This story from Marketwatch fails to mention this. Rich Russians who don’t trust Mother Russia to keep their funds safe have stashed $19 billion in Cyprus banks. Let’s see: 10 percent of $19 billion is…
Instead, Polya Lesova, the writer of the Marketwatch article, preferred to concentrate on what impact such draconian and unconstitutional bank robbery in Cyprus would have on the euro, the European Union, and the risk of the whole thing falling apart. Lesova writes:
It’s unclear what happens next in Cyprus, but the nation’s sovereign bailout is now in doubt. The next days may potentially bring more talks between Cyprus and its euro-zone partners, or alternatively Cyprus may seek financial help from Russia.
If Cyprus ends up on the brink of default, the situation could deteriorate quickly — in a worst-case scenario leading to the nation’s exit from the 17-nation euro zone and threatening the future of the currency bloc.
There’s much talk about exempting poor savers with bank accounts under $26,000 from getting robbed. But that puts excessive pressure on those above. Especially with the invisible exit of billions back to Russia. But as I wrote here yesterday, the unelected cabal headed up by head robber Dutch Finance Minister Jeroen Dijsselbloem is determined to extract its pound of flesh from the Cypriot depositors. He said they “still need to raise $7.5 billion to go along with the $13 billion” the EU is offering to recapitalize the banks and put off the day of reckoning, i.e., Cypriot insolvency and bankruptcy, which would be awfully inconvenient.
This move by the Cyprus parliament is just a stalling action. It gives rich Russians time to get their money out of dodge. It will come back with a modification of the terms of the robbery that is more acceptable. The members of parliament, including the 36 who voted no and the other 19 who abstained, will get in line. They’re out of options. They’ve sold their birthright. They need the money. They’re just glad the cabal doesn’t want more.