●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive.
Euro zone urges Cyprus to spare smaller savers from bank levy
By Michele Kambas and Harry Papachristou
NICOSIA/ATHENS | Mon Mar 18, 2013 5:22pm EDT
(Reuters) – Euro zone ministers urged Cyprus to let smaller savers escape a levy on bank deposits, before a parliamentary vote on Tuesday that will either secure the island’s financial rescue or threaten default.
A weekend announcement that Cyprus would impose a levy on bank accounts as part of a 10 billion euro ($13 billion) bailout by the European Union broke with previous practice that depositors’ savings were sacrosanct.
Translation: To a bankster, “sacrosanct” is money in their pockets. These are the same criminals President Obama refuses to prosecute. Mr. Obama doesn’t bite the hand that feeds him.
Under the deal struck in Brussels on Saturday, bank deposits under that level would have faced a levy of 6.7 percent, ripping up the protection savers thought they enjoyed on insured deposits up to that limit, while those above would be stung for 9.9 percent.
“All Eurogroup ministers said today they wished there was no tax below 100,000 euros but you can’t force a country to not do that,” the Greek source told Reuters.
“Cyprus doesn’t want to impose a large tax above 100,000 because the money will flow out. Two thirds of deposits are from abroad.”
Translation: A tax on deposits below 100,000 euros is economically destructive. A tax on deposits above 100,000 euros also is economically destructive. So let’s do both.
The decision to target bank accounts stunned Cypriots . . . Residents emptied cash machines over the weekend and investors feared a precedent had been set that could reignite turmoil in the single currency area that the European Central Bank has calmed in recent months with its pledge to do whatever it takes to save the euro.
Translation: The ECB calmed the eurozone with a pledge to do “whatever it takes” – i.e. “takes” from the people and gives to the banks.
“It is up to the government alone to decide if it wants to change the structure,” European Central Bank policymaker Joerg Asmussen, who was pivotal in the weekend negotiations, told reporters in Berlin. “The important thing is that the financial contribution of 5.8 billion euros remains.”
Translation: It’s not up to the people; it’s up to the government. The people are not important; the banks are.
“They are treating us like guinea pigs,” said Takis Georgiou, 49. “We’d be better off leaving the euro and returning to the pound. We don’t want to end up like Greece.”
Translation: We’d be better off if our government had not voluntarily surrendered the single most valuable asset our nation has – its Monetary Sovereignty. Who would have thought?
“The most important question is what would happen the following day if the bill isn’t voted,” Cyprus central bank governor Panicos Demetriades told parliament.
“What would certainly happen is that our two big banks would need to be consolidated. This doesn’t mean that they would be completely destroyed.”
Translation: Oh horrors. Consolidate our banks? We would rather punish our citizens than inconvenience the banksters.
“If I were a saver, certainly in Spain or maybe Italy, I think I’d be looking askance at these measures and think this could yet happen to me,” said Peter Dixon, global financial economist at Commerzbank.
U.S. Treasury Secretary Jack Lew, who has talked with his EU counterparts, was monitoring developments closely and expected a “fair” solution, Washington said.
Translation: As a member of the Obama team (following the the footsteps of Tim Geithner), Lew feels a “fair” solution is one that rewards criminals at the expense of the public.
Cypriot President Nicos Anastasiades, a conservative elected just three weeks ago, said in a TV address that the tax was an alternative to a disorderly bankruptcy. It was painful, but “will eventually stabilize the economy and lead it to recovery”.
Translation: “Disorderly” means the banksters would lose money. “Stabilize” means the public will lose money.
“Essentially parliament is called to legalize a decision to rob depositors blind, against every written and unwritten law,” said Yiannakis Omirou, speaker of parliament and head of EDEK, the small Socialist party.
Translation: Right. That’s the Obama/Geithner approach. Any problem?
And then something amazing happened:
(Reuters) – Cyprus’s parliament overwhelmingly rejected a proposed levy on bank deposits as a condition for a European bailout on Tuesday, throwing euro zone efforts to rescue the latest casualty of the currency area’s debt crisis into disarray.
Translation: The battered woman refused to be raped again by her attackers, throwing the criminals into disarray.
The vote by the small state’s legislature was a stunning setback for the 17-nation euro zone, after lawmakers in Greece, Portugal, Ireland, Spain and Italy had repeatedly accepted unpopular austerity measures over the last three years to secure European aid.
Translation: “We screwed our citizens. Why can’t you do the same?”
French Finance Minister Pierre Moscovici said the euro zone could not lend Cyprus any more, since the country’s debt would become unmanageable.
Translation: “Your debt is too big. You can’t pay it back. So, we suggest making your debt even bigger. But first you must impoverish your people further.”
The one smart person in the eurozone: “We’d be better off leaving the euro and returning to the pound. We don’t want to end up like Greece.”
We could use his wisdom in the U.S. Here, the President and Congress pretend we are not Monetarily Sovereign. The purpose: To widen the income/wealth gap between the rich and the rest.
The people are unemployed, but bribery works.
Rodger Malcolm Mitchell
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports