Want more proof that ECB runs Europe for the benefit of bankers at the cost of taxpayers 😉 Next week Ireland is to pay back debt for a bank that doesn’t exist anymore on the insistence of the ECB. The bank in question is Anglo Irish Bank  which was shut down long ago. This particular bank wasn’t even important to the economy. Joe Soap didn’t bank there, just developers got loans in a massive ponzi scheme for the property market in Ireland. The debt which Irish taxpayers are being asked to pay are of course unsecured and unguaranteed bondholder debt which means it doesn’t and shouldn’t be paid back. But the ECB have other ideas. Banks before People.

Next week, the media attention will focus on another pay-off to holders of unguaranteed and unsecured bonds in the collapsed Anglo Irish Bank, who will collect 100 per cent of the due amount on their inspired investment, back in 2007, in this highly leveraged property hedge fund.

The European Central Bank continues to insist that reimbursements in full be made to those who hold bonds issued by Anglo Irish — bust many times over, closed down and under garda investigation — at the expense of an insolvent State. This will in time come to be seen as one of the strangest episodes in the history of central banking.

So is the ECB policy of ass-raping taxpayers working?   😦

The ECB has chosen to persist in regarding the insolvency of an EU member state as a minor sacrifice in the great cause of pretending that Europe does not have a banking crisis. The policy is now entirely pointless and failing to achieve its unexplained but presumed objective, continued access to the bond market for European banks.

Nobody at the ECB appears to understand that this policy is increasingly seen as an act of straightforward hostility towards this country, notwithstanding Ireland’s errors and failings in the stewardship of its banking system.

The policy does not even enjoy the justification of succeeding on its own terms, since hardly any European banks can any longer sell bonds into a market thoroughly disenchanted with the myriad failures of the European response to the crisis.

There are three eurozone member states in bailout programmes. The programme agreed for Greece in May 2010 has failed and Portugal is unlikely to exit its programme on schedule. Would the ECB like to have even one success?

Source: Colm McCarthy, Irish Independent

To follow on this theme, below is a clip of a news conference this week when the troika came to town. A reporter Vincent Browne posed a question to Klaus Masuch of the ECB of why Ireland has to pay back Anglo’s unguaranteed bondholders? Vincent asked. To maintain the financial stability of the Irish banking system, explained Klaus. But then why pay Anglo bondholders, when Anglo is no longer a part of our banking system, and when the paying of them makes it harder for Ireland to recover and in fact makes it more difficult to honour our legitimate, sovereign debts? No explanation was forthcoming.

Masuch squirmed in his chair as Browne criticised the ECB for inflicting huge damage on society in Ireland by requiring irish people to repay back debt for the benefit of european financial institutions. Masuch sat in an embarrased silence.

Good to see someone tell the ECB what they think. Of course the Irish presstitutes completely ignored the story.