DEMCAD’s Corner – by Reginald Kaigler
The Cyprus Bailout is the result of years and years of escalating attacks against taxpayers all across the world. This bailout is in reality a grand theft. The European Union is offering the island nation a supposed 13 billion euro bailout that will come at the cost of having bank accounts taxed 9.9%. Small accounts will be taxed 6.7%, while people with larger savings will lose at least 9.9% of your money. This is never happened before. And you can beg your bank account that it will happen again. I think this is a test run for something bigger.
This is why bailouts don’t work.
1. Bailouts are essentially legalized theft. A transfer of wealth from one group (usually taxpayers) to a privilege group (usually bankers).
2. Bailouts prevent failed leaders and ideas from failing. This encourages the group to continue the behavior that led to failure in the first place.
3. Bailouts punish the successful companies and groups by stealing from them and destroying true competition.
So for all of you Americans who shrug your shoulders at this disaster, don’t forget that TARP didn’t solve any of your problems. it only made things worse.
Don’t think it can’t happen here.
Resistance in Cyprus Grows to Europe’s Bailout Plan
Trader Jim Sinclair told King World News that the Cyprus disaster is much worse than what the media is presenting.
Sinclair:
“If people believe that $13 billion is the total of this bailout, they are out of their minds. $130 billion is not the true total of even the Russian deposits in Cyprus banks. One important Russian businessman, in his various business enterprises, would have $100 billion on deposit himself. 10% of all deposits in Cypress could be $500 billion or more because Cyprus is the banking entity for Russia, not Switzerland or Grand Cayman.
If this is true, how in the hell can the Russians let the EU steal their money? This is going to get ugly.
http://demcad.blogspot.com/2013/03/cyprus-disaster-is-worse-than-you-think.html
Sounds like Putin will be taking a huge bath because of the levy. Can’t say I feel sorry for him. The President of Cypress will probably disappear into thin air soon.
Here is an interesting development – Doesn’t look like the Cypress president is biting though……..
Report: Russian Company Offers to Bailout Cyprus in Exchange for Gas Exploration Rights
The Russian energy company Gazprom is offering to bailout Cyprus in exchange for gas exploration rights, according to media reports.
“Russian energy giant Gazprom has offered the Republic of Cyprus a plan in which the company will undertake the restructuring of the country’s banks in exchange for exploration rights for natural gas in Cyprus’ exclusive economic zone, local media reported,” reports GreeceReporter.com.
“Gazprom is,” the site notes, “the largest extractor of natural gas in the world and the largest Russian company.”
“Cyprus does not appear to be interested in the offer, however:”
The proposal states that Gazprom will fund the restructuring of the country’s crippled financial institutions in exchange for substantial control over the country’s gas resources while Cyprus won’t need to take the harsh bailout package offered by the EU.
EU offered a 10 billion euros rescue package to Cyprus with the condition of raising 5.8 billion euros ($7.5 billion) by taking a piece of every bank account in Cyprus. The originally proposed levies on deposits are 9.9 percent for acounts exceeding 100,000 euros and 6.7 percent on anything below that.
Cypriot President Nicos Anstasiades is not willing to discuss the Russian’s offer according toNewsit who cited an anonymous source close to the President.
“The president is not going to discuss this plan because he wants a solution that will come from the EU,” said the anonymous source.
http://www.weeklystandard.com/blogs/report-russian-company-offers-bailout-cyprus-exchange-gas-exploration-rights_707768.html
This information goes a long way towards exposing their true intentions.
I’m bettin’ Putin ain’t fallin’ for the banana in the tailpipe on this one, though.