Comment: A small manufactured crisis like the one in Cyprus

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A small manufactured crisis like the one in Cyprus

is another way to debase the currency without printing. The value of the Euro drops which makes their exports more competitive and the cost would be a few (or more than a few) depositors in the short run. No worries, they will come back after some time, when the rest of the flock has settled down.

So not only is it a beta test for the other PIIGS, and selective plunder, but if managed correctly it can be seen as another way to devalue without the usual resistance from the FANG countries who worry about inflation.