Anything Goes

In the immortal  words of Cole Porter, “Anything Goes” in  the international  financial  world these days.  And while we are not yet  again  in  the giddy  1920′s leading up to  an even giddier depression, we are getting damned close!

The recent financial management fiasco  in Cyprus are very real proof that  the international sector hasn’t a clue;  from the small-minded reporters who  rub their hands in  glee that yet  another “irresponsible’   national  economy has bitten the dust, to the so-called national  Finance Ministers who  gloat  that  other irresponsible countries will  suffer the same fate as the Cypriots and  Russian “oligarchs”  (why please,  are all  rich Russians  “oligarchs”?).

It doesn’t seem to occur to  any of these so-called fiscal  experts that that they have abruptly and completely ripped the guts out of the banking sector across the Western  world. Given that the entire international  financial  sector is based on  sleight of hand and “confidence’ that things can only get better; we now are all in  deep  shit. One’s confidence may become a little shaky when you realise that once   things go  bad (because things have gone bad somewhere else -like Greece), you are going to  immediately lose almost  half of your savings. But lets not forget the small  Cypriot savers  who  now are unlikely to  ever be able to retrieve their measly savings, and without a job, may  simply starve, as the inexorable decline of the Cypriot economy gathers pace.

But what is your alternative to the bank?-stuffing your money under the mattress?,  or in your little safe in  the mattress? (recently invented by  an  imaginative businessman from Spain)- no – inflation is definitely going to  make that a pretty poor option-assuming you don’t get robbed first.

Others see their saviour in  Bitcoin,  suppliers for whom  have just  announced the first bitcoin ATM  in – guess where? -Nicosia,Cyprus. Lets hope the internet keeps working then…

Undoubtedly  the Cyprus economy  is minuscle in  comparison with other EU economies,  but for some reason their Northern EU neighbours have taken upon  themselves to  scapegoat  Cypriots, presumably not realising the mammoth impacts of their actions upon  themselves and the rest of the Western world.

But then really-why  am I  surprised?; the basis of capitalism is short-sighted greed and folly- why  should it be different this time?

_________________________________________________________________________________

Postscript:

http://www.lrb.co.uk/v35/n09/james-meek/the-depositor-haircut

Economonitor: Cyprus Reopens for Business: NowWhat?

http://www.economonitor.com/blog/2013/03/cyprus-reopens-for-business-now-what/

___________________________________________________________________________________________

The BRICS Expose the West’s Hypocrisy By William Pesek

Who do they think they are, these upstart economies, Brazil, Russia, India, China and South Africa?

__________________________________________________________________________________

Betray Your Bank Before Your Bank Betrays You

By Jonathan Weil 

What’s a Slovenian with several hundred thousand euros in the bank supposed to do? Spread it out among at least a few different banks, that’s what. Or move the money out of the country, while it’s still possible.

__________________________________________________________________________________

Cyprus: We apologise for any inconvenience…

http://www.bbc.co.uk/news/magazine-21965059

__________________________________________________________________________________


Leave a Reply