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THE TRUTH BEHIND THE CYPRESS BAILOUT |
| Cypress Loses Sovereignty. The Cypress bailout is symbolic of the strategy of damage limitation by the stronger EuroZone nations, and is more of the same medicine alreay applied to other southern European EZ countries. |
Cypress enjoyed a healthy economy prior to joining the Euro, an economy based on tourism and offshore banking. Cypress' entry to the EZ, like all other EZ member countries, was dependent on meeting EU set criteria. Cypress then joined the EZ. Following the global financial crash of 2008/9, EZ banks were forced to undergo EZ bank stress tests, Cypress passes the tests in 2011. In following years, Greeks sovereign debt problems reached crisis point, but an EU 'troika' sponsored bailout postponed a possible default.
EZ encouraged Cypress and other countries to buy Greek government bonds (greek sovereign debt), then imposed a 50% haircut on those holding the bonds. Major losses incurred as a result which completely undermined the Cypriot banking system, which ultimately undermined their economy due to seriously reduced liquidity. Cypress needed financial help. EU offered a bailout with EZ loans dependent on private depositors taking a haircut of up to 40%, and that Cypress' 2nd largest bank would be closed down. Loss of confidence and the associated job losses will decimate Cypress' economy as an offshore banking centre. The head of Cypress' main bank, the Bank of Cypress was soon sacked, and it has come to light that this was another unpublicised condition of the bailout.
This is the punishment by the politburo of the EU and the German government, dished out to Cypress for choosing to run an economy based on offshore banking. Luxembourg meanwhile, continues to be one of the largest centres of 'offshore' banking for rich Europeans and international companies ducking their responsibility to pay tax, in the countries where their revenues were generated. Brussels meanwhile, continues to be the centre of tax-free salaries and expense accounts enjoyed by those gaining tax immunity through EU employment. Germany meanwhile continues to build it's arms industry which currently has the 3rd largest arms sales revenue in the world. Is it really fair to destroy the economy, the hopes and the dreams of a small island state when there is all this blood on other people's hands??
EZ and ECB 'prints' money and gives bailout funds to Cypress, who are obliged to pay it back, most of it ending up as repayments to the German banks that greedily over exposed themselves to Greek borrowing originally. The German government, is not prepared to take their own losses, and because of it's position at the helm of EZ policy, can wield a big stick and extort the money out of the smaller fish in it's 'beautiful' Europäische Wirtschaftsgemeinschaft.... |
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The most important reforms are described with full details of policy and financing in the section [ principles of change | A MANIFESTO FOR CHANGE ]. These reforms are absolutely necessary to initiate positive reform of our political systems. Policy in all areas of state involvement needs urgent attention but must be part of an ongoing process of consensual change through a system of direct democracy and consultative referendum.
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We are NOT a political party
but a movement for social economic reform. We want to help restore
democracy in Europe and put public money and political power back in
the hands of all citizens. We want an economy that works for
the people and not for the ruling elite. Simply
spread the word to become part of the movement and together we can
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A social economic model for sustainable living in a people and resource based society
- it's time for change.
Written by: Michael Livingston Seagull |
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