So there. It is official. Europe = Theft. An Argentinian style corralito has been slapped upon the common people of Cyprus; and this is a fine, convenient precedent for future lines of attack when it comes to Italy, Spain or France…
There is a tremendous irony here. What started, some 4 years ago, as a supposed Utmost Effort to avoid the most panicky scenes from Black Tuesday in 1929, as a wise approach from men and women who had Learned From History, now turns into its exact opposite. Instead of avoiding bank runs, the Abominable Troika from Brussels and Frankfurt is knowingly causing bank runs. Talk about the March of Folly!
Did they not know that panic and bank runs would follow when they applied this 6,75 robbery tax? Were they ignorant and unaware of the predictable results, these well-paid Best & Brightests, like Mr Dijsselbloem, Ms Lagarde, Mr Draghi, and the rest of the loathsome lot? No, of course they were not unaware of that. These people may be gross, but they are not stupid.
Then why, you may ask, did they decide upon this idiotic line of action nevertheless?
The answer is twofold. First of all, the Euro had to be saved, and if Cyprus went bust, Greece – whose tottering banks are sunk into the financial muck of Cyprus up to their nostrils – would also have slipped; then Greece would have had to leave the Euro; and that would have caused the Euro to break up. This must never ever be allowed to happen! For in Brussels, the Euro is the Alpa and the Omega, the Absolute Good, the Only Thing That Matters…
This leads us to the second reason. Cyprus could not be allowed to go bankrupt. But… the Robber Barons of the EU knew that they could not solve the problem the way it had been solved before in Ireland, Portugal, Spain and Greece. You see: the patience of the German taxpayers is over; and they would never have accepted yet another bailout of a Mediterranean country with northern public funds. So the money had to be found somewhere else. And, following that good old example of the corrupt Argentinian government ten years ago, they decided to skim off 7 to 10 % of everybody’s savings, and use that money for their own purposes and personal interests.
And this they call a tax. Well, it isn’t a tax. It is a theft. And it is a blunder. So big a blunder that it gives the game away. These people no longer know what to do or where to turn so as to safeguard their pet project, of which the single currency only is the most important instrument.
The sadness is that, when all is said and done, when nature has taken its course, when the whole house of cards has come tumbling down, the Dijsselbloems, the Rompuys and Barrosos, the Lagardes and Schlaubes, the Draghis and Who Nots, will all be living snugly somewhere in New York or Dubai or Tahiti, enjoying their evil-earned wealth and writing their memoirs – in which we get explained that the catastrophe was all the fault of the Populists and the Nation States unwilling to give up their privileges and merge – while in Europe, the normal honest working folk are queuing up for the soup kitchens…
Ah yes, what a splendid project is this United Europe of ours…!
Read Professor Krugman for an equally bleak view.