Europe – update (5)

This post will deal exclusively with the astonishing developments in Cyprus where the Euro-Bolsheviks have just struck the first decisive blow. I witnessed the fall of the pro-Moscow regime in Poland in 1980s and even happened to be at the checkpoint Charlie on the day the Berlin Wall came down but the current goings-on in Cyprus have the potential to eclipse the historic significance of those events. It is the first time the EU dropped any pretences of natural justice and openly reached into the pockets of its citizens.

Let us re-cap the sequence of events leading up to the current mess. As covered by a series of posts on da-boss (to locate them type the keyword “Europe” in the search box to the right) Europe is imploding economically as a result of the burden of debt. The debt has been accumulated over the decades of running budget deficits. In democratic countries electorates tend to vote for parties which make grandiose pre-election promises – the more a party promises the more likely it is to get elected. The message of living within one’s means does not sound sexy and advocating it is a political suicide. This is why the conservative ideology has been all but wiped out in Europe. Sadly, it is also why Europe is broke.

The above processes have set the scene for the disintegration of the political structures of the so-called United Europe. As the money runs out (and lenders run away) politicians get more desperate to keep things going so they can milk the system for as long as possible before it goes down. In the near future the EU countries will go through a series of fits before settling for a full-on socialist agenda of robbing “the rich”, in a prelude to the final collapse. It will be ugly but the die was cast long time ago and now the momentum is carrying Europe into oblivion.

In the scheme of things the mechanics of the disintegration of Europe is no more significant than what happened aboard Titanic after it had struck the iceberg. For students of human psychology it will provide a rich vein of observations on how we collectively behave in extreme circumstances. It may also help humanity see through the perils of socialism and democracy (although this insight typically gets lost within a generation or two). But as the events are unfolding we will be treated to a dramatic display of raw emotions and basic survival instincts which have not been seen in Europe since the end of WW2. Group identities will form and dissolve, might will mean right and the ugly sides of human nature will come to the fore. Since every revolution ends up eating its own children there will also be some violent twists to the tale.

In Cyprus we are witnessing an astounding act of state robbery where the government is about to steal 5.8 billion Euro from the bank accounts of its citizens. There are no precedents for this in the recent history of civilised countries – while it is deemed ok to chip at the private property through taxes an outright theft is a new development. In an ironic twist the Russian Prime Minister Dmitry Medvedev was absolutely correct when he said:

“This simply looks like confiscating money that doesn’t belong to you. This practice was unfortunately quite well known and familiar from the Soviet period, when money was exchanged at certain ratios or not returned”

Of course everyone knows that the one-off levy is a theft and the UK even decided to compensate its own citizens for the losses incurred:

Mr Clark confirmed earlier announcements that more than 3,000 British service personnel based in Cyprus would be compensated by the British government if the one-off levy on savings goes ahead to ensure they would not suffer “unreasonable losses”.

So, the UK first, as part of EU, forced Cyprus to impose the levy as “fair” and then compensated its own citizens for “unreasonable losses”. But what is even more astounding is that there is a political debate going on in Cyprus regarding the distribution of the levy. At present it is proposed as 6.75% up to 100 000 Euro and 9.9% above but a “fairer” spread is being considered:

Our correspondent says the president may want to lower the former rate to 3%, while raising the levy on the larger depositors to 12.5%.

So we have an elected leader calmly pondering how to rob his own citizens; who will be robbed more and who will lose less. The levy is a blatant money grab – the bond owners, real estate investors or shareholders will not pay a cent. The only targeted group are those who kept savings in bank accounts. To make sure their money does not get transferred overseas the accounts have been frozen until the government has decided how much to steal. Those with less fluid assets can be dealt with later. I presume the stage 2 levy on shares/bonds/real estate will be imposed to ensure the spread of the burden of financial rescue is “fair”.

The only thing I am finding remotely funny in this drama is the reaction of some of those being fleeced:

Alan and Janet, from Cyprus: “This is robbery and we must get the EU to stop this.”

I have news for Alan and Janet. It is the EU who are the robbers.

Europe – update (6)


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