Like MF Global, Cyprus is a trial run
Planning 21st Century theft is fairly straightforward. The speed and interconnectivity of a digital society means that the theft itself can be executed by The State and its private sector actors
flawlessly and quickly.
flawlessly and quickly.
The difficulty is in predicting the reaction. TPTB still have a difficult time predicting how the general public will react to certain events. They have improved their predictive capability immensely, but as their understanding is inevitably colored by their own prejudices, they are continuously surprised. Digits and systems are 100% predictable for the most part. Humans are not. And that’s why trial runs are necessary.
Only through trial runs can group behavior be tested. This leads to refinements in the messaging that accompanies the event.
9/11 is the classic case. Within an hour of the event, the media was mentioning the name OBL, even though it would have naturally been impossible to make those accusations so early. Previous terrorism experiences (WTC I) and research indicated that naming the bad guy while the audience was still reeling from the shock of the trauma reduced resistance to the idea versus making the connection later.
case. Within an hour of the event, the media was mentioning the name OBL, even though it would have naturally been impossible to make those accusations so early. Previous terrorism experiences (WTC I) and research indicated that naming the bad guy while the audience was still reeling from the shock of the trauma reduced resistance to the idea versus making the connection later.
MF Global was a test run. Vaporizing depositors was the easy part. The question was one of reactions. The reaction was muted – more so than was expected, even considering the success of efforts to
a) present the incident as incredibly confusing
b) name a scapegoat to blame
c) ignore the stories of personal distress caused to the vaporizees.
b) name a scapegoat to blame
c) ignore the stories of personal distress caused to the vaporizees.
When the next take down takes place, of a magnitude larger in size, you will notice the same themes emerge.
Cyprus is also a test run. It is the first attempt at wholesale theft from the depositor class, and while the test bed is a country small enough to avoid contagion, it is still a remarkably bold theft. Again, as usual, the State and its actors moved swiftly, but they will be using the next week to gauge reactions – levels of anger, bank runs, any contagion effects.
If the people can be placated and the theft executed without too much discomfort applied to TPTB class, expect a larger theft in 2014.
TPTB may have learned far too well the lesson that the general populace can be easily placated. Personally, I expect they will get something of a surprise from this test run and will be wrestling with a much more pronounced global reaction than they expected.
CrazyEyesThreadKilla
Read more at http://investmentwatchblog.com/like-mf-global-cyprus-is-a-trial-run/#wgJFEyLXfjvFZpVq.99
Another, less known reason why Cyprus collapsed
This “incident” cost the government of Cyprus over 3 BILLION euros
Cyprus has the most expensive electricity in Europe.
The Evangelos Florakis Naval Base explosion was the worst peacetime military accident ever recorded in Cyprus. The incident occurred on 11 July 2011, when 98 containers of explosives that had been stored for 2½ years on the Evangelos Florakis Naval Base near Zygi detonated.
The resulting explosion killed 13 people, 12 of them immediately, including Captain Andreas Ioannides, the Commander of the Navy (Cyprus’s most senior naval officer), and the base commander, Lambros Lambrou. Also killed were four navy personnel and six firefighters, while a further 62 people were injured. The explosion severely damaged hundreds of nearby buildings including all of the buildings in Zygi the island’s largest power station, responsible for supplying over half of Cyprus’ electricity. As a result, much of Cyprus was without power in the immediate aftermath of the incident and rolling blackouts were initiated in order to conserve supplies.
station, responsible for supplying over half of Cyprus’ electricity. As a result, much of Cyprus was without power in the immediate aftermath of the incident and rolling blackouts were initiated in order to conserve supplies.
According to a list of the largest artificial non-nuclear explosions, the explosion was the 4th largest accidental explosion and 7th largest overall.
In open storage on the base were 98 containers of explosives that had been seized by the United States Navy in 2009 after it intercepted a Cypriot-flagged, Russian owned vessel, the MV Monchegorsk travelling from Iran to Syria in the Red Sea. According to leaked US cables through WikiLeaks, released in 2011, the US through Hillary Clinton exerted pressure on Cyprus to confiscate the shipment. The ship was escorted to a Cypriot port and the Cyprus Navy was given responsibility for the explosives, which it moved to the Evangelos Florakis a month later. At the time of the incident in 2011, the explosives had apparently been left in the open for over two years. The Cypriot government had declined offers from Germany, the United Kingdom and the United States to remove or dispose of the material, having feared an adverse reaction from Syria. The government had instead requested that the UN effect the removal, but claimed that its request had been rejected.
The Vasilikos Power Station, the largest power facility on Cyprus, which provided approximately half the island’s electricity, was severely damaged, causing widespread power cuts.
Several thousand people upset by the Cypriot government’s failure to dispose of the explosives held a demonstration in the capital Nicosia on 12 July. A group of about fifty broke away from the demonstration and stormed the grounds of the Presidential Palace, demanding the resignation of Dimitris Christofias, President of Cyprus. The breakaway group was almost immediately apprehended by the Cyprus Police, who nonetheless used tear gas ten minutes after the incident had begun in an attempt to disperse the crowds.
Of Cyprus’ US$ 24.66 bn economy, the EU estimates that the cost of explosion to the island could amount to US$ 2.83 bn, with cost of the power plant
itself coming to US$ 992m.
itself coming to US$ 992m.
This was weeks before the Bank of Cyprus and other business leaders said “deep spending cuts are needed fast.”
leaders said “deep spending cuts are needed fast.”
Many, many russians have deposited black money in Cyprus.
black money in Cyprus.
Simply put… they can’t get into Syria as long as this money stream is flowing through Cyprus.
Ruskies have at least 50 billion euros stalled in Cyprus.
And that’s only an estimate.
Intella
Read more at http://investmentwatchblog.com/another-less-known-reason-why-cyprus-collapsed/#AGFHb6hlEiX7SDOR.99
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