So, Cyprus is a European Union Member State which is about to go bankrupt. Naturally, the Cyriot Government asked the European Union for a Governmental Bail out.
Brussels responded that they would be happy to give the bail out, so long as the demands are met. These Demands are set by Germany, because Germany is the biggest giver in these bail out.
When the Greek Government refused to pass her laws, Germany feared the very distruction of the Euro Currency, and thus she made a Provincial Government for Greece...called a "Unity" Government, and got rid of the Ellected Greek Government and replaced it with the Unity Government....When Italy went through the same problem, The German Chancellor did exactly the same thing.
I dont know the current situation in Greece, but I do know that Italy has returned to a Democratically ellected Government recently.
Spain was warned, but for some reason Germany held back on Sanctions that were beyond Spains ability.
So...What makes Cyprus Different?
Well Cyprus is small, and so Austerity is a silly imposition. However, Cyprus has one thing going. Its a Haven for Savings accounts, like the Caymen Isles, or Switzerland...Cyprus has wealth of individual citizens, and those from around the world, stored up in its vaults.
These are PERSONAL SAVINGS, belonging, not to the Governments, nor to the Banks...but to individual people.
The German Chancellor has told the Cypriot Government, that her Demands for the authorization of a bail out from the European Union are simple. a One Off payment from EACH ACCOUNT of around 10 percent.
:scared0015: OMFG :scared0015:
She is asking for 10percent of each individuals savings in their banks. This is nothing short of theaft. The stealing of money from bank accounts...we arent talking the loss of money through shares...we are talking, really simply about, if you had $10 in a Cyprian Account...the German Chancellor will releave you of a Dollar.....
To avoid a run on the savings account, the Cypriot Government have put withdrawal limits on savings accounts...so you CANT get your money out.
They have thus far voted NOT to meet the Germans Demands...but without that bail out, they face...well, extinction one supposes. Bankruptcy...and Merkel has refused to change her demand
Tell me...if its possible for the German Chancellor, to replace Democratic Governments, with her own Unity Provincial Governments, and its possible for her to go into the account of any person in the European Union and TAKE WITHOUT PERMISSION TEN PERCENT OF THEIR SAVINGS...what is stopping her from doing it to people in England if she felt like it?
At what stage do we say that she is a threat to us? At what stage do we say that she has no right to rule over an ENTIRE Continent??? When will other Nations in the World help us?
Well the answer to the third question is already answered.
Cyprus has entered into talks about a possible bailout from....
The European Union have threatened to cut Cyprus off if she goes to Moscow for help. :laugh: Russia has a huge stake in the accounts on Cyprus, and wont want to see this go to Germany or Brussels...Moscow already gave them a loan two years ago, in the worry of this spreading from nearby Greece...and it looks like those fears were warrented.
The other offer of help, GOD bless them, has come from the Orthodox Church, the Primate, Chrysostomos I, Said that he would mortgage the Churches assets to buy Government Bonds, or something :wacko:
"We don't have days or weeks, we have only hours to save our country," Averos Neophytou, deputy leader of the ruling party Democratic Rally, told reporters as crisis talks in Nicosia dragged into the evening. Banks are to stay shut for the rest of the week and so not reopen till Tuesday after a holiday weekend
"We can provide emergency liquidity only to solvent banks and ... the solvency of Cypriot banks cannot be assumed if an aid program is not agreed on soon, which would allow for a quick recapitalization of the banking sector," The European Central Bank's chief negotiator on Cyprus, Joerg Asmussen
President Nicos Anastasiades, a conservative elected just last month with a mandate to secure a bailout, held meetings with party leaders, his cabinet and officials from the "troika" of lenders from the EU, ECB and International Monetary Fund. A senior source in the "troika" said dealing with Cyprus was even more frustrating than protracted wrangling with Greece.
Even allowing for inflation, 10 billion euros can still buy you quite a lot these days.
For example, if you were Russia, and you used your 10 billion to bail out Cyprus, you could buy another few decades of European dependence on you for energy.
You might also get a dent in people's confidence in the EU thrown in. If you invested it all wisely, in the longer term you could even get a warm-water naval port out of it.
Not bad a return.
The Russian offer to better the terms of the EU bailout for Cyprus is not just commercial. It is an attempt to regain influence in a region of growing energy importance.
Russia had already lost power in the Mediterranean and Middle East when Egypt was flipped and turned towards the USA.
After the implosion of the Soviet empire in 1989, Moscow lost any chance of a quick return to the region and was left only with a small port on the coast of Syria to play with.
But Russia is now back on its feet, and the discovery of the potentially huge gas field in the eastern Mediterranean has given it an opportunity to again engage in the region.
It has already done a deal via Gazprom with the Israeli's over its gas fields, and is now trying to get in on Cyprus's potential gold pot.
Europe has for years been looking for a way to wean itself off energy dependency on Russia, and Cyprus was one route.
However, if Gazprom secures the rights to explore the Cypriot gas fields, this will give Moscow massive influence there.
Influence is power and that power could feasibly result, down the line, in Cyprus suggesting that the British bases on their island close.
From there, the possibility of a Russian base might emerge in what is a key part of Nato's Mediterranean strategy and an intelligence gathering post.
The UK, Greece, Turkey, and the US - all Nato members - might object. But money talks and we have seen in the last decade that Russia wins some and loses some.
The ties between Cyprus and Russia are not just commercial and political.
We should not underestimate the cultural ties between the two, which are based on Russia's perception of itself as the guardian of Orthodox Christianity.
Whether Russia wins this geopolitical fight or not, it will continue to watch with interest the political and social fallout of the euro crisis and the democratic deficit which has been part of it.
The EU has crossed an intellectual line in Cyprus. Previous bailouts of other countries may have required austerity measures, but now unelected Eurocrats, in consultation with Cypriot leaders, have told the people that they are going to take up to 10% of their money without asking them. In Cyprus they have a word for this - theft.
This has been noticed across the European Union. If it might happen in Cyprus then it might happen in Greece, or Spain, or Italy. The raison d'etre of the Union is to ensure prosperity and the safety of its peoples, not to take money from their bank accounts.
The Cypriot politicians fear they could become the target of retribution from the people and so have hot-footed their way to Russia.
Not only might they get what in the short term looks a much better deal from Moscow, but, and this might be really what's going on, they might force Brussels to offer a much better deal to prevent Cyprus from "falling" to the Russians.
Either way - terms and conditions apply.
The Good news is Cypriot Banks will reopen on Tuesday.
The bad news is that Cyprus caved into the demands of the German Chancellor.
In order to qualify for the bail-out, the Cypriot Government shall steal up to ten percent of each individual Citizens savings account in banks on the Island, and surrender that money to Brussels.
If they do that the European Union will give them a government bail-out and the International Monetry Fund and European Central Bank will be happy...until that money runs out...and then Cyprus will be back at square one.
Same thing is going to start here in the USA. States like California and Illinois are going to require bail outs, soon.
Cyprus eventually gave in to the demands of the European Government...and they think Slovenia might be the next country to go now :unsure-1:
Thats the problem with Different Soverignties sharing the same financial currency...I am so against Federalization, I really do not believe in anything but pacts and treaties to govern different soverignties together...I dont like Financial Union, and I absolutely despise Political Union
These BIG Governments have become something they were never supposed to be. They are no longer a consensus of individual soverignties...they are a form of Tyrany over individual soverignties...in the US its gone on for so long the State Governments seem to have forgotten that, technically speaking, they are independant countries in their own right.
the reason why its not such a problem for the US States...is because most were formed and annexed deliberatley, their creation was with the purpose of being a union...thats not the case with Europe, where different States have up to 1500 years of Pure Soverignty without any wish or will to join a union...and now they notice when the Union takes away what they've had for centuries...we werent created for Union, Whereas, with the exclusion of Texas...the US was.
|All times are GMT. The time now is 07:33 AM.|
Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2016, Jelsoft Enterprises Ltd.