Thursday, August 9, 2012
ECB Prints Euros to Give to Greece to Make Interest Payments to ECB
No entity is willing to stand up and say the obvious, that Greece is insolvent and cannot and will not pay back its debts. Moreover, in spite of an ECB mandate that prohibits direct financing of governments, the ECB is doing just that. Simply put, the ECB is printing euros, to give to the Greece, so that Greece can make interest payments to the ECB on maturing bonds. Der Spiegel notes the absurdity of this setup in The European Central Bank's Discreet Help for Greece.