Merkel is nothing but a mouthpiece for the ECB, and everybody knows it. The Cypriot "leverage" of gas in the Aphrodite field is a hollow gambit at this point because it hasn't even been determined how much gas is, in fact, in it! No, this is primarily a battle between the European Central Bank (plus its "big brother", the Fed) and Russia. As an American, I don't have "a dog in this fight" -- yet. But as an interested observer, my money's on Vladimir Putin, if only because he's smarter than all of the idiots who run the so-called "governments" in Europe, and, he's also smarter than the ECB's Draghi and the IMF's Lagarde. But, the real question is whether or not Putin is smarter and more powerful than the only person who can outmaneuver and overpower him -- the Federal Reserve's Ben Bernanke! I said that as an American, I don't have a dog in this fight -- but Bernanke and the Fed is running the economies of the entire world. This may lead to what could be the most entertaining "cage-fight" between real power-players since the fall of the Soviet Union.
So you think it will reduce your dependence on Russia. Ha, not after Brussels tried to destroy the banking system of Cyprus. Russia wants to build the facilities for transferring the gas, and it is willing to pay plenty for it. Cyprus might just end up leave the Eurozone.
I wish, but it doesn't appear that the existing government has the backbone. I should add that the EU is a sensible and useful organisation. Cyprus should remain within it whilst dumping the Euro. The UK has a separate monetary system , although I can't tell you how that works. The EU , despite its faults, works for human rights on a scale inconceivable to independent judiciaries. It also allows FREEDOM of movement, residence and employment . That's priceless.
No, the EU guarantees all deposits up to 100,000. That is an EU treaty guarantee. In fact, it is a breach of the treaty to take any tax from the first 100,000 of any depositors money. So, if Cyprus defaults and all its banks fail it will be the EU that has to pay all deposits up to 100,000 Euros. Cyprus's banks lost money on property loans to Greece and other EU nations. They are private enterprises. The EU and the IMF forced the private debt of these banks onto the government and people of Cyprus. There is no way that Cyprus, or the guaranteed depositors in those banks should be held liable for the poor lending decisions of those private banks. That is wrong wrong wrong. It was wrong for Ireland to take on the debt of its private bank's failures, it was wrong for Spain, it is wrong for Cyprus. Despite all the hyperbole these nations played by the rules. Now they are being punished because the rules did not work. It was not their decisions to play by these rules, they had no choice but to adopt them because they were a requirement for joining the Euro. By what logic or reason should they be held liable?
Very important points conveniently overlooked by the EU bashers. Remember a creep like our William Hague is hemmed in because of the majority European vote led by Germany which prevented the French and UK tory coalition from sending more of our troops to die for Western imperialism in Syria.
Cyprus’s fate hangs in the balance as euro-area finance ministers meet today to decide whether the tiny Mediterranean island has done enough for a bailout that will avert its financial collapse. As thousands of protestors marched through the capital Nicosia yesterday, Cypriot officials worked to broker a deal with the European Central Bank, European Commission and International Monetary Fund on how to raise the 5.8 billion euros ($7.5 billion) needed to qualify for aid. Those talks, which focused on a plan to impose levies on bank deposits over 100,000 euros, ended at a “very sensitive stage” last night and will continue in Brussels today, the government said. Eurogroup finance ministers are due to convene in the Belgian city at 6 p.m. “There are only hard choices left,” European Union Economic and Monetary Affairs Commissioner Olli Rehn said in a statement. “It is essential that an agreement is reached by the Eurogroup on Sunday evening in Brussels on a financial assistance program for Cyprus.” The third-smallest economy in the 17-nation euro area was plunged into chaos last week when its lawmakers rejected an EU proposal to confiscate a portion of all bank deposits in order to qualify for 10 billion euros in bailout funds. The ECB has imposed a deadline of tomorrow for a new deal to be struck by threatening to cut off emergency funding to Cypriot banks, which have been closed all week and are due to reopen on March 26. http://www.bloomberg.com/news/2013-...ngs-in-the-balance-as-ecb-deadline-looms.html
As soon as the banks open - irrespective of the Cypriot government vote- depositors will start to drain them of their ' reserves '. No outside investors will even consider putting fresh money into an economic system which considered stealing it. The very suggestion has wrecked the Cypriot economy's prospects. It was a blunder on a massive scale and Germany is going to regret promoting it. I cannot understand why the Russians have not seized this opportunity. There must be negative connotations to Russian control of Cyprus of which I am as yet unaware. Anybody ? Who is threatening whom ?
Regardless of what is agreed the banks of Cyprus are now doomed because the trust in banks has been broken and as soon as they open there will be a rush by depositors to remove their money. The government is considering capital controls to prevent the big depositors from fleeing but that will not make much difference. It is reported that Russia offered a bailout with the condition that it get concessions on gas development, something it was previously denied when a low bid by a Russian company was rejected, possibly due to strong EU and US pressure. Cyprus could also offer Russia a port for its Mediterranean fleet as its port in Syria is tenuous at best. I am really surprised that Cyprus is not using these points for leverage in its negotiations with the EU, which really wants to keep Russian influence in the Med to a minimum. Interestingly, the new US Secretary of State, Kerry, has announced that the US is willing to do whatever it can to help Cyprus. Is this some veiled warning to the Germans to back off?
Hey, hey I was describing this a long time ago before the so called revolution that the MB was promoting to air heads... Now they are all up in arms and wondering how 900,000 MB could take ove 75 Million Egyptians. I will not shed crocodile tears, it is time for the 10 plagues to strike and render this sh*hole unsafe for the European and American tourists.
The US of AIPAC will NOT want a Russian base off the coast of Palestine. The neoZionists must be absolutely crapping in their German nuclear-capable submarines What could the Western bloc threaten Cyprus with though, if it was aligned with Russia ?
The west can threaten to cut off the supply of high-quality anti-flea products to Cyprus that Cyprus wouldn't be able to do without if they go to bed with dogs.
They voted no to the theft but they allowed the conditions that made the theft necessary...No matter how things get cooked, the citizens of Cyprus through their votes set themselves up for this.
Why is Cyprus in so much trouble in the first place? Is it because Cypriot banks loaned to the real estate market in Greece, lost a lot of money and are now in need of massive recapitalization? Yes. Why is the EU central bank not capitalizing the banks directly like it did with the French and German banks that needed recapitalization from their losses in Greece?
Greek Banks in Cyprus were being used to launder mainly Russian money. The Turkish Banks are not affected. It seems to me the EU is trying to break something here ....First the Banks in the City of London and now tax heavens .......I dunno but there is more too this than meets the eye, me thinks.
I would not call that money laundering since it is not. Russians do not make illegal transfers of large amounts of cash to banks in Cyprus, they transfer their money through legal channels totally above board. The reason they use banks in Cyprus is because it is convenient, taxes are low, it is easy to set up companies there, and the rule of law strong all of which protects their money from the Kremlin kleptocrats. Cyprus actually has very strong laws against money laundering, it is far easier to launder money through Switzerland or Luxembourg than through Cyprus these days. The bankers in London are jealous of their business so they call the Cypriot bankers money launderers, like the pot calling the kettle black. By screwing the depositors in Cyprus they are hoping to get those Russian $Billions into London, and if it is laundered money would put the London bankers under the deep scrutiny of authorities in Russia, the UK, the EU and the US, which has already extracted over a$Billion from UK banks for their money laundering shenanigans.
How's today's price- considering that the bottom just got shot out of public confidence in the European banking system ? And what's the cost of an assay ? Metal fraud will be rife.
Cyprus dodged a disorderly default and unprecedented exit from the euro by bowing to demands from creditors to shrink its banking system in exchange for 10 billion euros ($13 billion) of aid. http://www.bloomberg.com/news/2013-03-25/cyprus-to-chop-banking-system-to-win-aid-avoid-default.html
The EU bankers have simply stolen the funds of savers . Further, they have not allowed a vote on the measure by the Cypriot parliament. We are witnessing ' legalised ' theft on a massive scale.
