Skip to main content

The new big trick of neoliberal bankdebtocracy

by system failure

The road was well prepared long ago. More and more information was coming to the surface such as that the Cyprus economy is in bad condition and there is a need for a memorandum for Cyprus, similar to that of the eurozone periphery countries.

The European Central Bank and the European institutions did not choose the same way this time. They strike Cyprus at the point which hurts most, in order to enforce the desirable and favorable policies for the expansion of neoliberal experiment which is repeated renewed in eurozone countries. The tax-haven Cyprus will be soon converted into another state controlled through debt by the European neoliberal economic empire, as the first necessary moves have already been done by the ECB and Mario Draghi. This is why the ECB announced that - despite the desicion of Cyprian parliament which decided (for the moment) to withdraw the “plan” for the haircut of deposits – will continue to supply Cyprus with liquidity. (http://failedevolution.blogspot.gr/2012/09/lea-jacta-est-by-emperor-draghi.html).

What are the main reasons behind the recent scandalus decision of Eurogroup for the haircut of deposits in Cypriot banks?

First, the elimination of the Cypriot banking-tax haven, which in the euro zone, is the only one located out of the German sphere of influence (and therefore mostly of German big capital). Therefore, the banking-tax havens (Switzerland, Luxembourg, Liechtenstein) in euro area , are restricted to the limits of influence of the hard core.

Second, the decision will probably trigger a mass flow of Russian capital out of the Cypriot banks, therefore, the decision also aims to unblock Cyprus from the Russian capitals and will force the country to turn easier and faster to the exclusive source of funding, the ECB, which will enforce the desirable policies applied to the other eurozone countries which adopted the troika memorandum. Therefore, the statement of the Cypriot president Nikos Anastasiadis that "the solution is the less painful because above all, leaves the management of economy in our hands", could be characterized, at least as misleading.

Third, the decision aims to hit the Cypriot-Russian relations, as it will hurt Russian interests concerning the exploitation of energy resources in the region. Moscow reacted strongly against the possibility of haircutting Russian deposits in Cypriot banks. At the same time, EU partners will press Cyprus to “open the door” of its energy resources exclusively to the western big companies. A recent statement of the Greek prime minister Antonis Samaras - who is also a prisoner of debt to European creditors and US-influenced IMF – speaking about a unified European Exclusive Economic Zone, is pointing the way towards the unification of Greek and Cypriot EEZs and widening the field of potential reserves in the south-east Mediterranean for exploitation from the same companies.

But , above all, the one thing which resounding collapses, is the supposed guarantee of deposits within the euro zone, which is supposed to be secured permanently, based on the decisions of the European Summit in October 2012. At least this was supported by Antonis Samaras at a press conference, claiming that the proposal of Mario Monti, concerning guarantee of deposits, has been entered for the first time in section 9 of the final outcome text:(http://failedevolution.blogspot.gr/2012/10/ambiguities-contradictions-stilted.html). Only five months later, the facts are proving that there is no guarantee of deposits, that the decisions of the political institutions of EU cannot be taken for granted, and that decisions are, actually, entirely in the hands of the ECB and financial control mechanisms.

What actually the European neoliberal economic empire does, is to deregulate the system continuously for the benefit of banks and big capital. It is not only the dissolution of labor rights and the welfare state. The haircut of deposits, will allow major shareholders of Cypriot banks to reduce the legally required capital in cash, through the fractional reserve rule, while a large part of the bailout package will be returned to the banks for the sake of "stabilization" of the banking system. But the money will just take a trip to Cyprus and then return as major shareholders' funds back to the ECB, after robbing the depositors.








Comments

Popular posts from this blog

Capitalism & Genocide - Yanis Varoufakis Speech at the Gaza Tribunal, 23rd October 2025, Istanbul

Yanis Varoufakis   On 23rd October, Yanis Varoufakis testified in front of the Jury of Conscience in the context of the Gaza Tribunal. His speech focused on the economic forces underpinning the genocide of the Palestinian people. In particular, he spoke on the manner in which capitalist dynamics have historically fuelled the white settler colonial project and, more recently, how the accumulation of a new form of capital - which he calls cloud capital - has accelerated, deepened and amplified the economic forces powering and propelling the machinery of genocide. 

Exposed: USA plans to use this country to hurt China & help Israel

Geopolitical Economy Report   In Cold War Two, the USA is pressuring countries to cut ties with China and recognize Taiwan separatists. Donald Trump blatantly meddled in Honduras' 2025 election and backed a political coup to put in power right-wing oligarch Nasry "Tito" Asfura, who strongly supports Taiwan and Israel. Ben Norton discusses US imperialism in Latin America.  

Iran’s Missiles will DESTROY US Bases & Israel if Trump Attacks

Danny Haiphong   Iran is ready for war, and its hypersonic ballistic missile system could destroy Israel & US military presence forever says Scott Ritter who joined the show to break down the consequences of Trump's march to war with Iran. The former UN Weapons Inspector does a deep dive into Iran's readiness and why it should terrify Trump & Israel together. 

US & Israel support protests in Iran: Trump calls for regime change

Geopolitical Economy Report   The US government is openly backing the protests in Iran. An Israeli media outlet admitted foreign powers are arming Iranian rioters with weapons to try to overthrow the government. Ben Norton explains the geopolitical context and why the USA has sought regime change ever since the 1979 Iranian Revolution.   

Israel & CIA Behind Iran Protests To Get U.S. To Attack!

The Jimmy Dore Show    As protests in Iran have heated up, western media has actively exaggerated and selectively framed the violence by using casualty figures from U.S.- and Israel-funded NGOs — all in order to build public support for another regime-change war. Former CIA officer John Kiriakou and guest Scott Ritter claim protests were infiltrated by foreign intelligence networks and that Israel and the U.S. are using “human rights” narratives similarly to the way they were used in Iraq and Syria.   Dore and Ritter contend that Iran’s government responded to armed unrest rather than peaceful protest, while mainstream outlets ignore attacks on police and public infrastructure. They warn that propaganda, sanctions, and media coordination are laying the groundwork for a wider U.S.–Israel conflict with Iran. 

Iranian Seyed M. Marandi: What REALLY happened in Iran & why U.S. wants to destroy the country

Li Jingjing 李菁菁   Track records of Western interventions tell us we need to be skeptical and cautious whenever some Western politicians and pundits claim they want to liberate people in another country and bring them democracy. Seyed Mohammad Marandi is a professor at the University of Tehran in Iran. In this episode, he told Li Jingjing what happened during the protests in Iran and how Western sanctions hurt the lives of ordinary Iranians.

Jeffrey Sachs: The US is a violent regime

CGTN   Shortly after US President Donald Trump announced on social media that American forces had carried out military actions against Venezuela, President Nicolas Maduro and his wife Cilia Flores were forcibly taken to New York City to face US charges including narco-trafficking. Speaking with CGTN's Tian Wei, Columbia University professor Jeffrey Sachs warned that such actions reflect a broader pattern of militarized US foreign policy. By sidelining international law and disregarding the UN Charter, Washington is undermining the very framework meant to safeguard global peace and prevent another era of devastating wars. 

The orange clown invades Venezuela, betrays MAGA base

globinfo freexchange   Abandoning all pretexts, the orange clown of terror kidnapped the legitimate president of Venezuela, Nicolas Maduro. The US imperialist mafia now invades sovereign nations, kidnaps legitimate presidents, using ridiculously baseless excuses. Of course, not even a 10-year old child seriously believes that Maduro will be treated fairly in a fair trial by any US court. The fascist Trump regime already betrayed MAGA base, as one of Trump's key promises for a zero-intervention policy, has been blatantly violated. It is clear that Trump doesn't care at all for the will of the vast majority of the American people who is tired from this ruthless imperialist policy. He knows this is his last term, unless he dares to do the unthinkable: expand his dictatorship, contrary to the US constitution. According to a scenario among plenty, Trump has made an unofficial bargain with Putin to secure their spheres of influence. Yet, in such a case, we don't know what is the...

A response to misinformation on Nicaragua: it was a coup, not a ‘massacre’

There is so much misinformation in mainstream corporate media about recent events in Nicaragua that it is a pity that Mary Ellsberg’s article for Pulse has added to it with a seemingly leftish critique. Ellsberg claims that recent articles, including from this website, often “ paint a picture of the crisis in Nicaragua that is dangerously misleading. ” Unfortunately, her own article does just that. It looks at the situation entirely from the perspective of those opposing Daniel Ortega’s government while whitewashing their malevolent behavior and downplaying the levels of US support they have relied on. Her piece is an incomplete depiction of what is happening on the ground, ignoring many salient facts that have come to light and which have been outdated by recent events. The following is a brief response to Ellsberg’s main points from someone who lives in Nicaragua and has observed the situation directly and intimately: https://grayzoneproject.com/2018/08/15/a-res...

Billionaires are social distancing in super yachts as tens of millions lose jobs

Everyday, it becomes clearer: the COVID-19 pandemic is hitting poor, working, and marginalized communities the hardest. Millions of workers – especially low-wage retail, food service, hospitality, and care workers – have faced the terrible choice daily between going to work and risking their health, or staying home and risking their paychecks. Many other workers don’t even have that choice, with around 30 million people in the US filing for unemployment in the past six weeks. But billionaires don’t face these same problems. As tens of millions have lost their jobs over the past two months, billionaire wealth soared by a whopping $282 billion between March 18 and April 10, according to a new study from the Institute for Policy Studies.  And while finding enough space to wait out the pandemic is something many struggle with, billionaires have been escaping to their second (or third, or fourth) homes to ride it out in luxury – all while they position themselves to ...