More fear-mongering from the wall-street journal:
“Cyprus is in a very difficult position right now, both the government and the financial sector,” said John Dimakis, at STR, a political consultancy in Athens. “I can’t even imagine the consequences if parliament doesn’t back the bailout.”
The politicians want a bailout of the banks. Big surprise. From 6-10 % of the money each person (foreigners too) holds in any bank in Cyprus will be taxed to prevent their banks from going insolvent. Furthermore, they are considering deals with the IMF in the near term. Great, more debt and more austerity measures for the people and the bankers get away scott free or with golden parachutes.
I recommend courses similar to those taken by Iceland and Argentina. They are doing significantly better than most (if not all) of the countries that accepted IMF loans, World Bank loans, forced privatization, free trade requirements, and austerity measures that came with the loans. Heck, maybe Cyprus could start a new national banking system that is based on a 1 to 5 ratio of fiat currency instead of a 1 to 10 ratio. Nah, we don’t want to introduce any added stability to the “business cycle.” The boom and bust (and the size thereof) are what makes the real money, not for the people, but for the elite; and we all know who really matters here.
Good luck to the resistors.