In the immortal words of Cole Porter, “Anything Goes” in the international financial world these days. And while we are not yet again in the giddy 1920′s leading up to an even giddier depression, we are getting damned close!
The recent financial management fiasco in Cyprus are very real proof that the international sector hasn’t a clue; from the small-minded reporters who rub their hands in glee that yet another “irresponsible’ national economy has bitten the dust, to the so-called national Finance Ministers who gloat that other irresponsible countries will suffer the same fate as the Cypriots and Russian “oligarchs” (why please, are all rich Russians “oligarchs”?).
It doesn’t seem to occur to any of these so-called fiscal experts that that they have abruptly and completely ripped the guts out of the banking sector across the Western world. Given that the entire international financial sector is based on sleight of hand and “confidence’ that things can only get better; we now are all in deep shit. One’s confidence may become a little shaky when you realise that once things go bad (because things have gone bad somewhere else -like Greece), you are going to immediately lose almost half of your savings. But lets not forget the small Cypriot savers who now are unlikely to ever be able to retrieve their measly savings, and without a job, may simply starve, as the inexorable decline of the Cypriot economy gathers pace.
But what is your alternative to the bank?-stuffing your money under the mattress?, or in your little safe in the mattress? (recently invented by an imaginative businessman from Spain)- no – inflation is definitely going to make that a pretty poor option-assuming you don’t get robbed first.
Others see their saviour in Bitcoin, suppliers for whom have just announced the first bitcoin ATM in – guess where? -Nicosia,Cyprus. Lets hope the internet keeps working then…
Undoubtedly the Cyprus economy is minuscle in comparison with other EU economies, but for some reason their Northern EU neighbours have taken upon themselves to scapegoat Cypriots, presumably not realising the mammoth impacts of their actions upon themselves and the rest of the Western world.
But then really-why am I surprised?; the basis of capitalism is short-sighted greed and folly- why should it be different this time?
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Postscript:
http://www.lrb.co.uk/v35/n09/james-meek/the-depositor-haircut
Economonitor: Cyprus Reopens for Business: NowWhat?
http://www.economonitor.com/blog/2013/03/cyprus-reopens-for-business-now-what/
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The BRICS Expose the West’s Hypocrisy By William Pesek
Who do they think they are, these upstart economies, Brazil, Russia, India, China and South Africa?
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Betray Your Bank Before Your Bank Betrays You
What’s a Slovenian with several hundred thousand euros in the bank supposed to do? Spread it out among at least a few different banks, that’s what. Or move the money out of the country, while it’s still possible.
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Cyprus: We apologise for any inconvenience…
http://www.bbc.co.uk/news/magazine-21965059
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New Antarctica 