nuclear bomb

If the ECB & Greece don’t compromise, Greece could be forced to leave the Eurozone and we could potentially be facing the equivalent of “financial armageddon” in Europe.
And if Greece does leave, it will cause panic throughout global financial markets as everyone wonders who is next.

Italy, Spain and Portugal are all in a similar position.  Every one of them could rapidly become “the next Greece”.
But of even greater concern is what a “Grexit” would do to the euro.  If the euro falls below parity with the U.S. dollar, the derivatives losses are going to be absolutely mind blowing

If nobody flinches, the Eurozone will fall to pieces, the euro will collapse and trillions upon trillions of dollars in derivatives will be in jeopardy.
According to the Bank for International Settlements, 26.45 trillion dollars in currency derivatives are directly tied to the value of the euro.
Let that number sink in for a moment…

Farage

Despite attempts last week by EU technocrats to browbeat the new and inexperienced Greek government into submission, Syriza appear to have grown even more resolute to fulfil their mandate.
Alan Greenspan has thrown down the gauntlet and predicted a Greek exit from the Euro.
Noting the contradiction at the heart of Europe Greenspan pointed out that without political unity you can not have a fiscal unity:

The problem is that there is no way that I can conceive of the euro of continuing…

The End

Today gold and silver had a good day trading as both finished in positive territory.  The big news of the day is the Greek crisis and many are now believing that Greece will exit from the Euro as they will definitely run out of cash by the end of February. 
The Greeks are steadfast in not wanting to continue the bailouts as the nations gets deeper and deeper into hardship.  The GREXIT will no doubt cause severe harm to the Western bankers as not only will 320 billion euros worth of debt  evaporate but also the trillions of dollars worth of derivatives which may bring down many of the bankers.  Remember also that the bankers are suffering major losses from oil and from hugh short dollar losses combined with yen carry losses.
This Wednesday should be exciting to watch as the EU and Greece decide each other’s fate!!

ECB
  • ECB ‘blackmails’ Greece – “Grexit”, bank runs, capital controls and bail-ins likely
  • Shock announcement yesterday led to volatility in markets; turmoil in Greece
  • Stocks, commodities including oil and Greek investments fall
  • Euro gold surged from EUR 1,104 to EUR 1,126 per ounce or 2 per cent
  • Greek government bonds will not be accepted as collateral in accessing cheap ECB liquidity from February 11
  • Greek banks are believed to be heavily exposed to Greek government bonds
  • Banks in difficulty will have recourse to Emergency Liquidity Assistance (ELA) from Greek central bank but ECB has authority to block ELA
  • Greece now shut out of markets
  • ECB putting interests of banks over those of people … again

With 88% of the vote in, Syriza has won the Greek elections with 36.3% of total vote
Tsipras has begun his address, and advised that the “Troika Eria is Over for Greece“,  the “Bailout agreements have ended for Greece“, and that the “Oligarchs, elites in Greece have been defeated“. 

In short, the Central banksters worst fears in Greece have just been realized. 

Sovereign Man

Miguel de Cervantes’ novel Don Quixote is brilliantly entertaining.  But the modern-day monetary equivalent is not so much.
Central bankers today have an equally delusional view of the world.   Just three months ago, Mario Draghi (President of the European Central Bank) embarked on his own Quixotic folly by taking certain interest rates into NEGATIVE territory.
Draghi convinced himself that he was saving Europe from disaster. And like Don Quixote, everyone else has had to pay the price for his delusions.
On November 1st, the first European bank has passed along these negative interest rates to its retail customers.

haircut bail-inCan the financial authorities compel private debt holders (and also regular bank account owners) to give up their rights to make claims for the full value of their asset when a default takes place?
The answer to this question has huge implications worldwide as the risk of sovereign debt default has never been higher. 
People have always assumed their bank accounts were protected at least up to the amounts that are supposed to be “guaranteed” by entities like the FDIC in the US,  but the IMF and others are attempting to stake out the position that “bail-ins” can be imposed by force in a default crisis situation.
It appears they want to be able to change the rules if they think they need to.  Even including bank depositors.
In a ground breaking case that has MAJOR potential ramifications on the legality of future bail-ins in the US,  the US Supreme Court has ruled in favor of some hedge funds that will be paid the full value of the debt they owned (Argentina debt).  
While this ruling only applies to bond holders, it might apply as a precedent to any future default situation. 

mattress safeWhile we are awaiting confirmation as to whether they intend to bring the product to market or have just launched a clever marketing scheme based on the European banking crisis in the aftermath of the Cyprus bail-in, Spanish mattress company Mi Colchón has released a Hollywood like theatrical advertisement promoting the “safest vault in the world”:  the world’s first mattress safe.

CRISIS: Spanish banks collapse
Spaniards fear for their money, and no longer sleep well.
DES’S experts on sleep and rest presents the solution….
THE FIRST MATTRESS WITH A SAFE!!
Sleep tight and with your money safe and away from banks.

The must see 120 second clip is below:

Cyprus haircutsRT reports that Cyprus & Troika officials have agreed to a 20% haircut on all deposits over €100,000 at Bank of Cyprus, and 4% on deposits at other Cypriot banks
Which essentially means nothing until the measure is passed by the Cypriot Parliament. 

With the ECB/IMF threatening (bluffing) to kick Cyprus out of the Eurozone unless €5.8 billion is raised/ stolen from Cypriot depositors by Monday, the next 24 hours should be quite interesting as we see whether Cyprus holds its ground and follows in the footsteps of Iceland, or kowtows to the ECB bureaucrats and agrees to a 20% theft of it’s wealthiest citizens.  (particularly following yesterday’s report that insiders tipped off the majority of wealthy Russians in the days leading up to last Friday’s announcement, meaning Russian wealth is already looong gone) 

Cyprus bank freezeGermany’s Handelsblatt reports early Friday that the ECB has informed Cypriot authorities that due to a guaranteed epic bank run of their own making that will undoubtedly begin the moment Cyprus’ banks re-open, the ECB intends to enact capital controls when (if) the Cypriot banking system re-opens next week, and that the ECB intends to enforce the capital controls unilaterally!

Handelsblatt claims Cypriot Central Bank sources have stated that the ECB intends to freeze all Cypriot savings accounts indefinitely, greatly reduce the maximum amounts of ATM withdrawals, and will require Central Bank approval for all bank transfers!

cyprusIn this excellent report by SmartKnowledgeU’s JS Kim, JS discusses the attempted theft of 10% of Cypriot funds by the European banksters, and points out that the Western Central banksters have routinely been executing a far greater theft against everyone than any of the numbers proposed in Cyprus.

People are rightfully infuriated over the bankers’ attempt to steal 10%+ of all Cyprus bank accounts recently to bail out the banks. What people must realize is that bankers have been executing a far greater theft against all of us through inflation than the proposed Cyprus theft and here’s what we can do to stop it.

CyprusOur friend Sean from SGTReport has released an interview with Harley Schlanger discussing how the Cyprus depositor haircut was merely a test run for the real wealth confiscation events planned for Italy, Spain, and France.

This is a 25-minute uninterrupted conversation with Harley Schlanger, historian and national Spokesperson for LaRouchePAC. Harley and I discuss the latest from Cyprus and the Euro Zone where the Banksters in Germany, in the City of London and at the IMF have reached new levels of criminality. Make no mistake about it, as bad as the attempted THEFT in Cyprus is, the real risk is in Italy and France which owe HUNDREDS of BILLIONS. Cyprus is merely a litmus test for what the Banksters would really like to do, which is to RAPE the entire Euro Zone in order to “save” the criminal banks and save their overtly criminal, overtly evil system.

bank collapseSubmitted by Bill Holter:

The news over the weekend is that the Cyprus banking system will have a “holiday” on Monday which was “scheduled” AND at least Tuesday which was not.  The ECB and IMF wanted a 40% haircut and apparently the deal reached is one where balances under €100,000 will be reduced by 6.75% and by 9.9% for those over €100,000.  Understand that much of what is deposited in Cyprus are funds from wealthy Russian oligarchs and mafia. 

This is a disaster on so many levels I can’t even count them all.  First off, what happened to the rule of law?  I thought that in a capitalistic society that equity holders lose first, then preferred shareholders followed by unsecured then secured debtors…DEPOSITORS are the absolute last in line to lose money.  This is being called a “tax”, when in reality it is outright theft! 

In this case the depositors are first in line which will surely cause a bank run in Cyprus…which will be followed by runs in other places like Greece, Spain, Italy and Portugal.  Make no mistake, this could turn into something ugly and HUGE very quickly as the world runs entirely on confidence and won’t run without it.

Investors (depositors) the world over will see this and shortly understand that the rule of law is no longer and that “possession” is now more than 9/10th’s of the law.  The possibility exists that within 2 weeks the entire system is shuttered. 

bank-holidayYesterday the scheduled Parliament vote on the Cyprus bank bailout was delayed till 4pm Monday as the banksters were short 33% of the necessary votes to pass the wealth confiscation tax/theft. 
Overnight, the ECB/IMF banksters rushed to change the tax to hit foreigners with a higher tax relative to native Cypriots (with the highest tax rate now reportedly OVER 15%!).
Apparently that was not enough to twist the arms of enough of the Cypriot Parliament, as today’s bailout vote has just been delayed until 4pm Tuesday, and the bank holiday extended through Friday!   The bailout vote reportedly is facing such a lack of support that the vote may be delayed further until Friday!