As more and more countries within the European Union struggle economically, the euro – the union’s common currency – becomes more embattled, with its founder now even predicting its demise. “The euro has become an austerity suicide pact.”
First, it is Merkel’s turn, which last week was furious at Cyprus for daring to reject the first flawed Eurogroup plan impairing insured depositors, only to praise it for now… rejecting said plan. To wit: Chancellor Angela Merkel, “as well as the government, is very happy that the troika, the euro group and Cyprus were able to reach an agreement,” German government spokesman Steffen Seibert says in Berlin. He added that difficulties will arise in the short term because of measures aimed to scale back Cyprus’s banking sector.
Back in August 2011, one of the most prescient European (ex) central bankers, Cyprus’ very own Athanasios Orphanides was optimistic, but with a caveat: “I am optimistic that with the right actions and effort by all we will pull through this,” Orphanides told reporters after a meeting with Finance Minister Kikis Kazamias. They were Orphanides’ first public comments since warning authorities in a July 18, 2011 letter that Cyprus ran the risk of requiring an EU bailout unless urgent action was taken to shore up its finances.”
ATMs were drained over the weekend in Cyprus after European Union chiefs decided late Friday night to raid private savings accounts to help pay for the country’s $13 billion bailout.
Of course it was a holiday weekend and banks are closed on Monday, preventing a panicked bank run. It is now being reported that the Cypriot cabinet has extended the bank holiday until Thursday in an effort to calm the growing unrest.
I have been watching articles pour forth about Cyprus all weekend. I am almost as aggravated with the majority of them as I am with what took place. People are dancing around the edges while the propaganda machines of Europe are churning out the usual bunk. There was no tax on the bank accounts in Cyprus. There still is no tax; the Cyprus Parliament has not passed it and will not vote on it until tomorrow so whatever action takes place it is retroactive.
That was a very symbolic move wasn’t it, the Queen doing that? To sort of feel that at least we’ve got some gold in this country.
Tony Blair has said the EU would be better off with a directly elected president, as he warned deep political rifts between countries could lead to a break-up.
The 27-nation organization was awarded the prize for its role in “uniting the continent,” and its contributions “to the advancement of peace and reconciliation, democracy and human rights in Europe.” A heated debate emerged over the validity of the award amidst the backdrop of Europe’s as-yet-unsolved economic crisis.
The financial chess game in Europe is still being played out, but in the end it is going to boil down to one very fundamental decision.
Is Germany going to allow the ECB to print up trillions of euros and use those euros to buy up the sovereign debt of troubled eurozone members such as Spain and Italy or not?
The media spotlight at the moment appears to be on Spain, when it isn’t on the Olympics. But what it should be on is Greece.
In the last two days, ominous speeches have emanated from the Bundestag and Bankfurt. Greece, they say, is already backsliding. This whole bailout thing, they insist, is an expensive joke.
The euro has completely broken down as a workable system and faces collapse with “incalculable economic losses and human suffering” unless there is a drastic change of course, according to a group of leading economists.
Yes, it is officially time to start freaking out about the global economy. The European financial system is falling apart and it is going to go down hard. If Europe was going to be saved, it would have happened by now. The big money insiders have already pulled their funds from vulnerable positions and they are ready to ride the coming chaos out.
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