What if Cyprus happened in the UK?

mr7262

Hi All

If what happened in Cyprus happened in the UK how would NS&I holdings be affected? Since NS&I holdings are supposed to be 100% protected.
Say you had £100,000 in NS&I certificates, since you are over the limit with one provider would you have to pay the 60% charge?

Kindest regards
James

Linton

What happened in Cyprus is that the banks went bust and so didnt have the money to repay the depositors. Payments from the IMF and Euro countries enabled it to repay small depositors.

NSI certificates are directly issued by the UK government and so wont be affected by problems in any private sector company. Apart from total economic and political collapse, the government can always pay as it can print money.

talexuser

mr7262 wrote: »

If what happened in Cyprus happened in the UK

First we would have to have all our politicians of all parties and all bankers in the same secret handshake lodge.

Then have a mini-war with devolved Scotland and partition the UK (losing all our oil money).

Then we would have to destroy what is left of our manufacturing and tourist industries and concentrate entirely on the City of London for all tax receipts for the entire country.

Then become a zero tax economy, haven for both global financial trade and laundered/criminal money.

Then all the banks would need to lend many times the size of the economy to the point of going bankrupt since most of the loans never had a chance of being repaid.

(As an aside loans to bankers, politicians and their developer friends needed never to be paid back in the first place due to special personal write-offs over many years)

The printing presses then run 24/7 to repay certificates.

Note:
Edits are welcome for opinions of how close we actually are to some of these criteria!

Paul_Herring

mr7262 wrote: »

What if Cyprus happened in the UK?

If you're talking about the confiscation of money, it already has. And very few have noticed.

The value of savings has been doggedly decreased in real-terms over the past few years through the use of inflation, QE and below-par interest rates.

Jegersmart

The vast majority of banks are technically insolvent by some definitions, but their very business model afforded to them by lawmakers makes this more or less inevitable. Imagine if you as an individual only had around 5-7% capital against your debts......it wouldn't take much to cause a blow-up for you personally, some limited time without an income, increase in mortgage interest rates or perhaps even a divorce or illness.....

Things are much worse than most people realise, and tbh this is the reason for QE - it is not for the taxpayer, but rather for the banking system's benefit.....

Can Cyprus happen in the UK? Well anything is possible, but first I would expect to see some very sensationalist posturing by government in terms of "in order to save our system and savings, we need 25% from everyone or we lose it all" sort of thing.....

I guess we will see.;)

J

mr7262

Thanks for the replies.

The one bit I don't understand is QE (Quantitive Easing?).

(Google - says it's the central bank trying to stimulate growth by buying financial assets from other banks)

How does this operate in reality and what effect does it have?


Kindest regards
James

Paul_Herring

mr7262 wrote: »

The one bit I don't understand is QE (Quantitive Easing?).

In the past, the way the BoE has tried to boost the economy is to reduce the Base Rate, with the hopeful expectation that it will improve the economy, with the side effect of increasing inflation (and decreasing pension annuities - see below)

Unfortunately, since the current rate is so close to zero, they cannot (or will not) reduce it below zero, so in order to have an equivalent effect on the economy, the BoE started 'printing money.' AKA QE.

As alluded to above, another (bad) side effect of either is it reduces the interest rates (by increasing the prices) on Government Bonds (AKA Gilts) which are the main (presumed) staple of any investment used to provide pension annuities.
Which means, for every £10,000 you spend on an annuity, you get less back per year, thus effectively reducing the amount of pension you can buy with your pension fund when you come to retirement.

Thrugelmir

mr7262 wrote: »

If what happened in Cyprus happened in the UK how would NS&I holdings be affected?

Read behind the headlines. Far more to this story.

The Cyprus finance minister quit on Tuesday as a formal investigation began into the events leading to the country's €10bn bailout, under which savers are taking a financial hit in a first for the eurozone.

As Michael Sarris resigned he said his previous role as chairman of Laiki, the country's second largest bank which is being wound down, was likely to be subject to scrutiny.

Rather like George Osborne being chairman of RBS in 2008.

roxannafy48

talexuser wrote: »

First we would have to have all our politicians of all parties and all bankers in the same secret handshake lodge.

Then have a mini-war with devolved Scotland and partition the UK (losing all our oil money).

Then we would have to destroy what is left of our manufacturing and tourist industries and concentrate entirely on the City of London for all tax receipts for the entire country.

Then become a zero tax economy, haven for both global financial trade and laundered/criminal money.

Then all the banks would need to lend many times the size of the economy to the point of going bankrupt since most of the loans never had a chance of being repaid.

(As an aside loans to bankers, politicians and their developer friends needed never to be paid back in the first place due to special personal write-offs over many years)

The printing presses then run 24/7 to repay certificates.

Note:
Edits are welcome for opinions of how close we actually are to some of these criteria!

hahaha, nice one

JohnRo

mr7262 wrote: »

QE...How does this operate in reality and what effect does it have?

No one knows is the short answer, including and perhaps especially, given the failure, those who are implementing it. QE is an unproven, ongoing experiment, primarily implemented to preserve the insolvent banking system. All this crap about it stimulating growth is just wishful thinking or perhaps a deception.

What exactly the central banking proxies are supposedly "buying" from, or for... private, for profit bankers, with all this invented money at public expense no one really knows either, don't be surprised if it mostly turns out to be worthless junk though.
It may well be an elaborate deception, the money really just invented at current and future generations expense, and QE used to accelerate the transfer of wealth from the debt money system directly to the bankers on a pretence before it all collapses. Nothing would surprise me, it's hard to fathom just how rapacious these scumbags really are.

Ultimately the real purpose of QE is just to do whatever it takes, whatever it costs, to protect the centralised monopoly money system, keep the goose that lays the golden egg fed a little bit longer. That in turn allows governments to command much of the power and control they need over most areas of citizens lives and which a few bankster families exploit to transfer astronomical wealth to themselves. It's a situation some people might refer to as a huge cluster f**k.

Rest assured though, whatever the eventual outcome of QE, the final analysis will show it has benefited the money monopoly cartels and the government stooges they control, and that the almost inevitable unintended consequences, shortfalls and/or defaults will be foisted on current and future generations of taxpaying debt money slaves.