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Why we should not pay the promissory note

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Euro

Euro (Photo credit: aranjuez1404)

By David Mc Williams

The ECB never does anything without an eye on global trends. In the overall scheme of things, despite being the “European” central bank, things that happen in small European countries matter little in setting the tone. In contrast, what happens in big countries with competing currencies to the Euro, matters a lot.

When it comes to small European countries, the ECB’s tactics are always the same: threats, nasty leaks, warnings of Armageddon, orchestrated press releases, all followed by a well-disguised climb down. Expect the same here.

The reason for this is that the ECB has no conventional weapons but it does have the nuclear option: when a country can’t pay its debts, the ECB can cut off the banking system from ECB financing. This brings the country down which will cause chaos not just for the country but, via contagion, for the whole Euro system. So the ECB is condemned to climb down, the best example is Greece, a four-time defaulter within the Euro, and yet money still comes out of its ATM machines in Athens.

But all the while, the ECB is more worried about what is happening in Japan then either Ireland or Greece.

In its most blunt terms, the independence of the Japanese central bank is over. The government has decided it’s time to generate inflation, time to let the Yen fall and kick-start the economy via debasing the currency……………………

full article at source: http://www.davidmcwilliams.ie/2013/02/07/why-we-should-not-pay-the-promissory-note?utm_source=Website+Subscribers&utm_campaign=b177eb80a6-22112012&utm_medium=email

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Author: machholz

I started this Blog to get out of my system the absolute rage that I have for the corrupt politicians and their Banker Buddies. I’m an ordinary guy, married with kids, and have firm opinions of what is right and what is wrong. I’m not afraid to say it even when it makes me unpopular. I reproduce news all manner of articles, but will always confirm the source of the articles; this is a compliment to the source of such news pieces. But if you do not agree with this and you are the original author, I will take down any article when requested to do so. I do not assume that the author of the news articles share with my views, I include news articles to give readers another slant to my views or to illustrate what the mainstream news media say on the relevant topic. The opinions expressed are my own but I do not accept liability for them, If I have offended you or made a factual error please put on record the truth by leaving a comment. In addition, my thoughts and opinions change from time to time...I consider this a necessary consequence of having an open mind. This weblog is intended to provide a semi-permanent point in time snapshot and manifestation of the various memes running around my brain, and as such any thoughts and opinions expressed within out-of-date posts may not the same, nor even similar, to those I may hold today. For the record I am currently an Independent political activist and am not affiliated to any political party

One thought on “Why we should not pay the promissory note

  1. Pingback: No matter how Coalition dresses it up, we cannot afford to pay Anglo’s debt | Machholz's Blog

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