Signs of global looting build up as the MoUs become ever more overt
Medvedev and Barroso finished a news conference within the last ninety minutes, at which it seemed clear to most observers that Cyprus is now alone. To protect us all, Nicosia must leave the eurozone – and stop the madness in its tracks – or we will all wind up penniless.
Here’s yet another reason why: I’m reliably informed that tomorrow (Saturday) the Greek newspaper RealNews has an interview wth one of Wolfgang Schäuble’s top advisers, who said during this interview: “The decision on Cyprus is disastrous for the credibility of the eurozone…..We cannot exclude a haircut for depositors in other European countries”. Yes folks, it took just 48 hours for Olli Rehn’s “unique one-off” to be revealed as utter bollocks.
If Nicosia bows to Berlin pressure – and as you’ll read below, over 90% of it is now coming from Berlin – then the Schäuble test-market will be seen to have worked: his acolytes will say, “Look Wolfie – we stole the entire tax revenue of Cyprus off their citizens, and they caved in. The Herrenvolk is reborn!”
Is it an exaggeration to call this ‘theft’ when Cyprus was hopelessly in debt? No – here’s why in simple language: the Cyprus banking system got into appalling trouble by showing faith in the Greeks’ ability to survive a double-dose of EU bailout at usurious interest rates, followed by insane scorched-earth austerity dictated by Berlin. That is why ClubMed and the eurozone is in the poo, and that is why the previously sound Cypriot banking system is now a basket-case. Yet Berlin has the temerity to come out and invent a complete fabrication about Cyprus having ‘an unsustainable economic model’. Oh right, and the eurozone does then?
But as the earlier Slogpost today conclusively showed, the Schäuble plan (which was, of course, Nicosia’s idea, despite them being presented with a fait accompli last Friday) wants to tax the citizens twice, in return for which – Lady Bountiful! – Germany will cough up at most 20% of a further €10-12billion. These days, the cost of humiliating EU members is deflating massively.
CDU Parliamentary leader Michael Fuchs – yet again we can rely on these Merkel stooges to stick the jackboot in – tactfully announced to the media last night that Germany was “not prepared to accept solutions that are full of wind. I don’t think it’s appropriate to play poker in this matter, especially when you think that there’s a risk that two banks will become insolvent next Monday.” Well then, that should set the stage nicely for some calm discussions over the weekend.
But Merkel in turn decreed more. She was angry, she said: annoyed that the Cypriot government hasn’t been in touch with the Troika for days. Why TF would they bother, when the hypotenuse of this Troika isn’t going to lend them anything anyway, and the other two simply demand the yardbrush up the arse solution? “Cyprus’s decision to test Europe is unacceptable,” she nevertheless concluded. Funny how bad decisions are never made in Germany, nicht wahr?
It is two years since Nicolas Sarkozy emerged from a telephone conversation with Geli in the Elysée Palace to announce loudly, “That f**king Kraut bitch is reverting to type”. It may rank as one of the more prescient things Nico ever said. But this is about more than the robotically controlling, angst-riddled Germanic personality: only Cyprus now stands between the intention of first the EU – and then every other self-appointed élite on the planet – to frame every bank failure as our responsibility.
The deranged and yet somehow plausible argument will run something like this:
“Now look here everyone, pay attention. We’re in the most ghastly global economic recession, which is nobody’s fault and everyone’s responsibility. And unfortunately, as the banks make their money selflessly supplying liquid capital to the economy, they’re now in danger of collapsing all over the place. So rather than pointlessly bashing the bankers, you must accept that – as it is after all your money on there – you can either lose all of it…or invest a bit of it and see the banks recover. As we always say, we’re all in this together, so let us now steel ourselves to our task, pull together, roll up our sleeves, pull up our socks, and accept a haircut. Better to lose some hair than your life savings, what?”
Only Nicosia’s ability to call the Brussel-am-Berlin bluff can stop that inevitability…..by leaving the eurozone to deal with a frenetic bond crisis of its own making, and default.
Cyprus will win the day if it does this. It is indeed at the Dunkirk point when Britain had to do the same in 1940, and the Americans came to our aid with Lend Lease.
Will Obaman America do the same for Cyprus? Don’t hold your breath.
But do stay tuned.