Cyprus Should Split (With Greece In Tow)

by Nick Glossop on March 27, 2013

Forking Cyprus

…just take a look at what the Eurocrats have done: They say they will loan Cyprus €10 billion provided that the Cypriot government seizes billions in deposits from two private banks. Set aside the ethics of seizing deposits. How can Cyprus repay the loan? According to the CIA factbook Cyprus’ estimated 2012 GDP, at the official Euro exchange rate, is 22.45 billion dollars. At 1.28 dollars to the Euro, €10 billion equals $12.8 billion, or 57% of GDP. In comparison, the U.S. GDP in 2012 was about $15.65 trillion; 57% of that is about $8.95 trillion; even for the U.S., the incurring of an unexpected, instantaneous debt of $8.95 trillion would pose severe difficulties regarding repayment.

The situation, however, is much, much worse for Cyprus because services, mostly banking, accounted for about 80% of GDP but now Cyprus has little to no hope of maintaining its status as an offshore banking center. By definition, indeed, if one cannot move money in or out of a country it cannot be in the offshore banking business. The Cypriot government says that its recently imposed currency controls will remain in place only temporarily, but that remains to be seen. Currency controls in Iceland, for example, were also meant to be temporary but are now well into their fourth year. So stipulating that it is guaranteed to have only the remaining, semi-functioning 20% of its economy, Cyprus is expected to pay back 57% of its former GDP. This is, to be blunt, impossible.

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Advances In China’s Counterfeiting Industries

by Nick Glossop on March 27, 2013

Some retailers are buying counterfeits and mixing it in with legitimate product.

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News Brief: Cyprus Signs a Deal, Japanese Mineral Discovery, GWB Artwork

by Tony Longworth on March 25, 2013

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News Brief: South Korea Hacking Update, Highway Pileup, Cyprus, Quantum Computing

by Tony Longworth on March 22, 2013

Cypriot Fuse To The Euro Bomb

by Nick Glossop on March 21, 2013

…or why the banks of Cyprus dare not open

More on the subject, including the Russian mafia angle, with Costas Lapavitsas after the break. Read the rest of this entry

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by Nick Glossop on March 21, 2013

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News Brief: Syria Update, Elizabeth Colbert Busch, Singularity, Neverwhere

by Tony Longworth on March 20, 2013

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News: Syria Chemical Attack, Sound Lasers, Henry Rollins

by Tony Longworth on March 19, 2013

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