Cyprus - That is The Greek Bit

I feel obliged to comment on current events in Cyprus, since my hostility to the Euro project is long-established and probably well known here.

However, it's tricky.  I've been following discussion forums and there is a great deal of hysteria to wade through - and a lot of opprobrium directed at Germany.

It is true that there is a general election looming in Germany, which must be a consideration, but I suppose since that since Germany is more-or-less keeping the stupid Euro afloat then Frau Merkel is entitled to have a say.

Just recently Latvia signed up to the Euro; these people must be barking mad.

And Cyprus is a sort of Iceland writ large.  Iceland's recovery is progressing because they simply said "piss-off" to their creditors - or at least to their banks' creditors; when you're not in the EU you can do that sort of thing.  Cyprus's economy has been running a large deficit whilst the bloated banking sector is about eight times the size of the national GDP; worse, it is stuffed with Russian money about which there is said to be the whiff of the laundry.

All I can say is that I'm glad that I do not have the job of sorting out the mess; if Russia (i.e. Putin) is upset because the bank accounts of some of the president's pals have received a haircut, perhaps they'll turn off the gas tap?

A € for the meter anyone?

Until the next time