Jump to content
cgnao

cgnao : From the bunker (2013): JGB Watch, etc

Recommended Posts

Gold is bound to shoot up now.

 

My March GLD calls just expired !

 

== ==

 

One big bank is getting out (of a derivatives business)

while it still can:

 

Rabobank to Close its Equity Derivatives Business

Forex Magnates - 21 Hours ago

Dutch banking giant Rabobank has announced its exit from the equity derivatives business, the bank feels the service does not constitute a core role in its overall strategy and its contribution to the

Share this post


Link to post
Share on other sites
abba2.jpg

Share this post


Link to post
Share on other sites

Gold is bound to shoot up now.

 

My March GLD calls just expired !

 

== ==

 

One big bank is getting out (of a derivatives business)

while it still can:

 

Rabobank to Close its Equity Derivatives Business

Forex Magnates - 21 Hours ago

Dutch banking giant Rabobank has announced its exit from the equity derivatives business, the bank feels the service does not constitute a core role in its overall strategy and its contribution to the

 

 

That's fine by me, my April calls still have some life left in them!

Share this post


Link to post
Share on other sites

Is gold about to rocket or is the pound about to collapse....?

 

for gold to rocket without the pound collapsing other currencies would have to fall against the pound?

 

If the pound does collapse could foreign money flee UK property?

Share this post


Link to post
Share on other sites

for gold to rocket without the pound collapsing other currencies would have to fall against the pound?

 

If the pound does collapse could foreign money flee UK property?

 

When the pound collapses, more foreign money will buy the assets at a relatively cheaper price.

 

IE. When the pound was 2 dollars to the pound compared to when it hits 1 dollar to the pound the assets are half price the smart money will move in just after the IMF bailout when Labour has tried to borrow our way out of a debt driven crisis!

 

Property in sterling terms is another 10-15 % down from today. The chance to buy up the circa 65% cheaper assets in Dollar terms from the 2007 peaks will keep the foreign money coming into the Uk ! Anybody holding sterling or sterling assets will be shafted harder than they already have been against the Dollar or Gold OR oil etc

 

Regards

 

ML

Share this post


Link to post
Share on other sites

The Cyprus bank account raid if it goes through would leave everyone with a deposit in a bank feeling very nervious.

If I had a deposit there, first thing Tuesday morning I'd be making arrangements to empty the account in case they try the same trick a second time.

But where to move your deposit to?

This is looking good for physical gold.

I'm also getting confused at the line between taxation and outright theft.

Share this post


Link to post
Share on other sites

 

If the pound does collapse could foreign money flee UK property?

 

Isn't this news more fuel for London property prices? People have a choice between keeping money in dodgy EU banks that might start stealing it or dump it in London property whose value is always protected the the UK government at any cost. If more money did flow into London property that would sterling positive. TPTB might have just managed to persuade lots of Europeans to buy houses in Spain, France, etc

Share this post


Link to post
Share on other sites

Isn't this news more fuel for London property prices? People have a choice between keeping money in dodgy EU banks that might start stealing it or dump it in London property whose value is always protected the the UK government at any cost. If more money did flow into London property that would sterling positive. TPTB might have just managed to persuade lots of Europeans to buy houses in Spain, France, etc

 

Yeah, pound will probably rise. Compared to half the basket case EU banks, the UK's are still "relatively" safe. (All relative mind). i.e. Spain is really in the s88t still.

 

They still have to vote it through mind. (Perhaps they could take the burdon off the poorest savers and go for a bigger proportion of the >100,000 euro brigade?)

 

I guess they will vote after they see the initial market reaction Monday morning.

Share this post


Link to post
Share on other sites

 

They still have to vote it through mind. (Perhaps they could take the burdon off the poorest savers and go for a bigger proportion of the >100,000 euro brigade?)

 

 

 

Without seeing the numbers, I guessing that wouldn't raise much. It's likely most accounts, current and savings are less than E100,000, so, they 'taxed' them at thge lower rate.

Share this post


Link to post
Share on other sites

Without seeing the numbers, I guessing that wouldn't raise much. It's likely most accounts, current and savings are less than E100,000, so, they 'taxed' them at thge lower rate.

 

Sadly so. The masses with a little still add up to more than the few with a lot.

 

However, I still think hitting those who had savings less than the stated government deposit protection limit is pure criminality, and will end in more serious problems if they actually vote it through.

 

Edit** Oddly enough, it seems if they reject the deal, and the banks go bust, then the deposit protection scheme kicks in (100,000 Euro limit).

 

However, not sure where the funds would come from if their two biggest banks have just gone belly up with debts equal to the countries GDP (EU wide protection scheme?)

Share this post


Link to post
Share on other sites

Without seeing the numbers, I guessing that wouldn't raise much. It's likely most accounts, current and savings are less than E100,000, so, they 'taxed' them at thge lower rate.

Sadly so. The masses with a little still add up to more than the few with a lot.

The numbers suggest about e30bn in insured deposit, e35bn uninsured - 15% tax on the uninsured deposits would have raised the same money.

It is suggested that Russians have around e15bn in Cyprus, and other countries around e10bn more - assuming that you wouldn't create a foreign account in Cyprus for small amounts of money a large proportion of the uninsured deposits are foreign held.

 

 

However, not sure where the funds would come from if their two biggest banks have just gone belly up with debts equal to the countries GDP (EU wide protection scheme?)

 

The insured deposits alone are of the order of the gdp of the county - Cyprus admits it wouldn't be able to pay up if a major bank folded (http://www.moi.gov.cy/moi/pio/pio.nsf/All/C7131DA40FCE0827C2257B30005411D5?Opendocument).

 

It is all a mess. The way you prevent bank runs is by promising to make people whole in the event of failure - they've now worked out a way to get around this...

[although in the UK the deposit protection used to be (until 2007) 100% up to 2k and then 90% of the next 33k, which makes the Cypus deal appear fairly generous]

 

[the funny thing is, people in the UK find it appalling that 7% of savings can be 'stolen' in this way by the country in its efforts to regain solvency... But there is little overt fuss made of the 6% loss in Sterling this year alone, which has occurred as a result of the country's efforts to regain solvency...]

Share this post


Link to post
Share on other sites

[the funny thing is, people in the UK find it appalling that 7% of savings can be 'stolen' in this way by the country in its efforts to regain solvency... But there is little overt fuss made of the 6% loss in Sterling this year alone, which has occurred as a result of the country's efforts to regain solvency...]

 

Indeed. Looking at the (fiddled) inflation Vs savings rate over the last few years (in addition to the devaluation), shows the UK savers have been hit just as much, if not worse.

Share this post


Link to post
Share on other sites

Isn't this news more fuel for London property prices? People have a choice between keeping money in dodgy EU banks that might start stealing it or dump it in London property whose value is always protected the the UK government at any cost. If more money did flow into London property that would sterling positive. TPTB might have just managed to persuade lots of Europeans to buy houses in Spain, France, etc

 

Just wait.

The UK government will find a way to also tax that money pouring into UK property.

 

Property is harder to move that money in a bank account

Share this post


Link to post
Share on other sites

Just wait.

The UK government will find a way to also tax that money pouring into UK property.

 

Property is harder to move that money in a bank account

 

I think if you were to ask the people of Cyprus today which is easier to take property or money in bank accounts money in bank accounts looks far more vulnerable!!

 

Regards

 

ML

Share this post


Link to post
Share on other sites

Russia attacks Cyprus bailout plan

 

Financial Times - ‎1 hour ago‎

Vladimir Putin and other Russian leaders lashed out at an EU-led proposal to impose a levy on all Cyprus-based bank accounts as part of a €10bn bailout for the Mediterranean island.

Share this post


Link to post
Share on other sites

Maybe he knows what the Russian gangsters think about it

Share this post


Link to post
Share on other sites

So when Putin says this move is "dangerous", does he mean in a bank-run-kinda way for member state depositors, or a Litvinenko-kinda way for those voting it through?

 

Haha, he means both I think!

Share this post


Link to post
Share on other sites

It is not a 'tax' , it is confiscation of property.

 

Back in 1929, following the crash, there were bank failures and many people lost all their money.

 

We thought we had a 'new' system. For instance, there was a guarantee by the Cyprus government that all deposits below 100000 Euros were safe.

That's gone, trust is gone with the blessings of the E.U. Commission that proposed and accepted the decision that all deposits would be affected.

 

One by one, the countries in South Europe are forced to accept the terms imposed on them to save their economy.

There is no unity between south European nations.

Reminds me the way Austria and Chechoslovakia were picked one by one, bullied and forced to surrender without the loss of

a single life. And the world believed then that each was a unique case and it would not affect them (analogy stops there).

 

It was military affair then, now it is a financial war, a war between creditors and debtors. What is next? Greek banks are in trouble due to the decline in the property market and bad debts. Shall we confiscate people's savings to save them? When the time comes, yes, it could happen, given the Cypriot precedent. Same with Spain. Greece owes 300 billion Euros, same as before the last bailout, interest rates should be reduced to 1% to allow Greece, Spain to have some hope to repay their debts. And debts elsewhere, as you all know continue to grow.

 

There are more sophisticated techniques of confiscation. Let the tax authority ask for taxpayers to record all their property in the tax form, real estate, cash, bonds shares etc, then let's impose a 'solidarity levy' (read confiscation) of 1-2% per year, on a progressive scale. This is in the process of happening where I live.

 

In this war, the most effective resistance of common people, to protect their savings, is physical gold in their own possession, nothing else.

Share this post


Link to post
Share on other sites

for gold to rocket without the pound collapsing other currencies would have to fall against the pound?

 

If the pound does collapse could foreign money flee UK property?

 

No. All that is needed for gold to rocket, is for the market to prevail.

There may be a market soon.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×