02 April 2013

What the Cyprus Bailout Reveals

To say the recent Cyprus bailout reveals anything is a bit of a misnomer. For those with their fingers on the pulse of the geopolitical landscape there’s no epiphany here. The fact that the Cypriot bailout almost became an attempt to inflict all bank depositors with a one off 6.75% levy, for funds under 100,000 euros, sends a very clear message; Eurocrats are determined to keep their Ponzi scheme afloat at any cost - if people take it lying down. While the 6.75% haircut has been abandoned on funds below 100,000 euros, those above 100,000 euros haven’t been so fortunate. In typical socialist fashion larger depositors were always in line to lose at least 9.9%. Now this could rise to 40%. As usual under collectivism the opportunity to take from those that have amassed moderate funds has been exploited, and no attempt whatsoever has been made to consider those that might have worked for a lifetime to accumulate finances. Even business accounts holding funds for clients, or cash flow prior to taxation, have been targeted.

Cyprus stands as testament to the determination by the ruling elite to steal from hardworking people, exploiting ignorance, apathy, and demagoguery in the process. Faith in fractional reserve banking has been shaken, since targeting depositors should be the last port of call if confidence is to remain sound enough after a crisis. Usually shareholders would stand to lose their funds first, then bondholders, and last of all depositors. This order reflects risk, and depositors are literally the last group that should feel under threat. When they do feel threatened then mass withdrawals, or bank runs, can occur, which explains why there’s been serious capital controls on the amount of money that people can withdraw from Cypriot banks in the last couple of weeks.

For me personally the Cypriot bailout is far more than another chapter in the banking crisis that began in 2007. With both a mother and a father of Greek Cypriot origin I have strong roots to the little Mediterranean island, with a population of less than a million in the south and more Greek Cypriots in the rest of the world than those living on the island itself. It’s a tiny place which you could travel across in a matter of a few hours by car, and that includes Northern Cyprus. Many a summer I spent visiting relatives for as long as a month at a time. It was the traditional family holiday, the novelty wearing off as I grew older. Eventually I yearned for the typical trappings of Western culture, which weren’t part of Cyprus life for the most part. The laid back village lifestyle of barbecues, Mediterranean cuisine, beaches unoccupied by tourists, and beautiful trips to the Troodos mountains, didn’t have the same appeal as it does now that I’m a little older. Alas, the routine of visiting the same places in the same tiny country, year after year, made me want to travel far and wide as soon as I was able, and that I did when I hit 21.

My mother, having fled to the UK during the Turkish invasion of Cyprus in 1974, left behind a sister and her parents. Today her sister still remains on the island, having never left, and her own children now have their own families. I still see them from time to time when they come to the UK to visit, but I haven’t been back to Cyprus since I was 18, which is almost 17 years ago. My mother, having spoken to family on the phone, tells me that they’re shocked by the crisis, forced to endure stringent limits on cash withdrawals which hurt everyday life, be it buying groceries or fuel for cars. All this has caused the Cypriot economy to all but shut down. Businesses no longer feel they can make decisions and continue with obligations when there’s so much uncertainty in the air, and family members have been told that jobs cannot continue until the crisis has been averted.

The teenager I once was never truly appreciated Cyprus prior to joining the EU. Before I was a teenager I often enjoyed simple activities like playing war games with the rest of the children in the village. The village school would be unoccupied in the summer, and we’d have skirmishes in the playground with toy guns that we’d buy from the summer village fete. As I grew into a teenager I found it harder to occupy myself - all I really wanted was to be around girls and to play computer games. While those around me had a different cultural attitude I was a typical Western teenager. Looking back I realise just how unique Cyprus once was. It was a place cut off from cultural Marxist hegemony. While Cypriot politics always had a communist side with the AKEL, this often stemmed from desperation and ignorance in the midst of Soviet demagoguery and Turkish invasion. The failure for the British and the Americans to stave off the invasion of the Turks into Cyprus never helped this unhealthy outlook either.

Like other countries, the EU convinced Cypriots that joining the bloc would lead to prosperity, although Cyprus had another reason or joining – protection against Turkish aggression. The discovery of natural gas in the Greek Cypriot side of the Levant Basin has led to Turkey imposing in the region once more, so yet again it seems that Greek Cypriots are under threat from the same old place.

The present crisis tells us a lot about living in a statist system; the bigger you are the more influence you have. Cyprus is about as small as it gets, which is why the European Central Bank has made “unique” demands on a Cyprus bailout. However, I would argue that Cyprus is merely a means to introduce the potential to target other depositors in the future, since this would be a lot harder to introduce in countries as large as Italy and Spain, let alone Greece or Ireland. Cyprus is merely a template for what will eventually happen to all of us, and many people I speak to about this don’t want to hear that this is the case. Anyone that’s aware of what I’ve been saying for a very long time will know that I’ve regularly stated that this crisis isn’t over, and in no way has this prediction failed to come to fruition, even now.

While Cyprus is very small, banks going under in this country would usher in a domino effect which could affect bigger countries, starting with the likes of Greece and snowballing exponentially across the world financial system. This has always been the biggest threat, and is the reason why countries are so quick to bail out banks instead of doing what a true capitalist system requires; let bad businesses fail, so that better businesses can replace them, as opposed to monetising the bad debt. This is impossible when central banking leads to a structure that’s so globally intertwined that even the smallest bank run could cause panic, and when panic ensues there simply isn’t enough cash in circulation to match the hysteria.

Sadly it appears that the easy going Cypriot lifestyle I remember as a child is now coming to an end. The people that built their own houses on plots of land, living in villages surrounded by family, spending Sunday afternoons eating souvlakia, enjoying the benefits of a strong national currency, are being replaced by Ikea, multiculturalism, national debt, and naïve voters that have no capacity, let alone desire to understand the complexities of the EU con. Hence, just like every other EU nation, Cypriots have been sold a promise of sophistication and wealth, like the Emperor being sold invisible clothes. At this rate, and when all’s said and done, Cypriots will be left with a pile of unmanageable debt, with politicians speaking for them that are even more uninformed than they are. Many of those more in tune with reality, the politicians and financial elite, will keep feeding from the public trough and taking cash under the table to look the other way.

Welcome to the new EU Cyprus; Russian mafia taking over Cypriot cities, International Women’s Day indoctrinating females into giving up family life and becoming tax cows, and stealing savings from hardworking people at the whim of a technocrat, which spells the end of Cyprus as the tax haven that helped its economy stay strong for decades. The EU will never give up Cyprus without a fight, and your average Cypriot wouldn’t know where to begin to unravel the lie. If you think you’re safe living in other parts of Europe, think again. Cyprus may be easier to bully due to its size, but Cyprus also reveals just how far the ruling elites are willing to go.

If you’re wondering how to protect yourself from the financial terrorism we’ve all been signed up to there are measures I would recommend people take, though as an added caveat I’m no financial advisor. Restrict your exposure to cash as much as possible through the purchasing of hard assets like gold, silver, property, and anything that amounts to something solid. Above all stay away from the fake digits on a screen that politicians and bankers can take away at the press of a button – this crisis is far from over.


  1. Marxism is in its death throes, but it will not go down without a fight. Not only is is a morally bankrupt system, it is now literally a bankrupt system. Socialists ran out of other people's money to spend a decade ago. We've been cruising on debt and now the bills are due as well as the balloon payments. I truly hope people are waking up from the socialist stupor we've been in for nearly a century, but chatting with some of my fellow Americans and their dangerously low engagement in politics and finance gives me pause. Keep sounding the clarion call, Mr. E.

    1. I truly hope you're right. The funds are certainly getting tight now, but there are lots of places that resources can be stolen from before it falls apart, like the haircuts implemented in Cyprus.

      I sincerely believe this is the shape of things to come in the rest of the West, before any abandonment of the totalitarian EU occurs.

  2. This article is spot on. I have predicted that the EU will be over by 2020 even before Romania joined the EU. Everyone laughed at me in those times and a female history teacher called me a „mentally retarded” for daring to question the legitimacy of the EUSSR.
    Nowadays, nobody is laughing anymore - especially when noticing that most of the traditional businesses that kept the Romanian economy alive are now being shut down because of increasingly bizarre regulations imposed by the EU and when noticing that it is now almost impossible to start a family business because of the immense number of moronic regulations dictated by the European Commission and by the high level of taxation.

    Non-EU countries (such as Ukraine or Serbia) still have a chance. Also, countries that are not in the Eurozone and have a rather stable and healthy economy (like Poland) might also resist. But all the other countries should expect hard times - because when the Marxist Block called the EU shall collapse (and it will!) - a huge mess will remain behind.


    1. You are probably one of the most well informed people I know when it comes to revealing the Marxist undertones of the EU. Your article you published about pornography being banned, and other typical femo-fascist policies to control and repress, were absolutely shocking, even for me.

      What's really worrying now is that the EU is beginning to be very open about its association with an ideology that killed more people than any other. People ban and silence Nazism, while Marxists are allowed free reign. This is the tragic result of two world wars that failed to stop socialism from ensuing. Very sad indeed.

  3. MrE.

    Over at EUreferendum.com, we've been trying to figure out for years how the [i]colleagues[/i] are holding on to this.
    This was not an unforeseen crisis, indeed, the [i]beneficial crisis[/i] is an essential part of the progression towards transnational government and was built into the system. What was unforeseen was the scale because of the international banking crisis brought about by the American act which in effect banned banks from refusing loans to people who couldn't afford them. (Sorry, cannot remember the name of the act enacted under Clinton.
    Monnet was always talking of the beneficial crisis.

    1. I see your point. Crisis has always been the means to escalate control. It's frustrating and sad that many people don't study history, or digest the revised version of it.

  4. You were spot on with Greece, Riots, the Suicide of Old Men for want of medication, the blaming of Golden Dawn and other openly fascist groups, as well as the general demonisiation of anything Greek, and, well anyone but those in charge.

    I remember having a conversation when I was working in France some years ago, with a German couple from Berlin, they were convinced that it was my negative outlook on life (the one I call realism, and the drones can't handle it seems) the young man I spoke with was convinced it was all ok, that Germany was fine, that 50% Tax kept everything ok and the EUSSR (have to nab that) would pick itself up.

    There are many similarities with things happening in Egypt at the moment as well, come to think.

    Like many people, I don't like being proved right, when I basically tell people, "you do notice this is all BS right?".