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Right now, in a galaxy not so far away…<\/p>\n
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(As reported by Forbes…)<\/em><\/p>\n <\/p>\n \u201cWhy is a dot-sized European country causing outsized effects?\u00a0 Because what starts in Cyprus, a tiny isle of 1.1 million people, could soon spread to London or New York or Hong Kong, making misery for many millions more.<\/em><\/p>\n <\/p>\n Cyprus experienced severe turmoil this weekend after its prime minster agreed to force a tax on all bank deposits in order to receive a bailout.\u00a0 The prospect of a tax set off a run on ATMs and made observers worry that financial contagion could spread throughout the continent and then beyond…<\/em><\/p>\n <\/p>\n How unpopular is this in Cyprus?<\/em><\/strong><\/p>\n Forgive the understatement.\u00a0 It\u2019s deeply, deeply\u00a0unpopular.\u00a0 Cypriots made a run on all available ATMs this weekend, depleting cash reserves across the country.\u00a0 Cyprus, in response, also suspended electronic transfers.<\/em><\/p>\n <\/p>\n Why are we even talking about this?<\/em><\/strong><\/p>\n To receive a 10 billion euro ($13 billion) bailout, [Cypriot President Nicos] Anastasiades agreed to the taxes.\u00a0 Cyprus badly needs foreign aid, and a deal has been in official discussions since June.\u00a0 The complexity of any package delayed it, as did the opposition from Anastasiades\u2019 predecessor.\u00a0 The money, in part, comes from the Troika: the International Monetary Fund, European Commission and European Central Bank.\u00a0 But the tax on depositors ensures a major portion comes from Cyprus, too.\u00a0 And here\u2019s the larger picture. Cyprus is badly indebted. Its debt-to-GDP ratio pushed to 127% in the third quarter of 2012…\u201d<\/em><\/p>\n <\/p>\n [One more tangent comment from Forbes…]<\/p>\n <\/p>\n Did the president really get elected while supporting this tax?<\/em><\/strong><\/p>\n Anastasiades rejected the idea during the campaign.\u201d<\/em><\/p>\n <\/p>\n So here are the facts:<\/p>\n <\/p>\n One federal government.\u00a0 So deep in debt.\u00a0 Owes billions to foreign countries.\u00a0 Has a history of overspending.\u00a0 Has never prioritized a specific plan to pay back the debt.\u00a0 And has a debt-to-GDP ratio over 100%.<\/p>\n <\/p>\n (Note:\u00a0 A general debt-to-GDP guideline is that a ratio below 50% is considered healthy, while a ratio above 90% is regarded as potentially, economically dangerous.\u00a0 If economic growth is strong, a country can support higher debt.)<\/em><\/p>\n <\/p>\n How have the leaders of Cyprus determined to stop the economic bleeding?<\/p>\n <\/p>\n Government agreed to seize the citizens\u2019 income.\u00a0 Those in power decided it is legal, moral, and appropriate to confiscate what belongs to the people.\u00a0 Call it \u201cseizure.\u201d\u00a0 Call it \u201cconfiscation.\u201d\u00a0 One could inarguably also make a case for \u201ctheft.\u201d<\/p>\n <\/p>\n Quoting Forbes once again, \u201cwhy are we even talking about this?\u201d<\/em><\/p>\n <\/p>\n Because one American government… so deep in debt… owes billions (now over $1 trillion)<\/em> to China… has a history of overspending… has not prioritized a plan to pay it back… and has a debt-to-GDP ratio that crossed the 100% mark in early 2012, with current projections hitting 113% in 2013.\u00a0 How will our<\/em><\/strong> leaders stop the economic bleeding?\u00a0 What will they determine to be legal, moral, and appropriate?<\/p>\n <\/p>\n In response to the mandated confiscation in Cyprus, there was a rush to withdrawal money from the country\u2019s banks.\u00a0 In response to the citizens\u2019 withdrawal, the banks have now closed.\u00a0 Hence, more are making a valid case for \u201ctheft.\u201d<\/p>\n <\/p>\n Respectfully,<\/p>\n AR<\/p>\n","protected":false},"excerpt":{"rendered":" Right now, in a galaxy not so far away… (As reported by Forbes…) \u201cWhy is a dot-sized European country causing outsized effects?\u00a0 Because what starts in Cyprus, a tiny isle of 1.1 million people, could soon spread to London or New York or Hong Kong, making misery for many millions more. … <\/p>\n