Austerity

1,000 bank workers march on Cyprus’ presidential palace to protest bank restructuring

"At least 1,000 bank workers fearing for their jobs staged a march on the Cyprus presidency on Saturday ahead of a planned protest outside parliament which is to debate a bailout to save the island from bankruptcy. The workers marched from union headquarters towards the presidential compound where they held a brief rally at the gates before heading towards the finance ministry. The marchers held placards that read: 'Hands off provident funds' and 'No to the bankruptcy of Cyprus' as well as 'Let us dream.' Police initially blocked the protesters from nearing the presidential palace before then letting them through." Continue reading →

Continue Reading1,000 bank workers march on Cyprus’ presidential palace to protest bank restructuring

Cyprus risks euro exit after EU bailout ultimatum

"The European Union gave Cyprus till Monday to raise the billions of euros it needs to secure an international bailout or face a collapse of its financial system that could push it out of the euro currency zone. Trying to placate its lenders, the government proposed to parliament a 'solidarity fund' that would bundle state assets, including future gas revenues, as the basis for an emergency bond issue, likened by JP Morgan to 'a national fire sale'. It also sought the power to impose capital controls on banks, a type of measure unseen since before the country joined the single currency bloc five years ago." Continue reading →

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When Governments Take Your Money, Bitcoin Looks Really Good

"The tiny island of Cyprus became the center of the financial universe over the weekend, after its leaders, facing financial collapse and pressure from EU authorities, announced a plan that would let the government withdraw money directly from citizens' savings accounts in order to fund a massive bailout. That's the sound of Pandora's Box being opened. European officials are now proposing directly picking the pockets of their citizens by going straight for their banking deposits, a move that Reuters says has 'potentially severe consequences for the rest of the troubled euro zone.' Incidentally, it's also turning furious (and fearful) Europeans to Bitcoin." Continue reading →

Continue ReadingWhen Governments Take Your Money, Bitcoin Looks Really Good

Cyprus rejects bank bill which would have forced people to hand over 10% of their savings

"The euro was plunged into fresh crisis last night as Cyprus flatly rejected plans to raid bank accounts on the debt-ridden island to save its basket-case economy. In a stunning rebuke to European leaders, the Cypriot Parliament voted to reject draconian plans to seize up to 9.9 per cent from the bank accounts of islanders, including 3,000 UK service personnel and 60,000 other Britons who have made their homes there. Not one MP backed the proposal, which the German government had demanded in exchange for backing a fresh bailout for the bankrupt Cypriot economy." Continue reading →

Continue ReadingCyprus rejects bank bill which would have forced people to hand over 10% of their savings

Is Cyprus a New Energy Battleground?

"If Gazprom were to control this massive resource, combined with the fact that Russia is beginning to court Israel for its natural gas, Gazprom would become the preeminent player in the Middle East for natural gas… and further increase its stranglehold on European energy. The government of Cyprus has initially rejected the offer, opting instead to work with the European Union and keep the natural gas to themselves, the Cypriot government could soon find themselves running away from more EU-mandated madness…and straight into Russian arms. In the next few months, we will definitely see Cyprus become the battleground of the energy cold war." Continue reading →

Continue ReadingIs Cyprus a New Energy Battleground?

Cypriot finance minister says “no truth” to resignation reports

"Cypriot Finance Minister Michael Sarris denied reports on Tuesday that he had resigned, as lawmakers in the troubled euro zone member debated a divisive tax on bank deposits to secure an international bailout. Sarris, who was in Moscow on Tuesday, told Reuters by text message there was 'no truth' to the reports, which had further rattled nerves with lawmakers poised to reject the tax." Continue reading →

Continue ReadingCypriot finance minister says “no truth” to resignation reports

Report: Russia Offers to Bail Out Cyprus

"Russian energy giant Gazprom has offered the Republic of Cyprus a plan in which the company will undertake the restructuring of the country’s banks in exchange for exploration rights for natural gas in Cyprus’’ exclusive economic zone, Cypriot TV Station Sigma reported. Representatives of the Russian company submitted the proposal to the office of Cypriot President Nicos Anastasiades on Sunday evening. The proposal states that Gazprom will fund the restructuring of the country’s crippled financial institutions in exchange for substantial control over the country’s gas resources while Cyprus won’t need to take the harsh bailout package offered by the EU." Continue reading →

Continue ReadingReport: Russia Offers to Bail Out Cyprus

Daylight robbery in Cyprus will come to haunt EMU

"The decision to expropriate Cypriot savers – even the poorest – was imposed by Germany, Holland, Finland, Austria, and Slovakia, whose only care at this stage is to assuage bail-out fatigue at home and avoid their own political crises. The EU creditor states have at a single stroke violated the principle that insured EU bank deposits of up $100,000 will be guaranteed come what may, and in doing so they have more or less thrown Portugal under a bus. They appear poised to seize large sums from Russian banks – €1.3bn from state-owned VTB alone, and therefore from the Kremlin." Continue reading →

Continue ReadingDaylight robbery in Cyprus will come to haunt EMU

Economists warn Cyprus will face a recession ‘for decades’ after EU deposit tax

"The controversial tax is seen hitting Russian pockets hard, with experts estimating that Russian deposits in Cypriot banks amount to at least 15.4 billion euros of the estimated 67 billion euros of deposits held by Cyprus banks. Russian President Vladimir Putin criticised the proposed tax, describing it, according to a Kremlin spokesman, as 'unfair, unprofessional and dangerous'. Russian Prime Minister Dmitry Medvedev was equally forthright. 'We should say this directly: this simply looks like the confiscation of other people’s money,' Russian news agencies quoted him as saying. 'I do not know who the author of this idea is, but this is what it looks like.'" Continue reading →

Continue ReadingEconomists warn Cyprus will face a recession ‘for decades’ after EU deposit tax

Gold Rises, Dollar Rises, Stocks Fall: The Cyprus Disaster Begins

"Over the weekend, Eurozone bureaucrats at a closed meeting came up with a plan. The committee demanded that the government of Cyprus impose a tax of 3% on all bank accounts under $130,000, and close to 10% on all accounts over $130,000. If the government refuses, the Eurozone will not provide a $13 billion bailout for the banks of Cyprus. The story is all over the European press, for good reason. The Eurocrats had always said that bank accounts would be sacrosanct. This announcement says, 'We lied.' But they also assured depositors that this will never happen again. 'Trust us.'" Continue reading →

Continue ReadingGold Rises, Dollar Rises, Stocks Fall: The Cyprus Disaster Begins