The bully tactics employed by the ECB against the newly elected government in Greece demonstrates once again how the ECB and the entire European project puts the interests of banks and political elites over those of the average citizen.
Certainly, it is necessary to take a tough stance regarding fiscal responsibility and discipline. Very few people suggest otherwise.
However, the ECB maintains a different set of standards when it comes to supporting the banking system as demonstrated by its imminent initiation of quantitative easing (QE).
QE has failed in Japan and only had a degree of success in the UK and the U.S. Even Alan Greenspan admitted that it has been a “terrific success” for the rich but had failed to meet its stated objectives.
In time, deflation will likely lead to even greater QE and “emergency” QE debt monetisation. This will likely lead to high inflation and stagflation. Given the dollar’s current status as global reserve currency – this would quickly become a global phenomenon.
Where was the discipline in the run up to the 2008 prelude-crisis when major northern European banks were pumping vast amounts of liquidity and irresponsibly lending into obviously overheated property sectors of economies like Ireland, Greece, Spain, Portugal and Italy?
What consequences were suffered by Goldman Sachs when it was revealed in 2008 that the bank had aided the profligate Greek government to cook the books, legally of course, so as to facilitate it in borrowing €1 billion from the ECB which it could not afford?
Goldman went on to buy insurance on Greek debt demonstrating its complete lack of faith in its own actions and its ability to profit from poor advice proffered to clients and the public.