The Eurozone Chief thinks the theft of money from savings accounts in Cyprus could be repeated in Spain, Italy and other EU countries to prop up failing banks. Jeroen Dijsselbloem, the Dutch chairman of the eurozone, believes that there was no contagion from the Cyprus deal which proves more of this can be done without consequences.
The European Commission was quick to counter his comments and insist that Cyprus was a special case. [de.Spiegel]
It’s hard to imagine why anyone would keep their money in a bank in the EU after this. The interest rates are low and people might be better off keeping their money under a mattress.
For those who don’t know, as much as 40% of Cypriot bank accounts with funds over 100,000 euros has been stolen by the EU to bail out failing banks as a condition of receiving future bailout money. They are calling it a tax but it is clearly theft. Cyprus is a small island and not too many care about the conditions there but people should care.
Once robbery is condoned under the guise of taxes for one nation, it can be done to others. One of the arguments to make the theft palatable is that some of the depositors are Russian mobsters and they have to be stopped from profiting from bailouts.
It’s a ridiculous argument. This action won’t stop Russia from laundering dirty cash and it’s a straw man.
Many businesses in Cyprus have been severely hurt by the loss and will fail.
Bankruptcy and bank failures were the alternative and that is also an excuse for why this went down. Bankruptcy is the legal route.
Germany and the EU has been bolstering the weaker nations, but their plan for the EU and the euro made them dependency nations in the first place. Germany is quickly spreading Germanic principles across the EU, controlling them with a one-size-fits all mentality.
The Cyprus government has been inept and largely responsible for the situation the island nation is in.
A week before the collapse, $4.5 billion euros left the country. Cypriot president Nikos Anastasiades has been accused of ‘warning his friends’ about the upcoming crisis so they could move their money abroad. Daily Mail UK
There are two lesson here. Cyprus could happen here down the road and we need to be careful about who we elect to political office.
Read more at telegraph UK