Today, there is a lot of talking about
financial and economic crisis. A lot has been written about the reasons that
forced International Monetary Fund, (IMF) and European Union (EU) to carry out
a confiscatory reform in Cyprus. Some of the issues in this reform are
critically important. One of the main questions is: who initiated such a
reform?
The European Union is one of the organizations functioning according to regulations defined by the Bretton Woods agreement of 1944. EU is one of the most powerful organizations in the world; however, it is not authorized to change the existing legislation. Especially when this legislation deals with the “sacred right” to private property. In spite of the fact that property rights are being breached left and right, there are always “legitimate” excuses to why these violations are exceptions to the rules. An example of such violation can be confiscation of funds that are not convenient to the “powerful of the world”. It is very likely that IMF was involved in the Cyprus story; otherwise, EU would not have made such scandalous moves.
Let’s look further. Why did IMF allow such a gross violation of its own fundamental rules? The answer is simple: this kind of step makes sense only if all attempts to save the current bank system are futile. Assets of the current bank system are devalued, while liabilities are fully intact. In other words, it is impossible to return funds to clients, so the only question that matters is how to write off all the expenses. If this is true, Cyprus might as well be a “pilot project” – carried out to see what the reaction would be and how strong the resistance might appear.
It is very possible such confiscatory reforms might be repeated in other countries as well. However, Anglo-Saxon countries, which are closer to the financial center of the world, are more open and free. New Zealand and Canada, for instance, are openly talking in their budget discussions about the possibility to bail out problematic banks at depositors’ expense. So no one should have any illusions about safety of their bank deposits (now that the confiscatory reform becomes an integral part of the economic crisis).
After the mortgage and the financial crises, we are witnessing the economic crisis. Many experts start to understand that this crisis will be absolutely global. Please note that the problems we had before had not disappeared. The mortgage and the financial crises still exist; they just became a part of the bigger economic crisis. Just like this economic crisis will very soon become a part of the world culture crisis.
[ Ana shell, NRGlab, SH-box, NRGLab Сингапур, nrglab singapore, сheap electricity, save money, economic crisis, crisis Cyprus, international monetary fund ]
The European Union is one of the organizations functioning according to regulations defined by the Bretton Woods agreement of 1944. EU is one of the most powerful organizations in the world; however, it is not authorized to change the existing legislation. Especially when this legislation deals with the “sacred right” to private property. In spite of the fact that property rights are being breached left and right, there are always “legitimate” excuses to why these violations are exceptions to the rules. An example of such violation can be confiscation of funds that are not convenient to the “powerful of the world”. It is very likely that IMF was involved in the Cyprus story; otherwise, EU would not have made such scandalous moves.
Let’s look further. Why did IMF allow such a gross violation of its own fundamental rules? The answer is simple: this kind of step makes sense only if all attempts to save the current bank system are futile. Assets of the current bank system are devalued, while liabilities are fully intact. In other words, it is impossible to return funds to clients, so the only question that matters is how to write off all the expenses. If this is true, Cyprus might as well be a “pilot project” – carried out to see what the reaction would be and how strong the resistance might appear.
It is very possible such confiscatory reforms might be repeated in other countries as well. However, Anglo-Saxon countries, which are closer to the financial center of the world, are more open and free. New Zealand and Canada, for instance, are openly talking in their budget discussions about the possibility to bail out problematic banks at depositors’ expense. So no one should have any illusions about safety of their bank deposits (now that the confiscatory reform becomes an integral part of the economic crisis).
After the mortgage and the financial crises, we are witnessing the economic crisis. Many experts start to understand that this crisis will be absolutely global. Please note that the problems we had before had not disappeared. The mortgage and the financial crises still exist; they just became a part of the bigger economic crisis. Just like this economic crisis will very soon become a part of the world culture crisis.
Who
can influence the way this world culture crisis develops? The leaders of this
culture can. We think that everyone needs to contribute in order to help those
suffered from the world culture crisis. We have developed a program to visit
countries of South-East Asia to talk to people face to face. We hope for productive
collaboration and partnership. Unfortunately, we cannot influence the global
crisis of the world culture, and our abilities to affect long-term development
of the world culture are limited; however, we will strive to work productively.
We will offer specific solutions, which will allow people to be a part of our
community. We are together in this and we will win!
By Mika Newton: https://www.facebook.com/pages/Mika_Newton/154511211382242
[ Ana shell, NRGlab, SH-box, NRGLab Сингапур, nrglab singapore, сheap electricity, save money, economic crisis, crisis Cyprus, international monetary fund ]
You're right! We are in this together and we will win! We have to stop approaching our problems as individuals and start thinking about the big picture. You give a pretty good idea of what that big picture should be
ReplyDeleteEveryone said I was crazy for keeping all of my money in cash in a lockbox in my basement. But I'll be the one laughing when all the banks go belly up!
ReplyDeleteTrue that..
ReplyDelete