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Banks In Europe May Now Seize Deposits To Cover Their Gambling Losses

As expected, Cyprus and the EU reached a new late-night bailout deal last night that will reduce the chance that Cyprus’s financial system and economy will completely implode.

The new deal is better than the last deal in one key respect:

  • Deposits under 100,000 euros will be protected

That’s very important. Those deposits were ostensibly “insured.” To seize them, the way the last bailout deal would have, would have been grossly unfair and would have set a truly alarming precedent.

Now, small depositors in European banks can breathe more easily. At least in this case of gross malpractice on the part of reckless bank managers, their life savings have been preserved.

Alas, the good news ends there.

Although deposits under 100,000 euros will be spared, deposits over 100,000 euros will be seized and subjected to an as-yet undetermined haircut–with the confiscated money going to bail out the gambling losses of the aforementioned reckless idiots who run some of Cyprus’s banks.

This seizure, needless to say, will dampen the enthusiasm of rich depositors for keeping money in banks that get themselves into financial trouble.

And because many, many banks in Europe have gotten themselves into financial trouble, this will create a general state of unease among rich depositors throughout the Eurozone.

And it should wig out some bank lenders, as well.

After all, never before in the history of this global financial crisis has a major banking system allowed depositors to lose money, no matter how reckless and stupid and greedy their bank managers have been. And only rarely have bank lenders–those who hold bank bonds–been asked to pony up.

In this case, however, the depositors will lose money. Perhaps a lot of money. And if there had been big bank debtholders in Cyprus, they probably would have been socked with losses, too.

It’s possible that everyone will just laugh off Cyprus, viewing it as an exceptional one-off. After all, the Cyprus banking system was notorious for being the offshore money-laundering arm of many Russian oligarchs, so many folks will likely view this asset seizure as a case of “just desserts.”

But this optimistic view of the Cyprus horrorshow overlooks one key fact:

The main reason that Cyprus depositors will lose their cash is because it has become politically difficult (impossible?) for leaders in Germany and other rich European countries to bail out their brethren in the “periphery” without taking many pounds of flesh.

And it is that precedent, in addition to the fate of big depositors in Cyprus, that should spook Europe’s big bank depositors and lenders.

If Germany is done bailing out countries and banks without having those countries and banks cover some of the cost, it’s not clear why Germany will relent next time Spain, Italy, Greece, and other countries in near-desperately bad financial shape come rushing to the EU with their hands out.

Unlike Cyprus, the banking systems in these countries do have bondholders that can get haircut before the depositors get haircut, but the effect will be the same.

For the first time since the collapse of Lehman Brothers, those who lend their money to banks or keep their money in banks are at risk.

Because the neighborhood loan shark (Germany) is now extracting much more onerous terms.

That’s a sobering precedent.

And it will likely cause many people to wonder and worry about where their money is.

Source: Businessinsider

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Planet Earth

A bright fireball exploded over Armenia

Fireball over the sky of Armenia / Zohrap Yeganyan

Yesterday, a very bright fireball exploded over Armenia. This was announced by the head of the meteorological forecast department of the Hydrometeorological Center Gagik Surenyan on Facebook. The magnitude (brilliance) of a celestial body, which entered the Earth’s atmosphere with great speed, is at least 12.

Photo Source: Getty Image

On the evening of May 27, local residents saw a luminous ball flying from the sky, when it collided with the ground, an outbreak occurred.

Users of social networks began to share their guesses, but they officially gave a comment at the  Hydrometeorological Center  only the next day:

“Yesterday’s fall of a large meteorite in the Hrazdan  -Hankavan section  ,” Gagik Surenyan wrote, head of the meteorological forecast department of the Hydrometeorological Center and posted a video showing the meteorite.

Those who also saw the meteorite offered to go to the site of the fall of the celestial body and “collect the pieces”, others reproached the authorities and scientists for silence, when everyone discussed the event, no one began to confirm to people that the luminous ball was a meteorite.

“A meteorite is the final act of this nightmare year,” users of social networks wrote a comment on the video, with sad irony.

The camera was installed in the vicinity of Hrazdan and was directed towards the village of Hankavan.

“The meteorite, judging by the records studied, was very large and entered at great speed the atmosphere of the planet, where it burned at an altitude of several kilometers. The risk that parts of this fireball could reach Earth is small, and the likelihood that they can be somehow found tends to zero, including the woodland and the fact that, when burned, meteors and fireballs crumble, as a rule, for particles up to several millimeters in size,” astrophysicist R. Martirosyan said.

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Planet Earth

Powerful sprites over Kansas were visible to the naked eye

Have you ever seen sprites? They say that this is impossible. Strange and fleeting forms of Red Lightning materialize over thunderclouds, usually disappearing in less time than it takes to blink. However, storm hunter Michael Havan had no problems seeing them on May 23rd.

“The extremely bright jellyfish sprites were easily visible to the naked eye at dusk!” Says Gavin. “This is one of the brightest shots I’ve captured with my modified Canon T3i.”

Gavin saw this sight from Northwest Kansas. “Clear skies provided fantastic views of the MCS (mesoscale convective system) moving through Nebraska almost 100 miles from us,” he says. “I was not the only one who saw them.” There have been reports that people also saw sprites from Interstate 70. “

The storm lasted so long that Gavin managed to attach an 85mm lens to his camera for several close-up shots. “Because I had an image of the same area without a sprite from a few seconds earlier, I was able to subtract the sky (stars, air glow, etc.) to take a photo of the structure of the sprite without any distractions.

A solar minimum can stimulate sprites. During the low phase of the solar cycle — now occurring — cosmic rays from deep space penetrate the inner solar system relatively unhindered due to the weakening of the Sun’s magnetic field. 

Some models claim that cosmic rays help sprites get started by creating conductive paths in the atmosphere.

By the way:

Today, May 25, 2020, the level of cosmic rays crashing onto the Earth, reached its maximum levels, increasing today by 10.4% of average values.

Cosmic rays 

The magnetic field of the sun is weak, which allows additional cosmic rays to penetrate the solar system. Neutron counts from the Sodankylä Geophysical Observatory of the University of Oulu show that cosmic rays reaching Earth in 2020 are close to the peak of the space age.

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Planet Earth

A surge in volcanic activity threatens the Earth with a new Ice Age

Over the past few days, we have witnessed a turbulent global volcanic surge in activity. He sends us all signs that the Great Solar Minimum is approaching.

The Japanese meteorological satellite HIMAWARI-8 recorded two powerful eruptions on May 16, both of which occurred in Indonesia.

The first took place in IBU – a relatively new volcano with only 3 noticeable eruptions; in 1911, 1998 and 2008 – and was confirmed by Darwin Volcanic Ash Advisory Center (VAAC), which warned that the ash plume rises to about 13.7 km.

The second high-level eruption occurred just a few hours later on Semera – a very active volcano with an eruptive history; the first happened in 1818, the most recent in 2014.

As with IBU, the Semeru eruption was confirmed by both HIMAWARI-8 and VAAC Darwin, the latter confirming the generation of a “dark ash plume that reached a height of 14 km.

In addition, active lava flows remain active on the southeastern flank of Semeru, currently about 1.5 km long (as of the morning of May 18).

Direct cooling effect

These high-level eruptions are notable for the fact that solid particles are thrown to a height of over 10 km – and into the stratosphere – are often delayed, where they have a direct cooling effect on the planet.

Volcanic eruptions are one of the key factors pushing the Earth toward its next round of global cooling, with their worldwide surge associated with low solar activity, coronal holes, a diminishing magnetosphere and the influx of cosmic rays penetrating silica-rich magma.

In addition to Indonesia, Icelandic volcanoes have intensified, and it is this high-mountain volcanic region of the world that is believed to be home to the next “big eruption” – one that will plunge the whole world into the new Ice Age almost instantly.

Katla is such a volcano here and it shows signs of activity, since a significant gas output has been recorded over the past few days. 

In addition, seismic activity under a large ice volcano has also increased, and this activity is probably caused by injections of new magma entering the chamber.

Icelandic authorities are aware of the danger posed by the next Katla eruption, and a delegation of volcanologists regularly meets with the Icelandic parliament to discuss how to respond in the event of an eruption, the likelihood of which is simply a matter of when, not if.

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