EU “under the table” support of Portugal

From today’s Open Europe news summary:

ECB lending to banks in Portugal reached €50.2bn in July, its highest level for seven months. Bloomberg WSJ Reuters Irish Independent

under_table_bribe_moneyAs explained by Professor Philip Bagus in this essay, the European Central Bank supports profligate countries via its START2 program, whereby deficit banks never really do settle accounts.  Whereas EU treaties prohibit the ECB from buying sovereign debt, the ECB bypasses this restriction by “lending” euros to still extant national central banks, taking sovereign debt as collateral.   Thus, treaties mean nothing…put your faith in gold.  Patrick Barron

This entry was posted in News/ Lessons. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s