The cat is out of the bag! The Dutch FinMin and chairman of the eurogroep, @J_Dijsselbloem has spoken the truth in his controversial "Template Gate" interview with Reuters and FT. And he was backed up by the Germans, who have finally given up on the ESM which will never be enough to bail out countries of any significance. As Frau Merkel is facing re-election later this year, taxpayers are finally on the verge of revolting against bailing out of sovereign debt holders (i.e. banks).
*SCHAEUBLE SAYS TAX PAYERS SHOULDN'T BE FIRST TO BAIL OUT BANKS // Errata corrige. #FAILNo one, RPT no one in this business knowingly makes these kind of mega blunders and lives to tell the tale. The Cyprus bail-in IS the new model. Dijsselbloem said as much in a interview with Dutch tv on the night he warned the banking sector of the news, even revealing the official euro lingo for the new template, 'resolution'.
— lemasabachthani (@lemasabachthani) March 28, 2013
The next morning Dijsseldoom confessed having no regrets whatsoever. He also maintained it wasn't a talking point, but a warning. Indeed!
When on the following day of March 26 Dijsselbomb was doing disaster limitation by denying EVERYTHING in Dutch parliament backed up by the Prime Minister, Reuters released above item on the new EU draft law.
New EU Law Could Include Tax on Uninsured Deposits » It might be possible for large uninsured depositors to be "bailed-in" as part of the future resolution of a bank under a new draft EU law.You betcha! One wonders, WTF are they bothering to go through all the trickery? Because that's how you create the necessary confusion. It's a game for idiots! The corrupt media have long since given up.
The idea is to present centrally planned belly up banks as laissez faire capitalism at work. As if EU interventionism and free markets aren't a contradiction in terms? Politicians are diverting attention away from their sleight of hand by demogoging the public on a diet of good, old-fashioned Marxist class envy. That is why capitalism and free markets are being demonized.
The banks on Cyprus were ruined by EU policies. No laissez faire about it! Share holders and deposit holders were simply robbed! The banks were force fed on worthless Greek debt and then got a fatal 75 percent haircut. There's is no economic rationale to this.
The whole point of LTROs (the euro version of QE) is to enable banks to cheaply buy worthless sovereign debt. But it's simply not possible to cover debt with debt. So now ownership rights will be legally violated out right.
Admission on BBC Newsnight Eucrat said Cypriot Banks went under due to mass purchase of Greek Bonds but didnt say itwas on orders of ECB!This is immoral Neo Marxist, central planning. To be continued.
— David Coburn UKIP (@DavidCoburnUKip) March 28, 2013
Update
The Economic Collapse Blog: Cyprus-Style Bank Account Confiscation Is In The New 2013 Canadian Government Budget! - H/t @Johaster