The European Central Bank (ECB) threatened today to pull the plug on emergency support for Cyprus' banks if a deal is not agreed on by Monday.
The ECB confirmed it would not provide emergency liquidity assistance to the island's banking sector beyond 25 March. Without its support, Cyprus's two largest banks, Bank of Cyprus and Laiki, would probably collapse.
Whether this threat incited Cypriots to organize massive protests or not, people took to the streets.
There were ever-lengthening lines at some Laiki cash machines on Thursday as banks and the domestic stock market remained closed.
At one Kyperounta Co-operative bank branch, a frustrated man parked his bulldozer outside, apparently threatening to break in.
[VIDEO HERE: http://www.youtube.com/watch?v=2SXJmmzQvao&feature=youtu.be ]
Cypriot political leaders huddled in emergency talks on Thursday morning to find a way to raise the €6bn (£5.1bn) demanded by the IMF and EU in return for a €10bn bailout.
Interestingly, Cyprus has recently discovered significant offshore gas deposits, and major energy companies have shown an interest in tapping those resources.
As we have seen for decades, big oil and big money go hand-in-hand. One follows the other.
Dare we imagine that if Cyprus goes belly-up economically that the newly found gas deposits might sell very, very cheaply?
Banks will remain closed until next Tuesday to "give officials time to renegotiate the bailout deal".
It APPEARS that Cypriot lawmakers have voted down a bailout proposal on Tuesday that contained the controversial tax on bank deposits that I mentioned in the previous blog about this. Such a tax on citizens' funds had been "suggested" and negotiated with Cyprus’s European Union partners over the weekend.
It appears that the EU crowd sees this as the ONLY REAL WAY to guarantee funds to pay Cyprus' obligations.
HOWEVER, the government on Thursday was planning to propose NATIONALIZING PENSION FUNDS from state-run companies and conducting an emergency bond sale to help raise the €5.8 billion the indebted country needs to secure the bailout.
IT LOOKS LIKE THE WORKING CLASS IN CYPRUS AND THOSE WITH SAVINGS THERE MAY BE THE ONES THAT ARE CHOSEN TO BAIL OUT THE ISLAND NATION.
IF THIS STARTS A "TREND" WE WILL SEE AN ABYSMAL END TO IT ALL.
THE INTERCONECTION BETWEEN ALL LARGE BANKS MEANS THAT, IF ONE FAILS, OTHERS FAIL.
[SEE: http://havacuppahemlock1.blogspot.com/2013/03/cyprus-how-global-bankers-rape-nations.html ]
AND IF CYPRUS DECIDES TO USE THE MONEY OF ITS PEOPLE TO SAVE THE BANKS, SO MAY ALL OTHER NATIONS.
THIS BEARS WATCHING CLOSELY!
HOW WILL THIS AFFECT THE REST OF THE WORLD?