The ‘soft dictatorship’ that is the European Union (which is really only a circle of political elites holding hands around a tyrant’s charter, the Lisbon Treaty) will move on Cyprus through the auspices of the European Central Bank (ECB). At the allotted moment (imminent), the ECB will move to enforce capital controls on the people of Cyprus (now being demonised by some German bloke speaking on the BBC Radio 4 Today Programme this morning). The ECB – let’s call it ‘The Dictatorship’, shall we, acting on behalf of that circle of politicians I mentioned, and their tyrants’ charter – will shortly:
- Freeze all deposits in Cyprus (pretty much already the case).
- Make bank transfers dependent on The Dictatorship’s approval.
- Control the amount of cash a citizen may withdraw from the bank, sufficient (in The Dictatorship’s view) to allow the citizen to go about his/her life.
- All until further notice.
You never know, do you? However, Tyler Durden over at Zero Hedge (link below) is making reference to a report in Handelsblatt along the lines above, citing unidentified ECB sources. Surely, the good men and true of the European Union wouldn’t do this sort of thing. Would they? How would the Russians feel about that?
Whatever happens, The Dictatorship cannot and will not allow Cyprus to leave the euro monetary union. The moment that Cyprus or any nation, big or small, exits the euro is the moment the euro collapses (the currency is no longer fungible). So, it will not happen, at any cost. Right now that cost will be ‘levied’ one way or another on the people of Cyprus. And then, later on, the people of Portugal, Ireland, Italy, Spain and so on.
Where the road ends on this is anybody’s guess. But of one thing you can be sure. The Dictatorship won’t be paying the price; the ordinary citizens of the European Union will be. Like the dazed Cypriot lady on the BBC Radio 4 Today Programme; it’s all her fault according to the two men being interviewed by John Humphrys.
For a long time now, I’ve held the view that a systemic bank run would be the undoing of the Eurozone. Consequently, and as ever, locking down capital is the only weapon in The Dictatorship’s armoury to prevent the collapse of the euro currency.
It stinks. It just stinks. And the little people are powerless to change anything.
PS We haven’t heard from the Emperors Barroso and Van Rompuy lately for some reason? Wasn’t Barroso gobbing off only recently about the Eurozone crisis having been resolved? Remind me please how much of our money these guys are paid (OK, OK, I know it’s roughly the UK average annual salary – per month) … oh, and how we can remove them from power?
PPS I wondered where the road ends on this? Over at Golem XIV (link below), David Malone asks “will the UK and USA also go for the automatic seizure of money from accounts? My guess is they have been quietly planning on it but will now think twice about admitting to it. Preferring to keep it quiet until the next collapse when ‘circumstances call for desperate measures’ etc“.