The Cypriot Affair

This blogger is always looking for something interesting to write about. The news today is a real whopper. Seems that our global village has become so intertwined that nobody can do anything without disturbing someone elses slumber. After the exceedingly brave and humane stance taken by the EU bankers on a "bail-in" plan for the failing Cypriot banking system the fall out begins. Comments like "the Cypriot economy is too small to affect us" or "we do not need to bail you out" did alot to arouse public sentiment on that small island. The political leaders, just like back in the days of the "Internationalists", new how to play their game. Simply put everything on the playing board when you know you have a better hand. Now Soimble and Merkel and their merry gang have to back peddle and reword their previous comments. You simply can't ask a tax haven, similar to the Swiss model, to start taxing deposits. The Russian bear awakes and kicks out all foreign banks from her soil in reaction. Then Putin gives the go ahead for Gazprom to draft its own bail-out plan for Cyprus with hard cash in return for natural gas development rights. The ace up the sleeve? Cyprus has already signed with Israel for military protection of its exclusive economic zone. To re-cap last weeks events, European bankers and the IMF both refuse yo bail out little Cyprus. Cyprus agrees to a "bail-in" plan as prescribed by her European partners. The Cyprian political leaders insist on full participation even from small depositors. Russia reacts. Europe rescinds. Everyone waits to see. Germany can't survive without Gazprom gas. Will the house of Fugger finaly fall? Will there be a Lutherian reaction to this constant transfer of debt to the small guys with the inevitable suffering that it produces? We wait to see on this first day of Orthodox lent...