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How Cyprus was robbed

Tuesday, 26 March, 2013

Reuters: “As new President Nicos Anastasiades hesitated over an EU bailout that has wrecked Cyprus’s offshore financial haven status, money was oozing out of his country’s closed banks.”

All those TV and newspaper images of Cypriots standing in line to get their daily €100 from the ATM show the real victims of the bailout/bailin. The reality is that the big money has left the island and the Brussels PR campaign that the real pain would be felt by the “rich” is exposed as just another Big Lie. Check this out:

“The two banks at the centre of the crisis — Cyprus Popular Bank, also known as Laiki, and Bank of Cyprus — have units in London which remained open throughout the week and placed no limits on withdrawals. Bank of Cyprus also owns 80 percent of Russia’s Uniastrum Bank, which put no restrictions on withdrawals in Russia. Russians were among Cypriot banks’ largest depositors.”

And who’s left holding the can? We’ll see real suffering at the end of this week when Cypriot firms are scheduled to pay their workers.

When the euro was launched, its most ardent defenders used to argue that monetary union would eventually require political union. Their moment came, they thought, with the Greek nightmare. However, instead of being the expected catalyst, it turned out that the “cure” of forcing bitter economic medicine down reluctant throats in Athens generated hatred, not gratitude. The Cyprus crisis has exacerbated the situation and the thing that was meant to unite is now becoming the great divider. What we’re left with is an increasingly unhappy marriage of totally incompatible partners.


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