Approximately €2bn (£1.7bn) of British deposits held in Cyprus will be subject to a levy of up to 10pc.

British-born Cypriots and their families, some of the UK’s 3,500 service personnel on the island and holiday home owners with savings locally are likely to be affected. The tax will raise €5.8bn to refinance the country’s ailing banks, in addition to the eurozone funds. The Government is considering reimbursing some of those affected

Which is why if the world economy is presently focused on debt rather than value, a soveriegn debt restructuring option through the IMF is better than further debt being generated that could repolarise the economy.

Previous depressions have been caused when the markets have been outrated by events such as crop failures (the 1920s USA and postwar USSR).

The Russian government has just blasted Cyprus's bank levy, piling more pressure on Nicosia ahead of this afternoon's vote on the bailout.

Vladimir Putin's official spokesman, Dmitry Peskov, told reporters in Moscow that the president is very concerned about the tax on savers.

Peskov said Putin had held a meeting on the situation in Cyprus this morning, where he was deeply critical of the plan:

Assessing the possible decision of imposing additional tax by Cyprus on deposits Putin said that this decision, if taken, would be unfair, unprofessional and dangerous.

Wealthy Russians own a substantial chunk of total deposits in Cyprus -- and eurozone officials were determined to make them share the pain of the bailout (given their concerns over money-laundering within the Cypriot banking system).

As mentioned at 7.53am, Russia has not decided yet whether it will extend its existing loan to Cyprus - giving Moscow plenty of leverage over the situation.

Every bank account and deposit box should now be considered as at risk of being stolen by the banks. Nothing is now safe in any bank. Title deeds, jewellery, money, etc. Whatever is deposited in any bank must now be considered to be potential legal plunder. The banks have declared themselves a no-go zone.

Lets face reality..... Labour are going to get back in in 2015, I give it a year to 18 Months until they bankrupt the Country and go cap in hand to the IMF.....