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This needs to be a rallying cry to all those not profiting from the existence of the Euro, and those smart enough to stay out of its Zone.

The Noose Around Greece: How Central Banks Harness Governments | Common Dreams | Breaking News & Views for the Progressive Community

Why would the ECB have to "interrupt liquidity provision" just because of a "clash with international lenders"? As Mark Weisbrot observed, the move was completely unnecessary. The central bank can flick the credit switch on or off at its whim. Any country that resists going along with the troika's austerity program may find that its banks have been cut off from this critical liquidity, because the government and the banks are no longer considered "good credit risks." And that damning judgment becomes a self-fulfilling prophecy, as is happening in Greece.

"The Icing on the Cake"

Adding insult to injury, the ballooning Greek debt was incurred to save the very international banks to which it is now largely owed. Worse, those banks bought the debt with cheap loans from the ECB! Pepe Escobar writes:

The troika sold Greece an economic racket . . . . Essentially, Greece's public debt went from private to public hands when the ECB and the IMF `rescued' private (German, French, Spanish) banks. The debt, of course, ballooned. The troika intervened, not to save Greece, but to save private banking.

The ECB bought public debt from private banks for a fortune, because the ECB could not buy public debt directly from the Greek state. The icing on this layer cake is that private banks had found the cash to buy Greece's public debt exactly from...the ECB, profiting from ultra-friendly interest rates. This is outright theft. And it's the thieves that have been setting the rules of the game all along.

Dear Syriza, please use your voice given to you by your voters' response to your platform to point out that to name this racket for what it is, and that the Euro is just the DM in drag.

Change the Euro, or change from it.

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty

by melo (melometa4(at)gmail.com) on Sat Mar 14th, 2015 at 09:23:58 PM EST

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