Archive for March, 2013

When the sh*t hits the fan, the government steals

March 28, 2013 Leave a comment

Cypriot capital controls, coming soon to a city near you…

Cyprus reopens its banks on Thursday while limiting withdrawals, banning cheques and curbing the use of Cypriot credit cards abroad, among measures imposed to avert a bank run after it agreed a tough rescue deal with international lenders.

The Central Bank said banks would open their doors at midday (1000 GMT) on Thursday after nearly two weeks when Cypriots could only get cash through limited ATM withdrawals.

A central bank official said Cypriots would be allowed to withdraw no more than 300 euros ($367) a day.

Yiangos Demetriou, head of internal audit at the Central Bank, said on state television that the controls would allow unlimited use of credit cards within Cyprus, but set a limit of 5,000 euros per month abroad. He said the measures would last four days but could be reviewed.

Other details of the controls had yet to be officially announced by late Wednesday. According to a draft of a government decree leaked to Greek newspaper Kathimerini, Cypriots would not be permitted to send money overseas without documentation showing they are paying for imports.

Those travelling abroad could take a maximum of 3,000 euros on each trip, according to the draft. Early withdrawals of funds deposited with banks for a fixed term would be banned. Cypriot officials said the draft published by the newspaper was genuine but not necessarily.


The gold standard is inevitable once trust in the whole system is shot

March 21, 2013 Leave a comment

Here is why.

Hilariously accurate commentary on Cyprus and the coming breakdown in the supply chain globally

March 21, 2013 Leave a comment

ZeroHedge is again the only repository of truth.


“So far the market has been largely oblivious of the shattered trust and changed  dynamic in European banking dynamics for one simple reason: Cyprus banks have been closed, and likely will be closed indefinitely, preventing the mass media from broadcasting what happens when an entire population, and foreign  depositors, decide to clear out the holdings of their bank accounts, either physically or electronically, and the public anger that will result when they find that courtesy of fractional reserve banking, only a tiny amount of said deposits is actually present.”

“Logically, this progression of limited transactions will accelerate exponentially until by some miracle, either normalcy returns and faith in the local banking system is restored, or every form of commerce, trade and exchange grinds to a halt, leading to a localized, at first, manifestation of the “just-in-time” supply-chain cross contagion that was explained in painful detail in “Trade-Off: a study in global systemic collapse.”

Since we don’t believe in miracles, our money is increasingly on the latter.”

Read the whole thing.


We are not Ireland, Greece, Italy, Spain, Cyprus or…

March 19, 2013 Leave a comment

Commentator for the Sydney Morning Herald says Australian banks are “different”.

Despite needing billions in the wholesale market every week to stay afloat.

Sure.  They are different.

Until they’re not.

Cyrpus is the endgame

March 18, 2013 Leave a comment

Governments and banks plunder real savings all the time through fractional reserve banking and concomitant inflation.

However people only realize what’s going on when international bankers and their government lackeys actually physically steal money from ordinary bank accounts and the people physically see the “money” in their account dwindle overnight by 10%.  Which is what happened in Cyprus over the weekend, with deposits of over €100,000 being plundered.  It’s a qualitative difference from what happens everyday but for some reason people only react to this kind of theft and not the more insidious everyday theft that is FRB.  See the cartoon below (Translation:  Give us your money, this is a stick up!):


We are at the end stage of the cancer where more and more desperate measures are needed to pay unrepayable debt back to creditors.

This is the graph that we are facing:


I estimate we are at around 68 on the graph.  The trip from 70 to 80 is going to be nothing short of horrific.  Greece and Cyprus are already on that downward path.  It’s ugly once the momentum starts picking up pace.  That’s when the bankers end up with everything and that sucking sound is real resources going back to the banks are credit shrinks and governments steal on behalf of the banking elite.

Once deposits start disappearing you know all pretence of civilization is lost and theft is now out in the open.  Common people be damned – you’re paying for our sins.  Bankers will use the media to “blame the debtor” for the debt, never the creditor for issuing the debt.  That is the way of the world today.


And almost incomprehensibly immoral.

Welcome to Fascist Australia, where government and big business guarantee each other’s backsides!

Australia’s mommy central bank has put every fucking Australian bank to its teat and now has a PERMANENT bailout facility.

Message to bankers and bond traders:

Gamble, screw hookers, lose all the money trading on ponies at the races.  Whatever.  Embezzle and scam as much as you want.  You will be bailed out.

Meanwhile small businesses go to the wall, homeowners are kicked out of their homes, farmers are shooting themselves after a bad season.

But there’s never going to a bad season in Aussie banking.

Welcome to FASCIST OZ: Where the government and bankers are hand in glove.  Or fist in butt.

This is outrageous, disgusting.  This is a case study in insane moral hazard.  This is the definition of corruption.  With a supposedly “pro-worker” Labor government in power!  This is happening with their implied consent, under their very noses!  The RBA and the banks are doing as they please!

Taxpayers will be on the hook – like Ireland – if these fuckers fuck up.  And they will!  They must.  They are INCENTIVIZED to fuck up!

If anyone thought this country had any sovereignty at all, this just dispels the myth.  People often ask “Why have State Governments in this country?”

I ask, “Why have governments at all when we just take our commands from Basel or Washington?”

We were always a colony.  We never rebelled.  We deserve this cowardly gutless outcome.  The bankers screw us on the upside and kill us on the downside.

Call it the new “rape and slaughter” policy, brought to you by the local branch of the Rothschilds.

This is sickening.

Corrupt shyster bureaucrats have decisively chosen the “Irish” model over the “Iceland” model.  Let’s get into bed with the Devil rather than cut off his horns.  Let’s be fucked by the bankers rather than fuck them.

I want to leave this God forsaken cesspit of a corrupt country.  Now.

Even Singapore isn’t going this far.   I know we will become Ireland.  I know it.

Sad.  The sadness you get after a raging anger that can go nowhere.  God save us from our own folly.  Can we dodge another bullet when China slows?  I don’t know.  This insane policy guarantees debt slavery forever if we slip an inch from the growth path.  An inch.

Where do bankers’ high salaries come from?