Posts Tagged ‘cyprus’


Russia Puts Pressure On Cyprus PM…

Cypriot legislators have rejected the European Central Bank bailout plan put forward by the IMF and the EU last week. Additionally it appears that the bank levy on all accounts held at Cyprus banks is dead as well, after Russian officials rebuffed Cyprus’ attempt to collect a 9.9% tax on all accounts greater than €100,000.

Cypriot Finance Minister Michael Sarris, already in Moscow prior to the EU bailout plan being announced, has agreed to stay on until a resolution is achieved. He had been there originally to ask for an extension and a lower interest rate on the current Cyprus loan of €2.5 billion, as well as an additional €5 billion loan to help cover the costs of the EU bailout plan.

Cyprus is playing a dangerous game with the Russians, as indicated by the 9.9% levy on accounts over €100,000.

It would appear that a simple $5 billion euro loan would be quite a bit less expensive for the Russians then the 9.9% levy on all accounts over €100,000. The Central Bank of Cyprus handles all banking for the government of Russia, and with Russian deposits said to be over $1 trillion, a 9.9% levy on all of their accounts would equal roughly €100 billion or more, far in excess of the €10 billion needed for the EU bailout plan.

In addition to rejecting the EU bailout plan on Tuesday, it would appear that legislators in Cyprus had come to their senses, additionally rejecting the proposed levy on bank deposits.

Cyprus, a tiny island nation of 1.1 million people, has been held to the same protocol as European sister states Greece, Portugal, Ireland, Spain and Italy, which accepted severe austerity measures linked to the EU bailout programs for their countries. However their GDP is quite a bit higher than that of Cyprus, and they had a larger pool of residents from which to tax, in an effort to recover the funds needed allowing them to stay in line with the EU austerity bailout measures heaped onto their specific governments.

European Central Bank officials have applied an increasing amount of pressure for Cyprus to accept the deal, saying that they needed to accept the bailout quickly or face the prospect that the EU, the IMF and the European Central Bank would leave them twisting in the wind, forcing them to actually declare bankruptcy.

However, this strategy would not have the desired effect, and Russia would be forced into the equation, which may or may not mean that the Russians may take over the country of Cyprus, as they would be forced into paying for the bailout plan rather than pay the levy of 9.9% on all the money they have stored in this bank.

Russia, the number 2 or 3 largest government on our planet, with considerable military might, would not just pay and go quietly, they may threaten military actions if they are forced to bear the brunt of Cypriot banking stupidity.

Russian roulette indeed.

Meanwhile the Cyprus government will keep all banks closed until next Tuesday, after the holiday weekend, and a Cyprus central bank official indicated that unless a new plan was hatched before Tuesday, bankruptcy would assuredly happen on Tuesday, with smaller bank account holders making a run on the bank, as well as businesses with over €100,000 in their account attempting to do the same before the 9.9% levy is imposed.

With both the EU and Russian officials blocking at giving Cyprus a softer deal, it appears that Cyprus will have to take the hard-hit, either actually going bankrupt, or forcing the levy on to all account holders in the Cyprus banking system, something it does not want to do because of the aforementioned Russian response.

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European Union officials, specifically the European Central Bank and the IMF, have forced an unprecedented ‘Bailout’ deal on the Government of the tiny island nation of Cyprus, to keep Cyprus from going bankrupt, and potentially dragging down the EU and the IMF with it.

If this wasn’t bad enough, the Government of Cyprus announced over the weekend it would impose a ‘Bank Levy’ on accounts at all Cyprus banks, as a way of creating 13 Billion dollars (10 Billion Euros) to pay the EU and the IMF for their bailout from bankruptcy.

One of Cyprus biggest banking customers is Vladimir Putin and the Russian KGB. Russian Corporations were looking for a ‘safe’ place to store their massive business profits, so five years ago, they made a deal with Cyprus to store their corporate funds in Cyprus banks. Believe me when I say if you take Russian ‘Corporate’ money, you can bet that the KGB, and its former head, Vladimir Putin, have more than just a little to do with it.

If you do business with Russia, everything comes through a bank in Cyprus.

So the Cyprus Parliament hatches a plan to impose a ‘levy’ on all account holders, big and small, in an effort to pay back the EU and the IMF for their recent bailout, to the tune of 10 Billion Euros, roughly 13 Billion dollars, US.

Cyprus officials are now in fear for their lives, because confiscating Russian money cannot be good for your overall well-being.

This ‘levy’ has catastrophic implications, and this is a major miscalculation on the part of the Cypriot Government.

Details of the ‘levy’ are as follows.

Normally, when you put your hard earned money into the bank for safe keeping, your account is insured up to a certain amount. This type of banking has been going on for 100 years now, ever since the Federal Reserve Act legislation was passed by the Congress of The United States in 1913.

The U.S. Federal Reserve Bank owns 80% of the EU Central Bank, The IMF, and all banking systems Worldwide, which is one of the reasons why our most recent recession was felt so badly by our partners across the pond. As goes the U.S., so goes the world.

This lead to the recent bailouts of Greece, Spain, Portugal, Italy and now Cyprus, forcing Cyprus to take drastic measures because their banking system is on the verge of collapse.

But getting back to the levy, the Cyprus Government will take a “onetime fee” of 6.75% on accounts under 100,000 Euros, and a 9.9% fee on accounts above the 100,000 mark.

No bank in its right mind would do this, and one has to wonder, why now?

I’ll tell you why. There are two factors at play here.

One, The One Peoples Public Trust, OPPT, foreclosed on the World Monetary system in late December 2012, effectively ending the Reserve system of banking as we know it. All bets off, right.

They foreclosed on the Federal Reserve Bank of the U.S., the IMF, and all Governments and their central banks, the Vatican, the British Monarchy and every banking system and corporation on the Planet through UCC filings, ending our global system of reserve banking.

Two, the Securities and Exchange Commission, SEC, very quietly foreclosed on our own Federal Reserve Bank back in January, after the Federal Reserve Act expired, as the bill passed by Congress in 1913 was only good for 100 years.

Notice how quiet the U.S. Government is about the mess going on in Cyprus?

Additionally, they have invented ways to keep the minds of the U.S. population busy as of late, i.e., the Sequester, Unemployment, Immigration, Congressional feuding, and anything else you can think of all the way back to the day after the election, all designed to keep our minds and our eyes off of the Federal Reserve foreclosure by the SEC.

But let’s stay on point. So the Cypress Central Bank imposes new, never before tried rules on their patrons, more specifically, Russia, in a brash attempt to either get the 10 Billion Euros, or to get the EU and the IMF to soften their bailout plan for Cyprus. Bad idea.

Why did they do this? They did it because as one of the global banking systems, 80% owned by our FED, they know that the Federal Reserve has been foreclosed on, the world monetary system is no longer valid or legal, and they are in essence, doing whatever they want to, because the 800 pound gorilla in the room (The Fed) is absent.

So with nobody to enforce old, invalid, illegal banking regulations, why not work that angle, the one no one is talking about, the foreclosure of the world reserve system of banking, and play a very deadly game of cat and mouse with the EU, the IMF, the Fed, and the Russians.

Now if they can get the 8,000 pound gorilla in the room, (Russian KGB) to relax and wait until the EU and the IMF officials get as scared for their lives as the Cyprus Legislators are, they will change the bailout language to soften the blow, and allow banking officials in Cypress to backtrack, and remove the “levy, ” and keep Putin and his gang happy.

Or they could be waiting to see if the U.S. Government will print 13 Billion dollars, and bailout Cyprus themselves.

Hell, with the U.S. running multi-trillion dollar deficits, 13 Billion is a drop in the bucket, beer and skittles money, at best.

Either way, playing with the KGB is Russian Roulette, so to speak, (Pun Intended) and if the elected officials and bankers in Cyprus aren’t already in fear for their lives, they should be.

Today will be a big day in Cypress, and in Moscow and Washington as well.

As always, Sam Davis