AND THE PLUNDER CONTINUES –
HURTING MOST THE PEOPLE WHO CANNOT AFFORD TO BE HURT!
The real targets of the “haircut” are businesses, entrepreneurs and the middle class
Paul Joseph Watson
April 1, 2013
News that the Cypriot President’s family moved 21 million euros to London days before the bank accounts of his people were looted as part of the bailout deal serves as another reminder that while the media portrays the victims of the Cyprus “haircut” as the mega rich and wealthy Russian oligarchs, the real victims are middle class families and small business owners.
“A company owned by in-laws of Cypriot President Nicos Anastasiades withdrew dozens of millions from Laiki Bank on March 12 and 13, according to an article published in Cypriot newspaper Haravgi,” reports EnetEnglish.
“The newspaper, which is affiliated to the communist-rooted AKEL party, reports that three days before the Eurogroup meeting the company took five promissory notes worth €21m from Laiki Bank and transferred the money to London.”
In addition, as Reuters reports, “While ordinary Cypriots queued at ATM machines to withdraw a few hundred euros as credit card transactions stopped, other depositors used an array of techniques to access their money.”
Branches and subsidiaries of Cypriot banks in London and Russia remained open while banks in Cyprus were closed, allowing Russian oligarchs and other wealthy depositors to move their money.
When asked about the amount of money that had exited Cyprus before the bailout deal, German Finance Minister Wolfgang Schaeuble refused to provide figures.
“Perhaps because if he did, it would become clear that the only entities truly punished by this weekend’s actions are not evil Russian billionaires, but small and medium domestic companies, and other moderately wealthy individuals, hardly any of them from the former “Evil Empire,” remarks Zero Hedge.
As Business Insider reports, the fact that the mega-rich – the supposed targets of Cyprus “haircut” – have already removed most of their money from the system means that, “upper middle class/entrepreneur types will feel most of the pain if the Cyprus tax is enacted.”
In other words, the very engine of the Cypriot economy, the businesses and the employers, will be the victims of the EU/IMF plundering. Middle class families are also amongst the worst affected. The Telegraph recently reported on a family who sold their villa in Cyprus for 200,000 euros right before the “haircut” was announced only to see the desperately needed cash disappear.
As we highlighted last week, a screenshot from an online bank account belonging to a medium-sized IT business in Cyprus shows over 720,000 euros in “blocked funds.” According to the owner, 80 per cent of that will be swiped and what’s left will take 6 to 7 years to get back.
After an initial attempt to plunder around 10 per cent of savings was rejected after a huge public outcry, Bank of Cyprus depositors now face losing up to 60% of their money, with Cyprus’s financial minister Michalis Sarris warning the “haircut” could even be as much as 80%.
However, since the theft has been characterized by the media as merely targeting rich Russian oligarchs and other wealthy investors, the uproar has diminished.
In reality, the mega-rich managed to get their money out either before the crisis even started or during the so-called “bank holiday” period while middle class depositors were left stranded.
Given that the looting of bank accounts has now been established as the template for future “bank recapitalizations” across Europe as well as Canada, the middle class has now been permanently put in the crosshairs and will be expected to pay for bankers’ gambling losses with their savings on a regular basis.
This article was posted: Monday, April 1, 2013 at 6:14 am
AND THE MONEY WOES CONTINUE TO PILEUP!
What is happening in countries around the world is important here, because the banksters have the same plans already in place, to be used here (see previous article “Crummy Banksters’ Plan In Place For America!”)! The main stream media , like good little lap dogs, are reporting very few of the events and certainly not explaining what it all means for the average American! You need to do your own research and prepare for the meltdown, as best as you can!
Next is another extension of the Cyprus crises – the affects in Russia! Russia was heavily invested in Cyprus – it was for them, like the offshore banks are for American companies and well heeled investors! We will see if they maintain their cool and calm demeanor through the 60% theft of savings above 100,000 EU!
1 April 2013 Last updated at 06:37 ET
Cyprus crisis: Moscow will not bail out Russian savers
For years Cypriot banks have attracted Russian investors with competitive rates
Continue reading the main story
The Russian government says it will not compensate Russian savers who have lost money in the Cyprus banking crisis.
Russians are believed to have billions of euros in Cypriot accounts and deposits above 100,000 euros (£84,300; $128,200) in the two biggest banks could be reduced by as much as 60%.
Such losses would be “a great shame”, First Deputy PM Igor Shuvalov said, “but the Russian government won’t take any action in that situation”.
Cyprus now restricts cash withdrawals.
A 10bn-euro bailout from the EU and IMF – required to keep the debt-laden Cypriot economy afloat – will only be granted if Cyprus itself raises 5.8bn euros, most of which looks likely to come from depositors with more than 100,000 euros in Bank of Cyprus and Laiki (Popular Bank).
‘Haircut’ for depositors
Laiki, the second largest bank, is being wound up and folded into Bank of Cyprus, the biggest bank.
Speaking on the Russian state TV channel Rossiya 1, Mr Shuvalov said Russian money in Cyprus included some that had been taxed and some that had not.
He said the Russian government would still look at cases where there were “serious losses, involving companies in which the Russian state is a shareholder”. That review would take place in Russia, and “for this it would certainly not be necessary to help the Republic of Cyprus”, he said.
Continue reading the main story
Cyprus capital controls
- Daily withdrawals limited to 300 euros
- Cashing of cheques banned
- Those travelling abroad can take no more than 1,000 euros out of the country
- Payments and/or transfers outside Cyprus via debit and or credit cards permitted up to 5,000 euros per month
- Businesses able to carry out transactions up to 5,000 euros per day
- Special committee to review commercial transactions between 5,000 and 200,000 euros and approve all those over 200,000 euros on a case-by-case basis
- No termination of fixed-term deposit accounts before maturity
Many of the large-scale foreign investors in Cyprus are Russian – and in many cases they have taken advantage of the island’s status as an offshore tax haven. Some politicians have accused Cyprus of acting as a hub for Russian money-laundering – an allegation rejected by Cypriot officials.
After years of large-scale capital flight from Russia there is now a Kremlin drive to repatriate Russian money. The government has introduced tighter monitoring of foreign bank accounts held by Russian state employees.
Bank of Cyprus depositors with more than 100,000 euros could lose up to 60% of their savings as part of the bailout, officials say.
The central bank says 37.5% of holdings over 100,000 euros will become shares.
Up to 22.5% will go into a fund attracting no interest and may be subject to further write-offs.
The other 40% will attract interest – but this will not be paid unless the bank performs well.
The fear is that once the unprecedented capital controls – which are in place for an indefinite time – are lifted, the wealthiest will rush to move their deposits abroad, the BBC’s Mark Lowen reports from Nicosia.
Cyprus has become the first eurozone member country to bring in capital controls to prevent a torrent of money leaving the island and credit institutions collapsing.
Cypriot President Nicos Anastasiades has said the financial situation has been “contained” following the deal.
He has also stressed that Cyprus has no intention of leaving the euro, stressing that “in no way will we experiment with the future of our country”.
Australia and New Zealand have also joined in the thievery, although it is minimal, to date!
With Cyprus the banksters found out that they can get away with outright robbery –
They will not stop there!
If the pres and the fed are not stopped, we have no future!