60,000 British savers face losing millions in 10% bank account tax

George Osborne vowed today that those serving in Britain's military or government in Cyprus will be protected after European finance chiefs ordered an unprecedented raid on personal bank accounts.

Up to 60,000 British savers are to lose thousands of pounds each as expats in Cyprus have their savings decimated in part of a painful bid to bail out the bankrupt island.

The Chancellor said the financial situation in Cyprus was ‘an example of what happens if you don't show the world that you can pay your way’, adding: ‘We are not part of the bailout.’



Panic: A move by Cypriot authorities that could see up to ten per cent of bank deposits seized to bail out the bankrupt sparked panic and violent protests. One disgruntled customer parked a bulldozer in front of a bank in the coastal town of Limassol in protest



Queues: People withdraw money from a cash-point machine in the Cypriot capital of Nicosia today

However he told BBC One's Andrew Marr Show: ‘The Cypriot banks in Britain are not going to be included in this bank tax. It's a very difficult situation for people who live in Cyprus.

'But for people serving in our military and government out in Cyprus, we're going to compensate anyone who is affected by this bank tax - people who are doing their duty for our country.’

Britons have about £1.7billion of deposits in Cyprus and could lose up to £170million. The Cypriot government has agreed to seize up to ten per cent of savings and use the money to bail out the island’s crisis-hit banking system.

The move sparked panic and violent protests yesterday as crowds desperately tried to withdraw their money at cash machines.



Warning: Chancellor George Osborne said today on BBC One's Andrew Marr Show that the situation in Cyprus was 'an example of what happens if you don't show the world that you can pay your way'

Restrictions have been imposed to stop people emptying their accounts or moving their money out of the country following the deal with other eurozone finance ministers, under which ordinary citizens’ deposits will be directly raided for the first time.

One furious expat said: ‘This is plain theft. I’d love to hear someone explain to me why it isn’t.’


Furious: Shirley Brooks, 61, who is originally from Manchester, said she stands to lose £18,600 of her retirement money

And one of the 3,000 British service personnel based on the island said: ‘I stand to lose €4,000 [£3,500] We’ve tried to save quite hard while we are here – that’s been thrown back in our faces.’

Cypriot president Nicos Anastasiades, who agreed to the raid following ten-hour talks with European finance chiefs, said it was necessary because Cyprus was in a ‘state of emergency’ and failure to enact the Brussels plan would be ‘catastrophic’.

Under the deal, all bank deposits over €100,000 will be hit with a levy of 9.9 per cent. Those with smaller savings will pay 6.75 per cent.

The raid will raise €5.8billion, which will be added to a €10billion bailout from Brussels.

But financial experts said the move – designed to stop Cyprus crashing out of the euro, potentially destroying the currency – would send shock waves through the eurozone.

If savers in other troubled nations fear their accounts might be next, they could withdraw their money and spark a catastrophic run on the banks.

Economist Howard Archer from IHS Global Insight said: ‘It is an alarming precedent to hit the man in the street. As much as they say this is a one off, people will say if they can do it once they could do it again.’

Tory MP Douglas Carswell added: ‘We should all be extremely worried about this. It shows that ordinary Europeans are being fleeced by the Continent’s elite in order to rescue foolish banks. Why would you risk putting your money in Greek, Spanish or Portuguese banks after this?’

Read more: http://www.dailymail.co.uk/news/article-2294388/Cyprus-bailout-Osborne-vows-protect-Britains-armed-forces-Cyprus-cash-machines-EMPTIED.html#ixzz2NrSOUkt0

The Rape Of Cyprus By The European Union & The IMF

Submitted by Mark J. Grant, author of Out of the Box,

I have been watching articles pour forth about Cyprus all weekend. I am almost as aggravated with the majority of them as I am with what took place. People are dancing around the edges while the propaganda machines of Europe are churning out the usual bunk.

Let's get some things straight and look what has happened directly in the face. There was no tax on the bank accounts in Cyprus. There still is no tax; the Cyprus Parliament has not passed it and will not vote on it until tomorrow so whatever action takes place it is retroactive. Next, this was not enacted by Cyprus. The people from Nicosia did not go to the Summit and ask to have the bank accounts in their country minimized to help pay the bills. Far from it; the nations of Europe, Germany, France, the Netherlands and the rest, demanded that this take place, a "fait accompli," the President of Cyprus said and Europe annexes Cyprus. Let's be quite clear; the European Union has confiscated the private property of the citizens in Cyprus without debate, legislation or Parliamentary agreement.

A bank account is not a bond or a stock or any sort of investment.This seems to be lost on many people. A bank account is the private property of a citizen or a corporation and does not belong to the government or at least that was the supposition up until now in Europe.

Next there is deposit insurance in Europe. Every country has its own version but it is there. It guaranteed the bank accounts of citizens up to one hundred thousand Euros. So much for the meaning of any guarantee in Cyprus or any other country in Europe. Null and Void! If the European Union can dismantle deposit insurance in Cyprus they can damn well do it in whatever country they please and at any time.

Here’s the description of the Cypriot government deposit insurance plan:

"Participation in the DPS is compulsory for all banks authorized by the Central Bank of Cyprus, i.e. banks incorporated in the Republic of Cyprus, including their branches in other countries, and the Cyprus branches of foreign banks, incorporated outside the Republic of Cyprus or the Member-States of the European Union. The DPS does not cover deposits of branches of banks established in European Union Member States. These deposits are covered by the corresponding deposit protection scheme established in the country of incorporation.

The DPS is activated in the event a decision is reached that a member bank is unable to repay its deposits, or as a result of a Court’s order for the winding-up of a member bank. Where a bank is unable to pay its deposits, the relevant decision is adopted by the Central Bank of Cyprus or, where a member bank is incorporated in a country outside the Republic of Cyprus, by the competent supervisory authority of the country of incorporation.

The maximum level of compensation, per depositor, per bank, is €100.000."

Please note that until yesterday all depositors in Cypriot banks were insured up to the value of €100,000 with any one bank. Today that solemn governmental promise has been shown for what it is; a lie. Worse and actually far worse and quite scary in fact is that the European Union and the European Central Bank and the IMF has not just allowed violation of the deposit insurance but demanded it. One thing is certain here; if they can void deposit insurance in Cyprus then they can void it in any country in Europe. Further; if they can void deposit insurance then they can void bond covenants with the scratch of a pen on paper. Nothing now; Nothing is safe!

Pay attention please. The European Union and the European Central Bank and the IMF have just advocated the confiscation of private property for their own indulgence. Bank accounts are not bonds or stocks or some other form of investments. It is private property like your house or your car. Germany, France et al came in and said, "We want it and we are taking it and it is necessary for our government." These countries did not demand it, yet, from their own citizens though they might soon but they demanded it from the citizens of Cyprus in exchange for funds. This is not a European Union this is a European Fourth Reich!

"The moment the idea is admitted into society that property is not as sacred as the law of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence."

          -John Adams

Zero Hedge

UK Press regulation deal 'very close'

A deal between Britain's political parties on measures to regulate the press is "very close", Downing Street sources have said.

Efforts have stalled on the extent to which a new self-regulatory body should be underpinned by a law but talks have been continuing through the night.

Labour sources confirmed the possible deal is based on their idea for a royal charter backed by legislation.

MPs were due to vote on the terms of the new watchdog.

Lib Dem leader and Deputy Prime Minister Nick Clegg and Labour leader Ed Miliband have said they want a new watchdog to be backed by a law, while the Prime Minister David Cameron was opposed to this.

Mr Cameron, who was facing a potential defeat in the Commons, met Mr Clegg on Sunday as part of a last-ditch attempt to reach a deal ahead of the vote.

It is understood that later discussions lasting for about five-and-half hours and ending at about 02:30 GMT took place between Mr Clegg, Mr Miliband, shadow culture secretary Harriet Harman and Cabinet Office minister Oliver Letwin.

The prime minister was not present but was kept informed of progress.

Labour sources said they were "confident" the reopened talks at Mr Miliband's office had secured the basis of an agreement, to be announced in the Commons later.

Lord Justice Leveson's inquiry into press ethics in the wake of the phone-hacking scandal had called for a new, independent regulator backed by legislation, prompting months of political wrangling.Rival plans

On Thursday, the prime minister called time on cross-party talks on reforms and instead published his proposals to establish a tougher press regulator.
BBC

EU Steals Nations Private Bank Accounts: Starts EU Wide Bank Runs

The God Particle Has Been Found?

Iran has force of 50,000 in Syria, claims Israel

Major General Aviv Kochavi said Tehran had provided the funds for the army which had then been trained by Hizbollah, the Lebanese Shiite group which is a close ally of the Islamic regime. It planned to expand the force to 100,000 men, he said.

Speaking at the annual Inter-Disciplinary Conference in Herzliya, Maj Gen Kochavi said Iran and Hizbollah had supported Mr Assad in the two-year civil war that has cost an estimated 70,000 because they were fearful of losing a strategic ally. But they were developing contingency plans for the day when he would fall from power.

“The damages of the imminent fall of Syria are very high for both Iran and Hezbollah,” he said.

“Iran is losing a sole ally in the region surrounding Israel. It will lose the ability to transfer weaponry through Syria to Hizbollah.

"Iran and Hizbollah are also preparing for the day after Assad’s fall, when they will use this army to protect their assets and interest in Syria.”

Iranian officials have previously acknowledged the presence of forces from the Islamic Revolutionary Guard Corps in Syria as advisers but have denied intervening in the conflict.

Maj Gen Kochavi also said Mr Assad was preparing to use Syria’s stockpile of chemical weapons, which Israel fears could fall into the hands of Jihadist fighters or Hizballah in the event of his regime crumbling.

“Assad continues to assert his control of Syria’s chemical weapons, air force, and military hardware,” he said.

“[He] is making advance preparations to use chemical weapons. He did not give the order yet, but is preparing for it.”

He said Iran’s nuclear programme — which Israel says is aimed at building an atomic bomb — had been slowed but not sufficiently to prevent it from developing weapons.

“At their current pace of enrichment of 14 kilograms of uranium per month, Iran would be able to manufacture 5-6 nuclear bombs, if the order is given,” he said.

“Iran is making sure not to cross any international red lines because the survival of the regime is the biggest priority.”

But Iran’s leaders did not see a “high likelihood” of a military attack on the country’s nuclear installations, Maj Gen Kochavi added, despite speculation about US or Israeli strikes .

The Telegraph

The Economy is Fixed, Right? Wrong