It’s been a pretty black week, in which we’ve found out that the EU regards people’s private bank accounts as state property to be looted at will. And it may not just be the EU.
These kinds of policy suggestions coming from governments and central banks are extremely worrying for depositors, because it implies that what is happening to Cypriot depositors and Cypriot banks could be forced onto British and American depositors…
Just what in the world do financial regulators think they are doing even implying that depositor guarantee funds could be used to bail out banks under such an eventuality? Such a recommendation — and the attendant possibility of insured depositor haircuts — could severely impact confidence in the banking sector, just as it has done in Cyprus. The possibility that insurance money may go down the toilet to bail out illiquid banks will make some uneasy to invest their money in the banks. If a severe banking crisis looms, it could lead to bank runs, just as is happening in Cyprus. The trend, if events in Cyprus and Europe continue to escalate, and if other jurisdictions do not take steps to protect depositors from banker greed, is toward depositors losing faith in the banking system, and seeking other stores of purchasing power — mattress stuffing, bitcoin, tangibles.
Essentially, if there is to be any confidence in the banking system, the possibility of depleting liquidity insurance funds to bail out banks needs to be taken off the table completely. The possibility of insured depositor haircuts needs to be taken off the table completely. If banks need bailing out, the money must not come from insured depositors, or funds designed to compensate insured depositors. If banks fail, the losers should be the uninsured creditors.
And it’s not just that our bank accounts have become state property, but that we ourselves have become state property. And, in order for us to be more productive serfs, we are to stop smoking, stop drinking, lose weight, and keep fit.
And our cars are to be replaced with bicycles, and our power stations with wind farms, on the pretext of ‘global warming’ that isn’t happening, in order to ensure our compliance in our new serfdom.
In the same week, in Britain, we have learned that the press is to be regulated. Which of course fits in perfectly with state control and state ownership of everything. The serfs can only be allowed to express state-approved views.
In Britain these fundamental changes are now being introduced by political parties which are ostensibly conservative and liberal and democratic, but which are in fact socialist. David Cameron is a socialist. Nick Clegg is a socialist. For only socialists would accept measures which subordinate the individual to the state, and introduce new measures along the same lines. The entire British political class, and the the political classes across the whole of Europe, have been co-opted by the socialist EU. It really is the EUSSR.
However, on the bright side, the Cypriot political class seems to have remembered, at the last minute, that they also are Cypriots living in Cyprus, and have refused to countenance the theft of their fellow Cypriots’ savings.
The result, next Monday, will probably be that the ECB will cease to provide funds for Cyprus, and the country will be bankrupted. And that will hopefully mark the beginning of the disintegration of the EU. Because it is now quite clear that Spain and Portugal and Italy are more than likely to be treated in the same way as Cyprus. And perhaps in those countries the EU-co-opted political classes will also belatedly recognise, like the Cypriot parliament, that they too are primarily Spaniards and Portuguese and Italians, and start putting their own countries and their own citizens above the imperial ambitions of the EU.
And if the new German anti-EU party – alternative für deutschland – can make headway, the EU may dissolve very rapidly indeed, as more or less every country heads for the exit. And with that will dissolve all the socialist measures accompanying EU state control that have been enacted in recent times (including, of course, smoking bans). It will, of course, be very painful. But at the end of the day, the peoples of Europe will be back in charge of their own countries, and no longer subject to the tyranny of Brussels.
And if nothing else good has happened this week, it must have at last dawned on a great many people across Europe that the EU is not a benign organisation, shepherding a happy European family, and that it is quite prepared to throw entire nations to the wolves if they don’t obey orders from Brussels.
For this has been the week in which the mask of civility has slipped, and revealed the underlying fascism of the ‘project’. It has been a moment of truth in European politics.