Ponzi Austerity, the EU Financial Oligarchs’ answer to the Banking and Debt Crisis.

The financially stressed Spanish Government was injecting large amounts of capital into the Spanish banks. Simultaneously , to help finance the Spanish State, The European Central Bank (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%.
The con trick is where there is a quick change of debt for debt, the indebtedness actually therefore increases. So austerity measures then become more severe. Someone is making money in this equation and it is not the people. The ‘short change game’ some call it the “Paper moon” syndrome where the transaction cons are like the Ryan O’Niel movie where the garage con trick is carried out. In this case it is the Troika (which includes the ECB, IMF and EU). The bankrupt Greek State was recently forced by the troika to borrow 4.2bn Euros from the EFSF (European Financial Stabilisation Facility) so as to immediately pass it to the 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 840million Euros, courtesy of the 20% discount at which the ECB had purchased these bonds.
(Yanisvaroufakis.eu). The Greek government was to keep 1billion Euros from its most recent tranche off its loan so as to pay pharmaceuticals for hospitals, schools and pensions etc and some public sector wages. This has effectually been cancelled and the whole sum transferred back to the ECB. This is indeed Ponzi austerity! The ECB, a year ago, entered secondary bond market and bought stressed bonds from Greece/Ireland etc. to pay them up (which failed of course). Nevertheless the ECB ended up with millions of Greek government bonds. In March these bonds were ‘haircut’ savagely. Not the ECB though, the ECB wanted to “take its money back”, but redeemed at face value even though the ECB never bought them at face value it bought them at 20% discount.
The profit is not used to offset the austerity measures; it goes into the pockets of the technocrats and administrators for organising the con-game. The Greek people are meant to be confused by the “Paper Moon” con game, so as not to know what is going on except that they are 840 million euros short. The European victims are the Greeks, Spanish and Irish etc.
Germany is attempting to “save” the Euro with its European Redemption Pact. Countries with debts greater than 60% of GDP, the so called limit under the EU’s Maastricht Treaty, and would transfer these debts into a redemption fund, which would be covered by joint bonds. The scheme has been called “euro bonds life” The catch is, countries using the scheme would have to cover 20% of their debt with collateral payable in gold or currency reserves. Default on your payments and you lose your gold.
(globeand mail.com)
Germany wants the gold. Germany, supervisor of the pact and presumed inheritor of the gold if the loans are not repaid, seem to be saying, “We don’t trust the euro as it is; it’s too weak, and so give us a stronger gold backed euro. Italy has 2,500tons of gold so this is something for them.

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