I have done some research and found that Cyprus use to be a very strong and wealthy country.
In 2008 they joined the EU and began using the Euro. The banks only loaned out 30% of their deposits before that time and made people put 30% down for a mortgage. They were very conservative with their banks and finances and were not affected by the 2008 crisis. They were fiscally responsible and a very healthy and prosperous country.
But once the EU got them to accept the Euro and become part of the EU only 5 short years ago. They went from being prosperous and fiscally sound to bankrupt in that short amount of time.
The EU began changing how they did business in the banks. They purchased huge amounts of Greek bonds and loaned out more money than their deposits. They went from fiscal soundness and responsibility to doing as all the other banks of the EU did, thus causing debt slavery to their citizens.
You could almost say......It appears the EU purposely committed the Cyprus citizens to become debt slaves and purposely had the banks become indebted to the ECB and controlled.
Now the EU wants to steal everyone's money in Cyprus, when Cyprus would never be in this situation had they not joined the EU!
I believe this shows the purpose of the EU and their causing sovereign countries to be their servants and serfs of debt with a one government control.
Before joining the euro, the Central Bank of Cyprus only allowed banks to use up to 30 per cent of their foreign deposits to support local lending, a measure designed to prevent sizeable deposits from Greeks and Russians fuelling a bubble.
When Cyprus joined the single European currency, Greek and other euro area deposits were reclassified as domestic, leading to billions more local lending, Pambos Papageorgiou, a member of Cyprus's parliament and a former Central Bank board member said.
"The banks were considered super conservative," said Alexander Apostolides an economic historian at Cyprus' European University, a private university on the outskirts of Nicosia.
When Lehman Brothers collapsed in the summer of 2008, most of the world's banks suffered in the fallout, but not Cyprus's.
"Everyone here was sitting pretty," said Fiona Mullen, a Nicosia-based economist, reflecting on the fact Cypriot banks did not depend on capital markets for funding and did not invest in complex financial products that felled other institutions.
A source at one of the banks, who asked not to be named, said his institution did not have "serious problems with lending", adding that Cypriot banks typically demanded a down payment of 30 per cent for home loans, well above the average in most countries.
The rapid expansion left Cyprus with a banking system eight times the size of its national output, as its accommodative regime of not taxing foreigners' dividends and capital gains lured investors from countries like Russia.
The EBA figures showed 30 per cent (11 billion euros) of Bank of Cyprus' total loan book was wrapped up in Greece by December 2010, as was 43 per cent (or 19 billion euros) of Laiki's, which was then known as Marfin Popular.
More striking was the banks’ exposure to Greek debt.
At the time, Bank of Cyprus's 2.4 billion euros of Greek debt was enough to wipe out 75 per cent of the bank's total capital, while Laiki's 3.4 billion euros exposure outstripped its 3.2 billion euros of total capital.
The close ties between Greece and Cyprus meant the Cypriot banks did not listen to warnings about this exposure.
The banks sold down some of their Greek holdings, but then got back into the market as yields rose. "When the Germans were selling, they were buying," said Apostolides, referring to the German banks' 2011 dumping of Greek
The facts are the EU itself is the reason why Cyprus is in the shape it is in. Some would look upon it and wonder if that was done on purpose. A healthy country that did not have a debt problem and had stayed strong during the 2008 banking crisis..... was a threat to others? They were added to a currency and union, thus their financial health dropped within 2 years?
The purpose of the EU is becoming clear. It is about control of the whole European area and control of all the people. It is about having all the people become their servants and debt slaves. The truth is shining through and Cyprus is proving what the EU thinks about the citizens of the world.
I wrote an opened letter to the banks and governments yesterday, letting the banks and governments know what I think!
A little extra:
The President of Cyprus warned his friends the week before the surprise announcement of the stealing of everyone's money.
The Cyprus newspaper did not say how much money was moved abroad but quoted sources saying the president 'knew about the possible closure of the banks' and tipped off close friends who were able to move vast sums abroad.Italian media said the 4.5 billion euros left the island in the week before the crisis.
Edit to add 3/25/13 - Deal reached for Cyprus without Parliament being allowed to vote - 40% Stealing of deposits. EU dictatorship now.
UPDATE 3/26/13 - Jim Willie Interview about Cyprus and inside information
UPDATE 3/26/13 - Jim Willie Interview about Cyprus and inside information
UPDATE 3/28/13 - Bloomberg, an MSM finally acknowledged Cyprus was healthy before joining the EU.
Bailout fatigue says: “The Cypriots got themselves into this mess, and they should get themselves out. We’ll lend them a bit more, but only if we’re sure they’ll pay us back.” Cyprus didn’t get itself into this mess. It joined the euro system in 2008 with low public debt and a clean bill of health from EU governments (back then, not a word was said about shady Russians). Its banks are in trouble not because they accepted too many overseas deposits but because they bought too many Greek bonds -- an investment sanctified by international banking rules (which called such investments riskless) that was destroyed by the EU’s ham-fisted resolution of Greece’s threatened default.
Although I totally agree with you that the EU screwed Cyprus along with virtually every other counrty they have absorbed, the fact is that banks DO NOT lend out their customers deposits.They create new "credit",out of thin air, based on a fraction of the units of currency in depositors accounts. Thats the magical world of fractional reserve banking. 1 euro deposited = a minimum of 9 shiney new credits created to loan out.ReplyDelete
"The most sinister and anti-social feature about bank-deposit money is that it has no existence. The banks owe the public for a total amount of money which does not exist. In buying and selling, implemented by cheque transactions, there is a mere change in the party to whom the money is owed by the banks. As the one depositor's account is debited, the other is credited and the banks can go on owing for it all the time. The whole profit of the issuance of money has provided the capital of the great banking business as it exists today. Starting with nothing whatever of their own, they have got the whole world into their debt irredeemably, by a trick. This money comes into existence every time the banks 'lend' and disappears every time the debt is repaid to them. So that if industry tries to repay, the money of the nation disappears. This is what makes prosperity so 'dangerous' as it destroys money just when it is most needed and precipitates a slump. There is nothing left now for us but to get ever deeper and deeper into debt to the banking system in order to provide the increasing amounts of money the nation requires for its expansion and growth. An honest money system is the only alternative." - Frederick Soddy, Nobel Prize winner (Chemistry), 1921ReplyDelete
"While economic textbooks claim that people and corporations are competing for markets and resources, I claim that in reality they are competing for money - using markets and resources to do so. Greed and fear of scarcity are being continuously created and amplified as a direct result of the kind of money we are using. For example, we can produce more than enough food to feed everybody, and there is definitely enough work for everybody in the world, but there is clearly not enough money to pay for it all. In fact, the job of central banks is to create and maintain that currency scarcity. Money is created when banks lend it into existence. When a bank provides you with a $100,000 mortgage, it creates only the principal, which you spend and which then circulates in the economy. The bank expects you to pay back $200,000 over the next 20 years, but it doesn't create the second $100,000 - the interest. Instead, the bank sends you out into the tough world to battle against everybody else to bring back the second $100,000." - Bernard Lietaer, former Central Banker (Belgium)ReplyDelete
"The powers of financial capitalism had another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements, arrived at in frequent private meetings and conferences. The apex of the system was the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. The growth of financial capitalism made possible a centralization of world economic control and use of this power for the direct benefit of financiers and the indirect injury of all other economic groups." - Carroll Quigley, Professor of History at Georgetown University (deceased) in his book "Tragedy and Hope: A History of The World in Our Time", 1966
You see, a legitimate government can both spend and lend money into circulation, while banks can only lend significant amounts of their promissory bank notes, for they can neither give away nor spend but a tiny fraction of the money the people need. Thus, when your bankers here in England place money in circulation, there is always a debt principal to be returned and usury to be paid. The result is that you have always too little credit in circulation to give the workers full employment. You do not have too many workers, you have too little money in circulation, and that which circulates, all bears the endless burden of unpayable debt and usury. In the colonies, we issue our own paper money. It is called 'Colonial Scrip'. We issue it in proper proportion to make the goods pass easily from the producers to the consumers. In this manner, creating ourselves our own paper money, we control it's purchasing power and we have no interest to pay to anyone." - Benjamin Franklin, speaking at the London ParliamentReplyDelete
"The colonies would gladly have borne the little tax on tea and other matters, had it not been that England took away from the colonies their money, which created great unemployment and dissatisfaction. Within a year, the poor houses were filled. The hungry and homeless walked the streets everywhere. The inability of the colonists to get power to issue their own money permanently out of the hands of George III and the International Bankers was probably the Prime reason for the Revolutionary War." - Benjamin Franklin, as quoted from his autobiography
"Once a nation parts with the control of its currency and credit, it matters not who makes the nation's laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of the sovereignty of parliament and of democracy is idle and futile." - William Lyon Mackenzie King, Prime Minister of Canada, 1935
A civilization based on a system of parasitic usury-economics will ultimately destroy itself, because fractional-reserve banking combined with compound interest represent some kind of perpetual-motion machine. Our economic system was not designed to, nor was it intended to, function honorably for the benefit and general prosperity of all; it was specifically designed to create a nation of debt slaves under the control of a molesting central bank. The perpetrators of the system understand fully that it is finite and must inevitably collapse in a state of insoluble debt, but by that point they expect to have gained full and indisputable control over everything. The 450 richest people in the world have financial assets equal to the combined wealth of the 3 billion poorest: half of all humanity. The only possible explanation for this is that the international economic system has been subverted and corrupted by fully intentional activities, directed towards undermining national governments and creating institutionalized, privately-owned central banks throughout the world.ReplyDelete
All Wars Are Bankers' Wars :ReplyDelete
"I have two great enemies, the southern army in front of me and the financial institutions in the rear. Of the two, the one in the rear is the greatest enemy. The money power preys upon the nation in times of peace, and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy. It denounces, as public enemies, all who question its methods or throw light upon its crimes. I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. Corporations have been enthroned, an era of corruption in high places will follow, and the money power of the country will endeavour to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of the war." - Abraham LincolnDelete
"The division of the United States into federations of equal force was decided long before the Civil War by the high financial powers of Europe. These bankers were afraid that the U.S., if they remained as one block, and as one nation, would attain economic and financial independence, which would upset their financial domination over the world." - Otto von Bismarck, Chancellor of Germany, 1876
"The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government's greatest creative opportunity. By the adoption of these principles ... the taxpayers will be saved immense sums of interest [by not having to borrow from privately-owned corporate banks]... Money will cease to be master and become the servant of humanity. Democracy will rise superior to the money power." - Abraham Lincoln, Senate Document 23, Page 91, 1865
"The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots and the bankers went anew to grab the riches. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America and use it to systematically corrupt modern civilization." - Otto von Bismarck, Chancellor of Germany, after Lincoln's assassination