there is proposal floating around Spain. The idea is to do away with all paper money and let a FED type entity manage the money supply.

Fedzilla doesn't think people are spending enough? Penalize people who don't spend enough by debiting their accounts unless they make a certain amount of purchases (can't withdraw and simply stuff in the mattress to avoid the penalty; no paper money anymore). Inflation on the horizon? Curb the activity of people who spend too much the same way: with a penalty.

And the imagination boggles at what fascist liberals could do to the citizenry with such a power by scrutinizing spending habits.

Scary times.
6 posted on 05/24/2015 4:08:53 PM PDT by LostInBayport (When there are more people riding in the cart than there are pulling it, the cart stops moving...)
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To: SeekAndFind
Or it can confiscate depositor money in Greek banks, like it did in Cyprus and as the FT has now reported.

Any Greek with money still in the banks falls well into the range of "a fool and his money are soon parted". It won't be safe anywhere in the EU and I wonder whether non-EU accounts like Switzerland would even be safe for them.

7 posted on 05/24/2015 4:11:14 PM PDT by KarlInOhio (Darth Obama on 529 plans: I am altering the deal. Pray I don't alter it any further.)
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To: LostInBayport

I know. They will also be able to punish you directly by taking all of your assets with a single keystroke. And you cannot even protect yourself by keeping some money out of the bank to smooth over tough times.


8 posted on 05/24/2015 4:15:13 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: SeekAndFind

If the Greek government thought those last riots were scary just wait until the people find out the government is going to take their savings and retirement money - like Hillary proposed at one time.


9 posted on 05/24/2015 4:16:13 PM PDT by SkyDancer ( I Was Told Nobody Is Perfect But Yet, Here I Am ...)
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To: SkyDancer

Are you referring to when Hillary wanted to fund her health care plan in 94 or 95 by taxing 401k and IRA’s?

Or something else??

Our socialist elite friends have a huge thirst for other peoples money to buy votes and keep themselves in luxury. After all, they are smarter than the rest of us, so they deserve it.


10 posted on 05/24/2015 4:27:08 PM PDT by redfreedom (All it takes for evil to win is for good people to do nothing - that's how the left took over.)
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To: al baby

> Soon to be coming here to the us

I was talking to a friend of mine who is a banker the other day and he was taking about Cyprus and said he wouldn’t be surprised at all if this happened over here with the current president and leadership we currently have in office. He’s a Vice President but has worked in the financial industry for over 30 years. he wouldn’t have said that 7 years ago.


11 posted on 05/24/2015 4:32:14 PM PDT by jsanders2001
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To: SkyDancer

> If the Greek government thought those last riots were scary just wait until the people find out the government is going to take their savings and retirement money - like Hillary proposed at one time.

She can have mine uf I can have hers...


12 posted on 05/24/2015 4:40:20 PM PDT by jsanders2001
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To: SkyDancer

> If the Greek government thought those last riots were scary just wait until the people find out the government is going to take their savings and retirement money - like Hillary proposed at one time.

She can have mine if I can have hers...


13 posted on 05/24/2015 4:40:51 PM PDT by jsanders2001
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To: KarlInOhio
Any Greek with money still in the banks falls well into the range of "a fool and his money are soon parted".

You nailed it.

14 posted on 05/24/2015 4:50:59 PM PDT by Pollster1 ("Shall not be infringed" is unambiguous.)
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To: KarlInOhio

RE: I wonder whether non-EU accounts like Switzerland would even be safe for them.

Forget Switzerland. The country has effectively surrendered banking secrecy when she agreed to reveal the accounts of all of her American clients to the IRS.

And you can also say goodbye to the following traditional secret banking centers : Cayman, Bahamas, Barbados and Panama. All these countries are susceptible to American bullying.

The only two countries that can stand up to IRS bullying are China and Russia.


15 posted on 05/24/2015 5:04:04 PM PDT by SeekAndFind
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To: redfreedom

Not too sure - I know it was something about taking retirement money and then paying it back at 3% interest. There’s basically trillions out there in retirement funds that the fed’s would love to get their hands on.


16 posted on 05/24/2015 5:14:01 PM PDT by SkyDancer ( I Was Told Nobody Is Perfect But Yet, Here I Am ...)
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To: SeekAndFind
"Are They About To Confiscate Money From Bank Accounts In Greece Just Like They Did In Cyprus?"

It all comes from recirculating debt anyway. Repudiate the debts, and dump all regulations against residential building and small manufacturing! Legalize working for a living again!


17 posted on 05/24/2015 5:21:37 PM PDT by familyop
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To: Jonty30; SeekAndFind
I think they will when we abandon cash.

I think you are correct.

First, we know that if you make any substantial withdrawl from a bank, even $5K or perhaps less, your name and account will immediately be sent by the bank to the Feds as a "high risk" and they will monitor you even more closely than they are now. It doesn't matter if you want the cash to purchase a car or pay bills, the authorities will be alerted.

Second, the government has deadlines to remove all cash from the system. A financial crisis that crashes the US Dollar will only accelerate this process. Electronic means can be closely monitored, hence, they want to make cash illegal. So those holding cash will be holding worthless paper, or given pennies on the Dollar in return for electronic cash. Moreover, some banks are now charging "negative interest" if you hold cash there, and that trend will increase to all banks.

Third, FDR declared the possession, transfer, and sale or all gold to be ILLEGAL overnight in 1933, via Executive Order (sound familiar?). The government labled owning gold as "hording" and Congress gave not a peep. Obama rules by Executive Order today anyway, and there is nothing to stop him in a financial "crisis" (real or manufactured) from doing so as well.

So everyone with a safe full of cash and gold may be screwed. People are taking possession of cash and gold because they know the government and the central banks can't have folks off the reservation. They must control us all, and they will.

18 posted on 05/24/2015 5:29:37 PM PDT by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)
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To: SeekAndFind

count on it


19 posted on 05/24/2015 8:41:06 PM PDT by CPT Clay
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To: SeekAndFind

Does that mean that, after all the twists and turns over the last few years, Greece hasn’t been fixed? I wonder how much wealth the EU has squandered on the deal(s).


20 posted on 05/25/2015 4:18:18 AM PDT by trebb (Where in the the hell has my country gone?)
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