Skip to main content

View Diary: Cyprus: Trial Balloon of the Plutocracy (47 comments)

Comment Preferences

  •  It's all macroeconomic crap (1+ / 0-)
    Recommended by:

    What they're doing is contracting the economy further.  Cyprus is a good "test balloon" because it is small and a disproportionate amount of its bank deposits are of dubious origin.  Next time, mobsters, don't park your money in a country that is controlled by the ECB.

    So you have a seizure of private assets that, if undertaken by a left government in the name of redistribution would have caused a massive freakout by the rest of the worlds' governments (if a left-wing government took power, in say, the Caymans, and did this, we'd invade faster than you could say "creeping communism.")

    The sensible approach would be to take over the failing banks and make good to all of the depositors.  If you think there is a lot of Russian mafia loot stashed there, sure, investigate the larger accounts before you bail them out.  But the bailouts are inherently expansionary (even, and especially, if you wipe out the shareholders).

    This no longer seems to be on the plate with Europeans.  (American conservatives have a fetish about taxes.  European conservatives have a fetish about monetary policy.)

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site