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Cyprus, It's Not About The Numbers
Authored by Nick Malkoutzis, originally posted at ekathimerini,
The Eurogroup agreed on Monday night to allow Cyprus to change the make up of its controversial deposit tax. Instead of imposing a levy of 6.75 percent on savings under 100,000 and 9.9 percent on those above 100,000 – as agreed in Brussels in the early hours of Saturday – Nicosia can play around with the numbers, just as long as it raises the arranged amount of 5.8 billion euros.
Cyprus’s new but already beleaguered President Nicos Anastasiades is proposing that bank customers with deposits under 20,000 euros should not be taxed at all, while keeping the levy the same for the remaining depositors. Cypriot MPs have already shown a reluctance to approve the tax, mindful of the impact on depositors but also the long-term damage it could do to the island’s banking system and economy.
However, what’s happened over the past few days and what’s likely to happen in the days and weeks to come has little to do with numbers. It is much more about perceptions. Even if a financial meltdown is averted in Cyprus this week, the decision to tax depositors there in order to reduce the eurozone and International Monetary Fund contribution to the island’s bailout has sown the seeds for a future eruption.
The Eurogroup’s decision on Monday was a clear attempt to correct a mistake, while steadfastly refusing to admit one had been made. There are different interpretations about what happened in Brussels late Friday and early Saturday but ultimately they matter little compared to the end result, which was that Anastasiades flew home to implement the first depositor haircut in the euro’s history with the blessing of fellow eurozone finance ministers and the IMF’s Christine Lagarde.
There is nothing the Eurogroup had to say to the Cypriot government on Monday night that it could not have said in Brussels a few days earlier. The only difference was that by Monday the reaction in Cyprus and other parts of the eurozone to the idea of a deposit tax, including on guaranteed savings, had underlined what a perilous idea it was to start off with. From Sunday, eurozone governments and finance ministers who had been at the Eurogroup meeting, started to distance themselves from the idea of taxing small-time depositors with such frequency that it seemed hardly any of them participated in the Brussels talks and the few that did were strong-armed by Anastasiades into accepting a tax for deposits under 100,000 euros.
The back-pedalling and hand-wringing has been an embarrassing spectacle but it has also laid bare the unedifying eurozone decision-making process and the lack of stature amongst its decision makers. The only two plausible interpretations for the Eurogroup approving such a self-destructive decision as taxing all bank deposits is a complete disregard for the consequences (doubtful) or an utter underestimation for the effect it would have (more plausible).
The latter suggests that one part of the eurozone is now completely out of step with the other, unable to understand its challenges, its concerns and, ultimately, its reality. Only a core group of decision makers with no sense of the fragile state of societies in the periphery, which have been battered by deepening economic crisis and uncertainty for months on end, would favour a policy that creates a precedent for governments to grab people’s savings without second thought.
Even if capital flight from Cyprus as a result of this decision is less severe than many fear, even if Cypriot banks survive this real stress test, even if the island’s economy is not set back many years, even if savers in Greece, Spain, Portugal and Italy don’t panic, the idea of a deposit tax and the way it was adopted has released something poisonous in the air. It is difficult to see how these citizens will be able to trust the system - be it their governments, banks or eurozone partners - in the weeks to come. Belief in countries where the economy is contracting and unemployment growing is already vitreous and planting fears about a possible deposits grab in the future could shatter it completely.
Some will argue that the numbers involved in Cyprus are not that big, that small depositors will not lose a lot. This misses the point. Again, it’s not about the numbers, it’s about perceptions. Cypriot savers will not be so concerned about losing a few hundred euros here or there. After all, they know what’s going on in Greece and are aware that if they don’t pay a deposit levy, they’ll pay through higher taxes, lower wages and reduced spending. No, their worry will be about what’s going to come next. They have witnessed supposed partners back their country and its new president into a corner with almost underworld-style ruthlessness. The European Central Bank, essentially their central bank, threatened to cut off funding to Cypriot lenders, to cause their collapse, which would bring economic disaster. In these unprecedented circumstances, what basis is there for a relationship of trust between Cypriots and the eurozone? What’s to prevent them thinking that if they’ve been squeezed over this, they won’t be cornered over the island’s natural gas reserves or the terms for reunification with the Turkish-occupied north?
Others will argue that it is unfair to expect Germany or other eurozone taxpayers to keep footing the bill for bailing out member states. This also speaks of different perceptions of reality in the euro area. It ignores the fact that taxpayers in countries that have been bailed out are also paying a price. In fact, if one looks at the eurozone today and chooses any of its main economic indictors, it is abundantly clear who is footing the much higher cost for these rescue packages.
This emergence of parallel lives is the illness spreading to the heart of the single currency. How can the eurozone’s two parts understand each other when their realities are growing further apart? How can one side decide for the other when it’s not experiencing the depression, polarization and incertitude of its counterpart? In this two-tier construct, how can those on the upper deck assimilate the warnings from those below that the vessel is sinking, when their feet aren’t even wet?
That’s why Cyprus is about so much more than just numbers.
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The idiots raised the curtain themselves... and showed themselves for the thieves they are.
What's that I smell? Is it smoke? Where's the EXIT? What do you mean the exits were locked years ago?
The only real question is: are the Cypriots going to withdraw their deposits after the banks open or not?
You better believe it! So do the Russians and everyone else.
Those banks are toast. When they open a bank run is going to happen. Kiss them goodbye. Cyprus' economy will follow afterwards. Other bankrupt Eurotrash economies will see this and never accept a bailout. RIP Euro.
Unfortunatey like every other depositor they have that whole fractional reserve banking (and or lending...)/rehypothecation thing to deal with come withdraw day. Wouldn't surprise me if they're just a passthru vehicle for IOU's.
I can see the propaganda now: "You can withdraw as much as you want so long as it's less than 100 euro/day!"
Unless... of course that is unless, there's a boat and some shiny metal involved.
It is not serious to speak about free market system and bailouts.
May be it is a good time to ask a very simple question: how could a poor country as Cyprus have more than $60B in local citizen deposits? May be Cyprus government shall stop offering its citizenship to mafia & gangster members from all around world? Cyprus and its government were/are involved in criminal enterprise and its citizens must pay price for it.
So, it is the time to stop feeling sorry for thieves and gangsters losing some of their ill-gained money and “poor” citizens who happily benefited from these hot money.
What an idiotic post.
Yes, I did junk you, wish I could do it again.
"Cyprus and its government were/are involved in criminal enterprise and its citizens must pay price for it"
That's like saying confiscate all the guns in the country because a drug induced idiot went on a shooting rampage.
Well, these guys are really starting to throw the yippie-yi-yo all over aren't they now.
"The European Central Bank, whose Governing Council meets today in Frankfurt, will also have to decide whether to give Cyprus more time or consider cutting off liquidity to the country’s banks."
Hummm...cutting off liquidity. Does that mean a freeze on cash withdrawals? Is that like the mean old crooked landlord cutting off the heating in the middle of a winter storm or something?
"This is not a good result -- neither for Cyprus, nor for the euro zone, and we have to look together for alternatives to the negotiated package,” Frieden said yesterday in a phone interview from Frankfurt. He called the vote “very sad news,” though said the decision by its parliament must be respected."
http://www.bloomberg.com/news/2013-03-19/europe-weighs-cyprus-s-fate-aft...
All this money changer stuff is really so confusing sometimes. Especially when one considers that so far as anyone knows, or maybe they do, but to date(3-19-13) has anyone really been taxed yet, or had anything taken from their bank accounts after the levy tax? Reckon there needs to be someone on the ground reporting there to ask if anyone has actually been BANK HEISTED/tax levied/devalued/robbed/obamacare taxed....Bing bada bang!! That's it! It's the obamacare tax!
Hummmm...pondering in high gear.
That's why the next phase of the entire operation will be to impose capital controls in the name of saving banking system. People who didn't get their money out already are essentially fucked.
they will not open friday after just now cancelling thursday..... it squeezes depositors too close to a weekend but if they wait till next week thats a ten day closure thats too long rock and a hard place cooked
If I were a Cypriot, I'd be lining up tomorrow afternoon (Wednesday), in order to be the first in line when the bank opens Thursday morning.
Yes, for certain Cypriots will be cleaning out their accounts Thursday morning.
After all, if the government gets nervous, they could call another vote and vote to re-institute the "theft" of deposits.
That countries reputation as a banking haven are tarnished forever. It's going to turn from a banking hub to a tourist hub within a year.
obviously you dont have much cash in your bank so you cannot relate. if you had, let's say 100K, 1MM, 10MM - how would you withdraw that type of money? and if you did, where would you keep it? under your bed? if you were going wire the money to some place, where would you wire it w/o drawing attention to yourself? and if you managed to find this special place to wire your money, how would you know that the same would not happen? see? once you start thinking in hundreds of thousands or millions, the problem how to withdraw your funds becomes that much bigger.
Surely you jest; or obviously you have never moved around large sums of money. It's done through the 'financial markets' and large volumes are moved every business day, even for example, and maybe especially, large volumes of drug money can be washed through the system with apparent ease at the mere press of a button.
aaah, i see. that' why the poster above, northern lights, is lining up at the door. to press the button.
to move his large balance as you suggested, by pressing a button; besides that, my question clearly was where, these days, do you move it w/o attracting attention and exposing yourself to yet another haircut?
as biggie smalls said so eloquently :
mo money, mo problems
Agreed. Which leaves them what alternatives moving forward.....?
This may not be a very nice thing to say, but I'm starting to think that Europe is almost as un-fixable as the Middle East. My thoughts on the place only get darker from there, so I'm not going to share them.
WHAT A CLUSTERFUCK.
I generally agree; but you don't see any parallels with the U.S.? For example, how many citizens actually wanted TARP vs. how many politicians and their handlers?
Don't give em a damn penny, and if they take it from you, make the politicians and bankers pay, the longer you wait for the inevitable revolution the worse it will get.
Right now.. across the world from me in tiny Cyprus, there is a man sitting with his head in his hands and that gut wrenching, awful feeling of doom is washing over him. Fear. Uncertainty. Regret for trusting the bankers. He is kicking himself in the ass as I type and you read.
"Fuck I should have withdrawn it last week. All my work..my life's savings..may be gone. I now may have nothing. How will I live and retire?"
THINK ABOUT IT.
YES...YOU.
THAT GUY NEVER THOUGHT IT WOULD HAPPEN TO HIM.
DON'T BE THAT GUY.
GET YOUR MONEY OUR OF THEIR BANKING SYSTEM (wherever you are) AND INTO PHYZZ.
DO IT AS SOON AS YOU CAN IF YOU HAVEN'T ALREADY.
let's not forget how cypres has enormously benefitted from the un peacekeepers, pax europa,
all the while squandering euro funding and flaunting tax evasion and money laundering.
europe is saying: time to pay back -we don't care how you do it -but if you don't...
it's good of you to mention the turk elephant in the room
they have been unusually quiet in the western press,
The IMF says they aren't money laundering. But even if it's true do you think the Troika just now found out? NO. They've known that those banks were broke because they're the ones that gave the greek bondholders a 70% haircut.
http://www.spiegel.de/international/europe/imf-and-europe-disagreement-c...
yes, and probably were the ones who "encourged" the Cypriot banks to buy those Greek bonds in the first place.
I want to thank Cyprus and the Eurogroup buffoons for spiking interest in bitcoin from spain and other countries. Just wait until other EU savers are "taxed". This is going to be quite epic.
the idea of a deposit tax and the way it was adopted has released something poisonous in the air.
Schaeuble farted!
I predict the banks won't be open for more then 3 hours on Thursday!!
You can not put this genie back in the bottle!
It's an electronic world. 3 hours is considerably longer than any of those banks will remain open.
I'm guessing 20 minutes? Tops.
If they reopen at all.
My understanding is that the banks cannot open without the 17 billion bailout. The banks will stay closed until the deal is reached - anyone want to bet who blinks first? i think it will be the EU.
You think that the reaction now is bad, just wait until they close the banks again. A person can go a week without food if they see sunshine at the end of it, but if you change that sunshine with the palor of dispair, the pale of death will be fast on its heels.
In these unprecedented circumstances, what basis is there for a relationship of trust between Cypriots and the eurozone?
This destruction of trust isn't an unfortunate consequence. Rather the destruction of trust and the forced realization among the people of Cyprus that they are without alternatives - without freedom - is precisely the point.
How dare those greedy fuckers have savings...........
Hindenburg disaster
http://www.youtube.com/watch?v=F54rqDh2mWA (1:14)
Thanks Tyler(s) for recognizing this as the important story that it is and covering it so well.
Are there European deposit stats that can be published? This will probably be the only way to show the bank runs.
Agreed. ZH was all over this and understood why it was important. Only later did the FT and the WSJ catch on. Hours and hours later.
It would not surprise me to find they read this site looking for what matters and why.
FT and WSJ - the official proproganda arm of the banksters...
this theft will force the cypriots into the russian arms.....that reaction was intended because it is the hook in the jowls of russia to entangle it in the eu....the eu doesn't necessarily want russia in the eu, but wants its tentacles in russia to control it economically....
the eu is run by the most sophisticated rockefeller nazis....attributing stupidity to them is a gross miscalculation....
Something doesn't add up.
Last I heard Germany was cozying up to Russia to create a new eastern alliance that would be friendly with China and Iran. House of Saud was due to collapse. EURUSD was rangebound at 1.30 (+/- 5%) and US was losing reserve currency status. Race to debase was in sprint mode.
What's changed? Not much except now we're supposed to believe that Germany and Russia are playing tug-of-war with Cyprus in the middle and Russia will imminently have a warm water port and a stranglehold over gas supplies for western Europe. With no opposition from the west. Right.
The key question has not been answered: why now?
Indeed.
Been keeping this in back of mind when I heard of Cyprus: "Putin Backs Efforts to Compel $1 Trillion Repatriation"
http://www.bloomberg.com/news/2012-12-12/putin-backs-efforts-to-force-1-...
Rich Russians will be scared and running once their accounts are unlocked. EU forcing Cyprus to propose the deposit levy, either dumb or really smart part of plan to assault "hot money" locations. Places like Switzerland already under attack for tax avoiders by the US. Cyprus another big target, this time to help Russia repatriate funds.
Here's one that CNBC just tweeted: "It's Been Ten Years Since the Goldman-to-Cyprus Theft Trial" "http://www.cnbc.com/id/100569798"
They're systematically destroying banking havens.
we accuse govts of colluding with tptb.
yet here's a fine counterexample.
perhaps it's more accurate to say, they're going at it slowly,
going after some tax havens with prejudice, preferrably those
that back other nations' savings. this is a sacrifical lamb orgy.
My guess is that it is because they are ready now - to introduce the new trade settlement system.
That does not excuse them from being a bunch of dishonest bullies as per below post.
@tony bonn, who wrote, "the eu is run by the most sophisticated rockefeller nazis....attributing stupidity to them is a gross miscalculation...."
+1 for the good laugh
But this is where i am struggling. Do you think all of this was a happy accident?: That's naive.
No. Germany has had enough. Maybe they've repatriated enough gold, maybe they finally can predict a path to the return to strength for the Deutschmark, whereas there is no end is sight in the Euro scheme.
So, yes, they siezed the wheel and for a while paid for the gas, and now, helmet and fireproof and seatbelt on, are driving the car off the cliff having carefully calculated the impact, and the time required to recover.
"Do you think all of this was a happy accident?"
Here's my theory on that: It's not really that 'they' have to plan shit at all, is it? Debt is money, and 'they' have all the fucking money, so 'they' win regardless. Seriously, what the fuck do 'they' care either way? ;)
in mother Russia we have saying.... worse is better.
I am going withdraw everything tomorrow
Fuck you Rockefellers.....And all the retards that subdue. Period.
Seems like a physical run on the banks is inevitable.
The (joke) Cyprus Central Bank or whomever is decreeing the banks stay closed are going to take their take on depositor BEFORE the Thursday reopening?
I don't think they can act that fast.
If they keep the banks closed for weeks until the steal what they want it will destroy all bank confidence.
If they rape the accounts in the next 24 hours, the same confidence is destroyed.
Now THEY are talking the same game in New Zealand?
One has to wonder on which balance sheets the billions of Russian deposits lie. Could the Cyprians have been so stupid as to depost the money as collateral with the EU, the BIS, the IMF or any other central bank? Did they lose it betting on Greek bonds? It looks as if the Russians are about to get Corzined and they will most likely get pissed and take out contracts on the Eurocrats.
Lam... I believe you have it nailed. That is exactly what Cypriots did with the money. They "invested" it in
Greek bonds and MBS and other now worthless junk. They probably leveraged it up too, so they are beyond
broke, they are deep in a hole. The Russian mob should have bought gold with their money. How can the Cypriot
government take 10% of something that doesn't exit? The whole concept is a scam. The only money in any banks anywhere
is what central banks are printing and pumping into the banks. Bank deposits are like Social Security, it was borrowed "stolen"
long ago and only exist as debt somewhere.
As Animal Mother said: "better them than me." Of all the crime syndicates to cross they want to cross the Russians? My goodness, that alone tells me that suicidal tendencies are alive and well in the halls of the EU, the IMF, etc. I would suggest they put down the bong and back away quickly.
New Zealand doesn't have a deposit insurance system in place for its banks.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1087...
While they continue to have a Green Party, New Zealand is fucked.
I can guess, but do not understand for certain what the Eurocrats are trying to accomplish. The EU/ECB/IMF/BIS/Fed etc. can create infinite amounts of fiat out of thin air any time they want. Money to them is essentially meaningless except as a policy tool ... they pile inconceivable sums of the fiat on themselves and their cronies, but would steal it from the people who actually earned it through value adding work.
MAYBE IT IS PRECISELY BECAUSE THEY REALIZE HOW VALUELESS THEIR FIAT ULTIMATELY IS AND ULTIMATELY WILL BE THAT THEY TREAT THE FIAT EARNED (not given or taken as the Eurocrats transact money) BY OTHER AS IF IT IS SIMPLY THEIR POLICY TOOL AND NOT A STORE OF VALUE THAT IS THE RIGHTFUL PROPERTY OF OTHERS. This does not make them clueless or insentitive, just simple incompetent scheming psychopaths.
One must assume that the purpose of stealing other peoples money to give to someone else when one could just easily create more out of thin air is to create some form of discord and conflict. What other reason can there be?
It's because the big dog - Merkel - has an election in a few months and wanted to be able to tell her voters that they don't have to bail out the south.
So it looks like Cyprus might be the first southern state , err, country to secede from the union. I'm think we've seen this movie before.
Begging to differ, but this is too simple an explanation.
I mean, try running into an election with the entire economy in shambles because the currency is teetering because you wouldn't cough up a cheeky 10 billion to keep Cyprus from fucking off and seeding the rest of the slaves with the idea that revolt might work. THAT is the thing that prevents re-election, not enables it.
SO... if it's about re-election, it's about the destruction of the Euro, the re-emergence of the Deutschmark, German pride, and the need for a steady course and steady hand, all of course provided by Merkel.
The latter I can see. The former... why create a tempest in the run-up to election?
McCain v. Obama - September-October 2008...
How is a 10% saving tax different that suddenly getting 0% interest on my savings for two years instead of 5%? The US government is doing the same thing and no one is complaining, they re-elect the same regime!
One might ask how different it is than an income tax. Both of which would not be allowed if our elected scumbags actually paid attention to the laws under which this country was founded. Both are theft. The income tax is theft at the threat of force. The surprise theft of principal with no chance to avoid it aboloshes all rights to individual property. Theft is theft and should be tried as a crime and those found guilty should suffer the consequences. Theft by threat of force (as governments do) is no better than armed robbery by an individual.
Better government spin doctors, and a lexicon of bullshit terminology ala quantitative easing and accommodative monetary policy
How far we have come. I read these stories and i feel like im not really here anymore. That this is not,can not,be happening. This has to be some deplorable joke. Unfathomable, and yet we have so much farther to go. Thats the nightmare i truly cant comprehend.
My sentiments as well.
What's hard to understand about being mugged? The fact that the guys doing it wear a suit and tie?
The law is infinitely elastic in this new age. It's the wild west and the sheriff works for the bankers.
Apparantly some investors refuse to take or accept a loss....
southern Euro countries need to default, and start all over.....
It's more like trying to tax those who don't pay taxes: The Russian Oligarchs (aka mob)
The shit's a myth to play to the MSM. The IMF found no money laundering going on:
The experts from Washington [IMF] came to the conclusion that Cyprus is largely playing by the book
http://www.spiegel.de/international/europe/imf-and-europe-disagreement-c...
'from ancient cave dwellers too modern day city urbanite... mankind has known the subtle linquistic meaning of a usuries`usurpation!'
Mr. Malkoutzis. Thank you for writing that piece.
"They have witnessed supposed partners back their country and its new president into a corner with almost underworld-style ruthlessness"
I am a national of one of those northern countries, that are being blamed for much wrongdoing.
Let me assure you that I too have noticed the devious method of ambush, revolver diplomacy and mob-ruling that makes this story very very disgusting indeed.
I too have noticed the utter lack of personal integrity and statesmanship that subsequently came on display in an attempt to not own fully up to the responsibility of own actions.
Those members of the EU elite, who found it appropriate to "break off" the meeting into another room, whenever the nastyness was to be applied, so their Finance Minister collegues would not witness it, have shown a double disdain for the elected representatives both from Cyprus, but also from the other countries.
The school yard tactics of turning up with a prepackaged deal at an emergency meeting, where noone had time to prepare, is again a display of utter disdain for the democratic process of cooperation and debate.
The fact that a good deal of the problems in those banks stem from the debt restructuring of the greek bonds, that the ECB strong-armed last time - once again changing the rules retroactively, is certainly not lost on me either.
Cyprus should get its financial house in order - I agree with that. If a bank cannot stand on its own, it must me unwound in an orderly manner.
But the rest of us seems to also have a huge problem at hand. We have learned for sure now (long suspecting) that the govenators in the Brussels ivory tower and particularly that Mme Lagarde are void and null, when it comes to empathy, foresight, integrity and manners.
Cyprus - I am with you on this one!
yup jus- classic psychopaths
yup jus- classic psychopaths
BTW, there's a rumor that Bernanke will raise interest rates tomorrow by quite an amount...
HAHAHA! This has been a great thread - the comments have me ROLLING!
Seriously though, that would make about as much sense as stealing deposits to 'raise revenue'. I guess that if they wanted to pull the plug on the whole fucking thing, that would certainly be the way to go.
You know, raising interest rates could force people to keep their money in the bank instead of withdrawing it fearing it could be confiscated... then when you confiscate, you'll be able to confiscate even more!
Awesome! You think like a bankster. You're scarring me a little..
I did not junk you, because is singularly the funniest god damn thing I have read in months.
The Fed Balance sheet is leveraged at nearly 100:1 and the average duration exceeds 10 years. If they raised interested rates 1/4 point, the Federal Reserve would be insolvent from one moment to the next.
Listen to me: So long as they're holding this much paper, they will NEVER raise interest rates.
Now put some baby powder on your right hand and walk right up to that mortgage broker who told you this and slap him as hard as you can. If the powder cloud is less than two feet wide, well, lather, rinse, and repeat.
Sorry, but your post reads like it was written by someone who went to Wharton 40 or 50 years ago.
First of all, so what if the Fed becomes insolvent? Truly, is it not insolvent now? (Consider its 'assets'.)
Raising interest rates would ? what? Decrease the value of the Fed's holdings? So what? So they're eight trillion dollars insolvent instead of four? So what?
If it's a cash flow problem, well, one thing that I've learned from my reading here at ZeroHedge is that the Fed can lay its hands on as much 'money' as it needs or wants literally in a nanosecond.
Sorry, but you appear to be of the opinion that banking institutions actually have to have assets that exceed liabilities or something like that. (Which I think actually was taught at Wharton half a century ago.)
Anyone here who is currently going to Wharton studying central banking, and has the current theory changed any to reflect the reality?
Right after he announces that gold is a currency
Cy(p)rus is this who Obama modeled himself after?
Can You Dig It? - The Warriors (1/8) Movie CLIP (1979) HDhttp://www.youtube.com/watch?v=bTUrWYv2vtU
Well said Mr. Malkoutzis.
TY Tylers for posting this.
This incredibly perceptive summary makes the major point: the details no longer matter. The crime has been committed, the threat has been made and no European can ever feel completely safe regarding his private property again.
It’s the old lifeboat dilemma of who must pay the ultimate price so that the bankers can survive. It’s the moral breakdown of Western Civilization where the thieves come out of the closet to club the citizens.
I can’t say it like it should be said but Nick Malkoutzis has; and no one has said it better. Nothing is safe.
Thise transfer of wealth is a primary feature of dictatorships, of Communism and now of Communism’s new dodge, Keynesianism.
Communism, Socialism and Keynesianism all share one characteristic: The State will decide. The State will run the economy and the country. And, just as with all totalitarian governments, the State is the dictator. It merely depends on who is the State. King Louis and Stalin said they were the State. And, now, the international bankers in both Brussels and the U.S. say they are the State. It is they who are controlling markets to facilitate policy. It is they who treasure and propagate the works of Karl Marx…and Keynes.
Larry Summers, former Treasury Secretary, former Harvard president and President Obama’s former top economic adviser relates how Marxist central planning trumps capitalism - once thought to be the winner over Marxism.
“[The old idea was to] oppose and suppress markets… [The new idea is to] use markets [to achieve progressive aims].”
Bailout and stimulus pusher, Bush the Lesser, explained the Fed's collectivist actions while “president” of the United States as follows: “I’ve abandoned free market principles to save the free market system.” Today the Fed continues in earnest to destroy America’s private market economy by reducing interest rates to zero and by hyping inflation via QE – now pumping $85 billion monthly into markets and private pockets - causing the rapid deterioration of the nation's wealth and raising to ultimate supremacy the debtor class.
As a result, the price system achieved by interest rates in a private market world economy has been broken, affecting all other parts of the price system, with the result that there no longer is any way for market prices to tell the truth about economies.
The only way left to safeguard property now in America as in Cyprus and the EU is to hide it.
It was socialist Pierre-Joseph Proudhon (1809-1865), best known for saying that “property is theft,” who invented the idea of “credit gratuity,” free loans, the very idea which the Keynesians promote. Following the socialist suit, the legislation that created the Fed embodies the predatory premise that “the government can create prosperity by printing money and lending it.”
In short, according to free market economist Henry Hazlitt, “the chief difference between Marxism and Keynesianism is that for the former the employer is the chief villain, and for the latter the lender.”
World socialism under the thumb of the international bankers always was the hidden agenda behind the IMF/World Bank, both extensions of the non-Federal Reserve System; the Fed’s role is now accelerating as it winds up its efforts in the building of world socialism.
Hugh Lewis explains the destruction of weatlh wrought by the Fed in “Where Keynes Went Wrong”:
“Before the creation of the Federal Reserve, there were episodes of American inflation (such as the Civil War), but over time the dollar kept its purchasing power. By contrast, since the creation of the Fed, the dollar has lost over 95% of its purchasing power (by 2009).”
Who were the losers of this value? And who has it?
It is about who is the biggest king in Europe. Nothing has changed really.
CyprEXIT!!!!
This is what happens when profit has more value than society.
Yes, the people are reduced to being seen as net liabilities.
Recyprothication bitchez!
Keep in mind that the Target 2 system has funded Northern European exports via creating currency in Southern European central banks which is used to purchase Northern European goods. When the Southern European countries exit, the Northern European economies contract by the Target 2 system run rate. This is what Merkle fears.
Eurogroup Chairman Jeroen Dijsselbloem Should Resign For Trying To Confiscate Bank Savings. Long Live the Individual Financial Liberty And Freedom of all Cypriotic and European citizens and foreigners no matter the size of the savings!
http://www.facebook.com/pages/Dijsselbloem-should-resign/410669842362350Please like and share this facebook page if you agree!
Ah, we've finally learned how to count.
Phew...Maybe we'll learn how to reason!
You never know! Mad cows and madder politicians.
so money ain't for nothin' and chicks arn't free?
jb
All it needs is one to call their bluff and its game over.
Sharpen the guillotines.
Who's bluff, Banksters or the people? Sharpen the quillotines their time is approaching!
Why do the governments borrow any money ever from banksters who create this money carrying nonsense interest rate just by using a keyboard and a computer?
The real governments can can do exactly the same without any interest rate at all. Assuming that all governments have at least one keyboard connected to a computer and at least one official with enough konwledge to use it!
So what is the ultimate result of any financial collapse in Europe? Is it not the same result that we have seen time and again before. The EU will get bigger and stronger. If Cyprus takes whatever deal that the EU offers, they become even more dependent and the EU grows stronger. IF Cyprus leaves the EU then they likely will have a complete banking collapse with major pain for the people. Those same people who reject the bail-in will be clamoring for any assistance and will be forced to choose between the EU and Russia. Given that they have already been part of the EU, I would bet they would crawl back to the EU and agree to just about anything. Central banks run the world as they who ultimately creates the currency or we should say the printing press and all of these countries, especially the smaller ones, will seek the protection or perceived security of being part of the larger group rather than going it alone. This is the plan. Boiling the frog and the EU is betting they will end up with frog soup rather than an empty pot. Stress and insecurity tend to drive people into larger groups, not smaller ones. We see this in business as profits decline you see more mergers. Few smaller to mid-size and more big companies. People are just like every other creature on the planet and have largely predictable behaviors. People have been studying people for centuries and I have no doubt that there is a core group with a plan. A plan to herd us in particular directions for specific goals. I don’t believe for a moment that any of this is a result of stupidity or dumb luck. As someone said, this is all too stupid to be stupidity.
germany was asking for its gold back since 2007 ... small problem.... its gone 1500 tons at the ny fed stolen by the united states of america.... look at the delivery schedule in 8 years they can have 20 percent back meaning if the schedule holds it would take 40 years to recover, look america silmply stole it probably sold to china and used for price suppression . they had another thousand tons at the bank of england but kinda sorta decided to leave it there.... wrong its stolen too so germany has had almost 70 percent of its 3400 tons .... the second largest holding in the world just stolen pure and simple by not just one but 2 sovereign nations.
its possible they might be somewhat pissed off
60 countries lodged their gold at the ny fed.... all the best of luck.... think beijing
america is a straghtforward criminal country just common thieves gone rogue let us pray.
germany was asking for its gold back since 2007
Since 1999 actually
"Others will argue that it is unfair to expect Germany or other eurozone taxpayers to keep footing the bill for bailing out member states."
They might do, but I don't buy it. Other EZ members (eg France, Germany etc) joined in full knowledge of what they were signing up to. In fact they were champing at the bit to create and expand their beloved EUSSR.
These national political elites made a shambles of the EZ by ignoring the wide productivity differences between ClubMed members and by not instituting pan-EZ transfer payments, Eurobonds, common budget controls etc etc. They're now trying to do it retrospectively, but it's too late.
It is for the voters of northern member states to throw out their political elites and/or leave the EZ. Germany in particular has benefitted enormously from the EZ...it cannot have it all ways.