2 thoughts on “The Logical Response To A Financial Crisis

  1. Karl Hallowell

    I’ve noticed two interesting things about the Cyprus stuff. First, it’s widely reported that Cyprus banks got into trouble through their exposure to Greek bonds, including Greek government bonds that were written off. While there’s an obvious problem with not enough reserve for Cyprus banks and fiscal issues like excessive government-funded entitlements (that affect most of what is called “southern Europe”), the trigger was the EU bailout of Greece and the subsequent haircut among private bond holders.

    Second, this was a rather blatant case of bullying as well. Cyprus has been asking for aid for about three quarters of a year from what I recall reading. But apparently, the EU wouldn’t deal with the previous government which was communist. When a new leader, one more friendly to EU interests in Cyprus comes to power, what do they do? They summon him about a couple of weeks into his start of term and dump an ultimatum on him. It turns out that he didn’t have the political capital to make good on that ultimatum with the resulting plan vetoed by the Cyprus parliament. There’s no negotiation. Cyprus is just told what to do.

    Now, the EU apparently won’t change its demands. It’s looking to me less like a trial balloon for a bank “haircut” strategy in the rest of the trouble areas in the EU and more like the incipient dismantling of the EU.

  2. ken anthony

    Subservience to government has only one possible outcome which we are now seeing examples of. American exceptionalism was the idea, for the first time in the history of the world since the divine right of kings, that people have natural rights and loan some of these to government for the common protection. This is a huge quake in the history of mankind.

    The most profound part is that people retain the rights they didn’t loan! This is a foreign concept to Pelosi and her ilk which should make them unqualified to represent the people. But the people have forgotten the liberty our founders gave us. There seem to be too few willing to fight for it and those are labeled wackos. It is just amazing that people in this country accept the idea that those that believe in foundation principles are the fringe.

    This idea is so pervasive, that when I suggest free people have the right to claim property owned by nobody, they can’t imagine that. Even when history shows that’s how all property comes into possession. Laws support that even property that is owned by somebody can be claimed by another due to neglect.

    When Opie finds a wallet with $100 in it he brings it to sheriff Taylor to make a reasonable search for it’s owner. After a very short time, Opie buys a new fishing pole. That’s how it works for property we know somebody owns.

    Locke was wrong. Mixing soil with sweat is no requirement. Claiming by possession and answering legitimate challenges is the only requirement. People on a frontier owned by nobody have ample room to meet those challenges which ultimately amount to nothing.

    Iron men understand this. Gold miners understood this. The pansies that exist today don’t. They should pay more attention to Cypress.

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