Blowback is when poison gas you’ve launched blows back on you when the wind shifts. That’s what’s happening to the banksters now due to their Cyprus bank threat. Through their greed and callousness not only have they managed to destabilize the financial system, they’ve also made most everyone detest and mistrust them even more.
If you were in Europe, epecially in a country with financial problems,would you keep your money in the bank, considering that Eurozone banker thugs have made it clear they consider your money to be their money so they can take it with a “tax.”
Expect bank runs. Expect pitched, unyielding, and prolonged hatred and political revolt against the banksters, who most certainly have it coming. Because things won’t even be the same again.
Even if capital flight from Cyprus as a result of this decision is less severe than many fear, even if Cypriot banks survive this real stress test, even if the island’s economy is not set back many years, even if savers in Greece, Spain, Portugal and Italy don’t panic, the idea of a deposit tax and the way it was adopted has released something poisonous in the air. It is difficult to see how these citizens will be able to trust the system – be it their governments, banks or eurozone partners – in the weeks to come. Belief in countries where the economy is contracting and unemployment growing is already vitreous and planting fears about a possible deposits grab in the future could shatter it completely.
Bank runs, and more, are coming.
As things stand, it is almost certain that there will be a bank run in Cyprus when the banks reopen, and hence the government has declared a bank holiday. The repercussions in Greece, where Cypriot banks also have large deposits, and in other countries of the eurozone can only be guessed. What is beyond dispute is that a precedent has been created in the EMU and depositors in peripheral countries with weak banks will take note. Bank runs can run for several days and panic can spread.
Above all, it must not be bullied by the fear of exiting the EMU. The country has other options, including shifting its international alliances. If it chose to reject the plan, the experience of Iceland would stand it in good stead. The arrogant and blinkered establishment of the EMU might at last take notice.
No, they will have to be clubbed (figuratively speaking, of course), then removed from office. It’s us vs. them. Forget about making them take notice.