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So this Cypriot bank levy thing is

2013-03-17 23:41:12.26466+01 by Dan Lyke 5 comments

So this Cypriot bank levy thing is essentially a way to simulate local inflation, devaluing only Cypress Euros?

[ related topics: Economics ]

comments in ascending chronological order (reverse):

#Comment Re: made: 2013-03-18 00:14:16.406073+01 by: meuon

"stimulate" I think is what you meant, and I had the same thought. The side effect of this tax is in fact it's primary goal: get some cash flowing in society.

#Comment Re: made: 2013-03-18 02:09:46.726277+01 by: Dan Lyke

No, I meant "simulate", as in a Euro is still a Euro, but if it's a Cypriot Euro its suddenly worth less. Kinda.

#Comment Re: made: 2013-03-18 20:12:55.89487+01 by: meuon

Only if you deposit a lot of it.. Right?

#Comment Re: made: 2013-03-18 23:17:07.388506+01 by: Dan Lyke

Right. If you've got it stashed under your mattress (unlikely), or invested in places other than Cypress (more likely), it doesn't devalue.W

And the more you have in those Cypress the more it devalues (at least at that 100k Euro boundary), which makes it an interesting kind of deflation, but...

Weirdly, it sounds like there were a whole bunch of foreign investors, which makes bank malfeasance that much more probable.

It'll be interesting to see how people deal with this, whether it reduces confidence in the Euro generally, or just in those banks.

#Comment Re: made: 2013-03-19 00:50:17.21987+01 by: TheSHAD0W

It's going to cause a number of people to lose confidence in all EU banks. I'm expecting precious metal prices to rise significantly over the next few weeks.

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