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BREAKING: Russian treasury unable to meet it’s financial obligations. All government agencies see asset freeze in Cyprus-Prime Minister Medvedev


Interesting interview by Medvedev today who admitted that most Russian government agencies use Cyprus for it’s financial transactions.

A few points here:

-How corrupt does a country have to be for its government agencies to use a tax haven for financial transactions?

-From latest reports, the Cypriot banks might open on March 26th at the earliest. That’s two weeks after being shut down. That’s two weeks of unmet financial obligations, ie government employee salaries, public works financing, unpaid pensions etc etc…Expect unrest on the streets of Moscow

-The EU/Germany are certainly aware that 95% of all Russian money goes through the Cypriot banks. Certainly they were well aware of the consequences this would lead to. Is this the first salvo in the new world war??

http://www.newsru.com/finance/21mar2013/cyprusmedvedev.html

 

Russia complains government accounts blocked in Cyprus

 

Russian Prime Minister Dmitry Medvedev complained Thursday that accounts of Russian government agencies in Cyprus had been blocked as Cypriot Finance Minister Michalis Sarris was set to resume talks in Moscow to secure aid.

In comments released early Thursday, Medvedev warned that Russia would take a “firm” stand on Cyprus because the accounts of governmment structures had been blocked on the island.

http://www.globalpost.com/dispatch/news/afp/130321/russia-complains-government-accounts-blocked-cyprus

Cyprus ATMs Low On Cash, Credit Card Payments Refused; Medvedev Compares Europe To USSR

So far the market has been largely oblivious of the shattered trust and changed dynamic in European banking dynamics for one simple reason: Cyprus banks have been closed, and likely will be closed indefinitely, preventing the mass media from broadcasting what happens when an entire population, and foreign depositors, decide to clear out the holdings of their bank accounts, either physically or electronically, and the public anger the will result when they find that courtesy of fractional reserve banking, only a tiny amount of said deposits is actually present. In the meantime, retail depositors have had their withdrawals limited through a form of capital controls, allowing them to pull only as much as the daily limit is on given ATMs. So far the banks have had enough cash to keep ATMs stocked up to the daily required minimum, but that may soon be ending. BBC’s Mark Lowen, in Nicosia, reports that “Cyprus’ banks are still giving out cash through machines – although with limits, and some are running low.” Ironically, as physical cash becomes ever scarcer, merchants are now clamping down on electronic payments unsure if they will ever be able to convert electronic euros into actual ones: “Some businesses are now refusing credit card payments, our correspondent reports.”

http://www.zerohedge.com/?page=1&rtg=ga&s=2879850&tent=ch&uatRandNo=88572%252Cb4bbb6da-af93-11e1-b7d6-db97136560f0%252C1338958472507

Pictures From A Cyprus ATM Line

http://www.zerohedge.com/news/2013-03-21/pictures-cyprus-atm-line

Markets believe that we will find a solution and that we will provide more money and this might not be the case.” 

http://www.zerohedge.com/news/2013-03-21/euro-official-cyprus-markets-believe-we-will-find-solution-might-not-be-case-we-have

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  • lucille

    Wow! I’m first to comment on this? Cool! Anyway in my opinion this is the beginning of the end for many different nations, It’s a domino effect, soon we will be feeling the tightening here in the USA.

  • Rod

    I think it would be really interesting to hear eye witness accounts of folks on the ground as to whether gold and silver are being used as payment for good and services in Cyprus right now. And, if so, how much can one purchase with say, 1 oz. .999 silver?

  • PJ London

    “How corrupt does a country have to be for its government agencies to use a tax haven for financial transactions?”

    Please do not be so naive, most (all except Iran?) countries use “correspondent” banking to pay their foreign creditors. They also require foreign debtors to deposit in the correspondent bank. This speeds up the payments (no clearing and settlement delay) and is a considerable saving in cost. 60% to 80% of central Bank payments would go through a correspondent bank rather than BIS.

    “That’s two weeks of unmet financial obligations, ie government employee salaries, public works financing, unpaid pensions etc etc…Expect unrest on the streets of Moscow ”

    Duh, these are domestic payments, it would be deposited straight into the domestic accounts.

    If you do not get simple government banking right, how can we depend on your analysis?

  • terpsez108

    watch George Soros you know he had the inside scoop here–he claims he’s made over a Billion in currency trades (I call manipulations ) since the November election—it is the Fanily of Bankers he is the front Man for that Russian President Putin has called them Soros Obama Bush both Clintons all “members of a criminal cabal”