One of the key principles underpinning the EU is that of the free movement of money – a key principle now clearly abandoned as far as Cyprus is concerned.
On Thursday morning the Cypriot banks opened their doors to long orderly queues of concerned customers (and police) after a two-week closure.
Those, many, customers seeking to withdraw their money were presented with the astonishing news that strict daily limits were in place to prevent them from doing just that.
That such restrictions on the free movement of capital represent a profound breach of EU principle is something that has not gone unnoticed and a development that clearly sets a precedent for all EU partner states.
What is, perhaps, of even greater concern is the justification offered by Brussels in defence of the move.
A spokesman for the European Commission explained that the “stability of financial markets and the banking system in Cyprus constitutes a matter of overriding public interest”.
Presumably the deployment of battalions of paramilitary “Euro-cops” (Euro Gendarmerie) on the streets of nations intending to exit the EU super state could also be justified on much the same grounds.
The restrictions imposed specifically to prevent a run on the Cypriot banks comes after information released by the Central Bank of Cyprus showed that foreign depositors had already withdrawn 18% of their cash from the nation’s banks during the course of last month alone – that’s before the crisis even took hold!
So far it has been reported that police deployed outside of banks across the island state have not had to deal with any major public order issues.
As reported on this site a week ago depositors with more than 100,000 euros will see some of their savings exchanged for bank shares – quite why anyone would want worthless bank shares in exchange for hard cash, particularly following the experience of such schemes in parts of Spain, remains a mute point.
One dismayed Cypriot, expressing views held by many, blogged: “I would like to withdraw my money altogether. I don’t have a huge amount and I lose with the “haircut”, but I don’t trust the banks or the government. Money in a bank is supposed to be safe and that’s not the case here. We are at the mercy of the EU and are trapped in the euro as it’s too painful to get out. Everyone is furious because we feel that we are being robbed at gunpoint by the Europeans.”
Another Cypriot commented: “If the Bank of Cyprus collapses, all the small business, the large businesses, everything collapses. They cannot buy anything, import anything, export anything. There is nothing.”
Yet, as in other countries, despite the scale of the still unfolding crisis no one either in the corrupt bankster or political fraternities has been called to account for the devastation being unleashed on ordinary working people.
The EU, instead of suspending its own key principles, should follow the precedent set by plucky Iceland and put the thieves and incompetents responsible for the crisis on trial.
Too big to fail should not be understood to mean too big to jail.
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Doesn’t surprise me at all as the EU is anti democratic and a creation of those hiding behind the globalist corporations.
Too right about Iceland where the people responsible are regarded as criminals. In London we have executives of HSBC who were clearly implicated in laundering money for Mex and South American drug syndicates still walking the streets when they should be doing time in one of Her Majesty’s hotels. The system stinks.
Iceland is a shining example to countries such as Cyprus to show them they can extricate themselves from the banksters mess and tell the troika (Eu,IMF & ECB they are not paying their fraudulent debt, Cyprus should leave the Euro and issue their own money.
There is no doubt about the grasping, irresponsible and often criminal activities of those who perverted banking particularly from the 1980s onwards.
But there is now a bigger danger. The cry goes up let the government create money and lend it.
If you think the private banks corrupt letting loose the government in the same way will be far worse. It’s a recipe for the same disaster which befell communist societies with misinvestment on a catastrophic scale. All too many don’t want to see the connection. They just want an ‘easy’ way of our difficulties when there is not one.
Mike, the government wouldn’t lend it would spend money into circulation, big difference. Why would you think letting governments issue the nation’s money-supply would be much worse than corrupt private banks issuing it as an interest-bearing debt, surely you don’t really believe such nonsense?
At least governments are elected by the people and there would be some democratic control over the issuance of money, surely infinitely better than allowing private parasitical bankers issue money in the form of loans and charge the people interest on it?
‘Communism’ if you knew your history was funded and controlled by Wall Street banks and monopoly capitalists.
Do you not think a future nationalist maybe British Democratic Party government couldn’t be trusted with issuing the nation’s money for the benefit of the British people and country rather than for the benefit of a usurious clique of international bankers who owe allegiance to no nation or people but themselves?
I never see you offering solutions just criticising those who do offer solutions to the bankster-induced depression, anyone would think you were a banker’s shill!
Surely if you have no confidence in patriotic nationalist politicians doing the right thing for the British people you are supporting the wrong party?
Mike, the government wouldn’t lend it would spend money into circulation, big difference. Why would you think letting governments issue the nation’s money-supply would be much worse than corrupt private banks issuing it as an interest-bearing debt, surely you don’t really believe such nonsense?
At least governments are elected by the people and there would be some democratic control over the issuance of money, surely infinitely better than allowing private parasitical bankers issue money in the form of loans and charge the people interest on it?
‘Communism’ if you knew your history was funded and controlled by Wall Street banks and monopoly capitalists.
Do you not think a future nationalist maybe British Democratic Party government couldn’t be trusted with issuing the nation’s money for the benefit of the British people and country rather than for the benefit of a usurious clique of international bankers who owe allegiance to no nation or people but themselves?
I never see you offering solutions just criticising those who do offer solutions to the bankster-induced depression, anyone would think you were a banker’s shill!
Surely if you have no confidence in patriotic nationalist politicians doing the right thing for the British people you are supporting the wrong party?
Mike – isn’t that exactly what the Japanese government are about to do – print vast sums of money in an attempt to stimulate their economy? What effect will that have on inflation there I wonder.
The Japanese as I understand it are initiating large scale Quantitative Easing. That means buying existing financial assets in return for printed cash. The key word is existing. They are not trying to pick and fund new projects. That is what I was referring to.
We’ve already had massive QE in Britain and it has not brought about a recovery. Next on the list is calls for government to take over the functions of banks funding new projects. Top of the list is housing. The speculators lick their lips.
Japan has deflation and is looking at policy choices against that background. We already have inflation.
http://www.telegraph.co.uk/finance/newsbysector/epic/hbos/9971610/Dont-blame-the-HBOS-bankers-blame-the-politicians-who-cosied-up-to-them.html
This is a good article about the fact that the politicians are far more dangerous with money than bankers. As many will find out if the siren calls for government to print money and spend it as de facto bankers are acted on.
Beware!
Mike that is absolute rubbish! Who exactly has caused this mess the banksters, and their bought and paid for politician lackeys. That is the real problem far too powerful private banking interests who have used their ill-gotten control of the money-supply to buy up the political process and politicians. That is why in this country we now have a political class serving the interests of the banksters rather than the interests of the people. The hand of the lender is always above the hand of the borrower!
Anyone would think you worked for the banks the way you try to deflect blame from them, but their selfish greedy actions speak for themselves!
Time to put people before profit!