This editorial misses the mark in so many places. The money in Cypriot banks did
indeed come mainly from wealthy Russians. They use Cyprus as a tax haven to
avoid paying Russian taxes. It is also a haven for money laundering for Russian
gangsters. The deposits in the their banks far exceed their GDP. It is not the
Cypriot government that is bankrupt. It is the Cypriot banks. They had so much
hot money coming in that they put it into highly risky investments like Greek
bonds.This tragedy has little to do with the government of Cyprus
living beyond its means, and everything to do with Casino Capitalism run amuck.
It does hold a lesson for us although not the lesson it claims: Rein in the
There is a difference between Object [what you bout] and Objective [where your
money should go]. There is a limit or a boundary to spending. A person has to
know his limitations.
This analysis of the Cyprus crisis fails to discuss a couple of key items,
instead choosing to simplistically blame Cypriots for living beyond their means.
A couple of years ago, Cyprus's government debt-to-GDP ratio was quite
healthy, certainly much better than that of the US. But a cascading series of
issues have led to the current situation, including the poor timing for joining
the Euro, sharp downturns in major industries of tourism and shipping, and the
reliance on major banks as an overly-large sector of the economy.Not
to mention the biggest issue of all, which is that Cypriot banks invested
heavily in Greek bonds, which obviously didn't work out very well.But those facts are a distraction from simply pointing the finger at
government spending.50% of the deposits in Cypriot banks belong to
Russian oligarchs and their businesses, many with ties to the Russian mafia.
Their money was there because Cyprus is a tax haven for the wealthy. Pardon me
for not shedding many tears that they're gettting a haircut.And
frankly the comparison of this situation with the treatment of the Kulaks is
risible. No one is being liquidated here.
Thanks for the insight DN and Dan.Let's not forget that these
BRIC countries are totally owned and controlled by central bankers of Europe
ever since the bankers bankrolled Lenin and Stalin in Russia and Mao in
China. You see, the ultimate monopoly is government ownership and
control of a nations means of production, resources and etc. you know, basic
Marxist philosophy, then it is really the bankers who hold the notes on these
countries and their national debt who have complete control of impounding the
accumulated wealth of individuals who may attempt to compete against the
banker/government monopoly of power and money.
The real story here has nothing to do with Cyprus. The BRICS coalition is
poising to take over the international money standard from the dollar (USA).
Mainly because of our incesant printing of dollars. If and when this happens it
will be ugly, real ugly for us.
With all these editorial letters to keep his name in public view, Dan must be
planning a political run again soon.