Monday 18th – Monday 25th March
The European Union project took a massive confidence body
blow as the troika (ECB, EU, IMF Austerity Axis), launched a surprise
ambush on all private deposit accounts in Cyprus Monday 18th March.
The banks remained closed for a very long week as 800,000 Cypriots planned
their counter to the attack. Meanwhile the feared ECB (financial quartermaster)
in Frankfurt urged the raid to speed up and complete operations before any bank
run by foreign Russian clients.
So this was the start of the long bank holiday. Cyprus
claimed their man was blackmailed by the troika into accepting the bizarre
terms. Bizarre in the fact Brussels president Van Rumpay (one of three)
declared some time back the EU would “convince
the people” in the merits of fiscal and political union. “Accept our terms or your country will be
bankrupt in days,” was the troika’s astounding demand.
Immediately the Cyrus parliament rejected any raid on
deposits as Russian money made up the bulk of it. “Dodgy or not here I come, I’m off to Moscow to ask for more Russian
money.” The Cyprus finance minister
returned empty handed. It was time to reconvene the parliament.
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| Senior members of the feared Troika at the Brussels meeting which agreed to play Russian Roulette with Cyprus. Is it the beginning of "Unfriendly" relationships with Moscow money. image 2013 |
Chancellor Angela Merkel it emerged was officer
commanding the raid. She is no longer worried about solidarity and more worried
about using German tax revenue to save Russian money. (Don’t forget it is
election year).
Find six billion dosh by Monday 25th or we will shut you
down was the Troika’s final ultimatum. Or maybe it was her demand. Merkel is
becoming more moralistic and behaving more like the true European president
than the other three in Brussels. Over the second bank holiday weekend the
Cypriot and troika response was to shut down bank no 2 and to inflict heavy
losses on the Russian deposits. Moscow described the move as stealing and
promised to be just as “Unfriendly.”
All this is very bizarre to the good European, the
spectator on the wings, who, struggling with austerity is now checking the bank
balance to see if all funds are still in place.
Or is it all that bizarre or surprising. Fiscal and
political union between the 17 Eurozone is now a pipe dream and most observers
know it. The United Kingdom broke the ultimate taboo by offering a referendum
over EU membership. The next taboo is exit from the Euro either by push or
goodbye. Once Russian money packs up and moves to another haven, which it will
do, then Cyprus is destroyed for a decade at least.
The Eurozone is self-assessing its raison d’etre. Federalists
are hell-bent on forming some kind of block to counter what they see as an
emerging globalised economic realignment. A resurgent Germany is preparing for
this eventuality and leading the recruiting drive. In the case of southern
members, a process of screening out is started. This same screening will turn
north after the southern purge is completed. There is nothing personal, it
really is just business.
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