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The skyline in Cyprus is changing rapidly with rich Russians moving in to claim a little slice of the EU Helena Smith in Limassol Sat 17 Feb 2018 08.00 GMT In the marina of the island state’s second largest city super-yachts are berthed in front of €15m ($18.71M) villas Photograph: f8grapher/Getty Images/iStockphoto https://www.theguardian.com/world/2018/feb/17/welcome-to-limassolgrad-the-city-getting-rich-on-russian-money
“Brat’ya ne predaite nas!”
Dinar_o'saurs posted a topic in World EconomyTranslated...... “Brothers, don’t betray us!” It appears the Cypriots (or more clearly the European leaders) do not appreciate the extent to which Russia has propped up the local economy. “When the Russians leave who is going to stay at the Four Seasons for $500 a night? Angela Merkel?” one wealthy Russian asks rhetorically, as The FT reports, they are receiving a deluge of overseas phone calls from helpful Swiss bankers looking to swoop up the deposit transfers. "The locals should understand: as soon as the money leaves, the people who go to restaurants, buy cars and buy property leave too. The Cypriots’ means of living will disappear," and there are signs that the locals are getting how drastic this situation is, as a large billboard has sprung up at Larnaca Airport with a Russian flag and the words "Brat’ya ne predaite nas!" - "Brothers, don’t betray us!" Many Russian businessmen appear to have one foot out of the door already and are considering with jurisdiction to move to as they await to see if Medvedev follows through on his threat to dismantle the double tax treaty with Cyprus. ... One Cypriot lawyer with Russian clients said he had already been approached by half-a-dozen European banks in locales ranging from Latvia to Switzerland to Germany, some of them promising they could open new bank accounts for his clients in under an hour. ... “The Cypriots killed their country in one day,” says Mr Mikhin, referring to Friday March 15, when President Nicos Anastasides accepted the EU’s proposal to seize €5.8bn in emergency funds from Cyprus’s local and foreign depositors. ... “The locals should understand: as soon as the money leaves, the people who go to restaurants, buy cars and buy property leave too. The Cypriots’ means of living will disappear,” he says. “They are saying we laundered all the money, but they lived on that money for 10 years and forgot about it.” ... Says another Nicosia-based lawyer: “I don’t understand why it is money laundering when it’s in Cyprus, when in London it’s a perfectly respectable company.” ... “If the double-taxation treaty is lifted there will be no reason for us to stay in Cyprus,” an oligarch’s Russian lawyer says bluntly. Mr Mikhin complains that the Cypriots do not appreciate the extent to which Russia has propped up the local economy. “When the Russians leave who is going to stay at the Four Seasons for $500 a night? Angela Merkel?” But there are signs that a growing number of locals realize how drastic a mass emigration of Russian business would be. Over the past week, a new billboard has sprung up on the highway between Limassol, the palm-treed beach town favoured by the Russians, and Larnaca International Airport. Drawing on Russia and Cyprus’s shared Orthodox faith and deep political ties dating back to the Soviet era, the advertisement displays a massive Russian flag, with a desperate plea in Russian underneath: “Brat’ya ne predaite nas!” “Brothers, don’t betray us!”
Banking on the Status Quo
Jason R posted a topic in Off Topic postsBanking On The Status Quo – Perhaps it is time to rethink which banks you want to deal with, and while you are at it - consider what happened in Cyprus recently. As you know if you have watched the news, banks in Cyprus were closed to prevent a run on the banks. Why? Because the government, together with the banks came up with a plan to remove up to 9.9% of a depositor’s money to help the banks pay the EU for bailout money to cover bank mistakes . . . 13 billion in mistakes. While it was voted down due to public furor, it was a watershed moment in banking history. In reaction it caused numerous articles to be written about how this could happen anywhere and it caused the price of gold to go up. What is the price you might be asked to pay, for putting your money in a bank for safe keeping? These are capital controls and if it works for one central bank it will be become the solution for others. See link If you have been following the recent activities in the US Senate, you are likely to be incensed at the responses (or should I say lack of adequate response?) given by the government regulators. As Senator Jeff Merkley put it to the head of the regulatory commission “So in effect you are telling me that these banks are too big to fail and the minor fines you impose are just a cost of doing a highly profitable business, is that correct?” This is a paraphrase but accurate enough so you’ll know the videos are worth watching. See link Take Elisabeth Warren’s questions about when the last time the regulators took anyone to court or imposed a single jail sentence for money laundering drug cartel money or al Qaeda’s? Fidgety comments that were reduced to “not while I have been a regulator.” See link So HSBC for example, laundered illegal money for ten years, made billions paid a few million in fines and has never stopped a lucrative business. Meanwhile Warren pointed out that if you or I had an ounce of cocaine we would be serving time. But no one seems to care. See links What are your reactions to announcements that the Fed is printing money like crazy but huge amounts of it have been given to foreign banks operating in the US that are in financial trouble from buying Wall Street junk mortgages and derivatives. So does that mean first the taxpayers bailed out Wall Street, AIG, Fannie Mae and other private groups like the banks and now we are bailing out the foreign banks – thanks to the same generosity of the private banking institution called the Federal Reserve - which charges the US taxpayers for the right to print money for their banking friends? Isn’t that nice for their little banking system that so many of the taxpayers put money in their big banks, and work hard to pay off all that debt created by someone else as they foreclose on taxpayers homes. Lucky for the Federal Reserve, the government and especially the biggest US banks, that the taxpayers in this country are not as smart as the people of Iceland. Icelandic taxpayers threw the politicians out of office and voted to make the banks responsible for their poor judgment and greed. Caused no end of trouble for the players at the top. They were appalled at the nerve of the people trying to hold the responsible officials accountable. It was hushed up and not in the media much since no one wanted that idea to become popular. The real insults to the us taxpayer were the recent remarks made by the head of that private banking cartel Mr. Bernanke. For those of you that did not read his remarks or failed to understand what he was saying. I t was essentially that the money wasn’t real, it was electronic digits and the bonds and treasuries that were being sold could be taken back by them and vanish the way it had been created. So while it might create inflation, and the Fed would essentially get paid three times on this made up money, no one should worry since the whole thing was being made up by them. This was the gist of the ‘mysterious remarks’ made by Bernanke. See link The taxpayers and congress don’t get it and even if they do figure it out. . . what can they do about it – we own the system. Here is the link to that Bloomsberg article if you want to do some critical reading. http://www.bloomberg.com/news/2013-03-11/bernanke-provokes-mystery-over-fed-stimulus-exit.html So when you run for WF and the other big banks that want to give you great deals to cash out and keep your money. . . think about what those banks were and are up to. They caused you and every US citizen the recent huge increases in national debt. Now about $40,000.apiece for every man woman and child in this country. Want to play their game? Use them, if they give you the best rate by a worthwhile amount, make sure they agree to promptly give you an official CCC statement upon receipt of your dinar. Get the private banker to agree to this BEFORE you finally hand your dinar to them. This allow you to access your money promptly, and prevents them from sitting on it for weeks while you wait for them to release your cash (digits) back to you so you can finally use it. They were using it when you couldn’t. Now comes the fun part. If you have done your homework in advance you will have researched which of your local private banks and credit unions are not only in good financial shape (they didn’t make a bunch of bad loans) but would love to work with you. These are the financial institutions that invest locally and if properly managed will not be adversely affected by the crazy policies and risks the Big Banks play with. Do not put everything with one bank if you have a substantial amount to invest/hold. Big or small this, as has been already counseled, is asking for trouble. Why risk having all your funds frozen, stolen, seized whatever the reason or circumstance. Flexibility comes from diversity. Diversity certainly does not mean having all your eggs in one basket. That does not mean following the international advice of the big US brokerage houses Like Schwab or Goldman Sachs. Instead try talking with the people at Q Wealth - they will tell you that having everything invested in one country, one currency, amounts to one basket. Now they are not the only ones to say that – that belief is echoed by numerous other good financial advisors that take a big picture or international perspective. The various Casey Reports offer loads of ways to diversify your holding and reduce your risks according to your mindset. The trick with both these advisory groups and others is taking the first steps. What we all have learned, if we have been following this investment for more than an hour… is that what we read, hear, and think is not always accurate. If we have hopefully learned anything from the dinar amusement ride, it is - prepare for the unexpected and do not count on politicians to have your best interests as their top priority. That said, we have, as humans, a major predisposition to believe and trust in things that we are familiar with. The unwillingness to leave your comfort zone could be the biggest threat to holding onto or growing your investment. This translates into the well-known story of placing the frog in cold water and gradually heating it to a boil. Lulled to sleep anyone can miss the approaching danger. Every link in this article proves that point. You have taken the initial step of investing in a foreign currency, now might be the time to research what your other options are besides handing your money to the paragons of virtue and sound management – Big Banks! Raise questions in your chat rooms and talk shows, discover what other options might be safer and a better fit. you tube of Merkley asking about too big to fail? price of doing business Warren on why no legal action despite ties to Al Qaeda who have the regulators taken to trialhttp://www.reuters.com/article/2013/03/17/us-eurozone-cyprus-risk-idUSBRE92G0BG20130317 confiscating depositors’ money to bail out the banks http://online.wsj.com/article/SB10001424052970204464404577118682763082876.html?mod=googlenews_wsj. Bailout of European banks by Fed http://www.zerohedge.com/article/exclusive-feds-600-billion-stealth-bailout-foreign-banks-continues-expense-domestic-economy- submitted with permission from the blog by Chase Carlton