For every “Cause” there is an “Effect’.

So let’s analyse the Cyprus “Effect”, and what "Caused" it.

The “Effect”, the need for more money into the Cyprus government coffers, was Caused by Politicians making not-very-well-thought-out decisions, and spending above their means.

So how did this affect the banks?

All western systems are set up so that everybody, individuals, governments etc. that legally borrow value has to go through the banking system, i.e. The government(s) involved, deposit the “funds” into the bank (A) and it then gets transferred through the banking system, to bank (B) the bank that is going to repay the loan. However, before the funds are made available by bank A, they need a guarantee of how they will get repaid by bank B.

Why do the banks need to be involved (the effect)?

That was “Caused” by politicians giving the banking system that power.

And who gave the government these powers?

WE DID!

Ergo; we created the problem and when the government has no answers, the responsibility is passed back to us.

Comment:

Next time you vote, think first!

Good Luck to all!