New Europe – The real money has come from the European Central Bank (ECB), which handed €1 trillion to the Eurozone‘s banks. It was this trillion euro that paid for Greece‘s debts, rather than German taxpayers, and this is how – the ‘liquidity’ loans from the ECB went to 800 banks at a negligible interest rate of 1%.
In total, these lenders are expected to make a windfall profit of €300bn, just by lending the trillion euro during this period of time. The profits made will be enough to pay for the losses on Greece’s debt or any other Eurozone sinner’s default.
Clever? We don’t think so, because actually, it will be the Eurozone citizens who will foot the bill through higher inflation or via a necessary capital increase in the ECB to cover for the central bank’s losses from loans that will not be repaid – even if all those loans are paid back to the ECB, the fact remains that the borrowing banks will make profits of €300bn just by exploiting the trillion for three years. more> http://is.gd/dDAZ71
- Updates from Congressman Ron Paul
- Europe’s Trust Deficit, Barry Eichengreen, Project Syndicate
- The cunning plan revealed? Buttonwood, Economist
- Inside Mario Draghi’s quiet revolution (business.financialpost.com)
- ECB leaves rates unchanged at 1% (bbc.co.uk)
- ECB keeps rates unchanged as crisis eases (seattletimes.nwsource.com)
- ECB: Gloomy on economy, upbeat on euro (money.cnn.com)
- ECB keeps rates unchanged as crisis eases (newsok.com)
- ECB chief sees signs of stabilization in economy (seattlepi.com)
- Risk Provisions Cut Into German Central Bank Profit (blogs.wsj.com)
- You: Eurozone crisis live: ECB to launch massive cash injection (guardian.co.uk)