High Noon in Nicosia: Banker Vs Depositor

‘The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.’ -Lord Acton

By Anthony Migchels – (Henry Makow.com)  and Real Currencies March 19, 2013

It is not clear yet how things will go in Cyprus. The depositor bank bail-out was rejected by Parliament Tuesday. Ironically deposits may be in more danger if banks fail. It remains to be seen if the EU will bail out Cyprus’ banks to the tune of 10 billion euros.
Some think that the main target was Russian holdings in Cyprus, which is an off shore hub for all sorts of shady fortunes, including those of the Oligarchs. Putin denounced the package as ‘unjust, unprofessional and dangerous’. However, the stakes involved here are way too high: grabbing a few Russian billions is not the agenda behind destroying depositor confidence worldwide. But apparently Putin’s constituency is hurting, because a little later he actually offered to participate in the Cypriot bailout. Almost half of the $90 billion in Cyprus banks is Russian money, await6ing reinvestment in Russia. 40,000 Russians live on the island.
Apparently, the ‘rescue’ was forced upon Nicosia by the threat of being kicked out of the euro. It’s amazing that this ‘threat’ still holds sway, after five years of this nightmare and with the clear example of Iceland. Cyprus, as a small nation, seems to be similarly positioned. Undoubtedly, behind closed doors, the threats were more strenuous.
Cyprus is probably just a test case, to monitor global reactions. The country is irrelevant, with only 0,2% of Euroland’s GDP.
The euro may not fail, because if it does, they will never be able to sell World Currency. If they can’t even make it work in Europe, how is it going to work on a global scale? That’s the reason why all member states are kept on board at whatever cost, either to Brussels, Frankfurt, the national economies or even, it seems, the banking system itself.


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