More Rot from the EU, Cyprus Edition
Walter Russell Mead finds himself only moderately sympathetic. “Any sentient depositor in a Cypriot bank,” he points put, “had to know that things weren’t right. The dubious nature of the Cypriot banking system has been a notorious fact for almost a generation; during all this time Cypriots seemed perfectly happy that their country was running an offshore money laundry for some of the nastiest people around.”
I take his point. But what do you suppose will happen in Greece, Portugal, and all the other economic basket cases that populate the European Onion — I mean “Union”? It partly depends on whom you believe. European financial authorities, Mead reports, “are swearing up and down that they will never, ever do anything like this again” —feeling better yet? — “and that the rest of Europe’s banks are as sound as the euro itself [thank goodness!], but that of course is exactly what they would say if they were planning to take much of your money away.”
I have been predicting the dissolution of the EU for some time. I was expecting a Hollow Men sort of ending, not with a bang but a whimper. It now looks likely that there will be a few bangs after all.
UPDATE: Reuters is now reporting that the Cypriot Parliament is postponing a vote on the levy until Monday. “Making bank depositors bear some of the cost” of the bailout — in plain English, confiscating the private property of person A by person B to pay person C — has been “taboo.” But “officials,” i.e., the unelected, unaccountable Eurocrats in Brussels, have decided there is no other way to save Cyrpus for the eurozone. But take heart: “European officials said it would not set a precedent.”
Query: just how stupid do they think we are?
Also read: Want to See a Bank Panic? Head for Cyprus
I think that the target here will not be deposits but retirement accounts. The government will snap them up to "guarantee their safety" offer "rock solid" SS benefits in their place. Later the benefits will be means tested to ensure a "fair and equitable" retirement for all at low rates not protected from the coming inflation.
Elections have consequences. Vote accordingly.
I think that the target here will not be deposits but retirement accounts. The government will snap them up to "guarantee their safety" offer "rock solid" SS benefits in their place. Later the benefits will be means tested to ensure a "fair and equitable" retirement for all at low rates not protected from the coming inflation.
Elections have consequences. Vote accordingly.
I tell my friend as he learns a new skill,be it mudding a wall or souldering together copper pipes that you get the TOUCH for it soon <a href="http://enough.Like/" rel="nofollow" target="_blank">enough.Like</a> a shoplifter in a hurry our government has been telegraphing their punches for years!
I tell my friend as he learns a new skill,be it mudding a wall or souldering together copper pipes that you get the TOUCH for it soon <a href="http://enough.Like/" rel="nofollow" target="_blank">enough.Like</a> a shoplifter in a hurry our government has been telegraphing their punches for years!
True story: years ago I worked in a place where we had dealings in Ukraine which required occasional transfers of small amounts of $ (by international standards) to a bank in Kiev. We'd send say 100k from our bank to the transfer bank in NYC which would send it to the bank in Kiev. The money would hit the bank in Kiev and then go on vacation for a week or two to Cyprus before making back into Kiev account.
I don't understand what could possibly go wrong with a system like that.
True story: years ago I worked in a place where we had dealings in Ukraine which required occasional transfers of small amounts of $ (by international standards) to a bank in Kiev. We'd send say 100k from our bank to the transfer bank in NYC which would send it to the bank in Kiev. The money would hit the bank in Kiev and then go on vacation for a week or two to Cyprus before making back into Kiev account.
I don't understand what could possibly go wrong with a system like that.
The consequences are dire. Money will flow out of Cyprus, and probably the PIIGS since they're next. And soon money begins to flee all of Europe.
Cyprus moves to a cash and underground economy, trust in banks is dead. The banks fail anyway. Russia is pissed and move their money outside Europe, probably Dubai or something. Anger in the streets.
Even if they change their mind at the last moment, the damage is done. Everyone knows their money isn't theirs any more.
The Left's true colors are coming out of the closet. It isn't your money. "You didn't build that" means you didn't earn that and you don't own that.
The consequences are dire. Money will flow out of Cyprus, and probably the PIIGS since they're next. And soon money begins to flee all of Europe.
Cyprus moves to a cash and underground economy, trust in banks is dead. The banks fail anyway. Russia is pissed and move their money outside Europe, probably Dubai or something. Anger in the streets.
Even if they change their mind at the last moment, the damage is done. Everyone knows their money isn't theirs any more.
The Left's true colors are coming out of the closet. It isn't your money. "You didn't build that" means you didn't earn that and you don't own that.
The IMF is being used as a figleaf, not for the first time, with Christine Lagarde talking out of both sides of her mouth, also not for the first time. The real culprits: the shadowy and always lower-case 'euro zone group' -- an ad hoc claque of finance ministers and ministry officials from within the e-zone, not known for record keeping, who actually coughed up this crap in the wee hours of Sat. morning in Europe (the Friday-night news release game in spades). You can be sure that very, very few Brussels bureaucrats will appear on camera; for sport, you might want to track the movements and antics of Barroso. Sadly, the MSM is unlikely to go near, so far is it from the approved Narrative.
Janet Daley nearly gets it but not quite: "... (show more)
The IMF is being used as a figleaf, not for the first time, with Christine Lagarde talking out of both sides of her mouth, also not for the first time. The real culprits: the shadowy and always lower-case 'euro zone group' -- an ad hoc claque of finance ministers and ministry officials from within the e-zone, not known for record keeping, who actually coughed up this crap in the wee hours of Sat. morning in Europe (the Friday-night news release game in spades). You can be sure that very, very few Brussels bureaucrats will appear on camera; for sport, you might want to track the movements and antics of Barroso. Sadly, the MSM is unlikely to go near, so far is it from the approved Narrative.
Janet Daley nearly gets it but not quite: " 'The civil liberties and property rights of law-abiding people can be trampled over in the name of pursuing ‘criminals.’'' But it's worse than that: law abiding and thrifty savers are themselves converted into criminals at the stroke of the pen of an unelected bureaucrat. So it is in Spain: a new law, effective at the end of next month, purports to 'extend the tax base' to the worldwide assets of non-resident individuals -- any assets in Spain itself are liable to forfeiture. International corps. are next. These guys are desperate.
The next two days in Cyprus will be very instructive; I do not know but it's a reasonable guess that Greek and Turkish Cypriots alike still have access to many weapons from the civil war. Next up: Italy and Spain. Meanwhile, drinks with umbrellas for Wall Street and MSM -- until the penny drops, that is, then chaos.
Put another way, the Jörg Asmussen's of the developed world belong at the end of a rope tied to a lamp post. The French are experts; this time, they'll have plenty of help. (show less)