Thursday, March 08, 2012

EU plans to abandon the rule of law next Monday!

 The options open to private investors holding Greek bonds subject to the deadline of 2000 GMT this evening are not easy, as Reuters discusses here.

The outcome for bondholders with instruments that are subject to Greek Law are it is everywhere admitted, likely to be more painful than for certain others. That, in this blog's view, is a penalty for a bad decision taken on the back of an even worse one, namely lending to Greece in the first place and thereafter accepting that Greek Law would Govern - foolish greed could rarely be better defined.

What is completely unacceptable, however, for future lawful trade deals with a block that has created that environment, is the situation that now arises in Greece, where the democratically elected Prime Minister has been removed and replaced by a puppet, himself a creature of the institutions controlling the bond settlement, thereafter re-interpreting the national law which previously would have protected that bond-holder!

Worse still, what if that risk of default had been covered by the investor with insurance via the purchase of a CDS, and the institutions (the EU and the ECB) that positioned the puppet, Lucas Papedemos, were now able to use their international financial clout to prohibit that insurance being paid as the very event that was feared actually occurs.

Whom,in the future would wish to run their business within, or trade with an entity within or with  any member of such an immoral and utterly piratical institution. That is why Britain should remove itself from the EU forthwith.  In so doing it should  ignore all the cries that our trade is partly dependent upon the EU, such trade should not be relied upon! Watch the events as they unfold in Greece over this coming weekend and do not be fooled by any assurances that they will not shortly be seen elsewhere across the EU!

Background reading and the likliehood this precedent may be followed elsewhere may be found here.

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