The Long Bank Holiday

After the longest bank holiday in Cyprus (and probably in Europe) the banks are open for business. People can draw as much as euros 300 a day in cash. There are controls to prevent the flight of capital out of the country, because who, in his right mind, would not cut his losses in Cyprus if he could and who in his right mind would invest in Cyprus in circumstances when he knows that (a) he is not permitted to get his profits of his investment out (b) the European Union has taken a set against Cyprus and is punishing Cyprus for economic problems created by the profligacy Greece and a business model based on that of Luxembourg and Switzerland?

Now that the European Union has forced Cyrus to change its business model. It can no longer do what Luxembourg, Andorra, Malta, Jersey, Guernsey, the Isle of Man, Gibraltar and the Dutch Antilles do. It has no significant resources, The best farming land in Cyprus is under the control of Turkey, so the Cypriots will have to find another way to earn a living, Having forced Cyprus to change its economy, the European Union has made it such that no one wants to invest in Cyprus; Cypriots, British and Russians will want to take their money out; no one will want to put their money in.

From Cyprus’s point of view it now has nothing to lose and nothing to gain by remaining in the euro zone  If Cyprus leaves the euro zone this may well make the euro less stable and less attractive as a currency in which to invest. If the euro is less attractive, internationally, smaller nations with their own currencies will be able to build their own economies as they wish. It must be in the interest of Cyprus to get control of their own economy by leaving the euro.

2 Responses

  1. What is needed for the healing process to begin, are Amish type islands and open borders.

  2. […] Here is the original:  The Long Bank Holiday | Robert Kyriakides's Weblog […]

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