Things are about to get really interesting in Europe and in the Mediterranean. A little while ago the Cypriot Parliament told the European Central Bank, the International Monetary Fund and the Germans to take their bailout and shove it.
At this moment it’s unclear what will happen, but to say the Glitterati in Brussels are stunned would be the unquestioned understatement of the year.
With respect to Cyprus, there are a number of important questions.
- Will they reconsider this vote.
- Will they change the formula and exempt small accounts in favor of raising the cost to large accounts that are primarily held by Russians.
- Will they allow their banks to fail.
- Will they pull out of the Euro.
Time will tell.
The more important thing about this vote is that a small Southern European country is standing up to the bureaucrats in Brussels and in Germany. Everybody who’s been paying any attention to Europe for the last two years understands that there are very clear – and irreconcilable – differences between Northern and Southern Europe.
Nigel Farage, a British Member of Parliament known for his outspoken commentary said this today…
In all his years and all his experience of the desperation of the European Union’s leadership “never did [he] think they would resort to stealing money from people’s savings accounts.” The simple fact is that they know they cannot let any country leave, no matter how small, for “once one country goes, the whole deck of cards will come tumbling down.” There is now “clear irreconcilable differences” between the North and the South of Europe and now that they have done this in one country, “they are quite capable of doing it in Italy, Spain and anywhere.”
A good case can be made that we are looking at the beginning of the end for the EuroZone, and Farage’s final remarks emphasize that…
“Do Not Invest In The Euro-Zone,” he concludes, “you have to be mad to do so – as it is now run by people who do not respect democracy, the rule of law, or the basic principles upon which Western civilization is based.”
Frankly, that sounds a lot like the Obama administration. Well, he’s said all along that we should be more like Europe. Take warning.