NO-ONE ATTACKS ME WITH IMPUNITY
The events surrounding the Cyprus "bail out", or perhaps more appropriately for the Russian Oligarchs and the poor Cyprus citizens, a "bail in" are of enormous importance.
Firstly, it displays that German politics and upcoming elections justify throwing the widows, orphans, pensioners and a plethora of lower income Cypriot residents, such as serving and ex British servicemen and citizens under a bus.
Secondly, it shows that EU Law protecting deposits under EUR 100K can be abrogated at will by Group of EU finance ministers, desperately trying to save their own skins. This means there is no rule of law, and certainly no equality before the law.
Thirdly, it shows a staggering arrogance and naivety that the EU/IMF/ECB can simply arbitrarily appropriate the wealth of some of the most powerful oligarchs in Continental Europe, who directly have control over the flow of Oil and Gas from East to West.
Fourthly, it shows the shape of things to come for all the PIIGS countries, where even the uninformed citizen cannot be blind to the fact that if he leaves his money in a bank account, it can be stolen by Government at will. Alternatively, if it is kept under the mattress it is "safe" from the most professional of robbers, the state!
The direct and indirect consequences of this monumental strategic error will be with us for a long time.
The Russians will certainly not take this lying down, and their methods are ruthless in the extreme, as can be demonstrated by a number of corpses found in Moscow and London, and their treatment of powerful investment groups such as Hermitage. Additionally, the Russians, who have been accumulating Gold at a significant rate may accelerate their buying program to get away from toxic paper held in EU bank traps. Following the Bank Holiday, there will be massive capital flight which will bring the banks again to their knees.
The average PIIGS citizen, should no longer be completely blind to the reality, and by moving his money out to safe havens, this will stretch the resources of the ECB even further. This may well trigger imposition of capital controls, supposedly illegal in the EU, but who cares about the law these days?
There is little doubt that the Cyprus Government will sell their people down the river in response to external pressures, but my hope is that history will remember this act of economic rape, as a turning point for Oligarchs and ordinary citizens alike.