- CRITTER TALK
- SCI/TECH/OTHER STUFF
Cyprus is bankrupt. Other than nice scenery I don’t know of anything it has to offer. And seeing as how most of us are too lazy or cheap to go to Cyprus and look at the scenery when we can sit on our rear ends and look at images of Cyprus on our laptops and tablets, its troubles will continue.
Germany is the strongest economy in the Eurozone. Germany is also not fond of bailing out weak economies and the Germans don’t have much use for Russians since WWII. The Cyprus bank deposit “tax” is a great way for Germany to stick it to a bunch of Russian billionaires.
The thing is, of the 70 billion euros in Cyprus banks, almost half belongs to foreigners, most of them Russian. So Germany can stick it to them by ramming this deal down the throats of Cypriots. The alternative for Cyprus is default. Not a good deal for them either way. Germany makes Cypriots pay for their bailout, not that there’s a whole lot of rich Cypriots running around, but that gives Germans cover for their real goal of sticking rich Russians with the bill. In a way it’s just from my slightly left of center point of view. Everyone is contributing something. But the rich are contributing a larger share as that’s what is fair. Rich Russians have been using Cyprus banks to store cash tax free. It’s only right that they contribute the most to the system that benefits them the most.
The reasons for billionaires to hide money in foreign banks are varied. Maybe they have investments in a country and want to have in country cash available. I doubt many billionaires are interested in investing in Cyprus though so the reasons for having deposits in Cyprus banks are most likely less than honorable. It will be interesting to hear President Putin’s take on this.
American right wingers have no problem with hypocrisy: demanding government void union contracts while expressing outrage that a rich banker’s contract not be subject to government voiding. So perhaps Putin will take their cue and demand Russian billionaires not be subjected to the outrage of helping keep a country that hid their less than honorable assets; hidden from taxation by the Russian government. Ya gotta love Russia’s new brand of socialism…especially if you work for Fox News.