Flawed logicDecember 8, 2011
Life here is rarely dull (although we do occasionally drop off the radar from time to time!) but there are times when the Cypriot logic defies belief. This is often the case when politicians are involved. This week has seen two glorious examples so far.
Yesterday Standard & Poors threatened to downgrade the entire Eurozone. Cyprus is already sitting on a rating that is little above junk status. This should be a concern and yet the president is untroubled. It will not matter, he says, that no one reputable will lend us money; we’ll just borrow some more from the Russians!
Indebted and beholden to the Russians, again. Fantastic gameplan. Obviously borrowing another couple of billion euro from them is a much, much better than actually doing something about the economic crisis.
In other news drilling and exploration of the new gas field, Block 12, continues. Some folks are excited at the prospect of the untold wealth to come; others are sanguine about anything of use being found at all. Some have wondered just where and how the spoils, estimated at $450bn this week, might be brought ashore if anything is found. It seems we needn’t worry on that score, there is a plan. Sadly the plan centres on piping the oil and gas ashore next to the Vasilikon power station.
You may have heard of the power station: it made the news in the summer when 90 or so containers of munitions, stored at the main naval base and next door to the power station, exploded. 13 people, including the head of the Navy, were killed, dozens were injured and over 50% of the electricity capacity of the island was destroyed. You’d think they could find somewhere better, wouldn’t you?
For the full ‘before vs after’ image see here.