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Thread: Cypriot Bailout

  1. #1 Cypriot Bailout 
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    Cypriot bailout

    The proposed 10 billion bailout of Cyprus comes with a rather nasty sting in the tail for many people living in Cyprus, at least those with money in the banks there that is. It comes in the form a new banking levy to be placed on the bank accounts of eveyone, with a higher level set for those with more 100,000. Under the existing bailout terms, small savers would have to pay a one off tax of 6.75%. Those with more than 100,000 would pay 9.9%. But it seems this bailout is still under discussion after a wave of backlash from depositors.

    Whilst it seems even the current terms for this bailout have had to have had considerable negotiation with EU officials originally wanting a levy as high as 40%, it still seems much work is needed before anthying is finalised. This however has not stopped the banks from allocating off the amount of the levy from everyones bank accounts, effectively meaning they can't touch the either 6.75% or 9.9% of their money due to be paid under the levy. Also it has led to some degree of panic amongst savers who have desperately begun withdrawing money from cash machines.

    Fears and rumours are now, as a result, beginning to circulate that this might only be the first of the banking levy's with potentially more to follow, also that this is being used as test run to see how, in practise, a much larger levy could be implented in one of EU's larger failing economies, should this be needed. Which is putting savers on alert, and people with money in Spanish, Irish, Italien and Portuguese banks thinking seriously about the safety of their money. The Cypriot bailout banking levy will show everyone in other economically challenged countries that if it comes to them, then the banking levy will be no respector of EU's so called banking depositors guarantee, and will come with absolutely no warning, meaning that nobody will have time to withdraw their money.

    Just for a second ignoring the morality of this kind of practise, I just wonder how damaging this will actually be to much of Europes banking sector, especially given that interest rates are already so low as to not make it worthwhile to actually keep any money in the banks in the first place.


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    It isn't only the banking. I see a future for private lending; I believe it is still practiced in some cultures.


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    It just gets better (sarcasm), the banks have now stopped anyone from withdrawing money from cash machines and from conducting any electronic transfers of money from their accounts, just to make matters even worse they are going to remain closed for an extra two days, this surely cannot be very encouraging those who have run out of cash!
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    Quote Originally Posted by Ascended View Post
    It just gets better (sarcasm), the banks have now stopped anyone from withdrawing money from cash machines and from conducting any electronic transfers of money from their accounts, just to make matters even worse they are going to remain closed for an extra two days, this surely cannot be very encouraging those who have run out of cash!
    I suspect the money launderers will be able to make withdrawals; "pretty please or else" goes a long way
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    That's some scary stuff. The great depression started with a run on banks.
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    Quote Originally Posted by pleaseletmebeanon View Post
    Quote Originally Posted by Ascended View Post
    It just gets better (sarcasm), the banks have now stopped anyone from withdrawing money from cash machines and from conducting any electronic transfers of money from their accounts, just to make matters even worse they are going to remain closed for an extra two days, this surely cannot be very encouraging those who have run out of cash!
    I suspect the money launderers will be able to make withdrawals; "pretty please or else" goes a long way
    That's a good point, there's apparently €20 billion of russian deposits there some of which the EU suspects is being laundered, but yo wouldn't want to be on the wrong side of some of the people that depositted it neither. Even Putin is not at all happy with this situation, and he is certainly not someone you want to upset. This being said, if some of the russians are being allowed to move their money it seems quite unfair on the rest of the depositors who can't get at their €50 billion.
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    Quote Originally Posted by Harold14370 View Post
    That's some scary stuff. The great depression started with a run on banks.
    I fear this may only be the start of some more very ugly scenes yet still to come, really hope it doesn't end up though in a great depression type situation. For some reason though the EU seems completely unwilling to bite the bullit and deal with the real underlying problems of the Euro itself, they are finding way after way of propping it up to the detrement of everyone around.
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    These type of things are nothing new. Dirty and immoral politicians drive up debts to gain power and wealth that will sooner or later crush a nation and its people. They just do not care, and why should they? They take it from people who are happy to give it to them, and so the people should be just as happy when they actually come get it from them.

    Surely no one in their right mind thought that governments can take on massive debt and the people will not suffer for it sooner or later? Common folks will always have to pay it back or suffer the same type of pains through default or loss of someone to loan any more money to their greedy governments.

    Nothing new and it wont be the last time this happens either.
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    Quote Originally Posted by Ascended View Post
    ... EU seems completely unwilling to ... deal with the real underlying problems of the Euro itself, ... .
    <---- ignorant

    please explain
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    Quote Originally Posted by sculptor View Post
    Quote Originally Posted by Ascended View Post
    ... EU seems completely unwilling to ... deal with the real underlying problems of the Euro itself, ... .
    <---- ignorant

    please explain
    Where indeed to begin with this one, I think here I may have give the short version. Basically across southern Europe there was a huge property boom leading to a huge bubble forming, coupled with the fact that many of these countries were spending way above their means, much of it was either borrowed money or tax revenue raised on property sales during the boom. Ordinarily this wouldn't have been such a disaster if these countries were each still using their own currencies, however they're all locked into the Euro. What this means is since the crash public spending has had to be slashed meaning massive unemployment, many caused by public sector redundancies but also in the private sector as the construction industry came to a grinding holt, but also through knock on effect that this combination had on virtually every other business sector. Liquidity just seemingly vanished over night and the banks have been hanging onto their money for dear life, totally unwilling to lend out any.

    If these countries were still using their own currencies they could have created more money to help deal with debt, this would also help with keeping businesses afloat as more money to go around their internal economies, meaning people would stay in work keeping their jobs. It would also push down their currency values meaning their exports would be much cheaper for foreigners to buy, this would mean they export more bringing in much needed foreign revenue and further able to reduce their debts, but crucially would also mean they can start to grow their economies out of debt, less welfare spending, more job creation etc...

    As part of the Euro zone, they are struck with Euro, they can print any more money to help businesses stay afloat, they can't print any more to help deal with the massive foreign debt burden which help to reduce the interest rates of debt repayment, they are seeing employment increase due to lack of investment and foreign demand because they can't make the currency less valuable meaning they can't cut their export prices. So they have no hope of paying off their debts or growing their economies to deal with the debts, all the time the welfare payments are increasing along with the unemployed, which leads to further cuts and even less money circulating in their internal economies.

    Now this is the real effect of the EU propping up the Euro, ok if it does come apart it won't be pretty but then the road to recovery can begin. At the moment the longer this is delayed the more people are losing their jobs and the more debt is being racked up by these countries.
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    Spending more than is taken in by governments is what makes problems like this happen. There are many countries who can balance spending and income with proper management and good accounting. Then there are countries who are corrupt and thieves within it and they are always into problems. Some governments want to help everyone , which is impossible, but still spend away without regard to where the money is going to come from. Cuts should be made within the rank and file of the government and cutting projects that the government can't pay for should also be curtailed. Easier said than done though and that's why governments are in such a mess today. The more they spend the more they want to tax, which isn't very prudent.
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    Quote Originally Posted by cosmictraveler View Post
    Spending more than is taken in by governments is what makes problems like this happen. There are many countries who can balance spending and income with proper management and good accounting.
    I completely agree there, but the problem is these countries are now being forced into a position where they are having to spend more on welfare because so many are losing their jobs and at the same time have no way to increase their incomes which just means more cuts thus perpetuating the problem even further. Spanish youth unemployment rate is now 55%! I mean seriously how long can that go on.

    BBC News - Spain unemployment rate hit a record: youth rate at 55%
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    More importantly, your own currency allows you to re-inflate your economy through currency depreciation - which solves the first mover problem that the required real depreciation suffers from.

    Oh, and the Cypriot parliament just rejected the bail out conditions and the savings tax - tomorrow is going to be an interesting day at work!
    As is often the case with technical subjects we are presented with an unfortunate choice: an explanation that is accurate but incomprehensible, or comprehensible but wrong.
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    Quote Originally Posted by river_rat View Post
    More importantly, your own currency allows you to re-inflate your economy through currency depreciation - which solves the first mover problem that the required real depreciation suffers from.
    Completely agree

    Quote Originally Posted by river_rat View Post
    Oh, and the Cypriot parliament just rejected the bail out conditions and the savings tax - tomorrow is going to be an interesting day at work!
    Well that's something at least, I think they would have had a hard time getting relected if they had gone ahead with it, but this whole thing just seems like a complete fiasco from start to finish, there was also some talk of the russians stepping in to bail them out so we'll have to see how that one pans out.
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    Contagion from the fallout of the Cyprus debarcle is now beginning to spread to other European Countries. It seems that after the haircut large Cypriot investors are being forced to take many serious investors in other European banks haven't wasted any time and have spent today moving money out of Europe sparking fears of a run on banks in many of the continents more vunerable economies. Today I've spent considerable time arranging to transfer money and spoken to several other people who were doing exactly the same, whether there is any real need for such a precaution one can only speculate upon, but it certainly seems better to be safe than sorry.

    Of course one thing is for sure, if there is a run upon Europes banks, inflation will rise and we will see the non Eurozone countries printing money like it's going out of fashion as they struggle to cope with the situation, the Eurozones response to such a crisis though is somewhat less clear and would no doubt be dependent on massive support from the ECB and by extension the German Government, which is by no means certain as to whether that would be forthcoming, especially given Germany's current position on further financial assistance.

    What is also of great concern here is just how far a new banking crisis could spread and how many people could be drawn into it, with nowhere within the EU now being considered safe since the decision was made to accept the principle it is permissible to circumvent the European Union's banking deposit guaruntee sceme. The question also has to be asked about the ability of governments to deal with the potentially very serious situations such as where banks close unable to cover their deposits and ordinary people are unable to access their cash. Given that so many governments already have such high levels of debt this is a real concern.
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    Ascended, it is smart to shift funds. Germany is also talking about taking money from all investors who have made money on high interest rates. Regardless of what they do, when folks start taking money it is hard for them to stop.

    Concerning Cyprus, they should have taken the first deal... The deal struck now will not be voted on by their parliament and it is going to effect their economy worse than the first deal would have.
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    All that the people in charge have to do is, like America, print more money to be put into circulation wherever it is needed at the time. But there's a problem, Cyprus can't do this themselves but those in charge of the banking system could.
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    Printing money helps the situation short term but, it is still a "tax" that hits the people sooner or later.

    Cyprus would also not be able to survive if they had a printing press and decided to print an extra whatever worth 10 billion euros. Hyperinflation would hit them instantly.

    The US is powerful, the dollar is the worlds reserve currency, she can produce things and she has a printing press. A printing press alone would not help Cyprus. They have to suffer one way or another.
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    The Euro dollar is printed somewhere and that's what I'm referring to do. Let whoever is in charge of printing the Euro decide if that might be a way to help out in this situation or others that develop . Since America has been printing over 2 trillion new dollars out , its economic problems, so the economists say, are getting better. So why not let the governing board see if that could help ease these problems there and develop a strategy to implement how much to print and how to distribute it.
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    I hear you cosmictraveler.

    The US is a completely different beast and she has created far more than 2 trillion dollars over the last 4 or 5 years.

    The US is also staying above the water by sinking everyone else. The Middle East is going down fast, African cant get anything going, the East is at each others throats and Germany is throwing anyone and everyone they can in front of the punches being thrown at the Euro.

    The US can print all the money she wants right now because the world wants them and uses them. How else are they going to trade with nations that might default? That might not use the currency it uses much longer? That might not be around in a year or two? That might have sanctions placed on them? That might not like each other? That might go to war?

    The fact that the US dollar is being held by every nation to trade with other nations cannot be overlooked in the equation here. The Euro is not the worlds reserve currency and so the same level of utility and necessity does not apply, nor does the euro enjoy the same level of being able to distribute and disperse, cool off, the inflation caused by currency creation that the US dollar has.
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    NOT IN AMERICA! RIGHT?

    The Monetary Act signed into law by Reagan, about '81 or '82, has provisions giving the President discretionary power to freeze any individual's checking or savings account, allow banks to require 30 days prior written notice for any withdrawal of funds, among a number of other rather dastardly and seemingly "un-American" provisions.

    As in other cases of dubious laws, there is a "good" reason: prevention of "runs on banks", as occurred in the Depression. jocular
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    I guess there is an unwelcome solution to the debt problems. The governments can rent or sell some parts of their lands to investors, or put those lands as guarantees of their national debts. This can also fund their welfare.

    Russia also sold Alaska, and got certain or somewhat success in economy and politics afterwards.
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    Quote Originally Posted by hokuto118 View Post
    I guess there is an unwelcome solution to the debt problems. The governments can rent or sell some parts of their lands to investors, or put those lands as guarantees of their national debts. This can also fund their welfare.

    Russia also sold Alaska, and got certain or somewhat success in economy and politics afterwards.
    I remember reading an interesting report many years ago about how much of the land in California belongs to China... I will see if I can find a reference online...
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    Quote Originally Posted by hokuto118 View Post
    I guess there is an unwelcome solution to the debt problems. The governments can rent or sell some parts of their lands to investors, or put those lands as guarantees of their national debts. This can also fund their welfare.

    Russia also sold Alaska, and got certain or somewhat success in economy and politics afterwards.

    There is a very good solution to the problem, admittedly far from pain free, which is scrapping the Euro which is proving a complete nightmare across Southern Europe and very much responsible for so many being unemployed and living in poverty. Of all the options for dealing with the Cypriot banking crisis, the only one that none of the politians were even allowed to consider was that of ditching the Euro. That would have been the favoured option of so so many Cypriots. Yes ok if they had of ditched the Euro in favour of a new currency then this currency would have been worth alot less due to the islands financial circumstances, but then prices would also be cheaper making the island far more attractive to foreigners for tourism and foreign property investors, many that will now be sacked would have kept their jobs, and as the economic situation improved the new currency would start to increase in value. This would have been a path to recovery, instead they are now left with a spiral of debt, economic deppression and huge amounts of job losses.
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    Quote Originally Posted by Ascended View Post
    Quote Originally Posted by hokuto118 View Post
    I guess there is an unwelcome solution to the debt problems. The governments can rent or sell some parts of their lands to investors, or put those lands as guarantees of their national debts. This can also fund their welfare.

    Russia also sold Alaska, and got certain or somewhat success in economy and politics afterwards.

    There is a very good solution to the problem, admittedly far from pain free, which is scrapping the Euro which is proving a complete nightmare across Southern Europe and very much responsible for so many being unemployed and living in poverty. Of all the options for dealing with the Cypriot banking crisis, the only one that none of the politians were even allowed to consider was that of ditching the Euro. That would have been the favoured option of so so many Cypriots. Yes ok if they had of ditched the Euro in favour of a new currency then this currency would have been worth alot less due to the islands financial circumstances, but then prices would also be cheaper making the island far more attractive to foreigners for tourism and foreign property investors, many that will now be sacked would have kept their jobs, and as the economic situation improved the new currency would start to increase in value. This would have been a path to recovery, instead they are now left with a spiral of debt, economic deppression and huge amounts of job losses.

    Yes, I agree. But, how does Cyprus pay the national debts if the new currency is worth a lot less?

    Also, Cypriot banks need to give n-fold money back to depositors, who now save Euro there. Where is the money, especially in short term?
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    Disturbing data from the Guardian suggests Europes banks are exposed to the tune of €3.6 tillion of government debt, now that alone is just a crisis waiting to happen, no wonder the EU seem so desperate to get their hands of savers deposits.

    Where are Europe's banks most exposed? | News | guardian.co.uk
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    Quote Originally Posted by hokuto118 View Post
    Quote Originally Posted by Ascended View Post
    Quote Originally Posted by hokuto118 View Post
    I guess there is an unwelcome solution to the debt problems. The governments can rent or sell some parts of their lands to investors, or put those lands as guarantees of their national debts. This can also fund their welfare.

    Russia also sold Alaska, and got certain or somewhat success in economy and politics afterwards.

    There is a very good solution to the problem, admittedly far from pain free, which is scrapping the Euro which is proving a complete nightmare across Southern Europe and very much responsible for so many being unemployed and living in poverty. Of all the options for dealing with the Cypriot banking crisis, the only one that none of the politians were even allowed to consider was that of ditching the Euro. That would have been the favoured option of so so many Cypriots. Yes ok if they had of ditched the Euro in favour of a new currency then this currency would have been worth alot less due to the islands financial circumstances, but then prices would also be cheaper making the island far more attractive to foreigners for tourism and foreign property investors, many that will now be sacked would have kept their jobs, and as the economic situation improved the new currency would start to increase in value. This would have been a path to recovery, instead they are now left with a spiral of debt, economic deppression and huge amounts of job losses.

    Yes, I agree. But, how does Cyprus pay the national debts if the new currency is worth a lot less?

    Also, Cypriot banks need to give n-fold money back to depositors, who now save Euro there. Where is the money, especially in short term?
    They just create enough needed to pay the debt, since they can then control the creation of their own currency there is no limits imposed upon them about how much they create, also the more a new cypriot currency is devalued the more competitve their exports and tourism becomes bringing more foreign money to the island. They can also create money to for investment to meet increased foreign demand, something they simply can't do whilst stuck with the euro.
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    Quote Originally Posted by hokuto118 View Post

    Also, Cypriot banks need to give n-fold money back to depositors, who now save Euro there. Where is the money, especially in short term?
    All money should be issued in the new currency only, in this way even in the short term depositors are then free to access all their money but in the new currency only.
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    Quote Originally Posted by Ascended View Post

    They just create enough needed to pay the debt, since they can then control the creation of their own currency there is no limits imposed upon them about how much they create, also the more a new cypriot currency is devalued the more competitve their exports and tourism becomes bringing more foreign money to the island.

    All money should be issued in the new currency only, in this way even in the short term depositors are then free to access all their money but in the new currency only.
    No. This is not workable. The more money they create, the more value the new currency falls and the lower the exchange rate. I guess their debts are in Euro.

    "the more a new cypriot currency is devalued the more competitve their exports" is because of the lower exchange rate.

    "depositors are then free to access all their money but in the new currency only. " this causes inflation tax. This is not different to today's method.
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    We should just do away with money and go back to the Trade System.
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    Quote Originally Posted by hokuto118 View Post

    No. This is not workable. The more money they create, the more value the new currency falls and the lower the exchange rate. I guess their debts are in Euro.
    The thing is if the new currency had nothing to back it then you would be correct, however the currency would have the Islands enconomy to back it. This means that whilst it's true it would devalue the currency if they printed enough to cover the 5.7 billion they need, but it they would still be able to do it because the currency would still have some value. They would only not be able to do this if the new currency held no value.
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    Inflation in Cyprus, if they created their own currency to pay off debts, hand out bailouts, run their economy and provide for the people and government, would wipeout their economy. That currency, for all practical purposes, would only be used in Cyprus.

    How much would they have to create just to bailout banks and pay off their debt? 200 billion? 400 billion? How much will have to be created to equal 10-15 billion euros? What will Cyprus have to create on top of this to run their economy and give to their people? 1 trillion? 2 trillion? How much to run their government and government services?

    Once those outside of cyprus, and even many inside cyprus, get that new currency, what are they going to do with it? They are going to try to dump it immediately, the value is going to plummet and those who have that currency are then going to rush to spend it in Cyprus.

    They would have to default on all their debt, public and private, if they were to create a new currency and want any hope at all of it working.
    Last edited by gonzales56; March 28th, 2013 at 12:05 AM.
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    If Cyprus wants to spur their exports and tourism, they can cut their prices of products and services directly, rather than touching the troublesome FX problems in the short run.
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    Quote Originally Posted by gonzales56 View Post
    Inflation in Cyprus, if they created their own currency to pay off debts, hand out bailouts, run their economy and provide for the people and government, would wipeout their economy. That currency, for all practical purposes, would only be used in Cyprus.

    How much would they have to create just to bailout banks and pay off their debt? 200 billion? 400 billion? How much will have to be created to equal 10-15 billion euros? What will Cyprus have to create on top of this to run their economy and give to their people? 1 trillion? 2 trillion? How much to run their government and government services?

    Once those outside of cyprus, and even many inside cyprus, get that new currency, what are they going to do with it? They are going to try to dump it immediately, the value is going to plummet and those who have that currency are then going to rush to spend it in Cyprus.

    They would have to default on all their debt, public and private, if they were to create a new currency and want any hope at all of it working.
    But really we should be asking the question how is the Euro benefitting the Cypriots, and when we do this it's pretty hard to actually see how. When it comes to changing currency the figures don't matter that much of how much they actually produce, these figures would arbitrary and without any real meaning other than by the value of the currency they are replacing, but this could be problematic as there wasn't a mechanism designed to allow countries to easily come out of the Euro when the currency was actually set up.

    The very act of being once again able to control their own currency will also give a massive boost to the new currency because it will help to give the markets confidence that the Cypriots would be then able to start their enconomy on the road to recovery, also the advantage of a new currency is that the debt would be spread across the entire economy which significantly reduces the financial stress placed on bank deposits and the banking sector in general, this would also help to prevent many of the resulting job losses as well.
    The really important benefit it would provide for Cyprus though is the ability to manage it's own money supply, if emergency situations, such as the one now taking place, cropped up in the future then their government could plan and prepare for it, something given their current reliance on the Euro they've been totally unable to do.
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    I agree that no nation, big or small, should allow other nations or entities to be in charge of their national currency. It is down right ignorant and foolish to do so IMO. Cyprus gave up their right and liberty to create and control their national currency for promises and greed. That is on them, right? I am only pointing out that they are going to suffer one way or another, and the price to get back what they gave away, their right and liberty to create and control their own currency, is going to be the highest cost/toll to be paid of all their options.
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    Quote Originally Posted by gonzales56 View Post
    I agree that no nation, big or small, should allow other nations or entities to be in charge of their national currency. It is down right ignorant and foolish to do so IMO. Cyprus gave up their right and liberty to create and control their national currency for promises and greed. That is on them, right? I am only pointing out that they are going to suffer one way or another, and the price to get back what they gave away, their right and liberty to create and control their own currency, is going to be the highest cost/toll to be paid of all their options.
    Well that seems a fair assessment, I certainly agree here that whatever Cyprus does they are in for a great deal of financial pain one way or another, decisions that are and having been taking place will help to determine how their economy will progress in the future. Sadly I feel for them that not deciding to leave the Euro will turn out to be a major political and financial blunder in the long term.

    It would seem that Cyprus is just one of many of Europes countries that seem to be failing to understand the fundemental differences between wealth and money, this is a mistake that is causing serious financial hardship and in some more extreme cases real poverty within the population of the EU's worst hit economies.
    They all seem to be locked into this very misleading notion that the wealth of a nation is determined by the money it has and it's ability to use this money to buy in goods & services or pay off foreign debts. Quite simply put this is clearly not the case, money in the modern context at least is merely an exchange mechanism to be used to help exchange one set of goods or services for another. What this means in practice is that when a country is having problems paying off it's debts then they are being failed by the exchange mechanism in place, as we need to remember here money does not equate to wealth, so countries finding themselves in the position of being let down by the exchange mechanism need to be able to alter the mechanism in order to make it work for them. Here again then though, like all of the other Eurozone countries, Cyprus is unable to effect the necessary change to it's wealth exchange mechanism (the money supply), because it is locked into the Euro, for which it has very little control over the supply.

    Ok so why isn't money the same as wealth, and how could a country with very little money still pay it's way in the world? Well to answer these questions we first need to have a good look at what wealth really is. Wealth is the product of peoples labour, wealth is about a farmer planting crops on an empty field, when those crops are harvested then that farmer has created wealth. In essence he has grown/created something of value, something that other people want and place a value upon. The same can be said for anybody else creating goods or services, take for example an artist, he creates a work of art from nothing, takes a canvas and transforms it into something beautiful and valueable. That is wealth creatation in action. Now lets ask the question just where does money play it's part within the wealth creatation process? Well the only real part money plays within this process is, it allows the farmer or the artist to exchange their goods for other things they may want or need. Because we don't all live in barter economies where one product would be directly exchanged for another we use an exchange mechanism and indeed that mechanism is money. Being without money does not make us poor, there are plenty of people in the world with many valuable things but very little actual money, but being without money means we find it hard to aquire new things, it means we have change our goods and services into money in order to aquire new or other goods and services.

    Now of course this also works on an international scale affecting whole countries ability to exchange their goods and services, this is why it is so important for a country to be able to create more money if needed. If for example a country with very little money creates more money it can then use this money to help pay any foreign debts, but crucially it also allows the countries government to encourage and then buy up wealth created by it citizens, this wealth then helps to support the value of the extra money that has been created. This unfortunately also works in reverse, if a countries government can't produce enough money to buy up wealth created by it's citizens then this proves a disincentive with much of the possible wealth creatation failing to be created as result, meaning that overall their is less wealth in existence to support the value of the money.

    The problem with the Eurozone is that it has stopped its member countries from being able to exchange their own wealth to pay off their debts which has resulted in these debts spiraling upwards getting bigger and bigger. In turn this has meant more and more of their money being allocated to service debt repayments and less available to stimulate wealth creatation or available to actually exchange for the wealth when indeed it is created. As a result many businesses have gone to the wall and unemployment is running rampant, clearly as a financial and political project the Euro has failed, it's failing Cyprus and the results are there for everyone to see. Other countries should look at the fate of Cyprus take heed and leave the Euro as soon as possible.
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