The Eurocrats did not expect this. They got the newly elected president of Cyprus to crawl on his belly. The poor dolt had promised the nation in his February 28 inaugural address that he would not consent to a bank tax. “Crawl, you powerless nonentity,” the unelected, unofficial EuroGroup members told him. He did.
Now his coalition government is about to break up. Rival parties say “No deal.” The voters in the streets are saying “no deal.”
If there is no deal, the Cypriot banks may go under. The government will then default on its IOUs: bonds. This is great news. The idiot bankers and the idiot bond buyers will be left with nothing.
What if the whole European system topples? Better news! The bankers would get a lesson. The investors who trust politicians’ promises would lose everything. This would be justice on a scale not seen in a century.
All of the European welfare states would go belly-up. The dreams of free lunches would be smashed.
The trade unions would strike. The could be replaced in the crisis. They could strike all they want. No paychecks. No free health care. No subsidies.
Strike, you idiots, strike!
European social democracy — read: socialism — would not recover.
This is all a pipe dream, of course. The unelected, politically autonomous Eurocracy will continue to bail out the big banks and pretend that this is the way of sustained economic growth.
They will kick the can. They are just like the U.S. Congress.
The Great Default is coming. Cyprus is the canary in the coal mine. The Keynesian experiment will go belly-up, all over the world.