It is Obvious

Chris Rick has got altogether too much to say

…and now a miracle

Posted by chrisrick13 on March 25, 2013

It is obvious: I ought to be doing something

Have you seen Mme Lagarde on television?  She looks lost.  She speaks nonsense: Cyprus has moved to a secure footing able to progress…  She can see the presidency of France slipping away.

What has happened.  A deal has been done.  Most importantly this deal does not involve the duly elected representatives of the population of Cyprus.  The people of Cyprus have been bypassed.

For those of you in the UK you could imagine Frau Merkel agreeing with the Queen that she will lend us a few bob as long as the Queen agrees to give Germany 10% of all deposit accounts.  It does not end there.  A lot of money went out of Cypriot accounts on Friday of the previous week, Frau Merkel gave the nod to the Queen and she had 24 hours to empty her bank accounts.

Sounds incredible, but my analogy is pretty close.

So what does the bailout do.  For Cyprus: nothing.  A lot of EU banks will have their investments in Cyprus maintained at par instead of sinking to zero.  The Cyprus economy that was in a bad way will be forced lower with austerity measures.  The large debts of the country, and of the population, will be increased by £10bn or over 50% of GDP.  That ‘few bob’ for us would be £700bn.  The problem that would happen today will just happen later and bigger with a lot of suffering in between for the population.  They will never climb that debt mountain.

The main thing that will be achieved will be a little more time.  This is to give the friendly aliens a little longer to turn up.

It is obvious: I ought to be doing something but I can’t think what might help


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