Monday, March 18, 2013

Dumping the burden

The handling of the Euro crisis is becoming ever more ridiculous.  In the latest bailout, citizens of Cyprus will have 10% of their bank deposits stolen from them by their government as part of the deal with Europe's central bank.  This is described by authorities as "sharing the burden".  Why should Cypriots be asked to share the burden of a crisis triggered by a combination of global bank greed and the Greek government's overspending?  (Cyrpus's banks are mainly in trouble because of over-exposure to Greek debt.)

Two things have been consistent throughout this crisis: one is that the policies intended to cure it will instead worsen it by choking economic growth.  The other is that the burden falls on those least able to bear it, while the fatcats responsible for the trouble in the first place survive relatively unscathed.

Politicians and bankers - ain'tcha sick of 'em?

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