The deal with Russia collapsed as sources there claim there were phone calls burning up the wires in that part of the world. They say USA made calls warning Russia not to intervene and others claim this will help Europe. I do not know about the phone calls. But this by no means will create a stronger Europe – it will be the worst.
The lawmakers in Cyprus are now forced to turn back to Europe. Within a matter of hours, the politicians in Cyprus are trying to satisfy Europe. They are now considering proposals to nationalize pension funds, pool state assets and split the country’s second-largest bank in a desperate effort to satisfy exasperated European allies. None of this would have happened had Europe properly designed the Euro with a single national debt from the outset and then each state thereafter who created debt would have been on their own and the debt they created would NEVER have been reserve quality. But politicians refuse to do the right thing. They are only concerned with winning elections. The markets may rally as the mainstream media portrays this as some sort of resolution and Europe will now be back to normal. This is a time bomb waiting to explode. The Euro cannot survive without major restructuring. This is not a question of bailout Cyprus – watch what happens in France just around the corner.