Our CMO as well as my Chief of Security and I are headed out
for a lunch meeting as Cypriot banks reopen for business after being shut since
March 16th. They Cypriot equity market remains closed until next
Tuesday. It is the last trading day of the first-quarter of 2013 and there has
been no bank run as we saw with Northern Rock. Private depositors are allowed
to withdraw €300 per day, while businesses have a set daily limit of €5,000.
The capital controls give the Eurozone a taste of what
day-to-day business is like in third-world countries except for the U.S. The
Finance Ministry stated that the controls will remain in place for seven days,
but we expect the decision to be made on a week-by-week basis. Politicians
claim the limits will be lifted as soon as practical, while there is believe it
will not take place until more stability will become evident in Cyprus.
Foreign investors have ordered managers to pull out of
Cyprus, and we have done the same with our funds as we plan to abandon the
country, at least for now. They Cyprus Central Bank said it would evaluate
requests above €200,000 on a case by case base and we will have to be a bit
patient as a substantial amount of the €68 Billion in deposits will head for
the exits. There have been reports that some of the cash has been moved while
banks were closed and the Cypriot government plans to launch an investigation
into those cases.
Germany (Germany, Enemy Number One) wanted to punish Russian
oligarchs and were idiotic enough to think they have succeeded. In reality they
have given them the heart of Cyprus for free as the money the Germans will
steal from Russia and other foreign depositors will be replaced by shares in
those banks. Germany has started World War I and lost, they have started World
War II and they have lost and now they have started another attempt to create a
German Europe and will horribly fail as they have done throughout history.
We arrive at Pulcinella and order our food. I really love
this restaurant and enjoy the ambient. We have put the Cyprus situation on the
back burner for now as we have to focus on our new, but well-established enemy.
Germany has already identified its next target, its next country to invade;
Slovenia.
Slovenia has been on the radar, off the radar and did drown
in the news flow as Spain and even Italy emerged as the next target for the
German occupation. The reason for this was due to the believe that Slovenia
could manage to come up with the €4 Billion they require, but since the
massacre in Cyprus Slovenia has emerged as the next target as the Alpine nation
struggles with its finances.
Newly elected Prime Minister Alenka Bratusek tried to calm
fears in her first public speech and vowed to reinstate confidence in Slovenia
as she called comparisons to Cyprus unjust. Germany has already invaded and
occupied Greece, Portugal and Cyprus while Spain has managed to limit the
impact and Ireland has fought back. Slovenia will be the sixth target of German
tyranny.
The €4 Billion Slovenia needs are comprised of €3 Billion in
borrowing needs the country requires in order to manage this fiscal year plus
the €1 Billion in fresh capital required by Slovenian banks. The costs of the
bailout are not yet clear and Germany has already started to deploy the
financial artillery set on Ljubljana. Slovenia was plagued by two recessions in
four years and its state finances are in a terrible mess. Slovenian banks saw
bad loans surge as the countries construction industry has collapsed.
Borrowing costs for Slovenia has surged by over 100 basis
points and the Finance Ministry said that Slovenia plans to tap the bond market
which may prove more optimistic as well difficult as politicians want to
acknowledge. Slovenia has not accessed the bond market since October when it
sold $2.25 Billion in bonds. It is clear that Slovenia does not possess the
luxury of time and Germany has already started to execute their marching
orders.
The creation of the $100 Billion currency fund by BRICS (BRICSCollaboration and Currency Markets) is one tool against German oppressors, but
we need to deploy our weapons and shield Slovenia from the German invaders
while we need to create a combat plan in order to force Berlin to its knees
long-term.
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