Everyone’s talking about Europe’s economy. But at the heart of the crisis is a very different problem.
Greece is on the brink yet again. It has to pay the International Monetary Fund (imf) us$1.7 billion by the end of the month. And that’s the start of a gauntlet of loan repayments—it owes €10 billion by the end of September. Meanwhile, it has not agreed to a deal to get that money. With time running out, European officials are reportedly preparing for a catastrophe. “The Greek saga is finally reaching its climax, we think,” said Morgan Stanley’s head of foreign exchange strategy.
What will happen? Will Greece leave the euro? Will it submit to Europe’s bailout conditions? Will it trigger a financial crisis? I don’t know. But I do know that in the long term Greece is going to remain under the European Union’s influence.
The stories are all over the Internet. Governments are forcing us into a cashless society. Supposedly the pretext is terrorism, and the real reason is to take more control. No doubt more power appeals to politicians, and banning cash seems like the next step after mandatory reporting of cash transactions. However, I think there is a more serious driver than simple power lust.
A more compelling case is that cash banning is the logical follow up to bail-ins. Most people think a bail-in is when banks steal your deposit. So it seems to make sense that governments want to force people to keep their cash in the bank. Then they are easy meat for the next bail-in. Continue reading
Berlin – The troika of international lenders “held a gun to the head” of Cyprus and Portugal and showed little sympathy for social measures, an MEP looking into its work has said.
“Both countries had very little room for manoeuvre in negotiating the terms of the bailouts. What they said basically was that ‘a gun was held to our head’, especially in Cyprus,” Juergen Klute, a left-wing German MEP, told this website.
“And the troika had very little interest in social measures, they were only concerned about cutting back the deficit,” he added.
The German politician said his four-member European Parliament delegation found there was a lack of democratic oversight when it came to the work of the troika – made up of the European Commission, the European Central Bank (ECB) and the International Monetary Fund. Continue reading
The Russians have been in the game of wrecking countries for a bit longer than the EU, so naturally, they were quick to react before measures were implimented.
As it turns out, these same oligrachs may have used the one week hiatus period of total chaos in the banking system to transfer the bulk of the cash they had deposited with one of the two main Cypriot banks, in the process making the whole punitive point of collapsing the Cyprus financial system entirely moot. Continue reading
BRUSSELS (AP) — Cyprus secured a package of rescue loans in tense, last-ditch negotiations early Monday, two EU diplomats said, saving the country from a banking system collapse and bankruptcy. Continue reading