It’s becoming increasing clear that the latest European financial Crisis-Without-End is largely an exercise meant to grant government more power to steal from citizens. Don’t expect for the phenomena to remain in Europe, either. Obama, John McCain and others who head up the Bad Idea Brigade will likely import it to this side of the world, very soon.
These things, you see, tend to travel from the continent, through England and then to the USA.
Providentially for the Bad Idea Guys, while the European Union (EU) busied itself with stealing money from depositors to “save” Cyprus for the EU, the United Kingdom just announced that their banks- surprise!- need $38 billion in fresh capital to make it through the year.
Hmm, I wonder where they’ll get that money?
They might, for example, use the “template” that EU finance chief Jeroen Dijsselbloem advocated recently- the one used in Cyprus- where depositors have their accounts raided in order to make up for the poor performance of politicians.
Oh? You thought this was about risky banks?
No, it’s not.
I’ve recapitalized a private bank that ran into trouble. And I’ve done it without government help. It’s actually possible to fix a risky bank without government help.
But it’s never possible to fix the risky politicians, unaided by heaven.
The risky politicians- and their Liberal Conscience, Paul Krugman- would love for you to think the crisis is about the evil banks, the shady depositors, their greed and lust for money.
“What’s the common theme in these episodes?” writes Paul Krugman, Nobel Prize winner. “Conventional wisdom blames fiscal profligacy [from governments], but in this whole list, that story fits only one country, Greece. Runaway bankers are a better story; they played a role in a number of these crises, from Chile to Sweden to Cyprus.”
While I think Krugman won his Nobel Prize for Best Supporting Liberal Playing an Economist, the truth is that it is only the last two appellations that I used- greed and lust for money- that apply in the case of Cyprus.
And it’s not greedy bankers, either, to whom the names apply.
It’s greedy government.
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