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The Russian money is a smokescreen. What's really politically unspeakable is the following: (quoted in the story body)
The ECB is hiding the results of a study about the distribution of financial wealth in the eurozone until after the decision about an aid programme for Cyprus, Frankfurter Allgemeine reports this morning, quoting unnamed central bankers. The intention of the delay is to prevent the data being used to question the programme. The ECB has been running these polls since 2006. Some of the national central banks, including those of Italy, Austria, Luxembourg and Spain, have published their own national results, but others have not. The article says the data contain "politically explosive material". For example, Italy's financial wealth, at a median value of €164,000, lies above that of Austria, at €76,000. While the Bundesbank has not published the data, the German median value is thought to be in a similar range - in other words way below that of Italy.
The German government cannot allow a discussion of wealth inequality and household savings in Germany which would demonstrate that the German working class has not only been shafted over the past decade with the much-touted "competitive reforms", but that they are also being shafted now.

And from Zervos in Business Insider (quoted by ARGeezer)

All of us should really take a moment to consider what the governments of Europe have done. To be clear, they initiated a surprise assault on the precautionary savings of their own people. Such a move should send shock waves across the entire population of the developed world.
In "less developed" parts of the world - and I think nobody will be offended if it's pointed out that the rule of law is probably more reliable in Germany than in Cyprus, and that the country is wealthier, people need much smaller "precautionary savings".

What this is doing is, at least in Cyprus, sending people on an "all cash" position (and I mean cash under the mattress, not cash in the bank as "all cash" would be understood by "investors") if not entirely off the Euro, into gold or other currencies.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS

by Migeru (migeru at eurotrib dot com) on Mon Mar 18th, 2013 at 05:57:10 AM EST
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