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Cyprus bank accounts raided

RGBphoto is off-lineSilver Member
17 March 2013 10:06
magpie1
Photographer

Location
United Kingdom
Tyne and Wear
Newcastle

Cyprus, (Greek Cyprus as this economic situation applies to) is dependent on Russia for a great deal of its financial 'propping up'. Most of the really big accounts being levied are believed to be Russian 'offshore tax evasion' ones.
Cyprus is a micro economy and permanently in deficit, the global effect of these measures in somewhere with the economic equivalent of the Isle of Wight are being over exaggerated.


Andy is off-line
17 March 2013 10:10
photostore
Photographer
photostore
Location
United Kingdom
Fife
fife based, but Scotland wide

Quote from magpie1
Cyprus, (Greek Cyprus as this economic situation applies to) is dependent on Russia for a great deal of its financial 'propping up'. Most of the really big accounts being levied are believed to be Russian 'offshore tax evasion' ones. Cyprus is a micro economy and permanently in deficit, the global effect of these measures in somewhere with the economic equivalent of the Isle of Wight are being over exaggerated.



I see what your saying but its the confidence of the people throughout the eu now, they have seen the potential for savings raids authorised by other countries on their hard earned and i bet there will be a run on banks (and pillowcases to carry the cold hard  folding cash home in)

lets get shootin


RGBphoto is off-lineSilver Member
17 March 2013 10:27
magpie1
Photographer

Location
United Kingdom
Tyne and Wear
Newcastle

It is true panic begets panic, no doubt the price of gold will rise even higher, but from Greek people I know and some ex pats they all agree/admit that the Greek related economies have been shambolic, at best, with non payment of taxes, the norm, indeed paying taxes was a sign of weakness, the entire economic "strategy" was based on extending the hand for more subsidy. It looks as if the subsidisers are calling time. The situation can appear 'brutal' but something had to give. Of course such economic robustness could have the, probably desired effect of concentrating minds all over the euro zone, but it carries a risk .


Anthonygh is off-line
17 March 2013 10:30
anthonyh
Photographer

Location
United Kingdom
Kent


Quote from magpie1
Cyprus, (Greek Cyprus as this economic situation applies to) is dependent on Russia for a great deal of its financial 'propping up'. Most of the really big accounts being levied are believed to be Russian 'offshore tax evasion' ones. Cyprus is a micro economy and permanently in deficit, the global effect of these measures in somewhere with the economic equivalent of the Isle of Wight are being over exaggerated.



I think the point made in the article is basically banking (people depositing money in banks) depends on trust. The trust has gone...and in the global market...mistrust isn't limited by national bounderies.

We might worry about our savings of a few thousand pounds...there  will be companies and institutions out there thinking hard about desposits measured in millions and tens of millions....and will probably be doing risk assessments as we speak.


Andy is off-line
18 March 2013 04:31
photostore
Photographer
photostore
Location
United Kingdom
Fife
fife based, but Scotland wide

euro down against all global currency's this morning !
Money is leaving all other euro member banks and being deposited in Germany (not as a direct result of this. it was already happening, its just increasing as of today) That's like thinking that the safest place to deposit your savings is with your local loan shark when your already in debt to him !
lets get shootin


Oliver Cook is off-line
18 March 2013 05:29
artistoli
Photographer
artistoli
Location
Europe
Malta


If you look at the actual finances and demographics over the developed world over the past fifty years something becomes very clear; the entire structure was built on sand. All of the welfare state, the infrastructure, the government spending etc. - all of it - was dependent upon perpetual and exponentially increasing growth in economies. The problem is simple; that is impossible. We live on a small rock with finite resources and have an ageing population. Further more that ageing population expect and demand more and more services. There is an illusion amongst most people. It is that 'things used to add up but they don't now'. In truth the system has never 'added up'. It has added up merely based on future projections of that perpetual and exponentially increasing growth.

To put it in a nutshell; the governments, in Europe, and across the developed world have made promise after promise that they knew they couldn't keep. They made them because the politicians at the time knew they wouldn't be the ones to deal with the consequences and they wanted people's votes. The electorates, on their part, swallowed it hook, line and sinker. Part wishful thinking and part sheer terror at facing the prospect of a future without the massive state provided benefits and infrastructure we all take for granted.

What will happen now? Well, it is quite simply impossible to ever get on top of the debt, or even approach getting it under control. The shortfall isn't going to be addressed by raising taxes a few percent here and there or cutting budgets a few percent. The shortfall is of such proportions - the unfunded liabilities so great, and people's expectations keep increasing. This is what will happen:

- in the short term governments, desperate to be seen to be 'doing something' will start raiding any wealth they can. People's savings accounts and pensions for a start (sound familiar). Then assets, like checking people's homes for gold and silver (remember the Lib Dem's idea of a jewellery tax to be enforced by officers who could enter your home without warrant?).

- budgets will keep on getting slashed. By a relatively small amount each time, but it will be continuous - 'death by a thousand cuts' if you will. Roads and basic infrastructure will deteriorate and repairs will fall further behind (sound familiar to any drivers?).

- education and health will be stripped back and back until there is pretty much just a skeleton service.

- defence will be cut until all we have is a defence force capable of internal security (that will be maintained for obvious reasons).

- people, having grown up being fed lies about what to expect, will probably not accept this and at some point mass civil disorder will engulf large areas. Many countries will see civil wars.

This is not idle speculation. If you look at the cold, hard facts and figures, it is just the logical future. I would love to believe there is a way out of the mess that will take us back to the dream that we were all sold, but there simply isn't. If anyone can come up with a viable idea to 'fix' it then they are a genius. The system isn't actually 'broken' as such - it never worked in the first place. It was always going to be a bell curve graph with a fun ride to the top and then disaster on the other side.


Tempus Fugit is off-lineSilver Member
18 March 2013 05:38
pinkbuildingphotography
Photographer
pinkbuildingphotography
Location
United Kingdom
Tayside


Quote from photostore
uk govt just announced the will compensate military personel in cyprus if they are affected (so basically the uk tax payer is again now covering debts in cyprus to an extent )



Or for once the Government representing the UK tax payer are not shafting the military personel.

Riding on the Gotterdammerung. Down and down she goes. Where she stops no one knows.


Tempus Fugit is off-lineSilver Member
18 March 2013 05:41
pinkbuildingphotography
Photographer
pinkbuildingphotography
Location
United Kingdom
Tayside


Quote from stolenfaces
And if Scotland were to get 'full' independence... who would be paying for the debts of the Scottish banks? Whilst you remained part of the Sterling Zone you would be as dependent on London as Cyrus is on Berlin.



Off topic, however since the 1600's Scotland has been entirely dependant on London.

That is nothing new.

The reason that Salmond and Co all say that they wish to stay in Sterling is that they still want to blame, and rely on  the English when the worst happens and take credit when it does not.

But back on topic I assume that there will be a court case and the case will go to Strasbourg or another court and I think that they will find in the depositers favour.

The Government will need to change it's tact.  (Hope)
Riding on the Gotterdammerung. Down and down she goes. Where she stops no one knows.


Paul Hodson is off-line
18 March 2013 06:11
mph
Photographer
mph
Location
United Kingdom
Cheshire
Crewe

Quote from artistoli
If you look at the actual finances and demographics over the developed world over the past fifty years something becomes very clear; the entire structure was built on sand. All of the welfare never 'added up'. It has added up merely based on future projections of that perpetual and exponentially increasing growth.

To put it in a nutshell; the governments, in Europe, and across the developed world have made promise after promise that they knew they couldn't keep. They made them because the politicians at the time knew they wouldn't be the ones to deal with the consequences and they wanted people's votes. liabilities so great, and people's expectations keep increasing.

This is not idle speculation. If you look at the cold, hard facts and figures, it is just the logical future. I would love to believe there is a way out of the mess that will take us back to the dream that we were all sold, but there simply isn't. If anyone can come up with a viable idea to 'fix' it then they are a genius. The system isn't actually 'broken' as such - it never worked in the first place. It was always going to be a bell curve graph with a fun ride to the top and then disaster on the other side.



I find this to be a sadly compelling argument which democracies in particular will find difficult to avoid. It is unlikely that the population as a whole will accept it though and politicians will continue avoiding the problem as to try and deal with it would make you unelectable.
Amateur - happy to do TF with models with potential and enthusiasm. Website: www.mphodson.co.uk


RGBphoto is off-lineSilver Member
18 March 2013 06:50
magpie1
Photographer

Location
United Kingdom
Tyne and Wear
Newcastle

Of course, nothing really changes in human nature, the philosopher Arthur Schoepenhaur remarked "----history always repeats itself, the first time as tragedy, the second time as farce."
Dodgy share dealing, get rich quick schemes, sub prime borrowing, reckless government economic policies---- search for 'South Sea Bubble', its all happened before!



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