Euro Crisis Is Just Beginning, Global Collapse Is Coming: Russian Banks Have $40 Billion At Risk In Cyprus, The “Wealth Tax” Contagion Is Rapidly Spreading, Massive Austerity Looms, Slovenia Under Pressure; Risk of Next Cyprus Already at Hand, And Major European Bank Runs Now Taking Place!!
It was only yesterday that we wrote about comparable problems to those which Russian depositors may (or may not be?) suffering in Cyprus right, this time impacting wealthy Americans and their Swiss bank accounts, where as a result of unprecedented DOJ pressure the local banks will soon breach all client confidentiality and expose all US citizens who still have cash in the former tax haven under the assumption that they are all tax evaders and violators. And in the continuum of creeping wealth taxes which first started in Switzerland, then Cyprus, and soon who knows where else, there was just one question: “The question then is: how many of the oligarchs, Russian or otherwise, who avoided a complete wipe out and total capital controls in Cyprus, will wait to find out if the same fate will befall them in Switzerland? Or Luxembourg? Or Lichtenstein? Or Singapore?” Today we got the answer, and yes it was one of the abovementioned usual suspects. The winner is…. Lichtenstein.
Yes: the little principality that is an even greater tax (evasion) haven for the world’s ultra wealthy, even more so than Zurich, Geneva or Zug, is now under Big Brother’s microscope.
But fear not. All the other tax havens listed above are quite certainly about to meet the iron, resolute fist of the US Department ofInjustice. After all, unlike TBTF banks, depositors are hardly “systemic”, and thus Eric Holder and his henchmen will have zero reservations when pursuing the full extent of the (selectively crony) US laws against them.
The U.S. has asked Liechtenstein to hand over data on foundations that may have been used to hide untaxed American money from the Internal Revenue Service, a step that may threaten Swiss banks.
The U.S. wants to know the number of foundations set up by fiduciaries — lawyers, accountants, financial advisers and asset managers — for American taxpayers, according to a letter sent by the Department of Justice to authorities in the Alpine principality. A “formal request” to fiduciaries will follow, the DOJ said.
“Seeking documents from the Liechtenstein fiduciaries is an important investigative step,” which will shed light on “the roles of banks, of bankers outside of Liechtenstein,” the Justice Department wrote in the letter, adding that it looked forward to receiving the data by March 29.
With news this evening that the Cypriot banks will not now be re-opening tomorrow (as perhaps – as we noted earlier – a little more of those precious deposits leaked away during the closures than expected):
- CYPRUS BANKS TO REMAIN CLOSED THROUGH MARCH 27: CENTRAL BANK
We thought it useful to consider Cyprus in relation to the longest bank closures in history. Cyprus has now shutdown its banking system longer than Argentina, Ecuador, and Uruguay and as far as President Anastasiades comments that capital controls are temporary – we can only hope for the depositors sake – that it’s not as temporary as Argentina’s 120 month ‘restrictions’ starting in 2001.
This is what passes for monetary real-politik in the New Normal – an entire nation becomes collateral when pursuing a wealthy group of people.
If we were Cypriots at this point we would be angry. Very, very angry.”
If you thought you could take a breather following the crash of Cyprus, you were wrong. Bloomberg reports Slovenia’s Nascent Cabinet Under Pressure to Avoid Cyprus Fate.
Slovenia’s six-day-old government is being urged to prevent the nation becoming the euro region’s next bailout battleground.
Prime Minister Alenka Bratusek’s Cabinet must quickly carry out a plan to revamp the country’s ailing lenders, the central bank said yesterday. The former Yugoslav nation needs about 3 billion euros ($3.9 billion) of funding this year, while banks need 1 billion euros of fresh capital, the International Monetary Fund said last week.
European Union officials are striving to contain a debt crisis that prompted Cyprus to join Greece, Portugal, Ireland and Spain in agreeing on a bailout. Slovenian banks such as Nova Ljubljanska Banka d.d. are struggling with surging bad loans that equal a fifth of economic output, fueling investor concern that it may be next to seek aid.
Today Nigel Farage told King World News that what they have done in Cyprus has now sparked major banks runs in Europe. Farage, who is Britain’s popular MEP, also stated, “Even people like me who have spent many long years warning that things are out of control are really, really scared by the events of the past few days.” Below is what Farage had to say in this extraordinary and exclusive interview:
Eric King: “The Cyprus deal that’s been brokered here, your thoughts in the aftermath of that?”
Farage: “Clearly the little man (under 100,000 euro deposits) has gotten off of the hook for the moment. They were quite prepared to break their own deposit guarantee scheme initially, but they have now gone for a much, much more spectacular coupe in terms of the amount of money they are going to steal from big companies, and from bigger savers (deposits over 100,000 euros)….
Interest on National Debt vs. Defense Spending
In a decade, interest on the national debt will exceed total federal spending on the defense budget by $125 billion, according to CBO.
Biderman’s Daily Edge: Seasonal Factors to Cause Stock Market Volatility
Financial Collapse Is Beginning NOW!
Euro Crisis is Just Beginning, Global Collapse is Coming (MUST WATCH video)
NEW YORK—Global financial markets were roiled Monday after conflicting comments from a senior European financial official sparked worry that the deal to rescue Cyprus could set a precedent for future bailouts.
The Dow Jones Industrial Average dropped 64.28 points, or 0.4%, to close at 14447.75. The blue chips changed course after climbing as much as 52 points shortly after the opening bell, their biggest reversal in a month. The S&P 500, meanwhile, came within a point during intraday trade of its all-time closing high of 1565.15, hit in October 2007, before slipping into the red.
In Europe, Italy’s FTSE Mib tumbled 2.5% and Spain’s IBEX 35 slid 2.3%, reflecting investors’ fears about the potential for contagion.
2,960 -13 0.43%
12,506 -40 0.32%
22,143 -108 0.49%
2,300 -27 1.15%
18,681 -55 0.29%