Econintersect: The policy announcement over last weekend by the European Commission and the IMF (International Monetary Fund) to levy a "tax" on deposit in Cyprus' banks is the most ridiculous ecoonomic move in the last one and a half centuries, according to Steve Keen. He maintains the policy is trust-destroying and capitalism cannot function if banks are not trustworthy. Keen suggests that this is "blowing the brains out of capitalism." Keen says the entire economic strategy of Europe is wrong headed; the problem is one of excessive private debt and public debt distress is a symptom of the private debt disease. He says Europe must stop treating the symptom and ignoring the causative disease.
[Video can be viewed after the Read more >> jump.]
Steve Keen was interviewed on CNBC Europe Wednesday (20 March 2013). Click on picture for the 6 1/2 minute interview.
- How Russia Could Take Revenge Over Cyprus Deal (Holly Ellyatt, CNBC, 20 March 2013)
- Cyprus Tax: "Blowing Capitalim's Brains Out" (CNBC Europe, 20 March 2013)