Looking back not too long ago, when the foundations of the Alexander the great plan (http://ellinomangia.blogspot.gr/2011/10/alexander-great-plan-unmasked.html) where laid out, one can trace the causes of this crisis. It did not start out with debt at all but instead with the control of the central bank of Europe and the allotment of debt. We were told as Greeks that we had escaped the worst when the bubble burst back in 2008. Greek banks had not invested in "toxic" funds and derivatives. So as the financial world reeled under the weight of trillions in unpayable debts Greek as well as Cypriot banks seemed to have escaped the worst. What happened in the meantime to bring us into this unbelievable nightmarish circumstance? What laws and mechanisms have alowed the hardest hit nations of the last financial crisis, Germany, to escape relatively unscathed? They managed to use creative accounting to sweep their debt under the carpet while exposing the debt accumulated by smaller EU members. These smaller countries that where relatively debt free, appear to have surpassed their GDP in loans. It only makes sense when you take into account the lack of a national bank.
So when exactly did the European Union enter this phase. Well it didn't exactly, not all of it anyways. Some countries opted to hold onto their national currencies and their national banks. The most prominent one being Great Britain. The former Cyprian currency, the Cyprian Lira or pound, enjoyed a healthy price as it was always closely tied to the British currency. It was actualy stronger than that. The Cyprians also signed onto the euro currency and became part of that majority of EU countries that share a common currency. At what price though? Well today the price is crystal clear as a country without an independent fiscal strategy or central bank is like a ship without a rudder. In this case it is more like a train rolling down a preset track. Our measly little politicians here in Athens got to gloat as they pointed out the price of the Cyprian governments resounding "NO" to the central European bailout plan. What they shouldn't forget is how much more they have agreed to sell out than the Cyprians have been forced to since their refusal. The thing is that all these countries, including Spain, Portugal, Ireland, Italy and all other nations that boast the euro currency, have already agreed on Private Sector Involvement (PSI) and trimming of large depository private accounts. The law was ratified in Brussels two or three years ago by a majority of the European parliament. It is specific and all those who have read it did not lose a single cent in Cyprus or in Greece. It will come into full effect in 2015.Shocking eh!
As for my title it is of course inspired by those wonderful Whos that live in Whosevile under the watchful eye of the Grinch. The Grinch has been watching this and other bloggs. He used to be mostly American and Russian but as I have been tracking my trackers as of this year, 2013, the Grinch is mostly German...
So when exactly did the European Union enter this phase. Well it didn't exactly, not all of it anyways. Some countries opted to hold onto their national currencies and their national banks. The most prominent one being Great Britain. The former Cyprian currency, the Cyprian Lira or pound, enjoyed a healthy price as it was always closely tied to the British currency. It was actualy stronger than that. The Cyprians also signed onto the euro currency and became part of that majority of EU countries that share a common currency. At what price though? Well today the price is crystal clear as a country without an independent fiscal strategy or central bank is like a ship without a rudder. In this case it is more like a train rolling down a preset track. Our measly little politicians here in Athens got to gloat as they pointed out the price of the Cyprian governments resounding "NO" to the central European bailout plan. What they shouldn't forget is how much more they have agreed to sell out than the Cyprians have been forced to since their refusal. The thing is that all these countries, including Spain, Portugal, Ireland, Italy and all other nations that boast the euro currency, have already agreed on Private Sector Involvement (PSI) and trimming of large depository private accounts. The law was ratified in Brussels two or three years ago by a majority of the European parliament. It is specific and all those who have read it did not lose a single cent in Cyprus or in Greece. It will come into full effect in 2015.Shocking eh!
As for my title it is of course inspired by those wonderful Whos that live in Whosevile under the watchful eye of the Grinch. The Grinch has been watching this and other bloggs. He used to be mostly American and Russian but as I have been tracking my trackers as of this year, 2013, the Grinch is mostly German...
