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The head of
the European Financial Dictatorship (EFD), reminded us again who is
the "boss". He confirmed for one more time that Greece has
been transformed into a debt colony, in which one of the most cruel
neoliberal experiments is taking place.
After the
financial coup last summer against Greece, through which the ECB
threatened the country with total economic collapse, the head of the
EFD made clear that, in essence, will not tolerate any divergence
from the Greek experiment program. The letter was sent to SYRIZA
members of the euro-parliament and proves one more time that Greece
is totally dependent economically from the euro and from the buying
of state bonds by the ECB.
Specifically,
Mario Draghi answered through a letter to questions imposed by SYRIZA
MEPs, Stelios Kouloglou and Dimitrios Papadimoulis, in which
essentially states that ECB will start buying Greek bonds only when
the country will fully apply the Greek "program", as its
creditors dictate.
In the
letter it is stated among other things that:
...
for programme countries like Greece, the timing of possible
purchases [for bonds issued by a government] depends on a set of
additional factors linked to the programme reviews.
[...]
The
Eurosystem and the Bank of Greece are continuing to support Greek
banks in financing the real economy and are thus contributing to
the stability of the country’s financial system, as evidenced by
developments in central bank funding extended to the domestic
banking system since the end of 2014.
[...]
...
following the successful recapitalisation exercise, the
demonstration of commitment to and ownership of the new
macroeconomic adjustment programme is key to enhancing the
confidence of depositors and market investors in the Greek banking
system, and thus to creating positive liquidity effects in the
Greek economy.
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At
the beginning, Draghi makes sure to remind that “...
the rating of Greek government debt does not currently fulfil this
criterion ...”, for
which the rating agencies are responsible, of course.
In
other words, while the Greek Public must pass through all the
neoliberal catastrophe, applying every detail of the "program"
imposed by the creditors, in order to get liquidity from the ECB, the
ECB continues to lend the failed Greek banking system. A system in
which most of the people of the failed administrations had kept their
positions. A system which remains to the hands of private bankers/investors.
Therefore, the Greek economy is hostage of the ECB and the private
bankers.
Therefore,
the mechanism of the EFD to transform the eurozone nations into debt
colonies, is officially confirmed. This is the mechanism which was
described accurately by this blog in 2012 already, when the unlimited
bond purchase by the ECB, was announced in triumph by the mainstream
media:
... the ECB becomes a
corresponding Fed in the European area, “serving” the
problematic economies that are excluded from the bond markets,
through the print of new money. Therefore, the problematic
economies will be loaded with more and more debt which the ECB,
i.e. the largest private European banks will hold. Someone could
argue that is not something new, since nations were facing huge
debts in previous years, because they were indebted to banks
through the excessive borrowing from the markets. But in this
case, there is an important difference that makes things much
worse: it is the cruel conditions imposed by the ECB to states
that need to buy money. 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.
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