dictatorship1Here’s a scenario.

The ‘soft dictatorship’ that is the European Union (which is really only a circle of political elites holding hands around a tyrant’s charter, the Lisbon Treaty) will move on Cyprus through the auspices of the European Central Bank (ECB).  At the allotted moment (imminent), the ECB will move to enforce capital controls on the people of Cyprus (now being demonised by some German bloke speaking on the BBC Radio 4 Today Programme this morning).  The ECB – let’s call it ‘The Dictatorship’, shall we, acting on behalf of that circle of politicians I mentioned, and their tyrants’ charter – will shortly:

  • Freeze all deposits in Cyprus (pretty much already the case).
  • Make bank transfers dependent on The Dictatorship’s approval.
  • Control the amount of cash a citizen may withdraw from the bank, sufficient (in The Dictatorship’s view) to allow the citizen to go about his/her life.
  • All until further notice.

You never know, do you?  However, Tyler Durden over at Zero Hedge (link below) is making reference to a report in Handelsblatt along the lines above, citing unidentified ECB sources.  Surely, the good men and true of the European Union wouldn’t do this sort of thing.  Would they?  How would the Russians feel about that?

Whatever happens, The Dictatorship cannot and will not allow Cyprus to leave the euro monetary union.  The moment that Cyprus or any nation, big or small, exits the euro is the moment the euro collapses (the currency is no longer fungible).  So, it will not happen, at any cost.  Right now that cost will be ‘levied’ one way or another on the people of Cyprus.  And then, later on, the people of Portugal, Ireland, Italy, Spain and so on.

Where the road ends on this is anybody’s guess.  But of one thing you can be sure. The Dictatorship won’t be paying the price; the ordinary citizens of the European Union will be.  Like the dazed Cypriot lady on the BBC Radio 4 Today Programme; it’s all her fault according to the two men being interviewed by John Humphrys.

For a long time now, I’ve held the view that a systemic bank run would be the undoing of the Eurozone. Consequently, and as ever, locking down capital is the only weapon in The Dictatorship’s armoury to prevent the collapse of the euro currency.

It stinks.  It just stinks.  And the little people are powerless to change anything.

PS We haven’t heard from the Emperors Barroso and Van Rompuy lately for some reason? Wasn’t Barroso gobbing off only recently about the Eurozone crisis having been resolved? Remind me please how much of our money these guys are paid (OK, OK, I know it’s roughly the UK average annual salary – per month) … oh, and how we can remove them from power?

PPS I wondered where the road ends on this? Over at Golem XIV (link below), David Malone asks “will the UK and USA also go for the automatic seizure of money from accounts?  My guess is they have been quietly planning on it but will now think twice about admitting to it.  Preferring to keep it quiet until the next collapse when ‘circumstances call for desperate measures’ etc“.


  1. Chris Kirk · ·

    They started to allow withdrawals at a controlled rate just as you predicted.

    Also one of the banks in Limassol was bombed about 40 minutes ago. I know the cypriots are prone to using bombs during disputes but this is something newsworthy you’d think. It hasn’t made it onto the BBC news page yet – I thought they were fast at spinning articles.

    Interestingly (and probably coincidental) I reported this bomb explosion on Facebook pretty quickly after it happened. Within a couple of minutes I could no longer (and still can’t) comment on any facebook threads. In hindsight using the word “Bomb” on an American run social media sight was probably not the best move lol.

    I’m off to post a notice on my door “Come in, officers. It’s unlocked”


    It’s quite long but just past halfway down a very relevant piece “Just Whose Money Is It Anyway?”
    (Dennis Miller) with some alarming examples how govts are preparing to carry out much worse onslaughts on your assets than what cyprus only almost tried. Interesting bit about PVC pipes, too… though, I reckon you’d just have to tap one to know whether it was really a water pipe or actually full of gold coins… 😉


  3. Hysteria · ·

    I think this time they really are running out of road for that can….


    1. moraymint · ·

      We’ve been here so many times in recent years, but one does get a certain sense of mounting desperation now. The ‘powers that be’ are cornered and are now starting to attack each other; always a sign that the endgame could be close. On the other hand, there is no end to the conniving that these people are capable of, so I’m not yet counting my chickens … albeit I do need to go and feed the existing ones in the garden right now (brb)


  4. Jason · ·

    The end-game is fast approaching when it becomes common knowledge that the ordinary depositor does not actually own the cash in their bank account (as it is a contingent liabiltiy i.e. a loan) then all hell is going to break loose.


    1. moraymint · ·

      Good point. I seem to recall reading somewhere that that is indeed the case. When you deposit money in a bank, it becomes the bank’s money in some way. I’ll need to research the details of that again …


      1. Jason · ·

        Hi Moray it is definately the case (the bank agrees to pay you back on demand that commitment only stands if they have the money to honour it) it is one of the reasons why you cannot dictate what the bank does with that money after you deposit it.


  5. Malcuk · ·

    As note on the DT site today, how soon with the theft of capital from savings accounts come to the UK? The fact that savings ratio’s are lower than “real inflation” (and not the figure the Gov’ puts about) covers their need to steal our money rather well.

    The winds of poltical change are now blowing strongly throughout the EU, and I am not sure our “Masters” in Brussels can control it for much longer.


  6. Bickers · ·

    I listened to the Radio 4 piece as well. I thought Howard Davies had it about right when he said that regardless of the fact that Cyprus has been extremely stupid to set itself up as an offshore bank (for the Russians) the Eurozone members had no choice but to rescue Cyprus. I got the impression that he wanted the Eurozone members to pay the bill so to speak, rather than raid citizens bank accounts.

    Of course if the ECB/troika give Cyprus ‘favourable’ terms then you can see Ireland, Spain, Portugal & Italy kicking off.

    “Events dear boy, events” & “you reap what you sow”.

    MM, I think you’re right to say that the Euro mob will do everything in their power to keep the show on the road, not least the Germans as they’re the ones standing behind the bulk of the guarantees etc.

    If you’ve read Black Swan then the Eurozone must be a bloody flock of them!


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