The European Central Bank doesn’t actually do what a central bank like the Federal Reserve does. It is also heavy on politicians and light on power. They don’t have the necessary banking regulations and every case is treated like a separate event.
The politicians don’t want to use the tax dollars from their countries to fix problems, so they are going after depositors. There is no European budget to deal with these issues, and no real European regulation of the banks. The whole thing is coming apart, and the individual countries don’t really understand what this means.
Cyprus has the worse of both systems – a national currency imposed on them that they don’t control, depositors fleeing their banks, no money or credit available for normal business – a total meltdown. This is what the ‘brain trust’ in Brussels has crammed down their throats and called a ‘bail out’.
]]>Indeed. The average person on the street is seeing this as a “come one, come all” event. With fewer receipts for all governments, all that lovely money in bank accounts is about all that’s left for them to eyeball. Now that the bank accounts in Cyprus have been seen as a “natural resource”, what’s to stop this from happening again? Well…nothing that I can see.
Seems to me that once you steal for the first time, it just gets easier. Of course, with your background, you would know more about that than I.
My question to the central money guys/gals is this: Once you’ve raided everyone’s bank accounts, what DO you do when that doesn’t work and there’s nothing left to raid? Because Cyprus is falling apart. So, this is your template???
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