Cyprus would seek EU bailout money 'if necessary


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#122 … 013_488426


I’m not sure Kaminska is a good source on any of this, it’d be like quoting Krugman.
From what I can make out she has a political ideology that she tries to push (broadly leftist, socially inclined) and thinks only within this sphere, grabbing any sort of theory that backs up her position. That said, I probably do the same.

Thus Economics or ‘Economic theory’ as she so judiciously puts it, is largely faith based or at least politically malleable.
This MMT lark, with its ‘nominal GDP targeting’ as far as I can make out, is economic argot for ‘inflation’.
There has been a quite remarkable hijacking of language over the past few years; ‘government spending’ became ‘investment in public services’, ‘debt’ became ‘credit’, ‘killing innocent civilians’ became ‘collateral damage’ etc…etc…etc…
In the same vein ‘Austerity’ has now come to mean reduced increase in spending/borrowing rather than the vernacular meaning of ‘restriction’, implying contracting or reduction.
It no wonder people are confused by it all.

I dont have a political ideology concerning the current situation, which is why those who manifestly do have one are particularly irritating. (Kaminska, Krugman, Austrians, neo-libs)
I’m more with the Buddhists on this one; sometimes its best to do nothing.
Unfortunately, in the west (particularily on the left, I might add) we always seem to have to be seen to do something. Do anything.
Put a structure in place. Prop it up. Set up an enquiry. Announce an investigation. Write a new law.
It gets wearisome after a while.

I agree with your other point though, the Euro isnt going to disappear.


It looks like the ECB/EU will get their way on this as they originally made demands that were probably an “advance position”, one that they can drop back from when the protests are too hostile back to one that they really wanted in the first place.

By reducing the levy on small savers while increasing it on larger savers, they’ll achieve that while giving the Cypriot government a small “victory” to appease the population.


Talk about changing the tune, this has really put a bat up someone’s nightdress!


Q: What happens in countries who need another bailout but there are no bondholders left (AKA Ireland, Greece and Portugal)?.


The original proposals by the IMF/ECB was for only robbing large deposit holders. IF there is any victory it a PR spin victory.


The Cyprus Deal Works Out Great For Putin And A Few Key Allies ->

Putin Blasts Cyprus Levy on Bank Deposits as ‘Unfair’ -> … nfair.html

Russia’s Cyprus problem - -> … s-problem/

It would appear some factions in the Russian kleptocracy had insider knowledge and others did not.



Some thoughts on German politics and the saver’s tax in Cyprus -> … yprus.html


New proposal from the Cyprus finance ministry…

“bank depositors with savings of 20,000 euros (£17,000) or less would be exempt from a levy.”


It doesn’t add up. The are proposing to do this but leave the other percentages unchanged. The gap has to be filled somehow.


saw this choice quote … z2NtZJy6LA


From what I heard on snoozetalk reports are ATM’s stopped working because they had been cleared out but are being topped up and then cleared out again. It’s clear their is one singular calm priority in the minds of the Cypriots for now.


Wasn’t it the French that wanted the euro currency in exchange for allowing German reunification to go ahead?


Correct. Its a purely political currency with no foundation in financial reality. If Kohl had not bulldozed through German unification against everyone elses wishes there would have been no political need for the euro.

Of course it is all moot by this point. The euro as set up by treaty in 1992 and introduced in 2002 ceased to exist last year. Every single legal foundation principal has been breached by this stage. Four of its members are in de facto administration due to insolvency. Only five members could be considered to be conforming to the original financial rules and conditions of the euro when it was set up.

So when compared to the previous history of partial monetary unions the euro is in an advanced stage of dissolution. This stage can drag on for many years and its final termination will be due to a political crisis. There are no financial steps I’ve heard of so far, either micro or macro, that could return the euro to its original legal state of 2002. The problem with political train wrecks like these is that they can drag on for a very long time. Decades.





As this is one of the factors that can lead to hyperinflation.


Apparently the Cypriot Finance Minister is in Moscow but has been dismissed while there at the Russians’ behest. They want to send a message to the EU that they forced an unacceptable deal on him and he has been dumped for accepting it. They are looking to go back to the drawing board. At the same time the Cypriot parliament is debating the deal but if they put it to a vote even the ruling party will abstain so there will be zero votes in favour.