A Deposit In A Bank Is Not A Riskless Form Of SavingSubmitted by wacko bird on Mon, 03/25/2013 - 15:49
by Tim Price of Sovereign Man blog, via Zero Hedge
Like Lehman Brothers before it, Cyprus may well come to be seen not so much as the cause of further crisis but as yet another symptom of the ‘long emergency’ that continues to suffocate the western economies.
We would describe this emergency as, fundamentally, an inevitable crisis triggered by an unsustainable explosion of credit; western banks and western governments are now like Macbeth’s “…two spent swimmers, that do cling together / And choke their art.”
The prime minister of Luxembourg, Jean-Claude Juncker, has provided two clear insights into this world of deceit:
“We all know what to do, we just don’t know how to get re-elected after we have done it.”
“When it becomes serious, you have to lie.”
This is what we now have by way of government: a self-serving elite who cannot be trusted, operating to a timetable defined by, and limited to, the electoral cycle.
This liberty deficit is possibly more severely damaging than the supposedly intractable fiscal one that lies beneath it. Yet whatever emerges from the disaster, Cyprus has reminded us of a couple of awkward truths: