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“The Banking Crisis Is Over,” Say European Bureaucrats. Ho, Ho, Ho.

Written by Gary North on March 25, 2013

Bureaucrats are paid well to lie. They are paid well to tell the voters not to worry, that everything is fine. This lets politicians say the same.

The banks in Cyprus remain closed. There is a $130 limit on daily withdrawals of currency out of an ATM. Capital controls keep depositors from wiring euros outside of Cyprus. The Parliament must agree to spending cuts. Maybe it won’t agree. In other words, nothing has been settled.

The previously unknown chairman (for one year) of the EuroGroup announced: “We’ve put an end to the uncertainty that has affected Cyprus and the euro area over the past week.”

Ho, ho, ho.

Christine Legarde, head of the International Monetary Fund, announced: “We believe that this will form a lasting, durable and fully financed solution.”

Ho, ho, ho.

The finance minister from Ireland, who a week ago had voted as a member of the EuroGroup to require a tax on all Cypriots’ deposits to help bail out the nation’s banks, announced: “We would never hit depositors in Ireland, we believe the €100,000 is absolutely sacrosanct and there is absolutely no circumstances in which we would touch depositors because they are guaranteed and that guarantee applies across the euro zone.”

Ho, ho, ho.

Voters are naive. They want to believe bureaucrats, who they say they do not trust, whenever the bureaucrats say soothing things.  They do not want to take responsibility for their investment decisions. They want government guarantees. They want bailouts for themselves, but these bailouts are supposed to be paid for by other voters.

Everyone wants to believe that the fractional reserve banking system is not at risk, and whatever risks there are — very, very low — should be borne by other voters.

So, the crisis will continue. So will the reassurances from officials that it is all over. “There is nothing to see here. Move along.”

Continue Reading on www.irishtimes.com

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14 thoughts on ““The Banking Crisis Is Over,” Say European Bureaucrats. Ho, Ho, Ho.

  1. hanginjudge says:

    Goes right along with Obama's claim that the US economy is great!. They were elected therefore they are liars!

  2. The message is the same from all central banks: "You must make do with LESS, while we take MORE of yours!"

  3. I wonder why all these forums in the USA are so worried about Cyprus and her problems, a country with an economy about the size of some piddling small town in the USA……dont worry……even the Russians are not worried, and they are responsible for most of the economy of Cyprus, which is all about banks and their greed…..dont worry……………..

  4. Jimbo999 says:

    Nothing to see here folks, move along. We have it all under control.

    I know that Cypress is just a small country, but there are US bureaucrats today who are reading about Cypress and are thinking, and possibly saying out loud, "Hey, that sounds like a good idea for us".
    A couple of billion bank accounts and retirement funds being raided would turn into a pretty big deal.

  5. Manshukka says:

    More koolaid for the followers. Gold in a private vault. Does that taste like koolaid?

  6. Bill McCroskey says:

    Yes…. Manshukka …keep ANY valuables in a PRIVATE vault …. the government will (with the banks faux indignation claim "we had to follow a legal government order") break into bank safety boxes and help themselves (steal what they can find of value) when they feel the time is ripe…… can't happen here ??? just wait …

  7. Bill Smith says:

    Sure, Cyprus is a tiny country and we are a large one. We also have a debt that is beyond imagination. It will never be fully paid because it is simply impossible–there isn’t that much money in the world. Of course we are being robbed right now through inflation but we don’t realize the robber is going through our wallets. Don’t worry, be happy?

  8. moresheet says:

    First they try a small experiment
    a small country like Cyprus
    next let’s try a bigger country and then so on
    can’t happen here?

  9. robert richards says:

    a guarantee is only as good as the guarantor , it can be revoked as

    suddenly as it was imposed

    “the lord giveth, the lord taketh away, blessed be the name of the lord “

  10. WEll….."elected" is such a loaded word in our situation eh?

  11. Because the same thing happening in Cyprus can and will happen here if BO keeps steering towards the iceberg.

  12. hanginjudge says:

    You make a very valid point there Phil! But when more than 50% of the population is on the public dole I guess one could make the case that those who "elected" him where just making sure their bread remained buttered on the right side. The right side being the left in this instance.

  13. Centurian says:

    There was no presidential election.

    The result was determined months before the election night. Romney was well paid to be the stooge. It was all theatre to suppress the indignation that would be rampant if people knew what is really going on. Votes for many other offices probably were counted, but those for president and a few key positions went straight to the trash. They have made up our minds for us.

    Half of the population has been made dependent, not for their votes, votes are not needed, but rather for their compliance. They hope that they won't rise up and bite the hand that feeds them.

    During the revolution, only about 10% of the population were real revolutionaries. That's all it took. Many Tories left or stayed out of the fight and the majority of the population kept their heads down. That's probably how it will work the next time.

  14. lord Obama?