I responded to a comment on nakedcapitalism by Maju on a very good article on the EU’s outrageous bail-in of Cypriot bank account holders by confiscation of a part of all deposits. The commenter Maju wrote
I agree with some of the commenters above in the sense that Germany/Eurogroup seem to have wanted to cause a bank run. Otherwise they are total idiots but I doubt it is the case: this move clearly meant to favor other banking interests (in Luxemburg, Switzerland, the many British dependencies or whatever).
This means that the sticky deposits of small Cypriots will be taken out of the banking system and the hot money deposits will be all that is left. The consequence thus making the banking system of Cyprus more unstable.
I agree that if the effect is to transfer hot money to other money center banks off island, then one needs to looks at qui bono and infer that the intent to make the money move and to discomfit the Russians was, if not conscious, at least subconsciously self-interested. From our debased vantage point we may not be able to discern exactly who benefits and how, but certain contours of their interests are discerned in this article.
Another commenter Nix wrote:
As a german citizen i can clarify something for you.
We are not short sighted, we are outright blind.
Especially when it comes to economics.
You would`nt believe the level of sheer stupidity and ideologic bullshit you have to put up with in this country.
These people have issues. As in retarded.
When dealing with german economists you always have to keep in mind that you are dealing with retards.
The Euro is declining. The decline of the Euro and the European unification project as a whole means that there are changes in power occuring in the elites. The fights of Cyprus, Greece, Ireland, Spain and Italy are fights which will pit elites one against the other. The challenge is to look at the actions and consequences of actions and not the speeches and rhetoric, which will be mostly empty.
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