posted on Mar, 17 2013 @ 07:03 AM
Okay, let's put some sense into this.
Cyprus tried to become a mini luxemburg, evident here: www.fbscyprus.com...
Now after reading that and in reference to your geography classes you should realise that they lent money to Greece, a lot of money. Now Greece
can't service that debt. What do they have to do? come up with coin.. asap. All that paper falling due on the greece side (and others) is affecting
cyrpus's ability to remain solvent.
Cyprus doesn't add a whole lot to the EU bloc, under 1% I believe, but there are 1.2m people there.
The problem with this is it amounts to regressive taxation, as those with less are hit the same (well actually those with balances under EUR100k are
hit at 6.75% on balances at the bank, and 9.99% for those over) but it in fact amounts to more if we look at it in a relative sense. And this
regressive behaviour is being sanctioned by the ECB.
So what we have is a short term cash grab to appease the dutch and germans, and in doing so sacrificing any notion of fairness.
What strikes me as really funny, is that a few blokes here have piped up previously being against 'socialism' (usually in favour of essentially
regressive policy) yet say that would never happen here (US.. of course), even though essentially this is the very thing you're in favour of. You
guys crack me up.
Let's not mention deregulation of this kind only happened globally after the US totally effed the effectiveness of the Glass Steagall act.