the ECB is profiting from Greece's destruction
ECB can't loan to countries, but bailed-out Spanish banks can
imposed austerity guarantees that countries will declare bankruptcy
BTW every Euro country is technically bankrupt
Even Germany needs 168 years to pay its debt, as it stands
the longer the crisis, the worse the Euro is
the worse the Euro is, the better Germany exports are
IshitUnot: 3 texts
1
VAROUFAKIS.eu
...1. A week ago the bankrupt Greek state borrowed 4.2 billion from Europe’s bailout fund (the EFSF) and immediately passed it on to the European Central Bank (ECB) so as to redeem Greek government bonds that the ECB had previously purchased in a failed attempt to shore up their price. This new loan boosted Greece’s debt substantially but netted the ECB a profit of around 840 million (courtesy of the 20% discount at which the ECB had purchased these bonds).
2. During the same week, the fiscally stressed Spanish government was injecting large amounts of capital into Spanish banks. Simultaneously, to help finance the Spanish state, the ECB has provided large loans to Spanish banks (at 1% interest rate) which they then re-lent to their ‘saviour’, i.e. the Spanish state, at interest rates often exceeding 6%.
3. For the Greek and the Spanish governments to be ‘allowed’ to borrow the monies involved in the operations described under 1 and 2 above, the ECB and the European Commission (plus, in Greece’s case, the International Monetary Fund) demanded of them that they deflate their economies through savage spending cuts which will, with mathematical precision, reduce the national income from which loans, new and old, must be repaid.
4. Average interest rates in the Eurozone (even if we exclude the three countries that have fallen out of the markets and have received ‘bailouts’, and include Germany’s crisis-induced ultra-low rates) are at least 1.5% higher than nations with a higher average degree of indebtedness, e.g. the UK.
The German Chancellor (correctly) argues that we cannot escape a debt trap by accumulating more debt. However, consider facts 1,2&4 above: they constitute a typical case of adding debt to debt; of insolvent states borrowing in order to pay a Central Bank that is lending to insolvent banks which, at once, receive capital from insolvent states and lend to them part of the money they themselves borrowed from the Central Bank! [aAAAAAAaaaaAaAaAAAAahHHhHhhhHHhHhhhh-Costick67]
2
Germany would require 168 years to pay its debt
imerisia.gr – 30 Μαϊ 2012....
[translated] The German government insists on the austerity measures for the euro area countries, but in Germany itself there are few institutions that control and prohibit non-rational spending
Germany would require 168 years to pay its debt, which exceeds 2 trillion euros. And this, provided of course that today will not borrow a single penny now and every month we have one billion to repay its debt.
3
..L' echo: Germany wins over the crisis in the eurozone
Newsit.gr | NewsIT –
the Belgian French-speaking newspaper "L 'echo", today, the "insolent behavior" of Germany is benefiting from the crisis.
With surtitles "Germany benefits (too much), the crisis in the eurozone," the article emphasizes that the country gaining the most from the European problems is not Spain, but Germany, which, in fact, enjoys "shamelessly" from this crisis.
