“Get Your Money Out While You Can”

One can only wonder how long it will take before Europeans particularly in Spain, Greece and Italy, begin to take that advice.

The Euro system amplifies shocks. Monetary union without fiscal union, economic integration without high levels of interstate mobility, enforced austerity in the weakest economies. And now the precedent of deposit confiscation. The only indicator that seems to be rising throughout the Eurozone is the number of protest signs comparing Angela Merkel to Hitler.

Romano Prodi famously noted that the Euro system was weak, and that necessary reforms would be made when the time came in order to make it sustainable. Well, the Cyprus bailout and deposit levy, the national and international outcries and the subsequent “no” vote in the Cypriot parliament are all signs that in the wake of all the bailouts of the periphery that Europe is far from fixed. The necessary measures have not been taken. While the ECB may have taken measures to lower government borrowing costs in the periphery, the situation is in many ways — especially unemployment — still deteriorating. In fact, it seems like Eurocrats are trying to enforce the opposite of what might be necessary for sustainability — rather than installing a mechanism to transfer money to weakened economies suffering from high employment, Eurocrats seem to be trying to do everything to drive unemployment higher in the periphery, spark bank runs, as well as aggravate tensions with Russia.

This is a crisis of institutions and a crisis of leadership as well as a crisis of economics. Merkel cannot lead Europe and Germany at the same time, because taking steps to revive the ailing Southern economies hurts her standing with the German and Northern public.

The Eurocrats have asked for a bank run by demanding depositor haircuts in Cyprus. The public would not be at fault for giving them one. Farage’s advice is wise.

24 thoughts on ““Get Your Money Out While You Can”

  1. There is no significant Russian money in other EU countries (Maybe London Property) so I doubt EU technocrats and politicians will be as worried as the Cypriot Parliament.

    Gutless weasels.

  2. Oh don’t worry people. There are only fear no risk at all. It’s part of the “currency war games.” In fact the Euro masterminds played rather high hand in the “currency war game.” They are the masters in using fear and crisis instead of actually printing the money to get the Euro down right away against GP and Yen devaluation for their exports.

    p.s. Regarding to EU countries bank run(s), you know who’s first one predicted that? Paul Krugman. He’s one of the few if not the first had predicted years ago ( 2010 …) about EU’s country subprime crisis and their bank runs.

    • Moreover, Jim Richard tweeted that it’s a Europeans revenge towards the Russians to get the Russian to pay back what they had done in 1998.

    • I agree Krugman may be right on this. The EU did keep rates higher, and pushed austerity. Nothing is working. USA seems to be turning a corner. Is it only because they have reserve currency staus, and people always want o live and invest in the good old USA.

      • Krugman is right on the Eurozone to a certain extent. However his mantra seems to be “THROW MORE MONEY AT THE PROBLEM”, which I think is a little naive. I think they need to throw more money at the right things (especially quality infrastructure projects), not just anything which is the “crude Keynesian” “dig holes” position. More spending bailing out banks and supporting the financial sector will not do much to help, and may be more harmful than helpful. More spending on helping unemployed people start new businesses, or upgrading broadband speeds, or building roads and railways that people actually want will help.

        • The problem is what’s the “right” place(s)/thing(s) to invest in. There are always the risk of over investing (greed) or under investing (fear.) If only we all know, the world will have little poorest and the richest people. Most people who become knowing only after the fact or crisis therefore they are poor or not do well.

      • This country [U.S.] is a mess, but relatively speaking, less of a mess than the rest because of several factors, including: reserve status, being the hub of the corporate world, the most stable central government, a banking system backed by the largest economy in the world, and most importantly, having the ability to vaporize any country [or individual, for that matter] instantaneously, few questions asked.

        Like I’ve said before, the U.S. will most likely off-shore a great deal of its financial mess through all kinds of financial trickery [because we can…the reason all things happen].

        Whatever the era, put your money on the reigning empire!

        • Worked for the Romans and the Vatican.

          Prime property, gold and a steady cash flow baby!

  3. I don’t understand why they cant just create the credits in the asset side of the bank ledger magically to put them in the plus? Is there something stopping them from doing this?

  4. All I have gathered from our dwindling economies (Southern EU) is that we are in a war. Not much different from a conventional war, with the only difference that the general public suffers and the master planners get to get rich with money and power while having their “conscience” clean that they are not thieving or killing anyone.

    It all started in 2008 with the banks in the usa going belly up. banks in eu invested into those usa banks would in turn also go belly up. The IMF and ECB which are in bed with those banks and the credit agencies, simple created this economic debt crisis and started to attack weak and un organized nations, providing “assistance” to stave off bankruptcy.

    Then came the famous bailouts to “help” these countries as to balance their budgets and save their countries banks. placing debt on countries while giving all the moneys to banks once again. Mainly the bubbled banks in the USA, London and Germany. Having to create money and new debt to keep their banks from exploding.

    now it is 2013, athens, with my taxes doubled, food prices increased, salaries and benifits reduced, viewing half my compatriates in poverty, meanwhile everyone within the country blaming each other, meanwhile it was our politicians treasonous acts with the ponzi IMF, ECB and banks simple finding a way to steal all infrastucture and mineral and natural resource deposits for a few pieces of bread.

    Many times I wonder and now with what i have seen, i am sure that the bubble moved up into 2008 was a plan as to create this “debt crisis.” “They” made money from the bubbles going up to 2008 and now they are making money off the bail outs and the robbery of all the countries “they” can put their “claws” into.

    It is ironic that i am reading alot on the atrocities and theievery enacted on my country Greece during WW2 , and no repayment was ever made. It took 60 years for my country to find its feet again and we are once again in the same position, with the only difference is that we are “legally” being robbed with the conscent of our politicians, right left center, they are all the same shit, while completely ignoring our constitution.

    no conclusion.

    • I guess you came along a few thousand years too late, but Greece will have its day again!

      What you are seeing now is the result of a financial war fought and won by the banking elite. The problem is that they were too successful and destroyed their own system. This is now the period between the last system and the next system, one that always portends great excitement.

      Hopefully, if those in control don’t completely lose their minds, we will emerge from this period much wiser and enjoy a period of unprecedented prosperity. In the meantime, scale back and live within your means. The truth be known, you don’t really need that much to get by.

      If you are able to save at all, and when this thing finally shakes-out, there will be opportunity galore. Spend your time helping others that are not handling the situation very well, and this will come back to you 100x’s, as well as, giving yourself a noble purpose.

      In any case, don’t worry about it. That never helps.

      • at impermanence:

        I respect your thoughts of hope for the future. I also wish for new prosperous period following this difficult period, for the masses but I am pessamistic for two reasons.

        Firstly, in ancient times things were not very much different than today. As a reader of ancient history, studied from all angles, much of the masses back then where not much better off than we are today. You must also consider that 70% (speculative figure I have in mind) of the population in ancient Greece where slaves. The rest of the 30% of the population were legal citizens of each respective city state. Even back then, Greek city states were squwabbling and fighting each other. Not much different from now.

        Secondly, history of the last 4,000 years of man kind of all people in all areas of the world displayed hierachies similar to what we are living today. Super rich and wealthy of their respective times controling the masses and squwabbling over power and riches. Humanity seems to continue to repeat itself over and over.

        There have been very few periods in history where society as whole was balanced and prosperous as a whole. Even the golden age of Athens could be considered as a bubble period in ancient history. (Athens by collecting goods and services and taxes for the Athenian league, and building up the city state of Athens.) This lead to war eventually, as what was collected was not evenly distributed over the citizen populations.

        I can say that only Alexander the Great of that period was the only one who tired to organize the world as to be civilized and create growth and stability. Sometimes with the sword and sometimes through diplomacy.

        What we fail to do as a modern society, is to educate properly all people, especially the masses to have a basic general education. That which i can say that ancient Greece created, aside from the similar squwabblings of today, is the philosophy and manner of thought. It has been passed on through the ages to the masses, that philosophy is ancient outdated trade that has no room in society today. If modern day society gained even a fraction of the knowledge of manner of thought of ancient times, humanity would have a fighting chance to stave off the endless cycle of power struggle. Even the most basics. If society understood the phrase of “All I know is that I know nothing…” society would have the understanding that knowledge and thirst of knowledge is the solution to the internal fears we all have.

        Finally i can say that i have a very small ounce of optimizism when i read blogs such as this one and the blogger comments. It is a comforting thought that i do not feel alone, in the abyss of mis information, mis guidance and selfishness, of modern day society.

        It is educated and selfless people i find in blogs such as this, that i like to compare to period of society rebeling against the system. It is a small hope when the total masses listen and finally understand the the meaning of righteous and moral people as to stand up and resist.

        A small hope that Cyrpians with there “No” will awaken and outcry for all people. Is this “No” comparitively, to the “No” of Greek City states to ancient Persia or more closer to modern day, the “No” of metaxas to Nazis Germany and Fascist Italy of WW2. The fears i have though is when a “No” does occur it usually leaving the masses with a scorched earth to restart.

        • Please contribute more on this blog. I agree Philosophy should be taught. I went to a poor school. Many could not read by the time they were 14 (My Grandmother volunteered to read and help read to some class mates) I was lucky she read to me from earliest memories.

          I think it starts in the home. If the poor can find the time to read to their children, we will have a different situation in the world. The poor are usually honest people, and grow to be angry frustrated people through no fault of their own. The power of reading and writing is mightier than the sword, because rousing speeches win the minds of brutes, and might makes right.

    • You have a good point. I am in Melbourne, home of the biggest Greek population. Do you know how rich the community is? One of the wealthiest, with prominent positions in Corporations.

      Perhaps they should assist the homeland?

  5. Ironically, a lot of Russians support the tax on oligarchs’ deposits. It is almost safe to say that every penny was stolen from us in some form. There is a lot of resentment, as you can guess.

    But I’m just baffled by this crazy-ass solution. What’s next, euthanaizing the elderly with nine gram lead pills? State-sponsored piracy in the Mediterranean? The silliest thing is that it’s all about the virtual resource that could be produced at will by ECB.

    • That is why Putin should bail out Cyprus, and their Banks and appoint Directors who can investigate and work with tax authority in Russia to seize the loot of these oligarchs.

      Putin’s got the Peasants backs and the Peasants pray for his soul. Money can’t buy this!!!

  6. Somehow I failed to read this thread until today. My I join Buddy i urging more comment — updates, including events such as rise and fall of bitcoin.

  7. Wonderful blog! Do you have any helpful hints for aspiring writers? I’m planning to start my own blog soon but I’m a little lost on everything. Would you advise starting with a free platform like WordPress or go for a paid option? There are so many options out there that I’m totally confused .. Any recommendations? Thanks a lot!

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