Cyprus got a Plan B: deposits “haircut” at lower rates than EU proposal?

1. Cypriots have until Sunday to respond to Eurogroup proposal.

   This pressure on Cyprus is yet again nothing but political bullying to whip the bad boys in line. And all the scaremongering talk about banks not re-opening etc. is pure rubbish. Should this happen, the biggest losers would be the banks. And as the EU is a function of the banking system, it really doesn’t take a genius to see this will not happen, under any circumstances. They will use this to make the system “more effective” (= more profitable for them), but close… Here’s a little story from my other country. In the 1970 the banks in Ireland were closed for 6 months!

   the dispute dragged on, the supply of cheques dried up and people began to make their own, some attaching postage stamps as evidence of paying stamp duty. Ernie McElroy, a former bank official who was involved in processing the cheques after the strike, recalls seeing cheques made out on the backs of cigarette boxes and even on toilet paper. There were also stories of how some people furnished themselves with unofficial overdrafts. In the early days of the dispute, overseas suppliers allowed credit to their Irish agents but as the dispute dragged on they began to charge interest on the outstanding debts. In the autumn however the Government had to introduce an emergency scheme in conjunction with the Central Bank and the American and merchant banks which had remained open. The international media began to make fun of the Irish economy. One overseas commentator described it as a banana republic. As for the bank officials themselves, the strike impacted in a number of ways. As there was no strike pay, many of the junior officials emigrated to England and returned after the strike. There were stories of some, most notably the singer Christy Moore, who discovered talents which might otherwise have been lost in the conservative lifestyles of a bank official.

   Ireland a banana republic? No way. It was thrown out of the League of Banana Republics for giving them a bad name. So it joined the EU…
   Ireland still has banks, they are still bancrupt, dodgy, costing an arm and a leg and all in all should be shut down immediately and replaced with a new system of finance management, based on need rather than profit and greed. Just like everywhere else…

2. Nessa Childers MEP today called for Commissioner Rehn to resign over the Cypriot bailout fiasco. “Today I have written to European Commission President Barroso requesting that he ask for the resignation of Commissioner Rehn over the Cypriot bailout fiasco.”

   Ms Childers said that the Troika deal, which Commissioner Rehn was centrally responsible for, to impose losses on small Cypriot depositors with less than EUR100,000 was a terrible mistake and that such harsh measures are simply unfair, undemocratic and could lead to a bank run in other parts of Europe.

   “The Cyprus bailout again strengthens the case for more accountability and transparency around Troika decisions. The European Parliament should have a veto over the appointment of Troika chiefs, with regular report-backs to the relevant parliament committee and the right to audit Troika actions. Parliament should ensure that Troikas respects core EU principles, including social justice and social cohesion.”

   http://www.nessachilders.ie/news/2013/03/19/commissioner-rehn-should-lose-job-over-cypriot-bai/

   How about a veto on appointees and elected leaders only? Now that would change things drastically…
   To quote Mr. “Haiku” Herman Van Rompuy, during an interview last week on VRT (Flemish Radio): “When you’re engaged in politics at the level I am engaged with it, you CANNOT LISTEN TO THE VOTERS”. EU democracy at its very best…

   • Do you have a link to Van Rompuy’s quote ? If KTG would allow it, it would be good to spread it.

     • http://www.politicalworld.org/showpost.php?p=323263&postcount=2305

       Poster is questioned on this by another poster, and corrects this to mean “the views of Voters”.

       I will see if I can find it on their “player”, unless of course they do like in Ireland and “edit” replays…

       • Thanks for this

         • Say thank you to KTG for deleting the link…

         • did it?

         • sorry, NOT deleting the link, having a bad hair day today. Kids…

         • blame game you too? lol Kids there?

         • too many of them, only one of me. I don’t stand a chance. They’ve just figured out how to walk. I either need 10 pairs of eyes or a big butterfly net..

3. Ah, wonderful! A “solidarity tax”! Where did I hear THAT one before? At least then also those who do not have any savings will also be forced to dish out their money! And I expect fully that it will disappear into a giant black hole like it did in Greece.
   What about “raising money from domestic sources – including pension funds”. Another one we know all to well…
   Signing away the future income over gas-sales is also a very well know one. Past governments in Greece have done that successfully. And now the future generations will have to pay for the sins of their fathers.
   Bravo! I see now how this is much better than the original plan of last weekend… 😕
   At least people in Cyprus felt good about themselves for 48 hours. And a lot of Greeks where jubilant too…

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