Saturday, 30 March 2013

Cyprus just got worse

This morning Sky reported that the levy on balances over 100k€ had now increased to 60% as per my prediction that it would increase from the 40% to 50%. It just shows you should never underestimate the insensitivity of the Eurocrats to the plight of ordinary people.

Also on cue the human interest story appears in todays DT Money headlined , "Cyprus Grabs Family's Fortune". They sold their villa on the island but now cannot bring the 200000€ back to Britain. I warned abou the inverse of this two days ago for would be purchasers. It works both ways as funds are held in Cyprus lawyers accounts with a Cyprus bank will be aggregated in the client escrow account and so subject to the full 60% theft.

Also on cue Richard North reports in his blog EU Referendum blog details of the Bezzle are starting to leak out. http://www.eureferendum.com/  Richard headlines his piece Eurocrash: corruption at heart of Cyprus crisis. Cypriot banks 'forgave' loans to MPs and firms. That is the EU way, forgive your cronies and rob the rest.

Richard writes, " These tell of an unhealthily close relationship between the Cypriot banks and politicians, and with political parties and trades unions. Thus we hear that the Bank of Cyprus and Laiki, between 2007 and 2012 gave loans amounting to millions to these groups, without in any way seeking full repayment. 

The Bank of Cyprus wrote off the €2.8-million loan given to a hotel with ties to the communist-rooted Progressive Party (AKEL) and forgave significant portions of many other loans. "

There is a whole lot more to come. It is too late if you are already involved in Cyprus. But if you are thinking about buying in Spain or Portugal my advice is don't and if you are selling there it may be best to cut your asking price for a quick sale. This one will run and run unlike Mr Wood's horse!

28 comments:

The Journalist said...

Well of course it's theft, that's
exactly what brought this country
to it's knees, you've only got to
look at these top statists bank accounts in the UK to establish whats gone on, clear as a "Crystal Ball".
Greece, Spain, cyprus, who's next
the domino effect gains
monentum.

Dave, from Essex. said...

Good advice, my cousin lives in spain, they can't seem to sell a
Donkey at the moment.

Mr Leger. said...

I think of course you raise a very valid point, Eurocrats due in fact take little concern in the plight or rights of ordinary people, I think if we understand the principle, it is probably connected to idologies of Eurocrats in general. I come from a small business background, and have effectively spent a lot of time studying and analysing the various probes into what went wrong in Spain and Greece. When spain collasped, on came the displays of post mortums, and the various flawed academic investigations, they made interesting reading and veiwing, but some of practices exposed made some sense at least of what had been transpiring, firstly, the estate agents and money men in spain had effectively deliberately bucked the housing market, above the point where it was realistically economically sustainable.Obviously, initially, these pratices looked good to outside investors, they got the false impression from the confidence tricksters there was a sure guaranteed profit, a sound investment with high return.It therefore follows, we soon see lots of interested speculators and investors on the proerty band wagon.No doubt at the time, they believed this was the best thing since sliced bread. However we must always remember, where any market has been bucked, this is only a short term fix and short term profit, you have to be in the right place at the right time. Not many people seem to understand the fatcs of how this area works, even some of our
so called brainy civil servants have caught a nasty cold.This in part appears to have proportioned the property crash in spain. Of course there were also numerous other areas identification, such as tax fraud, and a grey area of cash in hand payments for large amounts of cash, of course at the moment there are still areas that are unclear, but there are indications suggest huge amounts of money have been lost through insolvency, with victims standing little chance of recovering capital. Of course many people moved to Spain after declearing the UK a cesspit on retirement,in some cases many of the former state workers, however,the fact is clear, they left one cesspit and fell into a very deep one, people have lost serious money in Spain, and some other regions of Europe. Despite the Eurocrates lies about laws and legislation, people only have limited protection, and despite the arguments of the EU on this particular point, in some EU states people have very limited legal protection due to the reluctance of the courts and the many different laws, of course this is not unique to Spain, many people have lost money in the US in property investment who thought wrongly they were off to a better life in the sunshine, the reality of the situation is this, many of the people who left the UK for a better life are now returning some bankrupt, standing at the door of the local housing association homeless, of course the market issues of Europe are to complex for any blog, however the situation is not likely to improve at the moment, property is difficult to sell in spain at the moment, with billions of unfinished projects, but this is also true for many other parts of the EU, the indications are property prices there will continue to fall, Dr Edmunds advice is favorite, sell as quick as you can, even if you have to lower the price, this will be the right move in relation to the aftershock.

Calos said...

Why you say espana, look at england,and your bureaucracy, they
all getta rich and come to spain,
that's were all you money goes, look at your health service, all
the money goes on managers and guangos you can't treatment there.
Why so many of your police get rich
and come to spain, you doctors get
six times more pay than german doctors, all your money goes in high pay, you are no different from
spain, you no talk about that.

Mr Leger said...

Calos, sorry if I seemed ignorant, but my blog comment was not about that subject, of course there is concerns about the huge number of millionares emerging from the state public services, Thersa May brought in a new law last month so police and public officials must disclose how they obtained thier assets and wealth, they are no loger going to be allowed anominity in this area, and will have to provide evidence on where thier property port folios and bank assets came from.High pay in public services is in fact being debated.

Anonymous said...

How come the press does not publish a name, and a face of those thieves who steal Your money in the bank? The thieves would be afraid to walk the streets, if their picture and name were published.

Anonymous said...

Hmmm

Lets be clear here no "average" worker has a bank account with more than $125000 in it. I mean eve if they had that much accumulated wealth it would almost certainly by a variety of investment and retirement accounts and portfolios.

This is still just plain stealing from the upper middle and lower upper classes to pay the 5 banks investors.

Very soon now the the working people of the world are going to stand up and tell the banks to eat cake. It is just a matter time. Trying to steal from all the people all the time like the FED etc have been doing has never succeeded in the past. It will fail this time as well.

PetrosK said...

A well planned destruction of that country by the elite. They know that the people of Cyprus will tear all involved to pieces.Chaos very soon.A well planned coordinated self imploding attack on a mini country. The elite planned this test well. SOB's.

The Journalist said...

I don't think in reality the working people of the world will wake up, and the statist and bankers know this all to well, you need an education in this area to understand what is going on. It works, something like this, If a company director has a business, it generates 5 million a year turnover, you have eight staff, at the end of the financial year the company shows a net profit of £250,000 you are solvent,with profit and some room for growth, if suddenly, five directors award themselves a million pound a year salary, after 12 months you are insolvent, "Bankrupt"this is why the public sector is in deficit. they are effectively insolvent. The same priciple applies to Cyprus, Spain and Greece,you must remember once the economic infrastructure has been destroyed, there is no simple fix, it could take decades to recover, and only then with the right policies in place for growth, the new english middle classes have emerged from the state sector,the tradiation middle classes have all but been destroyed, they created their wealth through work and entrprise. The New labour and tory middle class are a fake middle class, by the very discription of the word, of course government tells us no recovery now until 2017, when 2017 arrives, they will say no recover until 2020, and so on and so on, still getting rich bleeding the country dry of every drop of economic life blood, this is a realistic future, look at the black hole in the state pension pot, not including the public sector for instance!Those in the state sector have become to flush at the expense of the real economy, this is one serious problem that continues to sink the ship.

John the clerk said...

Of course these state workers make false claims they pay for their pensions, what rubbish, just get yor calculator out and do a spread sheet, the tax payer gives them £2.00 for every pound they pay, in real terms they pay 11% at the expense of everybody else, and the working classes can't even see the facts od whats going on with them. The state has got to big to econimically sustain, point of fact.

Anonymous said...

Good, point if you look at osme of these early retirements in the public sector they make some sense, retiring at 50 on full pension, getting the SOAP as well at 65, they simply haven't earned that much in their careers, yet alone paid 11%, and what if they live to be 95.

Evilbughead said...

Easy Fix hang all bankers and corrupt politicians problem solved.

Evilbughead said...
This comment has been removed by the author.
Anonymous said...

I would vote for that.

Mr leger said...

I think if someone doesn't fix the problem soon, British working people are going to see poverty never witnessed before. British society has already splintered, showing areas of disgusting poverty, whilst those at the time get even richer. Of course, laws can change, under certain circumstances we could see the reintroduction of the death penalty, depending on what government decides.

Texas Tom said...

You working class people in england
just don't realise how bad things are going to get, those corrupted
statist will all have you living on a bowl of soup a day, you'll
end up living the life of second world war concentration camp detainess, where police take on the
roll of concentration camp guards,
dishing out injustice while they live like Nero, YOU AINT SEEN NOTHING YET BELIEVE ME.

Texas Tom said...

You working class people in england
just don't realise how bad things are going to get, those corrupted
statist will all have you living on a bowl of soup a day, you'll
end up living the life of second world war concentration camp detainess, where police take on the
roll of concentration camp guards,
dishing out injustice while they live like Nero, YOU AINT SEEN NOTHING YET BELIEVE ME.

The Reporter said...

If you want any further proof of just how redculous the situation has got I was just watching BBC East Anglia, a robbery victim who called police is now being sued by police after she sprained her ankle while attending the crime scene, the solicitor Simon Nichols of Belmores Norwich had the cheeck to argue people calling the police who are victims of crime should be sued if they injured on the property whilst investigating crime, seems victims are about to become double victims of crime, not just by the robber but the robbing state. of course many people are no longer able to afford insurance, this new policy could effectively leave people bankrupt, I think people should have reservations about calling the police with the introduction of this new law, the police robbery will be much higher than that of the criminal.

Anonymous said...

i will store some in gold before its all gone

JJ said...

There is gold Gordon brown gave it
all away, you've heard that old tune. I sold it for a song.

ALAN WOOD said...

I'm sure Dr. Edmond can give us all a lesson on the value of money. Basically it is paper, or even worse a set of 1's and 0's in a computer. It is simply a means of exchange for goods and services.
If one country (I'll call it China) makes all the goods it soaks up the money in another country (I'll call it UK) until it has little. Then China lends UK money and gets even more money back until UK is broke.
It can do this because it pays its workers less than UK workers. It can buy all the resources like fuel and metals with its excess of money.
It can spend on research to produce new goods (or it just steals ideas).
The middle men, the global companies, and the importers buy from China and get rich, spending their wealth on more goods from China.
If you have no fuel, no metals, a heavyweight bureaucracy, and operate a FREE TRADE policy with countries who use cheap labour you must lose the game.
Basically, the WEST have nearly lost the game to the EAST.
The CYPRUS problem has arisen because their banks made loans to people in nations who are going nowhere but downwards because their labour is too expensive compared with the EAST.
The underlying problem also is that there are too many people in the world for the resources available. In UK there are too many people for the resources available to us.
Finally, Governments make promises that they are unable to keep. They are stuck with worldwide FREE TRADE rules. They have diminishing resources in UK, particularly fuel. They have an overpaid bureaucracy.
The problem is that not enough people can gather enough resources to gain the power of government through the ballot box and change the system, and reduce world population by about 5 billion in the face of vested interests.

abinico said...

beautiful capitalism.

The Journalists. said...

of course like you say industrial espionage goes on in a big way, it's got very big indeed,of course the UK is over populated, it's the most overpopulated contry in Europe per kilometer, resources will dry up, this is certain, the state governments will just become more like North Korea, using the police and courts to try and stabalise the situation, this will only work for so long.Of course you are wrong about metal, there is probably more metal in the UK now than any other time, much imported I do agree,The last elections were not democratic, hardly anybody voted as they felt no one was worth voting for they have realised what Labour and Conservative are.

The journalsit said...

In fact Alan charities are giving metal way in england we have so much, it's going to third world contries,Cooper, tin, steel, white goods, computors, phones,much going to Africa, at the moment it is not in short supply, in some cases councils just don't know how to get rid of it, thats a fact.

Eric Edmond said...

Alan,

I agree. You will remember when we were at school Britain was described to us by our teachers as the workshop of the world. I think workshy of the world is now more correct.

I recommend reading Richard North's Eureferendum blog today. He states the Cyprus president stashed 20 mn € in London just before crisis. This guy could be UKIP's new leader. He has the right approach.

PS in the game of thrones Trion is offering a good price for a horse.

Eric E

Anonymous said...

Yes, that's the way it should have stayed, productive education=productive results,this new university culture seems to be going nowhere creating a half baked power struggle senario. I wonder the motive for germany moving it's gold reserves from the Fed,could indicate lack of confidence in the euro crisis. Of course this new bureaucratic economy created by the likes of labour are going nowhere, you need a productive economic output, creating wealth, the bureaucratic variant just sucks blood to the advantage of a statist minority.

Mr K Wiese said...

Of course it's true you do give a lot of your resources away,it's difficult to undertsand how your health services is able to function, it has become free health care for the world, an International health service, of course your doctors on average earn six time more in England than in Germany, it hard to beleive there is any
resources left for health care the way it is managed by the state. With all the managers and costly pen pushers surely there is little in the way of care quality at ground level. Of course the cycle continues, with german financial experts predicting "Solvenia" the next onee to crash, cyrus have now come up with another dead brainer according to Die welt of increasing heavy taxes on Casinos to raise capital, some question this proposal, as it will come into direct conflict with the church, we shall wait and watch what unfolds before us, Solvenia looks grime based on the forecast charts.

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