It goes something like this: The longer the Greeks fail to sanitize their debt, the more it will weigh on the ECB balance. Greece is now mostly lending to pay off maturing debt. Since no market party will loan Greece the money (for evident reasons) they turn to the lender of last resort, the ECB. And thus the Greek debt is slowly siphoned away from commercial banks and into the ECB books. The extra loan of 12 billion approved last week will thus increase the amount of (quite worthless) Greek paper on the ECB balance from 49 billion to 61 billion.
The moment the full Greek debt is on the ECB books (which is the moment all those stupid, malign bankers have got themselves free of Greek debt paper) will be the moment to convert the debt to Eurobonds. this will allow the Greek government to sanitize their debt in one fell swoop, while the call for stricter controls on member state government spending will be abused to ram through the political union that is the ultimate aim of the EUnion from its inception. Effectively, the richer, more disciplined member states, like Germany, The Netherlands and the UK, will pay for the deficits of the weaker brethren for decades to come.
This scenario explains the dithering of the EUnion council. They can afford to wait. It is in their interest to wait. Greece will not default, it will be bailed-out until such time that all of its debt is on the ECB books. That will be the opportune time to cement the EUnion as a political entity.
And then it will be you and I, who will pay for the Greeks (and the Spanish, and the Irish, and the Portuguese, and the Italians, and the Belgians and the French) for years and years to come. And Our Father only knows what moronic initiatives will be deployed by the EP and their new-found mandate under a political union. But it'll cost us, on top of everything else.
It is quite incomprehensible that German, Scandinavian, British and Dutch politicians do not put a stop to this. Once again there's a strong whiff of treason in the air. By going along with this they are not serving the peoples they were sworn to serve, they are serving the enemy of these peoples.
With Andrew Lilico, we must seriously ask ourselves: So, whom do I sue?
Article 125 of the EU Treaty states:(emphasis is mine - KV)
The Union shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of any Member State… A Member State shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of another Member StateEveryone knows that this Treaty article was violated by the Greek, Irish and Portuguese bailouts. Indeed, senior French politicians have not been shy of spelling matters out. For example, in May last year, French Europe Minister Pierre Lallouche cheerfully declared: “De facto, we have changed the treaty”. Again, Christine Lagarde – now favourite for the IMF job – stated last December: “We violated all the rules because we wanted to close ranks and really rescue the euro zone…The Treaty of Lisbon was very straight-forward. No bailout.”
Now if, say, Greece and Ireland default, then bureaucrats and politicians will have lost lots of my money doing something forbidden by ratified international treaty. Can I sue them, to get some of it back?
Then again, I am getting to the point where I wonder who we must execute, rather then sue. The list grows longer every day.
And thus we knit and knit.
[UPDATE001] Then again, Dr. North is a bit more optimistic (if that is the right word): The "colleagues" fudged the euro launch, they fudged the figures to get Greece on board, and now we are all going to pay the price. As yet, there is no one on this planet who can tell us with any confidence what that might be. The only certainly is that Greece is going to fail - and it is going to take the euro with it.