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JANE BURGERMEISTER REPORTS: ‘TAX PAYERS OF EUROPE SET TO FOOT BILL FOR GREECE’S INEVITABLE DEFAULT’

TAX PAYERS OF EUROPE SET TO FOOT BILL FOR GREECE’S INEVITABLE DEFAULT

Jane Burgermeister | April 14, 2011 at 4:35 pm | Categories: Uncategorized | URL: http://wp.me/puNtl-1bB

German government economic advisor Lars Feld has warned that the tax payers of Europe, and not private creditors, will have to foot the bill for the upcoming default of Greece because the European Central Bank (ECB), in the meantime, holds so many Greek souvereign bonds in another bit of bad news as the financial meltdown of the eurozone accelerates.

http://www.faz.net/s/Rub3ADB8A210E754E748F42960CC7349BDF/Doc~E5E54D48EB6E74F0EBF1047029B6CA0A1~ATpl~Ecommon~Scontent.html

Abandoning all pretence at performing its function of being a guardian of sound monetary policy along the lines of the Bundesbank, the ECB has been buying up Greek and other government debt even when it is rated as junk.

Feld said that he thought the ECB chief Jean Claude Trichet wanted to postpone an inevitable default by Greece until he had left the bank in October so that the 77 billion euro cost of servicing national debts that have accrued to eurozone tax payers — after bondholders have made a fast exit with the profits — would not appear on the bank’s balance sheets before then. Read more of this post

April 15, 2011 - Posted by | Fighting corruption internationally, Jane Burgermeister Report

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