The Fatal Flaw

The theft of Cypriots' savings without so much as by your leave is quite jaw dropping in its brazenness. As Zerohedge notes, bank accounts are private property so what has happened is effectively the confiscation of private property - the equivalent of the government driving off with your car on a whim.

Of course the situation is being described as "exceptional and unique", as were the bailouts of Ireland, Portugal, and Greece. A precedent has been set and it's not difficult to envisage that this will happen again (it's a possible trial run) or that contagion, in the form of bank runs, will happen across Europe.

But it's seems to be forgotten among the outrage that our own Government is not adverse to similar actions themselves, only it's called something different.

If you want to raid savings accounts you can call it; quantitative easing, inflation or devaluation of the sterling. Different names but a similar effect. Or confiscate shares without compensation to shareholders that were still trading on the market at 90p at the time as per the nationalisation of Northern Rock. Or raiding dormant accounts. Or indeed bailing out a Eurozone country with taxpayer's money, despite promises to the contrary, but calling it "compensating British troops". When were we consented about this?

The EU's fatal flaw is its openness on the theft, an openness that is necessary because, unlike a successful currency union like the one that exists in the UK, it cannot disguise it via other methods due to the inherent shortcomings of the Euro. It is hamstrung by a flawed currency of its own making. It is being hoisted by its own petard.

However we should not be under any illusions that anything would be any different should we leave without a sea change in democracy at home...