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. 

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.

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. 

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.   

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.  

Ο βασικός λόγος που ο Τραμπ διστάζει να χτυπήσει το Ιράν

"Μικρά και ασήμαντα" από τον Πίκο Απίκο Ο βασικός λόγος που δεν έγινε η επίθεση στο Ιράν, είναι το γεγονός ότι πρόσφατα, το Ιράν αποχώρησε από το δορυφορικό σύστημα GPS που είναι Αμερικανικό και εντάχθηκε στο Κινεζικό BeiDou. Που σημαίνει ότι οι Αμερικανοί δεν έχουν τη δυνατότητα να σαμποτάρουν τους Ιρανικούς πυραύλους.  Έτσι εξηγείται και το μεγάλο ποσοστό ευστοχίας των Ιρανικών πυραύλων στην τελευταία σύγκρουση με το Ισραήλ, μέσα στο Ισραηλινό έδαφος. Αλλά και το γεγονός ότι πριν λίγες μέρες, οι ίδιοι οι Ισραηλινοί ζήτησαν τη διαμεσολάβηση της Ρωσίας, προκειμένου να αποκλιμακωθεί η ένταση με το Ιράν, αφού Ισραηλινές εφημερίδες και αξιωματούχοι είχαν παραδεχθεί ανοιχτά την παρουσία πρακτόρων της Μοσάντ σε Ιρανικό έδαφος και τον κομβικό τους ρόλο στις πρόσφατες εξεγέρσεις. Οι Αμερικανοί επομένως γνωρίζουν ότι αυτή τη στιγμή οι Ιρανοί έχουν τη δυνατότητα να χτυπήσουν Αμερικανικές βάσεις (όπως απείλησαν ότι θα κάνουν αν ο Τραμπ κάνει πράξη τις απειλές του), χωρίς να μπορούν να ...

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...

Iran's Next Strike OBLITERATES US Navy & Israel, War Has BEGUN

Danny Haiphong   Prof. Mohammad Marandi joins the show to react to Iran's vow to strike a devastating blow to the heart of Tel Aviv and US Navy as imminent US war approaches. Trump has moved military assets to the region and now Iran has responded by moving its missiles and drones in strike position. Watch until the end for an in-depth analysis of a war that's already begun, and is about to change everything with one fatal move by the US empire.

The real reason Trump hesitates to strike Iran

globinfo freexchange   Recent statements by the Iranian leadership concerning the ability of Iran to hit US military bases, should not be taken lightly. It is not just the missile capability and - in some cases - even superiority of Iran in the broader region. That alone, would not be enough for Washington to take Tehran's threats seriously.    It has to do also with a strategic move by Iran in the geopolitical battlefield that changes the balance decisively in the war field too. As Pakistan Today reported back in July 2025:   In two recent wars that nearly tipped the world into a full-scale global conflict— one between Pakistan and India, and the other between Iran and Israel— a new determinant of military dominance emerged. In both cases, countries under pressure, Pakistan and Iran, not only stood their ground but struck deep into enemy territory with astonishing precision and devastating impact.  ... in a 12-day war with Israel, Iran destroyed numerous h...