ECB Blows Up Europe? Creates ‘Super-Immune’ Elite Bonds … Throws Credit Market into Disarray
Monday, March 05, 2012
Investors call on ECB to play fair in sovereign credit … Resentment at the European Central Bank’s immunity from losses on Greek debt has left fund firms wondering about the strength of their creditor rights and whether they should blacklist bonds purchased during emergency sprees by the lender of last resort. By sidestepping markdowns on Greek bonds, the ECB has effectively robbed fellow senior creditors of their top rank status, investors say, forcing each to forgive a greater proportion of the debt than they might otherwise have needed to. “I think many investors believed that as they were holding the same bond as the ECB, they should therefore be considered in the same boat as the ECB,” said Michael Krautzberger, head of the Euro fixed income business at BlackRock. – Reuters
Dominant Social Theme: What central banks do is “legal.” What YOU do is something else again.
Free-Market Analysis: We have often written the goal of the Anglosphere power elite is to create a worldwide depression on the way to one-world government. They are seemingly well on their way to doing that using the power of monopoly central banking, which they certainly seem to control.
The Anglosphere elites (as we have often indicated) – are made up of Jewish, Catholic/Vatican, religious, corporate and military elites. They wield enormous, world-spanning power. Thus, the evolution of the ECB’s immunity was surely predictable. Around the world, those who secretively run these banks are getting bolder and more obvious about their hold on power.
In fact, this is manifested in the high-handed manner in which European Central banks are refusing to mark down the face value of its bonds, no matter the provocation. In the event of an extreme financial “event” (disaster) the ECB shall remain “whole” – theoretically anyway – while others shall not.
This means (as we can see in the article excerpted above) that others shall have to accept LARGER writedowns of their bonds because the ECB is refusing to do so. This is how monopoly fiat money distorts a marketplace.
Monopoly (mercantilist) central banks are ruinous in part because in the modern era those running them simply assert private benefits to a coterie of insiders and then declare these benefits legal via the force of law.
This is why those who argue that central banks are “private” miss the point. Central banks are mercantilist entities, assuming power via the force of law. If central banks WERE fully privatized, we’d have no trouble with them. Let them play on a level playing field with other financial entities. And other monies as well.