Posted by greydogg, 99GetSmart
* LETTER FROM THE EUROPEAN LEAGUE OF GENEVA TO MEPs
By Nicolas Kaloy, Justice for Greece
We have heard the news that Mr Schäuble, as a new Nazi Führer, “ordered” that the Eurogroup agreement on Cyprus “does not require approval by the Cypriot parliament”. In addition he added that “Cyprus must be punished because it did not approve the Annan Plan.” This is it … Mr. Barroso v. Mr. Rompuy and Mr. Schulz President of the European Parliament
The Greek Nation MUST BE PUNISHED because it did not approve the Annan (i.e British) Plan of eradication of a nation AND submission by a majority of 82% of the Island’s population to the PUNISHMENT by the 18% minority.
Messrs Barroso and v.Rompuy, and Mr Schulz … you are responsible for the eradication of democracy and of the Rights of all Men within the European Union.
In fact you are personally responsible for the eradication of the EUROPEAN UNION ITSELF. A mass of petty dictators do not recognize votes, elections or referenda. Why?
BECAUSE they know that whenever their decisions went to public vote, in France, in Ireland, in Cyprus or anywhere THEY WERE ALWAYS REJECTED BY THE PEOPLE
Which simply means that YOU ARE NOT WANTED AND YET YOU OCCUPY YOUR POSITIONS AND ISSUE YOUR VERDICTS ARBITRARILY HELD WITHOUT ELECTIONS, i.e. WITHOUT RESPECT OF DEMOCRACY-
It is attItudes of this sort as so far it has been shown in History and Actuality that nourish the terrorist movements. Consequently you are RESPONSIBLE IN THE FACE OF HISTORY FOR TERRORISM AGAINST THE GREEK NATION.
Shame throws its shadow on the European Dream of solidarity, union, respect of human rights and of democracy.
A Dark Age starts in the western world where freedom and democracy were once born and NOW are victims of a new issue of GERMAN HOLOCAUSTS.
From the EUROPEAN LEAGUE OF GENEVA
Dr Nicolas Kaloy, Ph.D. (philosophy)
President of the European League of Geneva
Sent: Tuesday, March 26, 2013 2:24 AM
* FLYING PIGS
By Mark J. Grant, AdvisorAnalystViews
After the Dutch Finance Minister indicated that Cyprus would be a template for future European bail-outs there was a lot of consternation. Senior debt was hit and bank accounts were confiscated in Cyprus and the plan just seems lovely for future problems. The notion that the second largest bank in Cyprus went belly up on its own is just not the truth and so the argument that depositors are responsible for where they put their money is not even applicable!
The nation of Cyprus was in trouble, Germany and the rest did not want to pick up the whole tab to bail them out, they had the ECB threaten to pull the funding and forced the bank closure so that they could use the depositor’s money to help pay off the loan to the country. There was no “due process,” no judicial review and the bank’s actual creditors will get zero so let’s at least deal with the reality of what happened and not try to paint it as something else.
Then this morning the 20%-40% seizure of the depositor’s money, which was the range that had been discussed, was now admitted by the Finance Minister in Cyprus today to be more like an 80% expropriation and a timeline to get any money back of six to eight years. This is, I suspect, because while the banks were closed in Cyprus that they were still open in Greece and Britain so that certain monies crept out during the night, and probably big money, so that the banks in Cyprus are in far worse condition than previously thought or admitted.
Then, of course, because the EU Finance Ministers were not going to meet again and re-open this fiasco; more money had to be seized from the depositors. Now the Dutch Finance Minister chaired the meeting on Cyprus. He was the one that directed the entire affair on Cyprus and the template that he revealed was fist denied then admitted, then denied by the ECB and confusion reigned supreme. Now here comes the first pig; the representatives of the Eurozone finance ministries released a document this morning stating that Cyprus was not the template for future bail-outs. I suppose it was initially written in German and translated into English however they must have forgotten to translate it into Dutch. This is because when the Dutch Finance Minister was asked about this document, and he is the Chairman of the Finance Minister group remember; he said he knew nothing about the document.
I am not making this up. My imagination is good but not this good.
It has finally happened; the pigs are flying!
The good news this morning is that we already know which country is going down next. That country is Luxembourg. We know this because the Foreign Minister of Luxembourg, Jean Asselborn, told Reuters yesterday that “Germany does not have the right to decide on the business model for other countries in the EU. It must not be the case that under the cover of financially technical issues other countries are choked.” Now Luxembourg is not so far different than Cyprus. They have a large financial sector, a lenient tax structure and a lot of foreign money. They have just also spoken out again the ubermeisters in Berlin which is not permitted under the EU treaty somewhere I am sure. […]
* A FURIOUS CYPRUS BEGINS INVESTIGATION WHO BREACHED THE CAPITAL CONTROLS
By Tyler Durden, zerohedge
On Monday we reported the very disturbing news that despite the ongoing liquidity blockade, capital controls and (somewhat) closed Cyprus banks, one particular group of people – the very same group targeted to prompt this whole ludicrous collapse of the island nation – Russian Oligrachs had found ways to bypass the ringfence and pull their money out quickly and quietly. We said that, if confirmed, “If we were Cypriots at this point we would be angry. Very, very angry.” Turns out the Cypriots did become angry, and the questions are finally starting. As Spiegel reports, the Cypriot Parliament, which may or may not last too long once the banks reopen tomorrow and the people realize that in a fractional reserve banking system, those deposits you thought were there… they are gone, poof, has begun investigating the capital flight that may means the destruction of Cyprus has been for nothing. Sadly, it is now too little, too late.
Banks have been closed and accounts frozen in Cyprus recently. Nevertheless, large amounts were moved out of the country’s crippled financial institutions on the eve of the bailout package. Lawmakers are suspicious and are investigating both the government and the Cypriot central bank.
Panicos Demetriades looked dead tired as he opened the press conference on Tuesday afternoon on the fourth floor of the Central Bank of Cyprus. The questions and answers flew back and forth for 90 minutes, with Finance Minister Michalis Sarris doing his best to back up the central bank head. Outside, the mountains slowly receded from view behind into a haze, while inside journalists became increasingly restive. When the session ended, many were left wondering why Demetriades had invited them in the first place. He had virtually nothing new to say.
Many interpreted the press conference as a symbolic exercise. Central bank head Demetriades, they felt, sought to stage a show of strength to counter the pressure that has been heaped on his shoulders in recent days. For one, he announced earlier this week, without consulting the Cypriot government first, that small banks in the country would open their doors again on Tuesday, in contrast to the island-nation’s two largest financial institutions Laiki and Bank of Cyprus. The result was a massive protest from the smaller banks and a reversal. The banks stayed closed. For the moment, the opening date is set for Thursday, and many fear that a flood of angry customers could overwhelm the sector.
Then, on Monday, the central bank announced that it was installing financial manager Dinos Christofides as a special consultant to the Bank of Cyprus as it prepares to take on assets from Laiki, which is to be liquidated. The deployment of Christofides is legitimate, but it triggered widespread concerns that the Bank of Cyprus too may soon be broken up. Demetriades was accused of not doing enough to explain the steps he was taking, thus intensifying investor anxiety.
Most of all, though, the central bank head has been harshly criticized due to the suspicious capital flight from Laiki and the Bank of Cyprus, the two institutions that have been hit hardest by the Cypriot banking crisis. There are indications that large sums flowed out of the two banks just before the first bailout package was signed in the early morning hours of March 16. At the end of January, some 40 percent of all savings held in Cypriot accounts were on the books of those two banks. Since then, however, much of it has been transferred elsewhere, despite orders from the central bank that accounts at the two institutions be frozen.
The central bank now stands accused of not doing enough to control the movement of capital. Transfers for humanitarian aid were permitted which, while certainly an acceptable exception, opened a loophole for abuse. Many are also furious that the bank allowed “special payments,” the definition of which was never adequately established.
The Cypriot central bank has defended itself by saying that it was impossible to completely prevent all transactions, despite the account freeze. Much of the money was withdrawn from overseas, where Cyprus had no authority. Branches of Cypriot banks in non-euro-zone countries such as Russia and Britain do not answer to the European Central Bank. Their liquidity is controlled by central banks in those countries.
Such a defense is nothing less than a voluntary admission of impotence. Holders of smaller savings accounts have been unable to access much of their money for almost two weeks, companies have been unable to pay their suppliers and across the country people are concerned that their salaries will not arrive on schedule on the first of the month. Meanwhile, rich businesspeople and those with connections overseas have been able to transfer their money into foreign accounts.
In other words, the Cypriots are, indeed, getting very angry. And soon, they may just have a list of people on whom to take it out: […]
* HERE WE GO AGAIN: EU LAWMAKER TO PUSH FOR BAIL-IN RESOLUTION LAW FOR DEPOSITS OVER €100K
By Tyler Durden, zerohedge
Here we go again:
- EUROPEAN PARLIAMENT TO PUSH FOR DEPOSITORS WITH ABOVE 100,000 EUROS TO FACE BAIL-IN UNDER NEW BANK RESOLUTION LAW – EU LAWMAKER – RTRS
Full Reuters article:
The European Parliament will demand that big savers take losses if their banks run into trouble, a senior lawmaker told Reuters, adding momentum to a policy unveiled as part of a Cypriot bailout.
Although some policymakers have sought to portray Cyprus and the losses suffered by depositors at two of its banks as a one-off, many experts believe it marks a dramatic change in tack in how Europe deals with troubled banks, to spare taxpayers who have been on the hook for previous bailouts.
Jeroen Dijsselbloem, head of the Eurogroup of euro zone finance ministers, said on Monday that in future, the currency bloc should first ask banks to recapitalise themselves, then look to shareholders and bondholders and then “if necessary” to uninsured deposit holders.
Now the likelihood is rising that tough treatment of big depositors will be written into a new EU law, making losses for large savers a permanent feature of future banking crises.
“You need to be able to do the bail-in as well with deposits,” said Gunnar Hokmark, an influential member of the European Parliament, who is leading negotiations with EU countries to finalise a law for winding up problem banks.
The European Parliament has an equal say alongside EU countries when deciding who must bear the brunt of future bank failures such as those now being seen on Cyprus.
“Deposits below 100,000 euros are protected … deposits above 100,000 euros are not protected and shall be treated as part of the capital that can be bailed in,” Hokmark told Reuters, adding that he was confident a majority of his peers in the parliament backed this line.
The law, which will also introduce means to impose losses on bondholders, is due to take effect at the start of 2015. Germany wants provisions for bailing in bondholders and others in the same year, though that may be delayed.
The European Commission wrote the first draft of the law but left it to member countries and the parliament to decide whether and when savers should face losses, when a failing bank is being salvaged or shuttered. Earlier on Tuesday, it said only that such a step was possible.
Hokmark urged savers to check their banks’ health before taking the risk of depositing money.
“If you put your money in Royal Bank of Scotland … or Deutsche Bank, depending on how that bank is working you are taking a risk,” he said. “You need to be aware that you are taking a risk.
“I want us to legislate in a way that makes investors aware of the risk,” said Hokmark, adding that savers should be asking whether their bank is solvent. “The bail-in instrument is creating thousands and thousands of supervisory authorities.”
Cypriot President Nicos Anastasiades agreed in a last-ditch deal to close down the second-largest bank, Cyprus Popular, and inflict heavy losses on big depositors, many of them Russian, after Cyprus’s financial sector ran into trouble when investments in Greece went sour.
“The markets may be shocked but some principles have to be laid down,” said one EU official, speaking on condition of anonymity, adding that it would be “unfair” for the new EU law to take a different approach to that used in Cyprus.
* CYPRUS: THE EUROZONE’S OMNISHAMBLES MOMENT
By Nick Malkoutzis, ekathimerini
At the beginning of last week, Cypriot politicians insisted they would not choose a “suicidal” option for their country. By the end of the week, they picked one that would inflict mortal wounds instead.
Nicosia’s handling of its unprecedented predicament has been cataclysmic. But the approach adopted by the European Union and International Monetary Fund to Cyprus’s problems has also been disastrous. The eurozone has been building up to an omnishambles moment throughout the debt crisis and it finally struck in a small island state in the Eastern Mediterranean.
The agreement arrived at in Brussels early Monday, following hours of talks involving Cypriot officials, eurozone finance ministers and EU and IMF chiefs, is being billed as the least worst option after all sides took successive wrong turns on the way. That may be the case but it will be little consolation to thousands of Cypriots who have lost a big chunk of their deposits and face uncertain times ahead.
For those looking at the longer-term picture, the island is in for years of extreme difficulties. Its banking system and concomitant services made up about half of the island’s economy. This has now been obliterated. Depositors are unlikely to trust Cypriot banks for some time to come and young Cypriots will have to choose to become something other than lawyers, financiers and accountants. Many will have to consider a future away from their homeland, which faces a double-digit recession in 2013 and more years of economic contraction ahead. […]
* EUROPE’S FLESHEATERS NOW THREATEN TO DEVOUR US ALL
By Seumas Milne, The Guardian
Cyprus risks deepening the eurozone crisis as austerity is failing across the continent. Resistance will have to get stronger
Europe’s flesheaters are back. The claim that the worst of the eurozone crisis is behind us now looks foolish. The deal forced on Cyprus by the German-led Troika at the weekend isn’t a bailout: it will effectively destroy the island’s economy. Instead of getting a grip on its grossly inflated banks, it will impose a brutal credit contraction, combined with sweeping cuts and privatisations, wiping out perhaps a quarter of Cyprus’s national income. Ordinary Cypriots, not Russian oligarchs, will pay the price.
Of course Cypriot politicians are to blame for having allowed the country to be turned into an adjunct of a bloated financial sector and a refuge for hot Russian money. But what tipped the divided island over wasn’t foreign investors’ sharp practices, but the impact of Europe’s wider crisis on its banks: in particular, their exposure to devastated Greece, currently also in the Troika’s tender care.
Some have hailed the fact the raid was carried out on Cypriot bank deposits over €100,000, rather than the public purse. At last the rich and those responsible for private banking failures are being made to cough up, it’s been said. Which would have been a good thing. But it’s savers, not bankers or shareholders, who are taking the 40% hit. And many of the targeted depositors, such as pensioners, are scarcely rich – or are small businesses which will now go bust. […]
* THE MINDSET
By Mark J. Grant author of Out of the Box
In all of the tortuous moments that have taken place with the European Union the one thing that has become apparent is a radical change of mindset. In the beginning there was a kind of democratic viewpoint. All nations had a voice and while some were louder than others; all were heard. This is no longer the case.
There is but one mindset now and it is decidedly German. It is not that this is good or bad or even someplace in between. That is not the real issue. The crux of the matter is that not all of the people in the EU are Germans and so they are not used to being treated in the German fashion, they do not live their lives like Germans and, quite importantly, they do not wish to be Germans.
There is the problem.
The Germans will do what is necessary to accomplish their goals. There is nothing inherently bad or evil about this but it is taking its toll on many nations in Europe. In the case of Greece they went back and retroactively changed the covenants of the bond contract. They did not actually admit this of course and they called it other names but that is what they forced on Greece. In doing so they got the bond holders to shoulder a good deal of the expense of the bailout of Greece. You can say, “Right,” you can say, “Wrong,” but that is what they did. They accomplished their goal.
Always remember that the Germans are under severe financial pressure. They are still paying the bill for the East Germans. They support Target2 and their economy is just $3.6 trillion which is a fraction of the entire Eurozone. They are trying to support a house with less than desirable supports.
Then we come to Cyprus and they make it complicated and put one bank with another bank and take money from depositors and call it a “Tax” and say that people and institutions are liable for where they keep their money when it is more than 100M Euros. All true of course but they do not allow for any “Rule of Law” or “Due Process” by the judicial system but just mandate that the money will be used to help pay Europe for a loan to the sovereign government. Then they also tagged senior bond holders reversing their position of the last years so now, so that it can now be said with accuracy; everyone is at risk. Consequently they have to pay less and they have accomplished several goals which are to punish a “Casino Economy,” to put Cyprus in the same position as Greece, which is not only bankrupt but a ward of the European Union, and finally to insist, by the use of money, that Cyprus succumbs to the German demands. Note that CDS in Europe (Markit iTraxx Financial Index) has jumped 22% in just one week.
It is the occupation of Poland in a very real sense just accomplished without tanks or bloodshed as money is used instead of armaments to dominate and control a nation. Politically you may “Hiss” or you may “Applaud” but there are consequences here for investors that must be understood.
First and foremost is that they will not stop. Nothing will be allowed to get in their way. It can be senior bond holders one day, bank depositors the next, the dismantling of some Parliament on the day after that, a wealth tax on corporations on Thursday, the disallowance of dividends on Friday; with every announcement to come on Saturday evening. The next week can be a cap on bank bonuses, a demand that the cap on bank bonus savings be returned to the State, a financial transaction tax that gets expanded and taxes all bond coupons and the list goes on. What might be, could be, and nothing, absolutely nothing, will be allowed between Germany and her desire to control all of Europe. […]
* ON JOURNALISM AND “ALTERNATIVE” MEDIA IN GREECE
Source: BorderlineReports @ http://borderlinereports.net
Radiobubble is a community web radio based in Athens. Alongside its daily radio program, Radiobubble has initiated and oversees rbnews, which is a news service compiled from various inputs: journalists, bloggers, citizen journalism, and eye-witness accounts. It works through the hashtag #rbnews on Twitter, and then on their blog, where the cross-checked news items appear.
They now also run an international rbnews service, with news in English, French and Spanish – news you don’t hear much about in the mainstream Media, whether Greek or international. They also have a weekly rbnews international radio show, where the host Theodora
Oikonomides aka @IrateGreek was kind enough to invite me for a chat about journalism in Greece.
We mainly talked about the case of gold mining in the Skouries forest of Chalkidiki and the fuel smuggling scandal involving Aegean Oil as examples of the need for independent, quality media in Greece. Here’s the podcast:
RADIO INTERVIEW @ http://www.youtube.com/watch?feature=player_embedded&v=AWQP2PPzCws