The Cypriot population rightly has reacted with fury at the outrageous and frightening attempt by the European Union and its heart, Germany, to rob them.
And robbery it is. No Cypriot saver has had a say as to whether the EU and IMF can take their personal and private funds. And the people of Cyprus are only partly to blame for the mess others created of their country's finances.
Cypriot problem
Like in other countries, the availability of credit exploded in Cyprus. This is a problem emanating with regulatory deficiencies and short-term politicians who are stupid enough to genuinely believe that rapid growth is continually possible. The people are to blame for taking the free and available credit and getting themselves into debt, but regulators must also answer for their lack of knowledge about economics, and the financial institutions that leveraged themselves so excessively are the main culprits. Banks grew rapidly to 835% of GDP, while Greece's problems saw Cyprus lose some of the money owed to it from Athens.
The banks as such have debts they cannot afford and need to be propped up to avoid them collapsing. The government is struggling to do that, as the recession, the size of the banking problem, and general
indebtedness, are restricting the Cypriot government's options.
The Merkel-Putin pact
Many have noted that the Germans are deeply suspicious of Russian operations in Cyprus and money-laundering that is happening there. However, the Germans were happy to pander to President Medvedev's idea for a global energy charter in 2009 until EU President Barosso intervened, and of
course are still heavily complicit in the Nord Stream pipeline project, bringing Russian gas and oil to Europe. Mutual investment in Germany from Russian firms and in Russia from German firms also betrays the close ties between them. Moscow and Berlin have worked hand-in-hand to tie up Europe's energy market to serve their own countries interests.
German pain
Of course, Germany, more particularly Angela Merkel, has little interest in the average person of Cyprus or of Germany. Merkel has persistently ignored the rights of her own people, wasting their money on bailing out other countries in Europe, countries that have no voting rights in Germany.
She has persistently placed the interests of others over the interests of those who elected her, throwing the money of ordinary Germans at Greece in order to hold the EU project together, not Germany; something that will be seen as a defining moment in the history of European democracy.
The Cypriots might be robbed, but so too have the Germans been robbed. Their industriousness, their hard work, and their money has again been promised to bail-out the incompetence of others, all for the
vain-glorious dreams of a European elite's selfish ambition.
German political dream
Merkel did have to nod to her own people though, sensing their anger. She had to demand that the Cypriot people pay a lot of money themselves to placate the conservative views of the average German voter, much opposed to flippant wastage of money.
But of course Germany and Europe are intricately interwined. Should Cyprus accept the German plan, it will be another step towards the creation, via the EU, of Germany's new empire. It has been widely
already written upon that the EU is a reflection of German politics, increasingly reflecting Germany's image. The Germans want an EU constitution, for Federal Germany has one. Double Majority Voting favours Germany. More QMV means Germany's client states will vote with Germany more on
issues.
The Euro crisis is simply being exploited by the German political elite to take more and more power, and build a new state with a heart beating in Berlin. French ambitions have been largely surpassed, with Paris pushed into a subservient role. And the elite in Germany knows that Europe is powerless without Russian energy. Moscow, for its part, will be happy to pay or not to pay: either way, Europe will become further beholden to its increasing power.
