failed evolution
The German
banking mega-monster Deutsche Bank, starts to experience serious
turbulence, ups and downs. From more and more frequent reports around
the media, it seems that everyone waits in the corner to watch the
monster falling down, as well as the consequences of the collapse.
Considering the degree that the bank is exposed to financial junk, in
reality, no one could predict the consequences of the collapse, of
course.
It seems
unbelievable, but the German sado-monetarists appear to be stuck with the "rules",
inside this chaos. Yet, their position now is more difficult. They
managed to impose the new rule of bail-in in Cyprus and now demand to
be adopted by all member states. They don't seem to realize that all
sizes of the economies are not equal, neither all cases.
What they
did to small Cyprus demanded to be respected by the systemic-crucial
Italy. They refused Renzi a "traditional" bail-out to deal
with the Italian banking crisis and now, they are standing in front
of their own big nightmare called Deutsche Bank.
Despite that
Merkel refuses to support the bail-out of the bank in front of the
cameras, the technocrats are trying to find a way to deal with the
mess, without provoking further anger of millions of EU and
German taxpayers who are experiencing the consequences of economic
stagnation and austerity.
However, it
is obvious that the euro-circus is out of control. The Berlin
directorate and the Brussels have been proved totally inadequate to
deal with the refugee issue and the economic crisis. Some analysts
supported since 2010 already, that Germany could be the first that
would abandon the common currency, in case of a systemic crash.
Inside this
growing chaos, it appears that the German sado-monetarists have been
left with one option: escape the sinking euro-ship. It's not going to
be beautiful, but at least they have a plan for a national currency
that could restrict the catastrophic consequences.
But what
happens to the economically devastated Greece because of their
policies?
The Greek
banking system currently depends totally on Draghi's liquidity
through the emergency liquidity assistance (ELA) mechanism and the
Greek government doesn't seem to have any plan B for Greece to return
to national currency, yet.
It was
pointed back in February:
It is
almost certain that the Germans and others have ready plans to return
to the national currency. In case that the
German monster fall to the ground, everyone will run for their lives.
Greece will be left in the worst position, as it is now totally
dependent on Draghi's liquidity injections, after five years of a
systematic economic destruction by the EFD-IMF
axis. Unfortunately, Tsipras administration has been proved
unreliable to design a viable Grexit option. But now, Greece has the
last chance to design such an option, in order to limit the
terrifying, unpredictable consequences of the ugly collapse. There is
a little time left for Grexit, which could be proved the lifeboat
that would help Greece survive from the sinking of the Titanic.
Unless Tsipras pull a rabbit out of hat, it seems now that Greece is doomed.
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