But first, one must consider what is happening to Cyprus on the orders of Germany, under alleged banking superior knowledge by Germany.
From the influential Moody's Investor Service;
"We anticipate the banking resolution mechanism for the Cypriot banking sector to result in a significant downsizing of banks' activities and therefore to severely affect the economic performance of the island from 2013 onwards. We expect an acceleration in the contraction of the Cypriot economy in 2013, with a negative real growth rate in the low double-digits and no return to positive growth before 2016."
"Our view is further supported by the negative feedback loop that expenditure cuts may have on the economy given the importance of public services, hence potentially challenging future consensus on fiscal strategy. We note that large uncertainties remain regarding the magnitude of further recapitalization needs for the financial sector given the expected sharp deterioration in the operating environment which will erode asset quality, as well as the behavioural responses of all economic actors to the shocks experienced by the financial sector (including risks of financial disruption related to the timing and approach for lifting of capital controls)."
"In light of all the downside risks and the limited number of upsides, we view Cyprus as likely to default again in the coming years, as reflected by the rating level and negative outlook. Although it is not its central scenario, Moody's also sees a material risk of a Cypriot exit from the euro area which is captured in the Caa2 country ceiling. As a result of the immediate downsizing of the banking sector and the expected spillovers to rest of the economy, especially in terms of weakened consumer and investor confidence, we forecast that the economy will contract by 12% this year and another 6.4% next year."
--Moody’s, 15 July 2013
--Moody’s, 15 July 2013
Commenting on this, former Vice Chairman of Moody's, Christopher Mahoney, has this to say;
"The purpose of EMU (EU economic monetary union) is to reduce the occupied states to penury in order to make them more like Germany, or Ethiopia. Ultimately the question is is: how low can per capita income decline until “Europe” becomes a dirty word, and “liberty” becomes the popular desideratum. Cyprus is the laboratory of this experiment, along with Greece and Portugal. Here is the experiment: How many people must eat out of garbage cans before the euro elites understand that EMU is destroying lives."
"It must be pleasing to be ingesting a nice Brussels dinner while discussing how subhuman the Cypiots are, and how they must be “taught a valuable lesson”. That was how Stalin felt about the “rich peasants” of the Ukraine: surplus empty mouths to feed. Wouldn’t the world be a better place without so many peasants?"
"Perhaps, in a perfect world, Cypriots wouldn’t exist, like the kulaks and the Crimean Tatars. All Cypriots do is enable Russian plutocrats. Why should they exist? Liquidate them. Indeed, liquidate all of the parasite states of the Eurozone."
"So we now know that the purpose of EMU is not to enrich the vassal states, but to occupy them and to make them penurious colonies of the hegemon. Peripheral Europe is Germany’s Latin America. But there is a crucial difference: the US has not forced its Latin American colonies to join the dollar zone. Latin America, despite its colonial status, retains monetary sovereignty. Aside from the Bolshevik laboratories of Argentina and Venezuela, Latin America is outperforming its colonial parents. Portugal and Spain should have monetary union with Brazil and Mexico, instead of Finland and Germany.
What Germany is doing to Cyprus is a crime."
Continuing on a similar theme, whilst Germany pretends to be whiter-than-white (no Nazi racial pun intended), it is interesting to note some figures.
After the financial crisis of 2008, Anglo-Irish bank needed a bailout. The only reason the taxpayer was involved in this bailout, was that a large amount of British pensions were tied up with this bank, and without the bailout, there could have been some serious problems for the UK.
This was a big bailout in the scheme of things - £25bn.
Before we give some figures of German banking bailouts which have been kept very quiet, one must understand that German businesses including banking, are often and have been for over a century, a tool of the German state's expansionist aims. Whilst enterprise in the US/UK remains generally free of government intrusion when operating in foreign realms, and thus involves itself in profitable business, Germany is busy using her business strategically - buying into or being involved in business that has a strategic value (normally control over subject state in some way), and even at a loss to that German business to ensure that control. The losses are made up by the German state, which often holds a very large cloaked share in major German business anyway.
So, with the credit issues and subsequent crisis in 2008, it is interesting to note that Germany was largely supplying the mad credit used to get crisis countries in trouble - even at a loss to the German banks and financial institutions. Why? Because losses didn't matter - the German state was going to pick up the tab for German bank's sabotaging of the capitalist financial system.
In 2008, when the Landesbanken were found to be full of American sub-prime mortgages, the German government bailed them out with a €500 billion rescue package at its taxpayers' expense. In 2010, when German banks were badly over-exposed – to the tune of over €530bn – to Greece, Ireland, Italy, Portugal, and Spain, European taxpayers and the ECB helped them to bring most of that money home. The biggest threat to German taxpayers is not southern European profligacy (as German propaganda would insist), but their own country's banks.
Germany is buying its empire whilst attempting to even old scores. Plain and simple.