Posted on 03/26/2013 6:00:11 PM PDT by moneyrunner
Cyprus has gotten a great deal of attention recently because it has run into very severe problems with its banks. As a result, it has come looking for a bail-out from the European Union. How did this come about?
It turns out that Cyprus is something of a banking haven for Russian plutocrats who were looking for a “safe” place to stash cash. As we all know, banks accept deposits but they don’t simply keep those deposits in the vault. They lend the money out to make a profit. The problem the Cypriot banks faced is that they received so much money that they were forced to look for investment opportunities in other countries, like Greece. So the Greek financial crisis became the Cypriot financial crisis, losing the banks billions and wiping out their capital.
Now, if you’re a country like the US, you just print dollars, lend it to the banks and everything gets fixed. Unfortunately Cyprus is part of the European Union and can can’t print Euros. They are at the mercy of the EU leaders who have money to lend. And the EU leaders are getting more and more reluctant to tax their citizens to bail out countries that live beyond their means and bankers who make big mistakes.
As part of the EU they were forced to help bail out Greece.
They leader joined the euro thinking they could spend like crazy and the other countries would fix the deficits. All the other countries had the same idea.
“They leader joined the euro thinking they could spend like crazy and the other countries would fix the deficits. All the other countries had the same idea.”
I think the idea was to lure countries into debt slavery to the bankers. Debt which you can never pay off and is paid with the sovereignty of your country and the freedom of it’s citizens.
Is Turkish Cyprus planning to attack? Either that or say, “your money is safe with us.”
but no one forced those countries to spend like wildfire
there is no turkish cyprus. It is one cyprus with an occupied north. no nation on earth recognizes the second attempt at a turkish government in the north. (well colin powel’s ego may be big enough to equal a country so that would make two)
keep in mind the british have been really pushing the panic because they WANT (need) the euro to fail to prop themselves up. (the british established the green line in 1964, and then executed it in 1974 through turkey)
keep in mind part ii the US is taking a begger thy neighbor fiscal policy which has decimated the euro by deflating the US dollar.
The best and only solution for Cyprus is and will be to leave the EU and print their own money. Back it up with gold or silver or copper or something.
The Russian mob wishes they could run such a racket.
Not being a financial expert, I try to retain and grasp certain facts that tend to be routinely reported, regardless of media or government spin.
Cyprus banks were international money laundering places where long term “investors” could park large sums of mostly unexplained “cash” for 4-6% annual interest rates.
They continued to happily launder the money for various EU government and other players, and heavily “invested” in “secure” bonds from many soon to be bankrupt EU nations.
Carbon trading investment schemes were supposed to keep the fictitious money bubbles happily rolling one step ahead of worldwide government debt defaults.
They hit a wall, when certain “players” decided, or were told by their income streams,in no uncertain terms, that the “scheme” was not workable, and several big players decided not to “invest” in the game this round.
The smaller PIIGS group were to openly crash and burn first and hardest, supposedly, while providing short term cover for the rest of the failed investors.
But something bad happened on the way to the international money laundering rolling government investment bank bailouts...
The ignorant thieves finally got schooled, that there is no honor among thieves.
The Russians have already raided banks in Cyprus, leaving the citizens of Cypress to pay the bills.
International finance has been making the “important decisions” for a few hundred years; one of the biggies is that the powers that be in a nation will all support the idea of government borrowing. Government borrowing is a key part of the “grand plan” of international finance (new world order).
In terms of banking, Cyprus and Greece are joined at the hip; Cyprus banks sponged up Greek sovereign debt.
Most of the liability side of Cyprus bank balance sheets is deposits, instead of also including a healthy amount of borrowing that is well-matched to an asset portfolio that performs well.
Too much of the asset portfolio is Greek loans which have performed atrociously since the Greek problems really hit the fan.
Cyprus did not get a bailout when Greece did.
Cyprus as a finance hub has been heavily promoted (note the global consulting firms with their hand in the market), but there is only a small national economy and the banks balance sheets are not well-diversified. Therefore, in essence, the finance hub is not much more than a thin shell which places depositors large and small at great risk.
So in a nut shell, the same EU Kleptocrats who stole the Cypriot bond notes, now want the Cypriot cash too. So my guess is that the bond notes were worthless.
As the Russian revolutionaries who overthrow communism put it - Stealing that which was already stolen.
Russian and British.
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