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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Something to note…

Posted by WARREN MOSLER on April 30th, 2012

Spotted by Sean Keane

It was also interesting to note an easily overlooked article in Greek online newspaper Kathimerini saying that the European Commission is pressuring the European Investment Bank to withdraw a clause that it recently inserted into its new loan contracts that were signed with a number of Greek companies. The new clauses allow for the repayment of debt in Greek Drachma instead of Euro, should the Greeks decide to leave the EU at some point in the future. Clearly the EC is displeased at one of the foremost European lending institutions legally embedding the possibility of something happening which the Commissioners all insist is impossible. Commissioner Olli Rehn reportedly called the clauses “unfortunate and incomprehensible2”. A cynic might note that the EIB has taken an appropriately commercial and realistic approach to the loans, free of the politics that surround the EC.

3 Responses to “Something to note…”

  1. PG Says:

    The commissioners do not understand that the survival of their positions (and quite the receiving of their pensions) is practically granted if the Eurosystem is transformed to a multi-national system of free floating national currencies.

    They also do not understand that keeping the actual single currency Eurosystem grants the collapse that they fear so much.

    They should have been given lots of transformers to play with when they were children ;)

    Reply

  2. Brian Says:

    …should the Greeks decide to leave the EU…

    Do they have to leave the EU outright or just replace the Euro?

    Reply

  3. perpetual neophyte Says:

    Something else to note on ECB and ELA (Emergency Liquidity Assistance):
    http://ftalphaville.ft.com/blog/2012/04/30/978891/more-on-secret-liquidity-inside-eurozone-secret-liquidity/

    Reply

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