TSXV:EUU - Post Discussion
Post by
PamplonaTrader on Mar 19, 2013 12:44pm
Russia vs Germany
With EU forcing a one-off levy on Cypriot (Russian) deposits and likely retaliation from the Russians, energy security will become and even more important for European countries, 36% of which rely on Russia for gas supplies.
Steve Keen, professor of Economics & Finance at the University of Western Sydney, told CNBC that Russia could retaliate against the perceived proxy attack on its citizens, and their money.
"If you try to target the Russians, and there's President Putin acting under the image of the 'strong man' of Russia, why would he not then decide to shut down gas supplies to Germany until that was righted?
"If you're going to attack money laundering then attack it directly, don't make Cypriot peasants and small businessmen collateral in your campaign against Russian oligarchs. Declare the campaign rather than doing it under the carpet like this too," he added.
Cyprus Tax: 'Blowing Capitalism's Brains Out'
Steve Keen, professor of economics at the University of Western Sydney, argues that if you destroy the trust depositors have in their bank accounts then you destroy the oil of capitalism.
"Russia has been willing to play that card before," Keen said, alluding to when Russia's largest state-owned gas and oil supplier Gazprom reduced gas supplies to Europe in 2009 during a dispute with an Ukrainian energy company.
With 36 percent of Europe relying on Russia for its gas supply, the threat or act of limiting supplies gives Russia a powerful card to play should it wish to push home a political point against Germany.
https://www.cnbc.com/id/100566854
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