Sunday, March 24, 2013
This is the latest update in Cyprus bank raid series chronicled below
The Cyprus parliament and the Troika agreed today on a deal to steal billions to bailout the insolvent banks in Cyprus to prevent a feared bankruptcy, and details of yesterday's 9 bills on capital controls also started to emerge. Both are even worse for financial freedom than previously thought.
Taking advantage of the populist outrage against the initial plan to raid everyone's bank accounts to pay for private bank failures, the autocrats decided they would raid up to 20% from wealthy depositors with over €100,000 at the Bank of Cyprus and 4% at other banks. Simultaneously, the plan would nationalize pensions of average citizens which are, for the moment, safe from the heist.
Russia Today reports:
Cyprus and the Troika have agreed to a 20 per cent tax on deposits over 100,000 euros at the Bank of Cyprus and 4 per cent on deposits held at other banks.
A senior Cypriot official told Reuters that a plan to tap nationalized pension funds would not be a part of a plan to raise billions of euros in return for a bailout from the European Union. Cyprus said earlier on Saturday that it was looking at seizing a quarter of the value of big deposits at its largest bank in order to raise such funds.
"Unfortunately, the events of recent days have led to a situation where there are no longer any optimal solutions available. Today, there are only hard choices left," European Union Economic and Monetary Affairs Commissioner Olli Rehn said in a statement.
All this because the Bank of Cyprus' capital was supposedly wiped out by their forced investments of Greek debt during their bailout phase. How are everyday citizens and foreign depositors to blame for this scenario? How can they call it a tax when the money goes directly to banks instead of helping the nation?
It seems the Troika is waging a successful class warfare propaganda battle against the Cypriot people and parliament. They have made robbing people's private bank accounts acceptable as long as it only happens to the wealthy.
"If it was like this, I think it might be quite suitable because it means that the highest deposits will be taxed," said Finnish Prime Minister Jyrki Katainen.
But do average citizens and small depositors make out better in this deal? The Troika and the Cyprus parliament are no longer demanding a "fee" from average depositors, they'll now take their financial freedom instead by implementing harsh capital controls to keep depositors from moving their money freely, and they took control of pensions.
Cyprus news site CBCY.com reports:
Τhe Ηοuse of Representatives last night voted by majority to nationalise state pensions and split failing lenders into good and bad banks.
They also gave the government powers to impose capital controls on banks, anticipating a flood of money from the island when banks are due to reopen on Tuesday after more than a week of lockdown.
The plan to nationalise semi-state pension funds has, however, met with resistance, particularly from Germany which made clear that tapping pensions could by even more painful for ordinary Cypriots than a deposit levy.
Do average people think they were going to get off easy negotiating with these power-hungry thieves?
Despite the best efforts to trick citizens, protesters seem to fear their pensions being hijacked just as much as their bank accounts be robbed.
Earlier on Saturday, at least 1,000 bank workers in Cyprus hit the streets of the country’s capital of Nicosia. The demonstrators marched against the latest bailout measures taken by the country’s central bank.
“You destroy our work and steal our pensions,” demonstrators chanted as they marched to the Cypriot Parliament. One protester held a banner which read, “Hands off pension funds.”
All ages were present at the demonstration, with many parents pushing their children down the street in strollers.
“I’ve been working for 20 years and I’ve paid all the taxes of all my pension contributions and every Euro. Now I run the risk of losing my job and my pension, and I will have no money to support my children,”Cyprus Popular Bank employee Angela Panayotou said, as quoted by Ria Novosti.
First austerity, now the great bank and pension raid. The saga continues. Stay tuned for updates and see earlier updates below as to how this story unfolded.