By Andreas C Chrysafis December, 2012 (No36) ©
Troika: Solution or Entrapment?
Economic and social chaos has hit Cyprus big time! Owing to the mishandling of the economy, corruption and incompetence, the entire nation is now entrapped. The failure of the government to introduce preventative economic measures has reduced the nation to a pauper state with a stigmatized credit rating of junk status. This makes it impossible for the country to borrow money!
Cyprus has never experienced such a catastrophic phenomenon before – not even after the 1974 Turkish military invasion! This financial tsunami is set to destroy hundreds of families, companies and everything that crosses its path. It has now picked up speed and it’s unstoppable; only a miracle can save the island from social and economic annihilation! If not vigilant, salvation can also mean entrapment into greater pitfalls in the future.
In a real world, miracles do not simply just happen but people make them happen! The Cyprus government has invited the Troika (a group of international bankers IMF, EC & ECB) to rescue the country and produce such a miracle – just like Greece did with tragic consequences! Obstinately, it has refused to consider other options and took the convenient way out and in so doing, jumping from one frying pan straight into another!
Based on expert observations the initial 30-year-term Mnimonio (rescue package) is envisioned to be around 21-25 billion – final amount not yet confirmed! Out of those staggering figures, more than 12 billion Euros will be shamefully squandered to bailout dishonourable banks at the bitter cost of innocent taxpayers. Ingeniously an Economic Colonization plan has now been set in motion!
For Cyprus’ small economy, those figures represent a financial and social suicide. Deprived of meaningful foreign investments, a debt of such a magnitude will be impossible to service without oppressive public sacrifices or the sale of government assets. It is also feared that additional Mnimonios (loans) would be required in the future – Greece is on its third one so far! Expert economists estimate that the interest alone on the first Mnimonio for Cyprus could be more than 900 million Euros annually! A shocking amount of financial burden to be paid by the taxpayer!
The Troika knows that! Shrewdly, it has not as yet revealed its true Mnimonio agenda but it is certainly planning to put in practice a long-term geo-economic and geo-political foothold in the area. International bankers aim to take an active role and use their influence and dominance over the Republic’s future income from the sale of natural gas. The EU – like the rest of the world – has an insatiable hunger for energy and Cyprus can now fulfil that appetite like manna from heaven!
Based on test results, the Republic has the potential of becoming the centre of a multi-billion-gas industry and foreign powers, including the Troika are aware of that. This Banking Conglomerate Institution is therefore using the old “carrot and the stick” principle to enforce a dubious master plan. However, in order to succeed, it is imperative to ensure political stability and the EU aims to play a pivoting role as to what happens next! It is not unreasonable to presume that the EU and Troika both, plan to exert pressure on Cyprus to agree on a “two state solution” and in so doing, also legitimize Turkey’s brutal military invasion and occupation of the northern part of the island; it will be cleverly disguised as a sort of “pseudo-federation”! The Cyprus issue will be “solved” and equally open up the floodgates for foreign control and exploitation.
The EU will be guaranteed to an endless flow of natural gas from the Republic of Cyprus – an EU member state – but it will also be in a position to exploit without a hindrance the vast 75 million Turkish consumer markets and the cheap labour it provides. This is a classic entrapment technique of Economic Colonization in action; no more brutalities of war but brutalities of financial domination through loans and debt-creation!
The terms of the Cyprus Mnimonio has not been fully revealed as yet and disgracefully, politicians have overwhelmingly voted in favour and adopted all the Troika austerity measures. Ironically, they have approved crippling laws without knowing all the terms and conditions of the Troika loan! The worse part, people were never consulted! If such a situation occurred in Switzerland the Right to a Referendum based on the Right to Inform and Decide would apply! Unfortunately, citizens in Cyprus are not so privileged; only an ungodly politicocracy has that right! There are now over 50 thousand people out of work and it is estimated to reach closer to 100 thousand in the next few months; a staggering misery for a small nation! Yet, an unrepentant government is convinced that borrowing billions is the only answer, short of bankruptcy and the collapse of the banking system! Similar blackmailing tactics were used in the past and were all proven wrong; Iceland is a good example for that! If that’s not bad enough, the 2013 Presidential election campaign is in full swing and could not happen at a worse time.
All the hopefuls – with the exception of one – are in favour of a Troika-based economic solution and refuse to see the possibility of exploiting the country’s resources as a way out of economic humdrums. It is not uncommon for nations to exploit and capitalize on their mineral recourses to overcome temporary fiscal difficulties. That is a normal practice and Cyprus could have equally done so instead of choosing the oppressive Troika terms. The Troika’s “restructuring policy” has been a disaster for millions of people across Europe and Cyprus has now become their next victim of Economic Colonization.
The discovery of natural gas has truly provided a great opportunity for Cyprus to develop its own unique natural gas Energy Fund. Adopting the Norwegian or the British Columbia/Alberta model to exploit its rich resources would be of great benefit. Learning from those nations’ experience and embracing similar successful principles, will catapult Cyprus to becoming a global leader in sustainable natural-gas development and energy-exporting nation.
As a first step however, the Cyprus Constitution needs to be amended to prohibit political parties and temporary governments to dip their fingers in the honey jar, as they are so commonly used to. It is for that same reason as to why it’s imperative to adopt groundbreaking new laws based on absolute transparency, void of corruption and nepotism.
Openness and accountability will provide an amazing future for the island. It will certainly propel it into a new era; an era of prosperity for the benefit of all citizens and not for the benefit of the privilege few.
Unfortunately, Troika and International Bankers have other entrapment plans in mind for Cyprus and the sooner they are recognized, the sooner the Republic can take measures to protect its citizens from possible ruin. As things stand, there is little hope for that, or for a democratic revolutionary change! Economic Colonization has arrived in Cyprus and it’s here to stay…
Author of: WHO SHALL GOVERN CYPRUS – Brussels or Nicosia? -Political analysis ANDARTES – a revolutionary riveting novel PORPHYRA in PURPLE – a metaphysical spellbinding novel All books are available from: Bookshops, Barnes & Noble, Amazon.co.uk, Amazon.com, Waterstone’s, Kindle and the Internet. Other published articles can be found on Google under “Vanishing Cyprus” or under “Andreas C Chrysafis.