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Cyprus banks locked up after government money grab

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opinion Brainerd, 56401
Brainerd Dispatch
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Brainerd MN 506 James St. / PO Box 974 56401

Cyprus’s governing body voted down an attempt to “rob” money from deposits held for individuals by the nation’s banks. That’s a good thing, right?

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Well, yes. However, it leaves the Cypriot government with a dilemma. “The rejection leaves Cyprus’s bailout in question. Without external funds, the country’s banks face collapse and the government could go bankrupt,” according to the Associated Press.

Cyprus, not unlike the city of Detroit, San Bernardino, Calif., and a host of financially strapped American cities, is faced with bankruptcy.

Let’s get this straight. Cyprus, like Greece, is teetering on the brink of financial collapse. Right. So what does that have to do with U.S., or for that matter, what does it have to do with Brainerd?

Well, let’s call it the canary in the coal mine. Cyprus is not a major player on the world stage. However, it is a foreshadowing of what might be on the horizon for other nations. Including the U.S.

“Under the original deal reached in Brussels late Friday (March 15) to qualify for the 10 billion euro bailout from other eurozone countries and the International Monetary Fund, Cyprus had to raise 5.8 billion euros in additional funds by taxing all bank accounts. Those under 100,000 euros would pay 6.75 percent, and those above that amount would be taxed at 9.9 percent on their deposits.”

Taxing deposits. That’s a new one. However, wealthy Russians are some of the largest depositors in Cypriot banks. Oops. Vladimir Putin, president of Russia and former head of the KGB, had several billions stashed in banks in Cyprus. He was furious!

Why should anyone other than Putin care? It might be a precursor of things to come in the world monetary system. Insatiable debt has driven many nation’s to the breaking point, including Spain, Ireland, Italy and of course Greece. (Cyprus has now turned to...Russia to help bail it out of its financial crisis.) What’s the common denominator with Cyprus, and other financially strapped counties? Debt.

Our nation’s debt hit $16.7 trillion. If the Senate’s budget bill passes and signed by the president, it will cost $1 trillion more in new taxes. When will the last straw be added to the pile that will break this nation’s economic back?

Keith Hansen

War

To be a patriot, one had to say, and keep on saying, “ Our country, right or wrong,” and urge on the little war. Have you not perceived that that phrase is an insult to the nation.

Mark Twain

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Denton (Denny) Newman Jr.
I've worked at the Brainerd Dispatch with various duties since Dec. 7, 1983. Starting off as an Ad Designer and currently Director of Audience Development. The Dispatch has been an interesting and challenging place to work. I'm fortunate to have made many friends, both co-workers and customers.
(218) 855-5889
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