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Draghi activates his trap

globinfo freexchange

"Accidentally", only a few days before the Greek elections, the ECB decided that it's time to start a QE program similar to that of the US Federal Reserve, to "stimulate" the economy. Already mentioned that “... the ECB will blackmail the government by threatening that will not purchase government bonds, therefore cut liquidity, in case that Greece choose a different path towards the reconstruction of the social state and labor rights, bringing minimum wage at pre-crisis levels, etc.” (http://failedevolution.blogspot.gr/2014/12/various-scenarios-for-national.html)

Indeed, from RT:

The European Central Bank announced it will embark on a fully-fledged quantitative easing program from March, which will break down to €60 billion per month. The move is made to counter a triple-dip recession in the eurozone.

Confidence in the south of the EU was shattered, as bond yields in countries like Italy and Spain fell to record lows. The president said that the bank may purchase bonds in Greece after July.

QEs have been largely criticized for not delivering real effect to ordinary people, since the money flows into the bond market and not into people’s direct spending power. Richard Wellings, Deputy Director of the Institute of Economic Affairs in London told RT that the ECB program is 'unlikely to help the general economy, ordinary people on the street. It’s actually going to bailout the basically bankrupt European banks.'

The next obstacle for the eurozone is Greece which holds a general election on January 25, where left-wing SYRIZA is poised to take control of the fragile economy that hasn’t seem a significant improvement under its EU bailout plan. In campaign speeches, SYRIZA leaders have promised to re-negotiate the austerity terms the country was forced into. Analysts worry about the political and economic effect on the continent should there be a ‘Grexit’ from the euro.


It seems that all three steps of the transformation of ECB start to become a reality, as predicted. The first step is the transformation of the ECB to a corresponding Federal Reserve: “The ECB is converted into an equivalent European Fed, which means, gaining complete control of the money flow through the whole eurozone.” (http://failedevolution.blogspot.gr/2012/09/lea-jacta-est-by-emperor-draghi.html)

The second step is the complete control and direction of the money flow inside the eurozone, which is directed not to the real economy, but to the biggest financial institutions who represent one of the most powerful lobbies in the EU: “The latest decision by the 'emperor', in essence means one thing: Unlimited access and control of the money flow inside eurozone by the biggest financial institutions. The European neoliberal economic empire is established for good!” (http://failedevolution.blogspot.gr/2014/09/the-emperor-spoken-again.html)

The third step is the transformation of the ECB to a very effective trap which will force eurozone countries to adopt cruel policies. In exchange, ECB will provide liquidity to the national banking systems, supposedly to protect depositors' money and stimulate investments: “States that are excluded from markets, are now trapped within the neoliberal economic empire of the eurozone and will be forced to follow new austerity measures every time they need ECB to buy their bonds.” (http://failedevolution.blogspot.gr/2012/09/lea-jacta-est-by-emperor-draghi.html)

The European people should know that none of these things happened in Greece, despite that the banking system bailed-out with billions. The real economy has nearly destroyed and deposits were never protected, especially after the bail-in fiasco (http://failedevolution.blogspot.gr/2013/07/why-banksters-laugh-with-recent-ecofins.html). It is important for the new government in Greece together with the Greek people to resist against Draghi's blackmail. If Greece falls, then all the other eurozone countries will start to fall to the ECB trap, one by one.

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