a blog that tries to minimize the problems caused by corruption and inequality
Tuesday 16 January 2024
The Cyprus bankruptcy - The "before" and the "after" (part III)
In a similar situation, the British government faced a shocking devaluation of the Sterling pound during Liz Truss' administration, losing markets’ trust. What was the difference in that incident? Due to the danger of the Sterling pound to be plunged for good and for the long term and of course due to the danger of losing their seats due to the election that looked inevitable, they forced Liz Truss to resign.
The period of Liz Truss' administration brought to my mind the administration of Demetris Christofias in Cyprus, ten years earlier. As I assume, Liz Truss never heard of Demetris Christofias or ever paid attention to what happened to Cyprus ten years earlier. She just planned to increase the debt level of the United Kingdom that unfortunately for her had already reached the Ponzi levels, where nobody is willing to lend more. Liz Truss, even today claims that there was nothing wrong with her governance. Although, whoever has experience of Ponzi financing can easily understand and connect the practices of Christofias administration with what happened ten years later in the UK.
Those two financial crises prove the fatal mistakes of each private or public administration. Every administration claims to hire or appoint the best. Although, each administration hires or appoints based on friendly relationships or political benefits, translated as votes.. As a result, the administration is full of incompetent members or fraudsters that sooner or later create chaos. Cyprus is a perfect example. We all know that people in the public administration are appointed in exchange of votes and they cover fraud practices like money-laundering and in recent years the sale of passports to international criminals.
Mafia-State is a whistleblower evidence of what was happening during Anastasiades' administration. Anastasiades was repeatedly linked with international fraudsters and money-laundering practices that shaken the European community. Even worse, the whole European community infrastructure is designed in a pattern that one century ago led to the collapse of the “Latin Monetary Union” that today nobody dares to mention.
One hundred years ago, the European people had another monetary union that because of fraud, corruption and incompetence had to be left to collapse in silence.
As history repeats first, first as tragedy and second as farce, Greece was expelled from LMU from 1908 to 1910 and they faced the same pattern a century later. This time Cyprus was added to the story. When you spend all your (national) money, someone will have to loan you some more, in order to keep the (monetary union) illusion alive. But, just because a loan is always a loan, you are first out of the Union unofficially, but you are out a few years later, officially..