DEUTSCHE Bank owns Vegas investments that equal its exposure in GREECE, SPAIN and PORTUGAL and probably CYPRUS
CYPRUS – IS THE EUROPEAN UNION OPENING PANDORA’S BOX?
By Harris A. Samaras
Are
we witnessing the slow death of the EUROPEAN UNION? Have the repeatedly failing
EU policymakers finally opened Pandora’s Box with their recent proposal for CYPRUS?
Why
are some EUROPEAN member states taking actions that are catastrophic for the EUROPEAN
sentiment?
Aren’t
all citizens of the EU equal under the EUROPEAN law?
It
is a serious blunder and a gaffe when the EU is squeezing the government of one
of its member states, CYPRUS – to confiscate the deposits that rightfully
belong to EU ordinary citizens and others alike! Depositors that trusted the
written and unwritten laws that the EUROPEAN UNION inspired or used to inspire…
Could
such action ever affect the EUROPEAN Financial Crisis positively?
NORTHERN EUROPE VERSUS SOUTHERN EUROPE
CYPRUS
never had a problem with earlier “blunders” caused by EU policy… The CYPRUS
banking sector is indeed quite large but it was in solid state up until the
one-sided decisions of some EUROPEAN governments caused many billions of losses
to banks through the haircut imposed on GREEK sovereign debt and elsewhere
within the EU…
All
EU member states must in concert find a solution for the EU as a whole instead
of shifting the damage to one member state or another… The crisis of the Euro
area is systemic! Decisions taken by the strongest countries in the EU have
spread misery sequentially to citizens in IRELAND, GREECE, PORTUGAL, SPAIN,
ITALY and now CYPRUS. This is not going to end if they, the strongest
countries, keep on handling the crisis in such manner. The EU has to enforce a
decision making process where the EUROPEAN governments are asked to care for
all their citizens. The inability of the EU to take care of its citizens wholly
led to the failure of the EU… clearly seen these days by the way the EU has
handled the CYPRUS financial issue…
IS A CYPRUS-LIKE INCURSION ON PEOPLE’S SAVINGS UNLIKELY TO
HAPPEN ANYWHERE ELSE IN THE EU?
This
inconceivable way of blackmailing the government of CYPRUS to confiscate the
deposits is sending a clear message: Nobody with deposits in smaller countries,
such is LUXEMBOURG for instance, should feel safe with her or his deposits;
nobody with deposits in a weaker financially country, such is SPAIN, should
feel safe about her or his deposits either…
Whatever
happens, the CYPRUS story teaches important lessons for every EUROPEAN and not
only economy: Austerity has failed!
A
most valid question which if we answer yes to transforms into an oxymoron: Are
the people that led EUROPE into this mess the right ones to lead EUROPE out of
it?
BOOST GROWTH WITH NO MONEY
Praying
that there will be no bank runs across EUROPE…
It
just does not make any sense…
You
would expect that finance Ministers across EUROPE to have known better…
How
could countries like, CYPRUS, GREECE, PORTUGAL, SPAIN, ITALY and SLOVENIA ever
boost growth with no money? With lending rates continuously dropping how can
any country even have growth?
WHAT IS GERMANY'S REAL ROLL IN ALL THIS?
One
thing is for sure: Decisions like this one about CYPRUS or about the haircut of
the GREEK debt benefit in essence some countries… it can be very easily
observed from the markets that such decisions reduce the financing cost of the GERMAN
government… the GERMAN government can now borrow at negative rates… while it
inflicts pain and misery on other countries… not everyone is equal under the EUROPEAN
law!
Moreover,
GERMANY is quick to scold the citizens of other countries for the actions of
its own government officials and bankers; actions which GERMANY tolerated and
even encouraged for years… enjoying a large market for its manufacturing
products, while exerting enormous financial leverage over other EU member
states… its economic missteps have gone unnoticed and so has its profit-taking
from its EU partners…
Only
an ignorant should not worry that the total failure of the EUROPEAN UNION is
around the corner…
The
EUROPEAN Central Bank has also been quite unclear on its position… and it was
the vehicle to blackmailing the CYPRUS government… thus contributing to say the
least to the mess that the EU is now into…
In
order for the EU to “work”, the EU needs to form a banking union (as per the EUROPEAN
Council’s decision of June 2012) which primarily means that all member states
should have a common credible deposit insurance guarantee; a guarantee that
shall apply to everybody in the Euro Area! Now the EU or better the strongest
states, members of the EU, made a mockery of it, sending clearly the message
that that they do not want to be part of such a decision, a decision that they
so much preached about and advocated for less than a year ago…
Those
in the EU that use blackmail as a mean to their own benefit should think again…
Is it the right way towards a better EU to demand confiscation of somebody’s
deposits? It is not! And notions of recalibrating the amounts to be seized or
better stolen from depositors are not a solution either! The EU as a whole
should take responsibility! And remember this is more about EUROPE than about CYPRUS!
See:
DRAGHI, HEAD OF ECB, NEEDS THE MONEY OF CYPRIOT BANK- CUSTOMERS http://geopoliticsrst.blogspot.com.ar/2013/03/zypern-krise-ezb-schieflage.html
Think!
IS IT JUST ABOUT THE RUSSIAN MONEY DEPOSITED IN CYPRUS?
The
EU did not feel that way two decades ago, even a few years ago…
Is
it just a GERMAN-led propaganda which argues that the CYPRUS depositor is aimed
at RUSSIAN oligarchs who evade taxes? But it targets ordinary CYPRIOTS nearly
as much as it targets high depositors and somehow it doesn’t matter if it’s the
life savings of a middle-class family…
Is
it just about the deposits of non-residents? Only very recently the IMF and the
EU stated in their reports about CYPRUS that supervision of international and
local commercial banks in CYPRUS are more than competent, progressed over the
years to the highest of standards…
Is
it just about the recently confirmed and scientifically estimated huge
hydrocarbon reserves of CYPRUS? A fact by the way that has so strangely been
ignored or diminished by the EU and international media…
See:
COULD
IT BE THAT THE TROIKA (WITH GERMANY IN LEAD) IN REALITY FOCUSES ON TAKING
CONTROL OF CYPRUS’S PROCLAIMED HYDROCARBON FINDINGS?
Could
it be that the EU in its effort to save a mere €5.8 billion (the CYPRUS
“bail-out” money)… is upsetting EUROPEAN confidence and trust… facing possible
bank runs… and in essence risking trillions?
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