I wrote yesterday that democracy didn’t matter because the EU basically owns the government of Cypress. I may have overstated the case. Politicians don’t want to vote for a bill that will mean they are out of office at the next election, so they are stalling. The Parliament does not have a majority to vote for looting bank deposits. In fact, even the socialists are outraged:
“‘Essentially parliament is called to legalize a decision to rob depositors blind, against every written and unwritten law,’ said Yiannakis Omirou, speaker of parliament and head of EDEK, the small Socialist party. ‘We refuse to subscribe to this.’”
So the European Union, the International Monetary Fund, and all the rest of the international officer’s club presuming to pilot spaceship Global Economy are in favor of something that an actual socialist party finds to be an immoral violation of property rights. We sure do live in interesting times.
In the meantime, Mish blogs about what the Cypriot government is doing about the bank run they are encouraging.
“Cyprus President Nicos Anastasiades now states ‘depositors would be offered bank shares covering the full amount of their losses, while those who left their savings in banks for another two years would be rewarded with bonds backed by future income from exploiting Cyprus’s natural gas deposits.’ The Mish response is ‘Please be serious.’ Bank shares are worthless, and if they are not, they should be and soon will be. As for leaving money in the bank for two more years, subject to still more confiscation at the whims of the EU, I also say ‘please be serious.’”
Notice especially that second part. The President of Cyprus is trying to bribe Cypriots to keep their money in the banks after they have shown that they are willing to rob those bank deposits. In other words, they know that even proposing this legislation, whether or not they go through with it, is basically a death sentence for the banking industry, which would have reverberations throughout the rest of the European Union.
But the EU is doing its best to intimidate Cypriot politicians to plunder their people. The European Central Bank (ECB) are threatening to inflict over 30 billion Euros of damage to Cyprus in order to gain under 6 billion Euros. Mish again:
“The Financial Times reports, ‘The message, delivered by the ECB’s chief negotiator, Jörg Asmussen, meant that if no deal was reached, Laiki would collapse, probably bringing the island’s largest bank down with it, and saddling Nicosia with a €30bn bill to reimburse accounts covered by the country’s deposit guarantee scheme. It was money Nicosia did not have. All of the island’s account holders would be wiped out.’”
This is essentially a foreign takeover. No wonder even Cypriot socialists, if they are patriotic at all, can see that this proposal is a moral monstrosity.
When the bank holiday ends for Cyprus (assuming it will end), then watch out!