Merkel rejects colleagues call for Greek Gold!
On 6th August this blog spelt out in a very detailed posting why the EFSF would not be able to function without contributions from Italy and Spain. The post attracted two very illuminating and important comments from Denis Cooper. The posting is linked here.
The disputes regarding collateral, upon which this blog has been commenting ever since the requirement for Finland and Greece to reach a collateral agreement was included in the deal for the second Greek Bailout, a point being totally ignored by the MSM reporters belatedly coming to this fiasco, is now being used to obscure the harsher fact that NONE of the parties to the 21st July accord can really afford to enter into the far reaching obligations the agreement involves. An updated explanation of the EFSF was issued on 2nd August and is linked here.
The case appears to me to be that the ECB is also now incurring yet more liabilities, for in purchasing existing Italian and Spanish bonds and then sanitising equivalent amounts, as announced yesterday, at the end of the day is buying assets others do not want they cannot therefore be worth the full purchase price. Self-filling money boxes and Golden Geese I accepted as only fairy tales when leaving boyhood!
The Irish Times article on Greek Gold, which would be almost funny in other times, is linked here. If the Greeks have all that Gold at the present record high world gold price, pushing up towards $2,000 an ounce, why would they require all these interest rate subsidised loans?
The disputes regarding collateral, upon which this blog has been commenting ever since the requirement for Finland and Greece to reach a collateral agreement was included in the deal for the second Greek Bailout, a point being totally ignored by the MSM reporters belatedly coming to this fiasco, is now being used to obscure the harsher fact that NONE of the parties to the 21st July accord can really afford to enter into the far reaching obligations the agreement involves. An updated explanation of the EFSF was issued on 2nd August and is linked here.
The case appears to me to be that the ECB is also now incurring yet more liabilities, for in purchasing existing Italian and Spanish bonds and then sanitising equivalent amounts, as announced yesterday, at the end of the day is buying assets others do not want they cannot therefore be worth the full purchase price. Self-filling money boxes and Golden Geese I accepted as only fairy tales when leaving boyhood!
The Irish Times article on Greek Gold, which would be almost funny in other times, is linked here. If the Greeks have all that Gold at the present record high world gold price, pushing up towards $2,000 an ounce, why would they require all these interest rate subsidised loans?
Labels: EFSF, Gold, Greek Bailout 2.0
posted by Martin at 8:53 AM
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