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The Head of the Cyprus Central Bank is Named Panicos (Panic Us).

Written by Gary North on March 20, 2013

Panicos Demetriades said that the banks could lose 10% of their deposits within days after they re-open if the tax is imposed. Parliament got the message. It did not do what it was told by the President to do. It told the Eurocrats to buzz off. No tax.

Now the government must open the banks’ doors with no bailout from the EuroGroup, the officially unnamed group of eurozone finance ministers.

Cypriots will be able to pull euro currency out of the banks. They will be able to transfer their money to German banks.

That will force the Cypriot banks to sell assets. Their value will fall. They will not be able to cover these losses for long — a few weeks. Maybe less.

Would you keep your money in a banking system that needs a bailout?

Wait a minute. You already do. So do I.

Cyprus was the first system to get to the edge of the abyss. Its parliament jumped.

The government cannot keep the banks’ doors closed. The economy will grind to a halt.

But if the banks collapse in a wave of withdrawals, the economy will grind to a halt. The government will default on its debt.

The dumb northern European bankers who lent money to Cyprus will suffer losses.

“Dominoes, dominoes, wherefore art thou, dominoes?”

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8 thoughts on “The Head of the Cyprus Central Bank is Named Panicos (Panic Us).

  1. Blessings says:

    So what happens to the billions of our moneys that Obama gave them to bail them out? This is just the begaining folks. Try it out somewhere else and test drive it. Citizens will and have said NO! This is the start of.One World Banking System.. I keep only enough in my bank to cover my bills, that’s it.. Other then that, no government needs to know my business and what I do with my money. They rape enough from me. Starting Jan 2013 every third month I work it’s just for tax. So I work three months a year for what? Incompetent, reckless idiot Dems, liberals and Obama cult …… Like I said, get ready, it’s coming to America….. Ne smart, dont trust anyone….

  2. If this doesn't open peoples eyes to what the banks and governments can do with your deposits I don't know what will!!
    Blessings…I agree with your sentiments….keep only enough in your bank to pay the bills….why would anyone keep money in banks paying you nothing and charging you to keep it there??????

  3. "…Incompetent, reckless idiot Dems, liberals and Obama cult…"

    The Republicans are no better — stuffing Open Borders/'immigration reform', wars everywhere, bailouts for all — down our throats.

    Spineless Boehner and treasonous Cantor will probably sell us out again on next week's budget and debt ceiling deadline.

  4. Mike Austin says:

    The people of Cyprus are about to find out that banks don't carry cash….. This is still a volatile time. Keep close watch.

  5. Bill McCroskey says:

    Panic-is-us ….sounds like a new chain of stores at the mall…..hahahahahaha I love it !!! Anyone who thinks this is just a Cypriot issue… should wise up to the fact this is an test to determine reaction for the PIGGS and then the other dominoes in the world to raid your bank accounts and deposits. Governments are going to steal your savings under the guise of 'we had to do it or …else.' And don't forget who can open your safe deposit box WITHOUT your key if you are storing hard assets in one of those.

  6. Where is it written in stone that banks cannot suffer loses? JPMorgan chucked 7 billion dollars down a speculative rathole. That money could have been used to bailout Greece and Cyprus for at least a month or so.

  7. Phillip_In_TX says:

    This is going to get very interesting. On to Act II.

  8. madmemere says:

    "keep only enough in my bank to cover my bills" – -ditto!