How Cyprus's Politicians Just Saved Their Own Necks
Cyprus's politicians voted against the original "bail-in" plan - the stealing of money from bank customer accounts. The settlement just reached, however, does involve confiscation of bank customer money - i.e., stealing money from customers. However, the settlement was imposed from without by the EU and did not require agreement from the Cyprus politicians who voted against confiscation (after they had originally agreed to it).
What's going on here?
To understand that, you have to know that Cyprus's politicians changed their minds our of fear: fear of the KGB. Yes, that's right, the KGB, the old Soviet security apparatus, defunct since 1989. Here's why I'm saying the KGB was involved, and you'll see why the politicians voted down confiscation. It starts and ends with the Russians who had billions of Euros on deposit in Cyprus banks.
The Russians who have deposited billions in Cyprus banks are Russian businessmen, otherwise referred to as “oligarchs.” And if you know anything about the history of post-Soviet Russia, you know that the core of the Russian oligarchy - i.e. the businessmen who own and run big business in the “new” Russia - for the most part consist of ex-KGB agents.
Now the story of how these fellows morphed from KGB operatives into oligarch-businessmen is fascinating. While we’ve no time to tell that tale now, it is important to know who we’re dealing with here.
We Americans, who might be tempted to somehow compare the KGB with our CIA or FBI, need to step back a moment and remind ourselves that the KGB was not merely the Soviet “spy” network. It was the guts of the massive security apparatus that facilitated the terror that controlled the Soviet state for decades by brute force, completely unconstrained by law, until its collapse in 1989. They always got their way, and suffered no opposition. Picture Michael Corleone in The Godfather and multiply by 1,000. But as opposed to Michael, who wanted to transform his criminal enterprises into “legitimate” businesses and never could quite get there, these KGB fellows not only now run the Russian government but own and operate the most profitable Russian businesses. Michael could have learned a thing or two from them. And these are the same people who deposited money in Cypriot banks - lots and lots of money. Even worse, it was no secret that these KGB-oligarchs used the Cypriot banks to launder money.
Think about it. You’re in the Cypriot government. It’s time to vote to steal money from brutal thugs who’ve proven that they’re capable of using any methods - including torture, maiming and murder - to get their way. How would you vote? And don’t forget that these government officials know that while revenge may not come tomorrow or the next day, it surely will come. The Russians don’t forget.
In this first - and most likely last - encounter between Cypriot government officials and Russian ex-KGB, score it game, set, match: KGB.
So Cyprus's politicians - probably literally - saved their own necks by voting against confiscation.
What's going on here?
To understand that, you have to know that Cyprus's politicians changed their minds our of fear: fear of the KGB. Yes, that's right, the KGB, the old Soviet security apparatus, defunct since 1989. Here's why I'm saying the KGB was involved, and you'll see why the politicians voted down confiscation. It starts and ends with the Russians who had billions of Euros on deposit in Cyprus banks.
The Russians who have deposited billions in Cyprus banks are Russian businessmen, otherwise referred to as “oligarchs.” And if you know anything about the history of post-Soviet Russia, you know that the core of the Russian oligarchy - i.e. the businessmen who own and run big business in the “new” Russia - for the most part consist of ex-KGB agents.
Now the story of how these fellows morphed from KGB operatives into oligarch-businessmen is fascinating. While we’ve no time to tell that tale now, it is important to know who we’re dealing with here.
We Americans, who might be tempted to somehow compare the KGB with our CIA or FBI, need to step back a moment and remind ourselves that the KGB was not merely the Soviet “spy” network. It was the guts of the massive security apparatus that facilitated the terror that controlled the Soviet state for decades by brute force, completely unconstrained by law, until its collapse in 1989. They always got their way, and suffered no opposition. Picture Michael Corleone in The Godfather and multiply by 1,000. But as opposed to Michael, who wanted to transform his criminal enterprises into “legitimate” businesses and never could quite get there, these KGB fellows not only now run the Russian government but own and operate the most profitable Russian businesses. Michael could have learned a thing or two from them. And these are the same people who deposited money in Cypriot banks - lots and lots of money. Even worse, it was no secret that these KGB-oligarchs used the Cypriot banks to launder money.
Think about it. You’re in the Cypriot government. It’s time to vote to steal money from brutal thugs who’ve proven that they’re capable of using any methods - including torture, maiming and murder - to get their way. How would you vote? And don’t forget that these government officials know that while revenge may not come tomorrow or the next day, it surely will come. The Russians don’t forget.
In this first - and most likely last - encounter between Cypriot government officials and Russian ex-KGB, score it game, set, match: KGB.
So Cyprus's politicians - probably literally - saved their own necks by voting against confiscation.
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