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French Socialist budget minister charged with hiding money in UBS account

"France's former budget minister Jérôme Cahuzac confessed on Tuesday to having hidden €600,000 ($770,000) in foreign bank accounts for the last 20 years, reversing repeated denials weeks after a probe was launched into his alleged Swiss account. The minister, who faces five years in prison and a fine of up to €375,000 said he had been 'caught up in a spiral of lies and lost his way.' Cahuzac had been leading the government's charge against wealthy French citizens evading taxes through foreign accounts." Continue reading →

Continue ReadingFrench Socialist budget minister charged with hiding money in UBS account

Marc Faber: What Happened In Cyprus Will Happen Everywhere

"'It will happen everywhere in the world, in Western democracies,' Faber said. 'I think you have to be prepared to lose 20 to 30%. I think you're lucky if you don't lose your life.' 'If you look at what happened in Cyprus, basically people with money will lose part of their wealth, either through expropriation or higher taxation. The problem is that 92% of financial wealth is owned by 5% of the population. The majority of people don't benefit from a rise in the stock market. They are being hurt by a rising cost of living and we all know that the real incomes of median households has been going down for the last few years,' he said." Continue reading →

Continue ReadingMarc Faber: What Happened In Cyprus Will Happen Everywhere

Jim Rogers: ‘Run for the Hills’ Now, I’m Doing It

"The EU/IMF raiding bank accounts in Cyprus to bail out the country's financial system sets a dangerous precedent and investors should 'run for the hills' said investor Jim Rogers, chairman of Rogers Holdings. Rogers said that with Cyprus, politicians are saying that this is a special case and urging people not to worry, but that is exactly why investors should be concerned. 'If you're going to listen to government, you're going to go bankrupt very quickly,' he added. 'I, for one, am making sure I don't have too much money in any one specific bank account anywhere in the world, because now there is a precedent,' he said." Continue reading →

Continue ReadingJim Rogers: ‘Run for the Hills’ Now, I’m Doing It

So, What’s It Like To Have a Business in Cyprus Right Now?

"The most of circulating assets on our business Current Account are blocked. Over 700k of expropriated money will be used to repay country's debt. Probably we will get back about 20% of this amount in 6-7 years. I'm not Russian oligarch, but just European medium size IT business. Thousands of other companies around Cyprus have the same situation. The business is definitely ruined, all Cypriot workers to be fired. We are moving to small Caribbean country where authorities have more respect to people's assets. Also we are thinking about using Bitcoin to pay wages and for payments between our partners." Continue reading →

Continue ReadingSo, What’s It Like To Have a Business in Cyprus Right Now?

Another Warning Sign – NY Times Columnist Favors Capital Controls

"Krugman doesn't see irresponsible government spending and the resulting debt as the core cause of recent crises in Europe and around the world. Instead, he blames inflows of money by undefined foreigners. He even says that the US, too, is victimized by inflows of foreign money when he claims, 'It's not just Europe. In the last decade America, too, experienced a huge housing bubble fed by foreign money.' According to Krugman, it's not the fault of the Federal Reserve's artificially low interest rates for blowing up the housing bubble, nor the proliferate spending habits of European welfare states for causing the debt crisis." Continue reading →

Continue ReadingAnother Warning Sign – NY Times Columnist Favors Capital Controls

Russia to ban cash transactions over $10,000

"The move is expected to boost banks’ cash reserves and put a damper on Russia’s shadow economy. However, the middle class will most likely end up having to pay the price for the scheme. In 2014, a ban on cash payments for purchases worth more than 600,000 rubles (about $19,500) will be introduced; the limit will then be halved in 2015. Furthermore, the document introduces mandatory, cash-free, salary payments. Smaller companies with fewer than 35 employees will be the only exception, and trade companies will be able to pay salaries in cash if they employ no more than 20 people on staff." Continue reading →

Continue ReadingRussia to ban cash transactions over $10,000

Is it Time to Give Up on Gold?

"There’s no question everyone hates gold right now. But this is actually a good thing for the metal. This extremely negative sentiment could set up the stage for the next move higher. When nearly everyone hates an asset, it means most investors have already sold it. So the downside may be limited. In March 2009, the survey of futures traders I mentioned above also registered the same low reading of 3% for stocks. In other words, when U.S. stocks bottomed after the crash, only 3% of future traders were bullish. Since then, the S&P 500 Index has rallied 130%. If sentiment towards gold changes, we could see an explosive move in the metal." Continue reading →

Continue ReadingIs it Time to Give Up on Gold?

Americans fall out of favour with Swiss banks

"Already battle-scarred from the hard lessons of recent years, Swiss banks are taking a very cautious approach when it comes to the introduction of FATCA. The US law requires banks around the world to report information on American account holders to Uncle Sam. There are also concerns that FATCA’s collateral damage could extend beyond the home front into the business world. If an American owns more than 10 percent of a company, it is reportable to the IRS. The worry is that this rule may make it harder for US entrepreneurs to find business and banking partners, shutting them out of attractive investment opportunities." Continue reading →

Continue ReadingAmericans fall out of favour with Swiss banks

Bank of Cyprus savers could lose up to 60%

"Big savers in Cyprus’s largest bank face losses of up to 60 percent, far greater than originally feared under the island’s controversial EU-led bailout plan, officials said on Saturday. Cyprus meanwhile launched an investigation into a list published in Greek newspapers of Cypriot politicians who allegedly had loans written off by two banks at the heart of the financial meltdown. Officials said Bank of Cyprus savers will see at least 37.5 percent of funds over 100,000 euros ($128,000) turned into shares, but a further 22.5 percent will be held until authorities know they can satisfy the terms of the bailout." Continue reading →

Continue ReadingBank of Cyprus savers could lose up to 60%

Jeffrey Tucker: Bitcoin’s Moment

"The Cyprus disaster sets in place an incredible precedent: Bank deposits will hereafter be treated as government property first and belong to the depositors only at the discretion of the masters of the money. It’s no wonder that Bitcoins are being brought from locales all over Europe, including Spain, Greece, Italy, and beyond. This also accounts for why mainstream news outlets are starting to write about Bitcoin as if it were the real thing, something serious, something that really matters on the world stage. Meanwhile, Bitcoin applications are flourishing all over the Web." Continue reading →

Continue ReadingJeffrey Tucker: Bitcoin’s Moment