Tuesday, October 18, 2011

Cyprus is symptomatic of the European Nightmare

Cyprus © Russia

News comments:
Tiny Cyprus is the most exposed and indebted Euro country outside of Greece. Here is a cut and paste from a Cypriot website:

Cyprus Finance Minister Kikis Kazamias explained that if the House does not approve the bill for an increase in VAT from 15% to 17%, this does not necessarily mean that Cyprus will have to join the European Financial Stability Facility (EFSF), however “the country will draw closer to it”.

Cyprus is being propped up by the Russians who have used Cyprus as a gateway into Europe. This is well known. So when Cyprus explicitly says it is looking forward to joining the Euro-TARP, it is looking at providing collateral to its Russian paymasters.

The ESFS is being treated like a sweet shop and I still cannot understand why anyone can still believe Germany will want to fund this thing and give away its wealth on the promise these indebted countries will pay it back.

Politicians go on about growth being their saviour. Of course it is but we are talking rampant growth and that isn't coming for many years.

The game is over. The Euro will collapse by the 31 December 2011 and I will collect my winnings.

Today's shorts:
Germany seeks to see France lose its AAA (bloomberg)

Cyprus (cyprusexpat)

Leveraging up the Euro TARP (telegraph)

Today's longs:
CRA ready to pull the trigger on France (cityam)

French car industry to bail out France.