Small island, big finger


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KlausPf in reply to MilovanDjilas

Oh the Brits are pretty smart in retrieving the dirt under other people's nails. They are less good however to sweep the dirt in front of their doors (a free translated saying in German, except that it does not exclusively apply to Brits).

Ismael X

There are two issues messing together and they should be clearly divided and treated. The first is banking rules on money laundering. Is the EU going to enforce them, and not just in Cyprus but in Luxembourg or Dutch Antilles too, not to name other safehavens in the EU but not in the Euro, like Channel Island, Gibraltar or Isle of Man? If the answer is yes, then why firing on the "grandmothers' accounts" in Cyprus and not going for the pot directly? Oh, yes... Germany doesn't want to get tough on Russia and its gas supplies. The second issue is the Euro itself. Is anyone telling clearly to all Euro citizens that the single currency will survive only if the North shares the burden of debt and of a real bank union and only if the South faces still more pain than expected and a sustained deflation of its economies to become competitive? And, after a clear explanation of that and of the alternative scenario with no Euro, South minus 50% and North minus 10-20%, does anyone plan to ask all Euro citizens if they agree or not in a honest referendum? No and no are the answers and that's an oceanic mistake, since pain will come down on the South anyway and costs will rise up in the North anyway and that will just make Europe blow up in pieces, no matter the consequences, and Northerners will find themselves so sanguine on the issue as blamed Cypriots nowadays. The Euro is neither bad or good. It's a tool. Just train people clearly how to use it and how much does it cost and maybe it will survive. Spread it around with no clear instructions and with no alternative tool at hand and so many people will get hurt that the Euro will be finally buried in a much more divided and split continent.

Vanbrugh in reply to shaun39

I agree with this. Italy needs emergency austerity to stop it from collapsing, but what it needs to solve the crisis above all else is structural reform.

Italy is not a welfare state and its services are generally poor. Its people are savers like the Germans, not spenders like the Greeks and British. Its high debt comes from decades of inefficient bureaucracy, corruption, glacial legal system, white elephant projects and the short-termism created by its badly designed political system. Is uncompetitiveness comes also from poor infrastructure investment and rigid labour laws.

Italy does not need austerity, it needs institutional rebuilding.

Some crooked citizens, buisness people and politicians benefit from the system - but this system needs a complete overahaul for italy to meet 21st century challenges (and for their youth to find jobs). While I dislike the M5S leaders I can understand why people voted for them. It was not a vote against the Euro as some think, it was a vote against the status quo.


Time to get rid of private banks for good;
what did they ever do except corrupt?
The people's cash is under democratic
control. The usurers' end abrupt.

Idalion in reply to eroteme

The well-known fact is that Turkey
1. Does NOT recognize Cyprus.
2. Does not allow Cypriot planes to fly over its territory
3. Does not allow Cypriot ships to use its ports.




shaun39 in reply to Bitnick

In Cyprus, it's actually possible to let the two insolvent banks collapse without pulling down the third one - they aren't loaded on one another's paper like the Irish banks.
Cyprus is tiny, and could easily bring in branches of other European or global banks to fill the market gap, and prevent the sudden contraction of lending or credit facilities. Whereas a collapse of Irish banks would leave a hole too big to be refilled (in less than 3 or 4 years); meaning rapid contraction of credit and an even deeper collapse of consumer spending, business investment, employment and tax revenue.
So, in a bigger country like Ireland where the financial system is massively interdependent, a bailout is perhaps justifiable - though makes it clear that we need to keep banking segmented and to keep individual banks small. In Cyprus, the evidence just isn't there that there's anything to gain through recapitalisation - and so without ambiguity, the broke banks should be allowed to collapse & enter restructuring.

Gianni in reply to Nick Georgiou

Time to solve your debt problems.
Nationalist ranting doesn't really create the wealth you need to get out of the mess, no matter how long it may take.
It's economics - ''silly'' - not identity hang ups that matter!
It's pretty clear from history with murderous folks like Nikos Giorgiades around as would-be Presidents of Cyprus, that many Cypriots were very prepared to ''butcher'' others for themselves and some hang up or other about identity.
Busting Cyprus economically is going to be far more painful for far more ordinary people for a far longer time, than abandoning grudges, desires for revenge and pointless identity hang ups, and even more so those based on fake beliefs in some sort of 'religion' or other - whether capitalism, 'christianity', what you will.

Perhaps something about sharing and focussing on others, rather than on what's MINE (i.e. not YOURS) could help?

i.e. a new mind set?
Something or other about pulling together all in the same direction? Humanities?

After all, Cypriots managed to live on Cyprus for a very long time without the sort of capital that's freaking so many out now.
You need shelter from inclement weather, food and water. Better if that is all provided for all, with everyone putting in their share of effort to produce it.

Ranting about not being able to afford the Sport-Ute any more???? Well????

la.výritý in reply to AndreasCyprus

"This is what happens when blockheads like Dr Scaeuble want to run the world!"

No German politician I know of "wants to run the world".

But surely Mr Schaeuble has no mandate allowing Cyprus banksters and their dependent politicians to run or to meddle in German taxpayer's innermost financial affairs. Just stop putting German voters under bailout pressure . . . and I can almost promise you, they'd even forget where Cyprus is located on the map.

Richard Michael Abraham

Real Unemployment – Job Market Unsafe

Since millions of Americans are no longer looking for a job, the labor participation rate dropped dramatically.

Though unemployed is reported at about 7.6%, if Americans were not leaving the job market, unemployment would be close to 11%. And if underemployment is factored in, real unemployment could be closer to 18%

To me, this means that none of my students in the U.S. or World should put all their hope in their current employment.

Indeed, these are the days when historians will look back and say, “Now, that was a time to take control over your life and future and be entrepreneurial.”

As I stated these past four years, the FED and all Central Banks Worldwide engage in a manipulated market.

The FED and Central banks have the power to keep rates low artificially, devalue the dollar, create erosive but hidden inflation.

The media is not going to reveal the artificial economy.

But actions like Cyprus banks unraveling is an event the FED and Central Banks cannot manipulate.

And to obtain a 13 billion dollar bailout, the Cyprus banks are attempting to steal money from large depositors.

If this takes place, this will become the norm and the next time U.S. or other international banks run into trouble, watch out.

So right now, historians will point to today as the year becoming an entrepreneur made the saving difference in the lives of many.

So, no matter how hard it may be, bet on becoming a successful real estate developer to control your future and your financial wellbeing. Make your Course Project a winner right out of the box – on your first try.

And that control over your life starts with this Real Estate Development Certification/Mentoring Course.

During the six months you have me, work harder than you ever did in your life before.

The Job Market is unsafe and treacherous.

© Richard Michael Abraham


Again, and again it is always the same story.

Financial industries have grown into a size x-times of the GDP generated by the 'in German Realwirtschaft', or the real economy. Of course if one of the pillars of the financial industries goes bust (remember their size is often x-times the Realwirtschaft, see c.f., Cyprus), the whole bunch of their former benefitters cry 'we are system relevant, please help us, with the address sent first to the states (i.e., the taxpayers) where they are affiliated to, and then if necessary to the helpers from super-structures (IMF, ECB, ...). Of course these helpers then impose 'conditions' on their assistance either to calm fears the money would not be payed back or just to throw 'sand into the eyes' of those paying the mess (i.e., the taxpayers). So forget here when arguing any nationalities, passports, stereotypes, et cetera, because such arguments are just not helpful or better rubbish....

To this end either the financial industries have to shrink to the size helpful for the Realwirtschaft, or do a better risk management (obviously by force since they run out by self-control), or further fleece the taxpayers in any country directly or indirectly involved, or they continue to bust whole countries&societies, or eventually the whole world economy.

As physicist dealing with turbulance, I tend to say. Downward control of the system works until the 'system' of inertia drops-in (i.e., the risks of the financial industries are cascaded to smaller structure, i.e., finally to whole societies or taxpayers, see Cyprus). So where is now the inertia at smaller scales, and is there any upward-control (at least in turbulence there is)?

Tom Silo

"Rusky Tax" is what I call it.. and it was always on the cards... and it's in... reported that:
. under $100k you are insured
. over $100k and with Bank of Cyprus means a 40% loss and
. over $100k with Cyprus Popular close to a 100% loss

a few other consequential details of course, but let's call it what it is...

A. Andros in reply to Johninch

Well, the tonnage of the US fleet exceeds that of the rest of the world's navies -- combined.

But, seriously, isn't it late in the day for the Europeans to be playing Great Power?

Monyyy in reply to Christos Xenophontos

Dear, sir,
Best Regards

A. Andros

The Cyprus banking problem will eventually end and the EC will stagger on to the next of its recurrent crisis.

As a Yank, I have nothing to say about who should pay whom. It's not as though we did not make whopping mistakes with our banking system.

Will Cyprus offer Russia a base? Seems unlikely but it is an intriguing idea. A Russian naval base in the Mediterranean would exist for one reason and one reason only -- exacerbating its European neighbors.

It all seems a bit mouldy . . something out of "The Great Game." The Russians take a strategic position in the Middle Sea from which their rattletrap navy can threaten . . . well, exactly whom? The British lifeline to India? Nope -- seventy years too late for that. The French holdings in Syria and the Lebanon? Sorry . . . that bus has long since departed.

In fact, it is hard to find a legitimate Russian need for a Mediterranean naval base. It might intimidate the Middle Eastern countries, beginning with Turkey and continuing straight on to Israel. And, it is a potential blocking point on the shipment of oil to Europe. But, even this sounds like something out of the age of dreadnoughts and battle-cruisers. Will France, its oil threatened, then construct an entente with Turkey? Will the Turks reconstruct SMS Goeben and use it "to protect the Straits?"

It all sounds farcical. This sort of thing reeks of an Eric Ambler thriller like "The Mask of Demetrius." Is it time for Riley, "Ace of Spies?" In the age of airpower the presence of a base on Cyprus would seem to be a naval liability. The Cypriot "threat" might have caused Disraeli to urgently confer with General Gordon or even Campbell-Bannerman with Sir John Fisher but, really . . . how are we, today, to keep from bursting into laughter?

If the Russians do develop a naval base in Cyprus (and the odds seem 99:1 against) then, as a Yank, I must conclude that Europeans, like the Hapsburgs, have learned nothing and forgotten nothing.

You are all more sensible than this!

GOTTMITUNS✠1870 in reply to Franky9

"Bearing in mind that Germany has no energy resources."
Just a massive advance regarding renewable energies. BTW, Poland and Spain have ten times the gas Cyprus claims to have.
"Alleging for money laundering is nice but no evidence"
No evidence..........?
"The question will be who will want to stay in the eurozone."
66% of Germans want not. 25% would back anti-euro-party.
"Pensioners have lost their pensions"
Who came up with this idea, again?

Jack_Tomphson in reply to MehrAlsSinnLos

TE in 2010: The Euro will fail this year...Greece
TE in 2011: The Euro will fail this year...Greece, Italy
TE in 2012: The Euro will fail this year...Greece, Italy, Spain, Ireland
TE in 2013: The Euro will fail this year...Greece, Italy, Spain, Ireland, Cyprus
TE in 2014: The Euro will fail this year...
Everything depends on that when Germany's spendings on lending of eurozone will surpass its benefits.


If it's somehow okay for the government of Cyprus to levy a confiscatory tax on financial assets of Russian citizens, why can't the Russian government do the same to German assets? A ten percent cut should collect enough to compensate for losses suffered by depositors in Cyprus.


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