I would never claim to understand the EU, so I will ask a question. Is this because while there is an ECB, all the countries get to have entirely local banking laws? Seems that the the EU is much more loose (less federal) than the USA is (in terms of the relationship of US States to the USA vs EU member States to the EU).

You'd expect the ECB to have their own "FDIC," then charge the premiums to member country banks (or deny coverage) based on the regulations, finances, etc in those countries.

Good post...and yes, the bulk of my savings returns a paltry 2% and some of that is before tax deductions of 20% on the interest :-?

The ECB legally is not allowed to hold the power that it now has been given. Not few critics say that it breaks EU laws and treaties, with tolerance by national heads of states. We should not have the ECB in its current format and authority at all, nor should it be having the power to do the things it now does - that it nevertheless is that and does all that shows that something went wrong and that EU laws were bypassed, eroded or broken.

The EU is not something you should judge on the grounds of reason and solid design, it is an ideologic crusade and a constant breaking of its own rules and laws. Sense for reality has nothing to do with it.

The history of the Euro, all legal steps that it was embedded in since it hit the market, is a history of all rules relating it being broken, and all treaties designing it being violated. It'S a crime record from all beginning on. All criterions, regulations and laws defining it and referring to it, have been broken.

there should be no financing by states for other state'S debts. It is forbidden by EU treaties. But that is what is being done. There should be no bailing out of national banks by the ECB, but that is what is being done, although it violates still valid rules. Breaking the laws and violating treaties is standard routine over here. Heads of state meet and decide for the most arbitrarily when to stick with the laws, and when not. When they do not, it has no consequences, only the propaganda changes by which the violation gets sold and lied over.

Do not compare the EU to the US. The US were founded by totally different motivations, and are basing on a totally different general sentiment or attitude. Europeans are nation citizens since many centuries, with roots in their country. America was founded by foreign colonists moving into an alien place to which they had no roots. The feeling of grown identity therefore are quite different. That is something that Europeans tend to overlook, and that Americans often find difficult to understand - they therefor conclude that what has worked in the US must work for the EU, too. That is a big mistake. The anglosaxon capital tradition and that of continental Europe and that of Southern Europe are three totally different cultures and thinking schools as well.

Fundamental flaws were implemented on the most basic level already. The self-made claim does not stand the test of reality.

Just spoke to my cyprus contact again. Looks like they are probably going back to a levy on bank deposits again, its being debated in parliament now. what a mess.

Well they have until Monday, so expect another rejection today as it's not like there is any rush,
But after the Russians said no yesterday they need to find their 5.8Bn and quickly

So back to plan A,

I'm wondering what effect if any on the tourist this is having?

May be a good time to make a booking because I honeymooned there in 84 and it was well expensive as I recall :hmm2:

Apparently Britain has sent a force of top civil servants to Cyprus to advise them how to pull its banking system back from the brink of collapse.

I don't think 'Come to London and open another kebab shop' is going to help.

Their pension fonds should pay into that special fond. The young and employed will pay with their future. The social fall is only delayed - and will strike back with even greater brutality when the time is ripe.

Saviongs greater than 100,000 should pay now. Well, many Russians (and Ukranians, which is often overseen) use Cyprus as a tax haven, and Putin seems to have expected them to get bailed out by European employees' taxes and Cypriots' savings. The Cypriot government has manouvered earlier this week in explicit protection against the Russian account holders paying something.

I do not share the view, that this one-time payment, or special tax, is a precedence or breaking of the dam, because all holders of savings in European countries like Germany currently must accept that the state silently expropriate them month for month, due to inflation exceeding the extremely low interest rates. Banks in the crisis-hit countries like Luxembourgh, Ireland, Spain and Malta and Cyprus however have offered until the last possible day high interests even in the two digit range, blowing up their banking sectors that much as we now see and which now is the problem.

I know, I sound as if I bitch about any possible way to go from here. That has a simple reason. There is no correct way to go anymore. All ways that still can be chosen, are wrong ways. Acceptable, reasonable options do not seem to exist anymore. At least I do not see them.

This is a very alarming but very correct summary of certain of the key features of the current status quo, and what it means for the future. It is in German language. LINK: Ab jetzt ist alles denkbar. While I am at it - German - , this book: LINK: Der größte Raubzug der Geschichte.

Private savings now can be put hands on by the EU. Next station: supression of evading attempts by reducing cash currency and making digital payment mandatory. Special taxes on gold trade. Prohibition of privately owning gold. Special taxes on private property (land, houses).

Euro and EU. The perfect textbook example illustrating how true Hoppe is. That's why it is not really surprising what is happening. It can be so perfectly explained, and predicted.

:har: :har:

The corrupt advising the corrupt. :03:

You couldn't write a better comedy script :)

Might require stronger measures, maybe open an entire franchise in the USA, we suffer from a lack of doner. :D

I think they could get JC Penny locations cheap, maybe open a Mini Storage/kebab shop. Save lugging your purchases all over the mall, just put them directly in your storage unit. :D

Maybe this is the explanation why the Russians messed up their gamble. I read in the Prawda a note that Moscow rejected any deal with Cyprus as long as Cyprus would not end a money transaction ban that seem to have struck Moscow by surprise when it got implemented due to demand by the EU. Since this ban Russian account holders, oligarchs, business companies and money launderers cannot transfer their wealthy deposits out of the danger zone, but are strapped right in the eye of the storm.

Possible that Moscow hoped to make Cyprus feel so uncomfortable that it would revolt against the EU-dictated ban, so that the Russians could move their assets out - and then agree on any Cypriotic offer for gasfield licenses to Gazprom and takeover of Cypriotic banks in return for Russian credit - which would have led Cyprus even deeper into the embrace by the Russian bear.

By diplomatic standards Medwedew has just commented with a relatively ammount of furor over the plan to tax high deposits beyond 100,000 by 20%. Many Russians will lose plenty of money there. And many criminal figures will not feel forgiving about that. The organised crime has a long memory and a long arm - especially the Russian Mafia.

Moscow raised the stakes and not only wanted more, but wanted it all - and the cards seem to blow up right into Putin's face now.

Poor sod. :D

But he already had his daily success experience: Moscow signed a treaty over massive gas deliveries to and joint venturing with China. Bejing also really landed a coup there. Which is two sounding slaps from both in the EU's face.

Give and take. Friendship is something wonderful, isn't it.

On a sidenot, Germany meanwhile continues to ruin its finances over its Earth-moving, world-shaking, sensational, dysfunctional "energy revolution." Jetzt erst recht! :yeah: :har:

Such is the world today.

Hooopla, nobody could have seen that one coming: Cyprus wants a little money more now. Some billions.

They will probably get it. After that the Euro propaganda ministers can declare for the [insert actual counter here]th time that the crisis is over and Europe now is save.

Hooopla, nobody could have seen that one coming: Cyprus wants a little money more now. Some billions.

They will probably get it. After that the Euro propaganda ministers can declare for the [insert actual counter here]th time that the crisis is over and Europe now is save.

Or does Cyprus want those additional billions to compensate the Russians for their losses...? :hmmm: