The head of the European Financial Dictatorship (EFD), reminded us again who is the "boss". He confirmed for one more time that Greece has been transformed into a debt colony, in which one of the most cruel neoliberal experiments is taking place.
After the financial coup last summer against Greece, through which the ECB threatened the country with total economic collapse, the head of the EFD made clear that, in essence, will not tolerate any divergence from the Greek experiment program. The letter was sent to SYRIZA members of the euro-parliament and proves one more time that Greece is totally dependent economically from the euro and from the buying of state bonds by the ECB.
Specifically, Mario Draghi answered through a letter to questions imposed by SYRIZA MEPs, Stelios Kouloglou and Dimitrios Papadimoulis, in which essentially states that ECB will start buying Greek bonds only when the country will fully apply the Greek "program", as its creditors dictate.
In the letter it is stated among other things that:
... for programme countries like Greece, the timing of possible purchases [for bonds issued by a government] depends on a set of additional factors linked to the programme reviews.
The Eurosystem and the Bank of Greece are continuing to support Greek banks in financing the real economy and are thus contributing to the stability of the country’s financial system, as evidenced by developments in central bank funding extended to the domestic banking system since the end of 2014.
... following the successful recapitalisation exercise, the demonstration of commitment to and ownership of the new macroeconomic adjustment programme is key to enhancing the confidence of depositors and market investors in the Greek banking system, and thus to creating positive liquidity effects in the Greek economy.
At the beginning, Draghi makes sure to remind that “... the rating of Greek government debt does not currently fulfil this criterion ...”, for which the rating agencies are responsible, of course.
In other words, while the Greek Public must pass through all the neoliberal catastrophe, applying every detail of the "program" imposed by the creditors, in order to get liquidity from the ECB, the ECB continues to lend the failed Greek banking system. A system in which most of the people of the failed administrations had kept their positions. A system which remains to the hands of private bankers/investors. Therefore, the Greek economy is hostage of the ECB and the private bankers.
Therefore, the mechanism of the EFD to transform the eurozone nations into debt colonies, is officially confirmed. This is the mechanism which was described accurately by this blog in 2012 already, when the unlimited bond purchase by the ECB, was announced in triumph by the mainstream media:
... the ECB becomes a corresponding Fed in the European area, “serving” the problematic economies that are excluded from the bond markets, through the print of new money. Therefore, the problematic economies will be loaded with more and more debt which the ECB, i.e. the largest private European banks will hold. Someone could argue that is not something new, since nations were facing huge debts in previous years, because they were indebted to banks through the excessive borrowing from the markets. But in this case, there is an important difference that makes things much worse: it is the cruel conditions imposed by the ECB to states that need to buy money. States that are excluded from markets, are now trapped within the neoliberal economic empire of the eurozone and will be forced to follow new austerity measures every time they need ECB to buy their bonds.