A Letter from Cyprus: Economy Shutting Down, Going CASH ONLY!

letter from CyprusAn SD reader has submitted a boots on the ground report on the escalating crisis in Cyprus, as the entire Cypriot economy is now on the verge of collapse:

Nowhere in Cyprus accepts credit or debit cards anymore for fear of not being paid, it is CASH ONLY. Businesses have stopped functioning because they cannot pay employees OR pay for the stock they receive because the banks are closed.
If the banks remain closed, the economy will be destroyed and STOP COMPLETELY. Looting, robberies and theft are already on the rise.
If the banks open now, there will be a massive run on the bank, and the banks will FAIL loosing all of its deposits, also causing an economic crash
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2013 Silver Eagles As Low As $2.59 Over Spot at SDBullion!

From SD Reader tzy:

Another letter from Cyprus :

A friend from Minneapolis has a son who is in Cyprus now. Here is an email that he wrote home, describing the chaotic situation there:

Hey fam!  Things are getting pretty crazy over here in Cyprus. I don’t know if you guys have been watching the news or seen things online, but Cyprus is on the verge of economic collapse. 
Over the past 5 years the Cyprus stock market has lost 98% of its value and the country has recently entered into a severe economic crisis, considered worse than Greece, Italy, Spain, Portugal etc.. As of last week the two largest banks in the country have completely shut down and froze all wire transfers out of the banks. Walking outside every day this week I have seen massive lines of people at the ATMs trying to withdrawal the maximum amounts. Today there was a man who was trying to get money out and when he realized it was out of cash he shook the machine violently and punched the display while cursing in Greek. If these banks go under (and this may happen) ALL money and all deposits will be lost, which will completely destroy the economy and way of living here.

Last week the European Central Bank offered a multi-billion Euro bailout package to Cyprus in exchange for a massive tax on all civilian bank accounts in the country. If this goes through (and I hope to God it does NOT) It will also devastate the economy and cause a giant run on the bank. Cyprus has also looked to Russia for help because Russians hold tens of billions of euros of investments in Cyprus (and the majority of bank deposits), however, Russia declined.

As it stands now, nowhere in Cyprus accepts credit or debit cards anymore for fear of not being paid, it is CASH ONLY. Businesses have stopped functioning because they cannot pay employees OR pay for the stock they receive because the banks are closed. If the banks remain closed, the economy will be destroyed and STOP COMPLETELY. Looting, robberies and theft are already on the rise. If the banks open now, there will be a massive run on the bank, and the banks will FAIL loosing all of its deposits, also causing an economic crash. TONIGHT there are demonstrations at most street corners and especially at the parliament building (just 2 miles from me).

Many are thinking that the ECB and EU are allowing Cyprus to fail as a test ground for new financial standards.

Just wanted all you guys to know the real story of whats going on here. Prayers are appreciated (although this is very interesting to watch) many of my local friends have lots of money in the banks.

 

Comments

  1. The criminal elite bankers had to know this would be the result of their actions!! HAD TO KNOW IT! This is most likely the beginning of THE EVENT. It seems what we have been discussing for so long is starting. So many said it would be in the spring of 2013. It seems they were right. TS “IS” HTF!

    • ya got me Rockets.  perfect and perfectly funny

    • The problems in Cyprus look a great deal like the effect we see from dropping a pebble into a quiet pool of water.  The splash is small but the ripples seem to go on forever.
       
      I agree that what we are seeing here could very well be yet another crack in the facade of centralized fractional reserve banking and fiat currency.  I expect MANY of these events to occur, each one causing just a little more damage, until the whole house-of-cards comes tumbling down.
       
      That said, I do not expect to see major problems develop over Cyprus.  This is just one of the warm-up acts.  The main event will occur in Italy or Spain.  Once they have bank runs, imploding banks, and collapsing debt the game will be well and truly afoot.

  2. I was just thinking about the gas station owner over there, that has “CASH ONLY” on the pumps. So I thought, what if I only had an ounce of silver, and I needed $30 worth of gas. (Current price example). The owner of the gas station now has an additional source of income if he takes the Ounce of Silver for said amount of gas. He takes the ounce of silver to the “back room” where there is a line of people with available cash wanting to buy silver (and or Gold) for $10 OVER the current spot price… He has now just received $40 for the same gas that cost him $30. So begins the “Gold and Silver Underground”
    So soon I believe the sign on the pumps will read “CASH ONLY – GOLD OR SILVER PREFERED”
    Think about it….

    • I’ll bet the PM stackers in Cyprus are in better economic shape than I could ever imagine.  I can’t wait to hear some real world stories about sports cars and skyscrapers changing hands free and clear.  Opulence, you has it.

    • If the banks are not open by the time most people run out of cash, we very likely will see people bartering gold and silver items for the things that they need.  Both of these have been money for a VERY long time and it will not be lost on too many business folks that they can make some money on both the bartering of items for gold and silver as well as on the gold and silver themselves… a profits double-whammy.  It may take some doing to get the ball rolling on this but once it does, it could really snowball.
       

    • @Ed_B: Yeah, the cash for gold stores will be 24 hr. stop and robs, only it’s those who stop that get robbed.

    • Yeah, those places always remind me of those places that offer “pay check loans”.  Places like that used to be run from back alleys by guys named “Guido” or “Johnny the Knees”.  These days, they flourish on main street.  They prey on those who are either financially incompetent or who have had extremely bad luck.  Just what people in financial trouble do not need… more problems.

  3. Sounds like a staged letter to me. But I do agree with what it says.

    • Agreed !
      Imitation is the highest form of flattery for TPTB
      The takeaway point from this is careful what you’re being fed and who is doing the feeding.
      Quid pro quo.
      Who benefits from peddling this ?
      Careful what’s in the coolaid sheeples.
      Coz . . . . . I trust my mates to lie to me to get their point across. Yeah right.

    • Yes, a lot of what I read on this site is staged and invented, (the silver tabloid site)
       

    • Do not value Silver and Gold because the world is coming to an end.  Even if none of the dire predictions of financial doom and gloom ever come to pass, counterfeiting is still wrong, and it is still wrong to allow a few to create ‘money’ and debt out of thin air, and pass it off to everyone else as real money.  And even if by some miracle the world leaders come to agreement on a common solution to the monetary crisis engulfing the world, money in the form of physical Gold and Silver is still the only form of sound money that has stood the test of time for thousands of years in human history.
       
      Do not value Gold and Silver out of fear or greed, but out of logic and reason.

    • “Do not value Gold and Silver out of fear or greed, but out of logic and reason.”
       
      Indeed so.  Personally, I just hate it when the talking heads on the TV financial programs start blabbering about “the fear trade” when talking about gold.  I bought some gold about 6 weeks ago and more 3 weeks ago.  Fear had absolutely nothing to do with it either.  I did not buy it because of what I fear MAY happen but because of what I KNOW IS happening, particularly as regards massive and insoluble debt problems, massive money printing that dilutes and cheapens the currency, inflation that robs us all of our purchasing power, and a government that is so out of control that a collapse of the US economy is virtually guaranteed.  Now, do I sound like I am afraid?  No, I do not.  I am preparing for the financial screw-ups that are clearly in progress because I want to shield my family from as much of this problem as I can.  No, this is not about fear, it is about taking reasonable precautions against a clear and impending disaster.
       

  4. This will highlight a collapse scenario for (Banks and Government around the world)
    Psychologist will be watching this with interest as will be Bankers and Legislators.
    Think of Cyprus as a SANDBOX, they are war gaming and so far they are winning.
    Cyprus is an ISLAND vulnerable to supply contractions from the outside.
    Isolated from easy exit if air and sea links are cut…the people are staked out like goats.
    So from a bankers point of view..its perfect for a trial run.

  5. lol…I never wrote letters like this home

  6. ANY money the IMF is loaning is coming from the Federal Reserve Act of 1913 where Congress delegated their Constitutional authority to American central bankers. As Americans, we should be contacting our elected representation with questions demanding answers. This is the only peaceful approach we can apply today. If you sit back and do nothing in this regard, then reap the whirlwind. 
    Cyprus is the perfect test case for societal collapse. The fire has been set, the flames will spread. There is much dried wood to feed the flames. Let’s face it, Russia and China are not going to survive the flames either. Their economies thrive on customers with cash. The house is on fire bringing about massive, crushing debt to Europe. Lindsey Williams and Anne Barnhardt are right.
     

    • Fiat is debt, hard to bring on more than the banks created themselves!

    • “As Americans, we should be contacting our elected representation with questions demanding answers.”
      What would you ask them? Are you in on it? Are you aware that the JOO bankers are taking over the western world? Are you going to see the traitor-ism and change sides and expose them for what they are? What would you ask? Really? 

    • @Blue, TAKE YOUR ANTI-JEWISH COMMENTS AND SHOVE THEM UP YOUR FILTHY, ANTI-SEMETIC ASS.
      -MAMMOTH

    • Don’t hold back like that, Mammoth.  Tell him how you REALLY feel!  lol
       

  7. Legard went on a world tour with her little begging bowl last year.  She got about $500 billion.  WTF happened to the money.  It could have been used to help Cyprus without any financial damage.  But no, she’s probably got that in some offshore bank.

  8. Take away point is this…A stack of phyzz is great, but what these people need is a stack of cash.  The path to global financial breakdown is not a straight line.  Be prepared for contingencies.

    • Agreed, U_Dog.  This is but one of many cars leaving the tracks in this colossal slow-motion train-wreck that TPTB have arranged.
       
      Cash will be good to have until it is not.  It is likely that it will be good right up to the point where the dollar collapses.  I keep some cash on hand in the same safe as where lies my stack and it is wise for all of us to consider doing the same.  3 months worth of living expenses would be good… more if you can swing it.  Bank holidays and other events will drain people’s usual small amount of cash pretty quickly.  If the ATMs and credit / debit cards are not working, then cash will be king… for a while.
       

  9. Now that we have the Cyprus unpleasantness behind us—NOT, what’s next?  German is hungry and wants further engage the art of fiscal war and  damage the  small countries that  offer tax havens, have bad banking ratios or both.
     Names like Slovakia, Hungary and Latvia come up on the radar.  Either offshore sources, high debt to GDP ratio or weak banks needing a bailout; these qualities annoy the Germans. They are a threat and chafe at Merkel, eroding her political clout, affecting  her political fortunes  in the September election season.
      In dealing with the Euro peripherals, protecting the German people’s taxes used to bail out these small countries while making sure enough damage is done to the southern tiers to protect Germany’s manufacturing base and banks, every country blindsided by Merkel and the banking troika burnishes her image as a tough politician protecting the German people.
    Cyprus will see a decade of depression, 30% drop in GDP, a debt to GDP ratio of 150%, thus  destroying their ability to nibble at Germany’s flanks and banking hegemony through Russian offshore accounts. These actions chase hidden money into the light where it can be traced, taxed and given the occasional haircut.
     This is a huge poke in the eye of the Russians. Bitter memories linger there.  While the oligarchs and KGB got their money out in the last two weeks by routing it through the Cyprus bank subsidiaries operating in Russia before the IMF lowered the boom,  the  Russian ability to go offshore in the Eurozone has been  damaged forever. 
    Any banks offering Russian banking will be shunned as too great a risk for safe harbor of Russian capital.  Decades-old business relationships will be thrown over due to a new level of mistrust between Russian, German and Euro business allies. 
    Merkel and the Troika have put Slovakia, Hungary and Latvia on notice that they are next.  The political considerations in Germany translate to curbing  banks in these small countries.  Russians are not welcome in the Eurozone, including Switzerland and Lichtenstein.  Lichtenstein has been warned by the US and EU to give names of depositors and foundations to the US and EU.  This  broad threat was used a few years ago, sent the Swiss banks packing and destroyed the oldest bank in Switzerland.
    Russians see the handwriting on the wall. They’ll move hundreds of billions from the EU banks, fully aware that Merkel plans to do whatever she can to exact payback to the Russians for decades of threats to the German homeland. Now that she sees her actions as successful in Cyprus with collateral damage to Russia, she will continue these plans in short order, maybe once the dust settles in Cyprus.  These are guesses on my part as some of the plans are revealed and some are covert. But the way things seem to work in the Eurozone, whenever some draconian action by the troika is cheered as succesful; the Euro is saved and all is now well, you know that at most, 2-3 weeks later the exact opposite happens and the fat is back in the fire.
     

    • Indeed we do know that, AG.  It will be interesting to see how the Russians do react to this latest slap in the face.  Something tells me that this is not over, no matter how many times the Trio of Evil declare that it is.  Russia has MANY options.  If they decide that it is better for them to sell their oil and gas in Asia than in Europe, it is gonna be a long cold winter.  Alternatively, they could decide that they need several billion worth of higher prices to make up for the Cyprus caper.  They could also be scouting out alternative banking sites, such as Turkey, Indonesia, Macao, Hong Kong, or Singapore.  Perhaps they will just buy their own island, set up their own banks there, and become the new Switzerland.  That would be weird but stranger things HAVE happened.
       

  10. What evidence is there showing the Russians managed to get their cash out?  The bank presidents and top management better go into hiding.  I can imagine that the Russians are going to go to the bank heads and demand their 40% back.  Reminds me of the scene in Casino, where Joe Pesci is threatening the fat banker that he is coming to the bank to get his money back.

  11. As another domino in the chain of fiat fail topples…

  12. Don’t kid yourself.  Russians were allowed to get their money out before the deposit “tax” became official.  Otherwise there would be a lot of dead politicos littering the euro landscape.

  13. I don’t understand these Cypriots.  Am I to believe on an island surrounded by water, they cannot find ropes suitable to hang the sonofabitches who are responsible?  C’mon.  What is the hold up?

    As for the remarks from BLUE.  Take your predjudices and shove them up your ass.  Better yet, when you “sleep” with that goat tonight, just remember your going to a very unique place one day.

  14. Looting, robberies and theft are already on the rise.
    That’s one more good reason why I should buy a gun instead of being dependent on the force of the police. The police in Cyprus didn’t even help the people from the theft of the banksters. It’s better to buy an illegal gun from the black market so that the government won’t hunt me down to get the legal firearms. 

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