Skip to main content

The new big trick of neoliberal bankdebtocracy

by system failure

The road was well prepared long ago. More and more information was coming to the surface such as that the Cyprus economy is in bad condition and there is a need for a memorandum for Cyprus, similar to that of the eurozone periphery countries.

The European Central Bank and the European institutions did not choose the same way this time. They strike Cyprus at the point which hurts most, in order to enforce the desirable and favorable policies for the expansion of neoliberal experiment which is repeated renewed in eurozone countries. The tax-haven Cyprus will be soon converted into another state controlled through debt by the European neoliberal economic empire, as the first necessary moves have already been done by the ECB and Mario Draghi. This is why the ECB announced that - despite the desicion of Cyprian parliament which decided (for the moment) to withdraw the “plan” for the haircut of deposits – will continue to supply Cyprus with liquidity. (http://failedevolution.blogspot.gr/2012/09/lea-jacta-est-by-emperor-draghi.html).

What are the main reasons behind the recent scandalus decision of Eurogroup for the haircut of deposits in Cypriot banks?

First, the elimination of the Cypriot banking-tax haven, which in the euro zone, is the only one located out of the German sphere of influence (and therefore mostly of German big capital). Therefore, the banking-tax havens (Switzerland, Luxembourg, Liechtenstein) in euro area , are restricted to the limits of influence of the hard core.

Second, the decision will probably trigger a mass flow of Russian capital out of the Cypriot banks, therefore, the decision also aims to unblock Cyprus from the Russian capitals and will force the country to turn easier and faster to the exclusive source of funding, the ECB, which will enforce the desirable policies applied to the other eurozone countries which adopted the troika memorandum. Therefore, the statement of the Cypriot president Nikos Anastasiadis that "the solution is the less painful because above all, leaves the management of economy in our hands", could be characterized, at least as misleading.

Third, the decision aims to hit the Cypriot-Russian relations, as it will hurt Russian interests concerning the exploitation of energy resources in the region. Moscow reacted strongly against the possibility of haircutting Russian deposits in Cypriot banks. At the same time, EU partners will press Cyprus to “open the door” of its energy resources exclusively to the western big companies. A recent statement of the Greek prime minister Antonis Samaras - who is also a prisoner of debt to European creditors and US-influenced IMF – speaking about a unified European Exclusive Economic Zone, is pointing the way towards the unification of Greek and Cypriot EEZs and widening the field of potential reserves in the south-east Mediterranean for exploitation from the same companies.

But , above all, the one thing which resounding collapses, is the supposed guarantee of deposits within the euro zone, which is supposed to be secured permanently, based on the decisions of the European Summit in October 2012. At least this was supported by Antonis Samaras at a press conference, claiming that the proposal of Mario Monti, concerning guarantee of deposits, has been entered for the first time in section 9 of the final outcome text:(http://failedevolution.blogspot.gr/2012/10/ambiguities-contradictions-stilted.html). Only five months later, the facts are proving that there is no guarantee of deposits, that the decisions of the political institutions of EU cannot be taken for granted, and that decisions are, actually, entirely in the hands of the ECB and financial control mechanisms.

What actually the European neoliberal economic empire does, is to deregulate the system continuously for the benefit of banks and big capital. It is not only the dissolution of labor rights and the welfare state. The haircut of deposits, will allow major shareholders of Cypriot banks to reduce the legally required capital in cash, through the fractional reserve rule, while a large part of the bailout package will be returned to the banks for the sake of "stabilization" of the banking system. But the money will just take a trip to Cyprus and then return as major shareholders' funds back to the ECB, after robbing the depositors.








Comments

Popular posts from this blog

Oct. 7 Reports Implode: Beheaded Babies, NY Times Scandal, & More

Glenn Greenwald    

Israel’s Descent Into Madness & the Holocaust Comparison

BreakThrough News   Rania Khalek was joined by Tarik Cyril Amar, a historian from Germany and associate professor at Koc University in Istanbul, to discuss Israel’s descent into genocidal fascism. Prof. Amar addresses whether it’s useful to make Holocaust and Nazi comparisons and the real reason behind the West’s unshakeable loyalty attitude when it comes to Israel’s barbarism.   

Zionist and US imperialist criminals are about to grab the natural gas off shore Gaza

globinfo freexchange   As the genocide against Palestinians of Gaza is about to be completed with an act of unprecedented brutality by the Zionists and butcher Netanyahu through the bombardment of about 1.4 million civilians in Rafah, it seems that they have already set their next primary goal. Which, in short, is to grab the natural gas resources off shore Gaza, together with their US imperialist buddies whose contribution to the genocide has been undoubtedly critical.     As already reported , in 2007, Hamas came to power and Israel launched an offensive on Gaza Strip, leaving behind 1,400 dead Palestinians, but taking with it the gas fields. Within a year, Israel announced the discovery of the Leviathan natural gas field, which did include Gaza's riches, valued at 453 billion dollars. But Gazans have been denied around 47 billion dollars in revenue. As for Tel Aviv, it's gunning to become a new hub. At that moment in time, that is 2022, Russian oil and gas were sanctioned.

Neocon Queen Victoria Nuland Ends Her Reign: Exposing a Catastrophic Career

Glenn Greenwald    

Το σκάσιμο της φούσκας Μητσοτάκη με νέα επίσημη χρεοκοπία και οριστικό τέλος της μεταπολίτευσης

του system failure   Τα αποτελέσματα των εκλογών της 25ης Ιουνίου ήταν λίγο-πολύ αναμενόμενα όσον αφορά τις πρώτες θέσεις με βάση και τα αποτελέσματα της πρώτης κάλπης του Μαίου. Αν συμπεριλάβουμε και το ποσοστό της αναμενόμενης αποχής, δεν μας έδωσαν κάποια ιδιαίτερη έκπληξη. Αυτό όμως που φαίνεται να αιφνιδίασε ακόμα και το συστημικό κατεστημένο, είναι η είσοδος των δύο υπερσυντηρητικών, ακροδεξιών κομμάτων Νίκη και Σπαρτιάτες, με το τελευταίο να έχει ξεκάθαρες διασυνδέσεις με τον πρώην Χρυσαυγίτη, Ηλία Κασιδιάρη. Παρά τη μεγάλη νίκη Μητσοτάκη, οι μιντιακοί ινστρούχτορες της καθεστωτικής προπαγάνδας εμφανίστηκαν σε γενικές γραμμές "μουδιασμένοι" και αυτό οφείλεται στο γεγονός ότι το συστημικό κατεστημένο (δηλαδή τα μεγάλα οικονομικά συμφέροντα που ελέγχουν και το σύνολο των μεγάλων ΜΜΕ πανελλαδικής εμβέλειας), πέτυχε μόνο έναν από τους τέσσερις μεγάλους στόχους που είχε θέσει εξ'αρχής. Μιλώντας με ποδοσφαιρικούς όρους, ουσιαστικά έχασε με σκορ 3-1.   Ο μεγάλος στόχος πο

Τυχαία γεγονότα στην τριτοκοσμική μπανανία των Βαλκανίων

failed evolution   1) Συμβαίνει το μεγαλύτερο σιδηροδρομικό δυστύχημα στην ιστορία της χώρας. 2) Γίνεται αστραπιαία επιχείρηση μοντάζ των συνομιλιών του σταθμάρχη από μηχανισμό του καθεστώτος, πριν ακόμα φτάσει στα χέρια των αρχών, προκειμένου να αποδοθεί η τραγωδία αποκλειστικά σε ανθρώπινο λάθος και να βγουν από το κάδρο οι πολιτικές ευθύνες ανώτατων κυβερνητικών αξιωματούχων. 3) Αναπαράγεται το παραποιημένο υλικό αστραπιαία από ναυαρχίδα της καθεστωτικής προπαγάνδας. 4) Τοποθετείται επικεφαλής στην επιτροπή-παρωδία πρωτοπαλίκαρο του καθεστώτος Μητσοτάκη που εργάζονταν παλιά στην ίδια αυτή ναυαρχίδα. 5) Η επιτροπή κλείνει άρον-άρον την υπόθεση αποκλείοντας ουσιώδεις μάρτυρες που είχαν προειδοποιήσει επανειλημμένα τον αρμόδιο υπουργό για τον κίνδυνο μεγάλου δυστυχήματος. Σταματάει έτσι και η όποια σε βάθος διερεύνηση για την τσιμεντοποίηση του χώρου και την απόπειρα συγκάλυψης της τραγωδίας.  

The Shadowy, Intelligence-Linked Group Driving the US Towards War With Iran

"United Against Nuclear Iran does not miss an opportunity to try to bring the United States closer to a military conflict with Iran. And on the other side of the equation, they also have worked very hard to oppose efforts to de-escalate the U.S.-Iran relationship."   by Alan Macleod   Part 7 - A Lesson From History   The history of Iran has been intimately intertwined with the United States since at least 1953 when Washington orchestrated a successful coup against Prime Minister Mohammad Mosaddegh. Mosaddegh had refused U.S. demands to stamp out Communist influences in his country and had nationalized the nation’s oil. The U.S. installed Shah Mohammad Reza Pahlavi as a puppet ruler. An unpopular and authoritarian ruler, the Shah was overthrown in the Revolution of 1979. Since then, it has become a target for regime change, and its nuclear program is something of an obsession in the West. Often orchestrated by UANI officials while they were in government, the U.S. has carried

How the CIA oversees the Ukraine proxy war on Russia

Geopolitical Economy Report   Several reports in mainstream US media outlets show how the CIA has helped to direct the proxy war against Russia in Ukraine, and played a role in causing the conflict in the first place. Ben Norton examines the evidence.   Related: Confirmed: US imperialists wanted to drag Russia into a war with Ukraine since at least 2019

Israel Carries Out Most Sadistic Massacre, Opens Fire On Gaza Aid Convoy

Richard Medhurst  

The real reason behind TikTok ban

Glenn Greenwald /  Richard Medhurst