Germany Tells Cyprus To Increase Taxes To Save The Euro

There doesn’t seem to be an end to the fiscal incompetence meted out by so-called ‘experts’ and especially so in the Eurozone.  No matter that their collective financial ineptitude has already inflicted economic disaster on Ireland, Spain, Portugal and Greece, the fact that Cyprus now joins their number only confirms the fact that they don’t have a clue what they’re doing

Without consultation with its citizens, at the behest of Germany, the Cypriot government has decided to seize up to ten per cent of savings to bail out the island’s banking system.  While some might say this is a desperate attempt to stave off financial meltdown Greek-style – others, however, might look at what’s happening as the continuation of something far more sinister.

After engineering regime change in Greece and Italy, Angela Merkel has now ensured that all depositors in Cypriot banks should share the responsibility of bailing out the state.  Yet, given her track record, it’s clear that safeguarding the Euro still remains her primary goal.

However this state-approved economic larceny is dressed up by President Nicos Anastasiades as necessary to the national interest, a brutal truth is that this German-led financial raid of a ‘friendly’ country is further proof that the Euro experiment has failed.  Yet still Merkel continues on her way, no matter how harsh the consequences of her actions on the people of Cyprus.

As far as business models go, as a currency not worth the paper it’s printed on by virtue of the fact that it has failed to protect ordinary bank depositors, the Euro is not fit for purpose.  Yet billions of this Mickey Mouse currency is still being deployed in meaningless bailouts, lent at exorbitant rates, that just cannot be sustained. 

Ahead of this week’s budget, it’s interesting to note that while Labour, the Lib Dems, the Trades Unions, newspaper pundits and economists who snipe at George Osborne for not having a plan B, it’s interesting to bear in mind that neither do those responsible in the EU for the financial disaster that is the Euro.

Published by Martin Baum on 19/03/2013