Thursday, March 15, 2012

Greece is printing its own Euros!

The statement should come as no surprise for that is what the euro common EU currency is all about. However such production is supposedly under the control of the ECB for each member bank. Greek euros begin with the letter Y before the serial number, we must hope that any non-ECB authorised notes printed by the Greek Central Bank bear no other introductory letter, for if they did the euro currency would be immediately sunk.

The report on this apparent clandestine extra money production comes via The Slog, linked here, and the following is part of the translated source report from Belgium:

"Greece is printing its own Euros. The bank of Greece credits the accounts of Greek banks that would have been shutting their doors but for the emergency funds. All Greek banks are effectively bankrupt, it is that simple. These zombie banks can only survive through these ELA injections. Within the ECB system the only collateral for the euros created within the ELA mechanism - is the guarantee of the Greek state. I do not know what you think of this, but my humble opinion is that this guarantee is as good as worthless. You can change all sorts of declarations about the whys and wherefores of these operations, but believe me, the basic fact is simple: only by allowing the Greek central bank to print euros [create euros] can you avoid the implosion of the entire Greek financial system, with all the consequences that this would have for the eurosystem as a whole"

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