Cypriot bank deposits hit in €10bn bailout

[Bitcoinpro]

The world is becoming a very interesting place.

Next, I would expect the PIIGs to take their cut at every deposit and withdrawal - since people won't be leaving a lot of cash in banks.  They'll still need to use banking services for a few things though; mandated by 'law'.  Can you imagine someone with a one-thousand Euro tax bill having to deposit eleven hundred, so the ten percent can be taken off the top, first?

WTF are they thinking?

We should have a bounty for dropping informational bitcoin leaflets in places like Cyprus and Argentina, with R/C aircraft.  Our own non-lethal drone wars.  One could probably send a large, Arduino/Arduplane-controlled  Telemaster to Cyprus from Israel or Turkey for less than 25 BTC.  That would be a scheme with a pretty good ROI, one would think.

dude, Arducopters are the bomb man.

Aren't they just?

yup

[Bitcoinpro]

like anything to do with technology the bitcoin economy will assemble at a frightening pace

[benjamindees]

i'm doing my part.  i shorted another 1000 shares of WU on Friday.

[Bitcoinpro]

i'm doing my part.  i shorted another 1000 shares of WU on Friday.

that list is going to spread like wildfire in the years ahead

[Bitcoinpro]

Borrowed from somebody earlier in the topic:

haha ive seen all those pics in that thread

[Eri]

My first reaction "how can they just steal peoples money!?" then i realise my country(the US) does worse! they print more money, which to be blunt allows them to steal pennies from every dollar in existence where cyprus only took it from bank accounts. the bottom line... my gov't is actually stealing money from the citizens!

my only real question... why wasnt i more angry before? i knew what they were doing. was it because my bank balance still has the same numbers in it? was it because everyone has money stolen and not just a select few?

this is all disturbing to me... and im not the only one that had this reaction.

[Bitcoinpro]

Just another demonstration how Bitcoin is by far better money than Euro (in this case).

Bitcoin is fungible. Euro is not. In Germany Euro worth 100 cents in Cyprus it is only 90-94 cents. Bitcoin worth 100000000 Satoshis everywhere.

cypherdoc: is a bank run a deflationary event?

they are just grabbing the cash to pay for more powerful computers to add more zeros to the end of the numbers they already fictionally create

and to buy more coin at this stage in the game 

[marcus_of_augustus]

Just another demonstration how Bitcoin is by far better money than Euro (in this case).

Bitcoin is fungible. Euro is not. In Germany Euro worth 100 cents in Cyprus it is only 90-94 cents. Bitcoin worth 100000000 Satoshis everywhere.

cypherdoc: is a bank run a deflationary event?

they are just grabbing the cash to pay for more powerful computers to add more zeros to the end of the numbers they already fictionally create

and to buy more coin at this stage in the game 

You are way closer to the truth than you might imagine.

Because these seized deposits are Tier 1 capital, i.e. unencumbered cash, then the banksters can leverage those by 10-20 to 1 with various ponzi loans and derivatives ... what that means is that 5.8 billion that they seized will most likely be used as collateral for up 58 - 100 billion in debt.

Cash is the heroin that system craves right now ... and as we witness it will do anything, legal or illegal, by which to acquire it for the next fix.

[Littleshop]

My first reaction "how can they just steal peoples money!?" then i realise my country(the US) does worse! they print more money, which to be blunt allows them to steal pennies from every dollar in existence where cyprus only took it from bank accounts. the bottom line... my gov't is actually stealing money from the citizens!

my only real question... why wasnt i more angry before? i knew what they were doing. was it because my bank balance still has the same numbers in it? was it because everyone has money stolen and not just a select few?

this is all disturbing to me... and im not the only one that had this reaction.

Printing money to continue overspending is bad, but taking money directly out of the account of a saver is a very different action.  It actively discourages savings and could actually break the back of the entire system because it will cause a bank run. 

[Deafboy]

One thing is still unclear to me. How can EU save the banks in Cyprus by initiating panic, chaos and bankrun? It's like trying to cure broken leg by punching it with massive metal pipe.

[justusranvier]

One thing is still unclear to me. How can EU save the banks in Cyprus by initiating panic, chaos and bankrun? It's like trying to cure broken leg by punching it with massive metal pipe.

There is no plan to save anything. The plan is to pillage as much as possible before the cash flow dries up. It's just like the final years of the USSR.

[markm]

A few billion here, a few billion there, supposedly pretty soon it starts to add up to "real money". What surprises me though is the small size of the paltry sums involved, its like, hey man, a frikkin toy currency started up by a bunch of anarchists and neckbeards uses half a bill just to see "what if" (that is, to run an experiment...).

-MarkM-

[wachtwoord]

According to Dutch newspapers they did it because the majority of the savings in Cyprus were from tax evading Russians and that this was the reason the European Union wouldn't bail Cyprus out directly.

That appears to be the reasoning, a similar one they used for effectively banning cash from the southern European economies. "Tax evasion" has been the convenient excuse for central bank monetary meddling for over 100 years now.

They are on a sorely misguided path. They are meddling with the basic properties of their money itself, i.e. digital fiat databases, and in the process thoroughly destablising the whole financial and economic systems.

It is is yet more evidence that they have fundamental misunderstandings about what money is and how people think about money. It is a fatal conceit of socialist power centers that inevitably leads to the collapse of their monetary systems. While we worry about the ECB writing reports about bitcoin, the ECB themselves seem not to understand how money works, in fact some of the bitcoin ECB report was revealing in how central bank bureaucrat thought about money, and it was unsettling to observe how ignorant they were in some aspects.

I would mark this as the beginning of widespread bank runs in Europe. The message is now clear, bank deposits do not belong to you but at any time the ECB can "have" them to re-allocate as they see best.

Couldn't agree more.

Note to others: I was merely reporting what the paper said, not taking a personal stance. Why do you think I reported the source?

[wachtwoord]

i'm doing my part.  i shorted another 1000 shares of WU on Friday.

I'm actually long WU. Have you looked at their fundamentals? Fiat currency will not die very suddenly, it will inflate with increasing speed (it already is). WU's profits will rise along with inflation.

[cypherdoc]

One thing is still unclear to me. How can EU save the banks in Cyprus by initiating panic, chaos and bankrun? It's like trying to cure broken leg by punching it with massive metal pipe.

Look at it this way.

They just got away with stealing 10% of everybody's money 

[cypherdoc]

i'm doing my part.  i shorted another 1000 shares of WU on Friday.

I'm actually long WU. Have you looked at their fundamentals? Fiat currency will not die very suddenly, it will inflate with increasing speed (it already is). WU's profits will rise along with inflation.

Have you looked at the technicals?   

The stock has been decimated with many gap downs and is at multi year lows.

Fundamentally I don't like it either,  an outdated expensive way of sending money.

[wachtwoord]

Technicals mean nothing, hence no. The only thing they meant I was able to buy cheap.

It is widely used for remittance, mainly for poor people, and will continue to do so for many years to come.

[ShadowOfHarbringer]

One thing is still unclear to me. How can EU save the banks in Cyprus by initiating panic, chaos and bankrun? It's like trying to cure broken leg by punching it with massive metal pipe.

There is no plan to save anything. The plan is to pillage as much as possible before the cash flow dries up. It's just like the final years of the USSR.

This.

[wachtwoord]

One thing is still unclear to me. How can EU save the banks in Cyprus by initiating panic, chaos and bankrun? It's like trying to cure broken leg by punching it with massive metal pipe.

There is no plan to save anything. The plan is to pillage as much as possible before the cash flow dries up. It's just like the final years of the USSR.

This.

Many people profited a lot from the fall of the USSR. How could I emulate their approach here?

[cypherdoc]

Technicals mean nothing, hence no. The only thing they meant I was able to buy cheap.

It is widely used for remittance, mainly for poor people, and will continue to do so for many years to come.

Then it's interesting that you're here as remittance is one of bitcoin's strengths.